Markets

Emkay launches algo-driven solution for PMS scheme

Our Bureau Mumbai | Updated on September 01, 2020 Published on September 01, 2020

‘Value Shastra’ determines quantum of equity allocations

Emkay Investment Managers, in association with MSJ MisterBond, has launched ‘Value-Shastra’, an algo-based solution, exclusively on PMS scheme Emkay’s 12 strategy.

The rationale behind the solution is algo-based investing based on market valuations with an aim to provide a cushion of downside protection to investors. It is also claimed to help identify the right entry and exit points in equity investments.

Created by Sunil Jhaveri of MSJ MisterBond, Value Shastra is based on a proprietary framework based on data points of the last 20 years. It has been tested in real life and simulated situations across mutual funds.

The returns, using this model, have been back-tested and have given much higher returns than the regular PMS models, said a company statement.

Investors’ equity allocations are made depending on the score given by the algorithm. The solution also determines how much of the capital will be deployed to Emkay's 12 or kept in liquid funds. As per the algo, there are three zones — Red, Yellow and Green — with Green indicating 100 per cent deployment of funds in Emkay’s 12.

Novel approach

Krishna Kumar Karwa, Managing Director, Emkay Global Financial Services, said the new initiative is in line with a vision to develop and ramp up the AMC business in India and go beyond the conventional approach and products.

Vikaas M Sachdeva, Chief Executive Officer, Emkay Investment Managers, said the initiative will revolutionise the way people invest on PMS platforms and help them plan their asset allocation and investment strategy more effectively.

“I do not invest in equities directly but am making an exception of investing in Emkay's 12, which is in the large-cap space with many filters to choose the right stocks,” said Jhaveri.

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Published on September 01, 2020
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