PRUGROW
Pro-Growth-Money-Management
An Investment Strategy That Gives You The Best Of Both Worlds
PRUGROW works on a unique strategy which combines both fundamental and technical analysis to generate superior return compared to index.
The idea is to select a “fundamentally sound stock” which is also technically bullish i.e. Looking strong on chart. Better known as TECHNO FUNDA calls.
Market Rewards Growth
STOCK A |
STOCK B |
Price: 100 |
Price: 100 |
EPS: 10 |
EPS: 5 |
P/E: 10 |
P/E: 20 |
Stock B, though expensive on P/E basis, is likely to give more return due to higher growth.
Good Company v/s Good Stock
L&T INFOTECH (UP 48%) YTD
INFOSYS ( DOWN 2% YTD)
Both are good companies, but L&T Infotech turned out to be a better stock
Opportunity Cost
ASHOK LEYLAND (UP 46% YTD)
TATA MOTORS ( DOWN 14% YTD)
Investment in Good Corporate Governed companies
To Avoid a stock when it is in a consolidation mode or downtrend so that price/time loss can be minimised
No or Minimal pledge shares
To Catch a stock when it is has just broken out rather than after it has run up a lot, so that risk-reward is better
Decent Return Ratios : (ROCE,RONW)
Helps choose among many stocks where all the companies might be good but not all the stocks
Positive operating cash flow &Good earnings growth
Works on the principle of “Right Stock at Right Time”
Investment in Good Corporate Governed companies
Helps choose among many stocks where all the companies might be good but not all the stocks
ALL STOCKS DO NOT GIVE QUICK or POSITIVE RETURN Therefore…
Build a portfolio of about 20-25 stock |
Exit if key technical levels are breached decisively |
Pre-decided profit booking levels (20%, 30%, 50%) |
PERCENTAGE ALLOCATION METHOD
>> The product follows a percentage allocation method in which new account will replicate the model portfolio in terms of percentage allocated to each stock.
>> For example, in the model portfolio, stock A and B are having weightage of 5% and 2% respectively, a new account of 5 lac will start with Rs. 25000 in stocks A and Rs 10000 in stock B.
>> Similarly, a new account of Rs 10 lac will start with Rs. 50000 in stock A and Rs 20000 in stock B.
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