Geojit Financial Services, through Smartfolios platform, has tied up with Lotusdew, a SEBI and US SEC regulated firm, to offer a basket of stocks using behavioural finance and artificial intelligence.
Geojit will offer a new small- and mid-cap basket of stocks called Lotusdew Prestige, which analyses corporate events such as M&A , earnings surprises, order book wins, dividends, stock splits etc. to identify profitable stocks. This is in sharp contrast to the traditional methods like fundamental and technical analyses used by most investment service firms.
Lotusdew Prestige is sector-neutral and adaptive to index changes. The basket, which currently comprises around 80 per cent of small-cap and 20 per cent of mid-cap, covers sectors such as pharmaceuticals, software and consumer lending, among others.
Investors will be apprised of every change in the stock mix so that they can be reassured that the portfolio is actively managed by professionals.
“Investors are at present showing a strong intent to spread risk and expand their equity investment horizon across market caps. There has been a substantial increase in demand from HNWIs and retail investors. Our AI-enabled and insights-driven investment platform will help them explore small and mid-cap stocks that presage great profitability,” said Satish Menon, Executive Director, Geojit.
Smartfolios by Geojit, is an online investment platform with system generated recommendations, where investors can choose from differentiated stock baskets, based on their risk profile, investment horizon and investment mode.
Jones George, Chief Digital Officer, Geojit, said, “At present, we can see that there is a keen interest among investors to enter the equity market and more young people have started trading. What makes Smartfolios attractive to new as well as experienced investors is that it offers hassle-free order execution, timely recommendations for rebalancing or restructuring the baskets of stocks, no minimum holding period and no paperwork.”
Lotusdew Prestige has a history of total return of 56.22 percent, since inception (January 2017), against Nifty Small Cap 50 index’s 20.95 percent. The CAGR of Lotusdew Prestige is 12.68 percent against Nifty Small Cap 50 index’s 3.94 percent, over the same period till January 31. The returns during the fourth quarter of 2020 stood at 34.22 percent. The minimum investment lot in Lotusdew Prestige is Rs5 lakhs and the client can choose to invest directly via the Smartfolios platform.