"Confronted with a challenge to distill the secret of sound investment into three words, we venture the following motto, MARGIN OF SAFETY"
-BEN GRAHAM, THE INTELLIGENT INVESTOR, 1949.
Prosperity Discovery Fund
Fund Overview
Prosperity Discovery Fund invests in 15 – 20 Business Opportunities.
Multi Cap fund underpinned by Value investing framework & Growth at reasonable prices philosophy.
Objective of the fund is wealth creation for the investor by delivering superior risk-adjusted returns.
Maximum Sector holding in any one sector is limited to 30% of the portfolio at cost.
Maximum allocation per company is limited to 15% of the portfolio at cost.
Benchmark is Nifty Midcap 100.
Recommended investment horizon 3-5 years
Minimum Investment is INR 50,00,000 for Indian citizens.
Direct investment plan available.
Investment Philosophy
Investing in companies demonstrating sustainable growth in top and bottom lines, strong balance sheet, low debt & a durable moat (sustainable competitive advantage) around the business.
Entry at bargain prices due to overcompensation of the markets to adverse events, undiscovered business value or a turn-around story.
Exit when the company reaches fair valuation or if there is a change in the initial investment thesis.
Investment in businesses run by highly ethical & competent professionals.
Capital deployed between a duration of 2 to 3 months.
This fund is suitable for aggressive equity investors with prior experience of investing in the stock market. An ideal investor in this fund should have an appetite for risk and a long term investment horizon.