SAFESTOX
is a proprietary methodology which looks for the medium & long-term value opportunity of the
Mutual Funds (MF) and equities listed in BSE 500
The approach adopted is mainly one of bottom-up, as follows:
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MF’s and Stocks with value opportunity, low-risk and reasonable liquidity are identified,
based on the historical data available with us and with the use of AI, these are grouped in
various categories.
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Deep dive analysis of factual current information with specific focus to management
capabilities, governance, business model, balance sheet structure, cost management, cash-
flow, business performance, growth, industry standing and overall economic situation are
redone to corroborate our findings.
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An MF or stock identified by employing the SAFESTOX methodology is the categorized into
INVULB A, B, C based on a scoring model.
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The analysis which will have a 360-degree scope will also be a continuous process to ensure
higher margin of safety and capital protection for our clients.
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These categorized names are then shared with our users along with the research findings,
investment strategy etc. but based on the risk profiling and persona results of their risk
appetite, arrived at the time of on boarding process.
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When the specially identified MF or stocks reach an attractive valuation (trading
substantially undervalued) and continue a flat price range for short/medium terms - we would
communicate to our users to continue accumulating at an average price as long as it is
traded within that attractive range.
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Once the MF or stock crosses the fair value zone – users will be communicated to put the MF
or stock in a partial exit again based on the client’s original risk appetite and persona. A
sizable part will be maintained in the portfolio for a relatively longer term as long as it
remains in the SAFESTOX category and growth potential is intact.
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Once any particular MF or stock is trading at a substantially overvalued zone, this will be
automatically removed from the SAFESTOX category. However, it may continue to be in the
portfolio of the existing customers as they already booked a partial profit and enjoy a
margin of safety that justify their holding.
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For a user with an Ultra Aggressive Persona and HNIs, Option strategies on top of their
SAFESTOX holding will be employed to further justify their carrying cost.