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.

PRUGROW 2-YEAR CAGR AS ON 01 DEC, 2017 IS 21.5%.

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.

Read more<< Back