Dayco Moderate Balanced Model Portfolio

A Model Portfolio, i.e., a basket of securities, is prepared and launched as of 03 March 2025 (Monday), with an objective to provide balanced investment opportunities to a wide range of investors having a risk appetite from conservatively moderate to moderately aggressive.

Introduction

A Model Portfolio—a curated basket of securities—has been prepared and launched on 03 March 2025 (Monday). This portfolio is designed to provide balanced investment opportunities for investors with a risk appetite ranging from conservatively moderate to moderately aggressive.

Portfolio Overview

• Launch Date: 03 March 2025.
• Investment Horizon: Long-term (3 to 5 years).
• Benchmark: BSE 100 India TR INR (Morningstar Valuation). Refer to Morning Star Portfolio Report.
• Risk Level: Conservatively moderate to moderately aggressive.

Investment Objective

The Dayco Moderate Balanced Model Portfolio aims to provide balanced investment opportunities by selecting securities based on fundamental analysis. It is suitable for investors looking for moderate risk exposure with the potential for steady growth.

Disclosures

The objective Model Portfolio is to provide balanced investment opportunities to a wide range of investors ranging from risk scores 35 to 64, with a risk appetite of conservatively moderate to moderately aggressive.

The long-term five-year average beta of the model portfolio is kept at 1, the benchmark being the BSE 100 India TR INR in the Morningstar valuation.

The focus of the model portfolio is value investing, wherein the stocks have been selected by the RA/IA division with a cut-off value for Earnings per share, Price to earnings ratio, Price to Book Value Ratio, and Debt to Equity ratio as of the date of launch.

The data source for the fundamental ratios of the portfolio factsheet is prowess.cmie.com, and the fair values have been sourced from Morningstar AWS as of the launch date.

Portfolio Methodology & Selection Criteria

Value Investing Approach: Stock selection is based on fundamental analysis, supporting long-term value creation.

Selection Criteria: Securities included in the portfolio meet the following fundamental thresholds:

• Earnings Per Share (EPS) ≥ 25
• Price to Earnings (P/E) ≤ 50
• Price to Book Value (P/B) ≤ 10
• Debt to Equity (D/E) ≤ 1
• Beta Range: 0.5 to 1.2 (CMIE Prowess)

Risk Classification: The weighted average beta of the portfolio is maintained at approximately 1, supporting a balance between risk and return.

Launch Date – 03 March 2025

Frequency of portfolio review and update

• Weekly: Price-related updates.
• Quarterly: Fundamental information updates.
• Quarterly Review: Portfolio rebalancing, if necessary.
• Client Communication: Any rebalancing will be communicated with an underlying rationale.

Labelling

The weighted average beta based on the quantity allocation of all portfolio stocks is 1. It is labelled as Dayco Moderate Balanced Model Portfolio.

Audit Requirements

Compliance with audit requirements under Regulation 25(3) of the RA Regulations shall also cover compliance with obligations set out under the model portfolio framework. The following have been adhered strictly and will be followed from time to time.