Equity Advisory

Scient’s Equity Advisory services are powered by its quant-driven, large and midcap smart beta equity approach targeting excess annualized returns of 2%-4% over a benchmark (BSE Top 200). The approach is a highly customized glide path from the investor’s current portfolio to a suggested ideal mix of stocks that we believe lower risk and volatility, leading to a superior risk-adjusted return.

Advisory Strategy

The equity advisory coverage focuses on the BSE 200 universe of stocks with the objective of leveraging Scient’s proprietary ‘Quantamental’ approach (Quant + Fundamental) to provide views on the investor’s existing stock portfolio

We identify sub-optimal allocations in the portfolio and provide a smooth glide path to transition the portfolio to a more appropriate set of stocks as per our view over 2-4 quarters

Use a factor-based approach, using 4-14 factors across Growth, Value, and Momentum parameters that are most relevant based on the current market cycle

The model tracks historical data for the chosen factors for the past 8 quarters and takes a view of 6 months to 2 years

The approach aims to generate an excess return of 2%-4% over the benchmark

How We Add Value

Scientific approach

Use of proprietary Artificial Intelligence (AI) quant model to study various factors and forecast different variables, running multiple simulations to arrive at the target portfolio

Research-based

Using the model to select factors and factor weights depending on the macro trends, market cycle, and sector rotation – typically 4-14 factors are statistically relevant

Unique strategy