"The single greatest edge an investor can have is a long-term orientation."
— Seth Klarman, 2011, A Charlie Rose Interview
Prosperity Titan Fund
Fund Overview
Prosperity Titan Fund is built around the belief that India is entering a multi-decade phase of economic transformation driven by structural reforms, rising disposable incomes, manufacturing expansion, increasing formalisation of the economy, and growing global relevance. Benchmarked against the NIFTY 50 TRI, the strategy seeks to generate superior long-term risk-adjusted returns through disciplined capital allocation to high-quality businesses that are well-positioned to benefit from these economic tailwinds.
A low cost fund with distinct advantages over a regular index fund.
Majority of the fund (>75%) is invested in large blue chip companies that constitute the Nifty 100 Index.
A small fraction of the fund (<25%) is invested in companies from the Nifty 500 Index.
Objective of the fund is wealth creation for investors with minimal portfolio volatility over the long run.
Benchmark is Nifty50.
Prosperity Titan Fund is Ideal for conservative to moderate equity Investors.
Minimum Investment is INR 50,00,000 for Indian citizens.
Investment Philosophy
GARP-oriented (Growth at a Reasonable Price) investment philosophy, seeking to identify businesses that combine strong long-term growth potential with reasonable valuations. The strategy emphasises avoiding investing in hyped-up / overvalued companies / sectors and ensuring prudent entry valuations that can secure meaningful returns for investors while protecting downside risk.
The fund may utilise derivatives to hedge downside risks when adverse market conditions are anticipated in the near future.
The fund follows a “High Alpha, Low Beta” investment framework, aiming to generate superior long-term returns over the benchmark while taking relatively lower market risk.
Individual company exposure is capped at 12.5% at cost, while exposure to any single sector is held to a maximum of 35% of the overall portfolio. Capital is allocated across diverse sectors including finacial services, infrastructure, auto & auto ancillaries, pharmaceuticals, FMCG, information & technology, services, manufacturing & capital goods and others.
This fund is ideal for investors who are new entrants to the equity markets and are looking for an investment avenue to beat Bond/FD returns over the long-run (5+ years).
As the fund primarily invests in large cap companies it is relatively less volatile than sector/ theme oriented funds or Small-cap/ multi-cap funds making it suitable for conservative equity investors.
The investment framework evaluates multiple factors including quality of management, competitive moat, earnings growth visibility, capital efficiency, balance sheet strength, cash flow generation, and valuation comfort relative to long-term growth potential.
For more information you may request our brochure at clientrelations@pwm-india.com.