Plan 1. India Invest
A model stocks portfolio that you can easily replicate and build your own portfolio.
How it works:
- We recommend 10-20 stocks to build your portfolio.
- We recommend time of buying, time of exiting, and proportion in portfolio.
- We do not manage your funds; we only recommend you to build an equity portfolio.
- You also get research notes including investment rationale for all portfolio stocks (samples on site - CDSL, Sanofi)
- Information about buying and selling decisions is given by WhatsApp
- You get a weekly newsletter every Monday morning with a concise market view
Past Performance (as on 7-June-2021):
Total returns since inception in May 2018 = 148.9% (three years)
Nifty returns in same period = 48.8%
Our annualized returns = 35.11%
Nifty's annual return = 14.02%
Investment in stocks is subject to market risk. It is inherently risky. Investors should consider this in context of their financial goals.
For investors looking for capital protection plus above average returns. Minimum suggested holding period is one year. It also aims at positive returns every year, annual returns are near 30% since inception in 2018.
Our philosophy is to invest in stocks with long term high growth potential.
The companies should be well established with sound financial positions to survive during slowdown and able to capture growth during economic expansion.
We use following three strategies for company selection -
Strategy 1: Select Proven Industry Leaders
- Leadership Leads to Safer and Stable Growth: We recommend companies that are leaders in their industries and are financially very strong. Such companies are able to survive in recessions, and are not easily affected by negative government policies, import threats, technological changes, and competition. Being financially strong, they are in a better position to benefit from opportunities, and can expand more easily.
Strategy 2: Select Monopoly Companies
- Investment in Monopoly companies: We recommend companies that are near monopolies. Monopolies are like kings in business, they grow unchallenged. This portfolio includes companies that have some kind of monopoly, fully or partly, and have shown the benefits of being a monopoly in their performance. Monopolies can be due to various reasons like control over natural resources, control over sales distribution network, technological patents, government controlled monopoly etc. Most of the companies are not complete monopolies, they are either regional monopolies, imperfect monopoly, or duopoly.
- Super Normal Profits: Lack of competition or weak competition gives pricing control to a monopoly company and it makes super normal profits. These profits enable these companies to further strengthen their hold by more control on resources, or further improvement in their technologies. For example, Google and Apple invests heavily into new tech, that further strengthens their monopoly – and hence power to earn super normal profits.
- Stable growth: Being unchallenged by competition, these companies are able to grow safely at a stable rate.
- No Survival Threat: These companies are able to focus on improving their business.
- Economies of scale: Monopolies are able to grow large which results in low cost due to economies of scale.
- Pricing power: Monopolies are able to charge higher from buyers and may also be able to pay less to the suppliers.
- Cycle of Power: Monopolies may also gain political power and wipe out any competition threat.
- Low Investment Risk: Being monopolies, these companies are safest in terms of business risk, and hence face very low risk for their stock prices. It is also reflected in the chart above.
Strategy 3: Select Innovative Companies
- Innovation: We aim to capture long-term growth and capital appreciation created by sustainable innovation. This portfolio includes India’s top innovative companies in industries of the futures as well as in those industries which may be centuries old.
- Innovation is the future: Over time, innovation should displace industry incumbents (if they are not innovating), increase efficiencies, and gain majority market share. We have identified the best opportunities in this space.
- Innovation is key to growth, especially now in this world of disruptive technologies. And it is a fact that world is changing at a very fast pace, and most of the top companies are those which have innovated to stay ahead of the times like Tesla, Google, Apple, Philips, Sony, Disney, Amazon, Microsoft, Adobe etc.
- Diversified: In this plan we invest across sectors and market caps, seeking to identify companies missed by traditional sector-based strategies.
- Disruptive Innovation: Disruptive innovation is often not priced correctly by traditional investment strategies because people may not understand how big the ultimate opportunities are going to be.
- Uncorrelated Alpha: Growth from new age innovations will not depend on traditional economic growth. This portfolio aims at long-term appreciation and alpha uncorrelated to traditional indices.
Other Selection Criteria
- Management Integrity: We conduct extensive forensic checks on management, none of our stocks has ever faced any management fraud
- Growth: We recommend stocks where there is a high visibility of future revenues. Different approaches are used to explore growth opportunities including thematic and cyclic. Some are based on high certainty long term themes like urbanization, shift from unorganized to organized sectors, changing lifestyles, clean energy, healthcare and emerging technologies. It also includes some commodity stocks which have entered a long run bull cycle.
