Products
Growth Portfolio
You grow your investment value with the company’s growth and you win at the end.
About the Product
In Nepal Stock Exchange, we have identified some companies having a premium valuation with a promise that they will justify the premium over a period of time given their excellent performance year on year and an above average growth rate relative to the market . Stocks of these companies tend to have high price to earnings ratios (P/E) as well as valuation, since investors pay a premium for higher returns.
Objectives
The product is an investment in stocks of financially sound companies with growth potential and aims to deliver satisfactory returns over a period of short term/ midterm, thus Investors can expect steady growth in their portfolios.
Investment Selection Process
The Growth universe: Companies whose stock prices are growing faster than the overall market will be analyzed. The CAGR or stock prices will be taken for 3-5 years.
Industry screening: Preliminary quantitative analysis will be done to ensure sound financial health i.e. financial strength and profitability.
This will be followed by qualitative analysis which involves identifying drivers of growth and focusing on companies with market opportunity and competitive positions.
Detailed financial modeling: Five-year projections on income statement, balance sheet and cash flow will be prepared for discounted cash flow method to analyse the future growth opportunity and risk.
Tenure
Short/ Mid Term (1 to 3 years)
Investor Profile
Investors having confidence on the future performance of market biggies.