- Strong performance: Our focus is on selecting companies with almost zero debt, stable growth in revenues and profits, and high profit margins.
Plan 2. Multibaggers
In this plan we recommend 3 - 6 stocks in every six months. These stocks have strong potential to become multibaggers in 2-4 years. You can find here the key rationale for recommending these stocks. We never recommend junk or penny stocks. All our MULTIBAGGERS stocks are great companies, but their potential has not been realized yet.
Past Performance (as on 7-June-2021):
3 out of 5 stocks recommended in 2020 have already become multibaggers. We are disclosing those stock names which have already become multibaggers -
Stock 1: 69.21%
Stock 2 (KSE): 104% (2x multibagger, exited from stock in June 2021)
Stock 3: 59.78%
Stock 4 (Shri Bajarang): 477.61% (6x multibagger)
Stock 5 (Jyoti Resins): 206.60% (3x multibagger)
Plan is Suitable for:
It is suitable for all investors who are looking at very high returns with moderate risk. It is also an excellent diversification strategy for any long-term investor to allocate part funds to this portfolio. It is also the best plan for those who are new to stocks and want to invest a small amount.
Minimum suggested holding period is 2-4 years.
We use three proven strategies for identifying multibagger stocks –
- Identify cyclical stocks near bottom of the cycle
- Identify small companies with unique competitive advantage (patents, monopoly or entry barrier, deep research) coupled with long term growth opportunities
- Identify strong companies that have entered a high growth industry at its starting phase, like what telecom was when Bharti Airtel started.
What you get in this plan:
- You will receive 3 - 6 multibagger stock recommendations, during next six months.
- We will inform when to buy and also when to sell.
- Service is valid for buy recommendations for 6 months, but there is no time limit on sell recommendation, even if we recommend to sell after 3-4 years, we will inform you.
- You will get research notes including investment rationale and growth drivers for all recommended stocks
- You will be informed about buying and selling decisions by WhatsApp
Additional Benefits (both plans) - Better Timing, Capital Protection, & Alpha
(Alpha is a technical term which indicates the excess % returns generated by a fund manager compared to the market returns. All fund managers aim to create high alpha)
In all our investment plans, you get added benefits of better timing.
It is almost impossible to pinpoint a market crash or a boom, but right kind of analysis can give a broad idea about market direction in future. And we have been correct in all our market direction forecasts since 2014. All the investment entry/exit signals for equities were posted online and results have been compiled in one place at - Market Signals. Some major forecasts were -
- Spotted strong signal of serious global risk on February 14th 2020, well before corona became a global threat. Subsequently, global markets fell by 35%.
- Predicted the start and end of the equity rally of 2019. Markets gained 10% after the prediction.
- Predicted the start and end of the of equity rally from 2016 to 2017. Markets gained 28% after prediction within predicted duration
- Predicted price signals just before 2014 elections. It forecasted BJP winning based on market correlations and Trends. Markets gained 32% after the prediction.
This success is based on our trend forecasting algorithm - FibWave.
How to Avail our Services
First register on our website and then subscribe online.
Disclaimers & Risk Factors:
Investments in securities markets are subject to market risks and there is no assurance or guarantee that the objectives of the investments / investment products / clients will be achieved. Prospective investors are advised to review the plan related information carefully and in its entirety and consult their legal, tax and financial advisors to determine possible legal, tax and financial or any other consequences of investing under the Investment Products of Trikaal Capital, before making an investment decision. Past performance does not indicate the future performance of the Model Portfolio or performance of any other future portfolio(s) of Trikaal Capital. Nothing contained in this document is verified or approved by Securities and Exchange Board of India (SEBI). The stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and the portfolios may or may not have any future positions in these Stock(s)/Sector(s). In preparation of this document, Trikaal Capital has relied upon certain data/inputs from some external parties. Trikaal Capital does not assure the accuracy or adequacy of such data/ information. Nothing contained in this document shall be construed as an investment advise and Trikaal Capital shall not be responsible or liable for any loss or damage arising from the use of this material by anybody in any manner.