Scheme Rating
IME Scheme Rating
The Scheme does not meet our selection criteria at this time
Not a recommended fund: This is not a recommended fund, primarily because the AMC does not meet our selection criteria. We believe that there are better fund houses to invest in, within the Indian fund universe.
IME Strategy Rating
Quant-based Investment Strategy: Have taken the approach of running an AI quant-based investment approach. Strategy is too young to be proven. Pedigree to be established based on the longer-term track of the algorithm.
PMS Scheme Ratings are driven by IME’s Proprietary Scheme Rating Methodology, which takes into account our ratings of the Scheme’s investment strategy, its maturity, the investment team, and our separate rating on the AMC that runs this particular scheme. Our views on each of these individual criteria are available via the IME RMS – which you can view by reaching out to one of our relationship managers (using either the live chat or book appointment feature on this site).
IME View on IDFC Neo Equity
IDFC Neo Equity Portfolio- Investment Strategy
IDFC Neo Equity is a multi-cap strategy. The strategy uses artificial intelligence and a machine learning-based investment process. The portfolio is agnostic to any one specific theme or investment style. It attempts to combine macro themes and bottom-up alpha generation with a focus on the low correlation between portfolio holdings, downside volatility control, and portfolio liquidity.
Investment ‘Score’ Framework
- Sourcing: Sourcing, screening and analysing multiple datasets to identify factors that influence returns of a stock.
- Cleaning: Clean and curate data for analysis to meet investment requirements of generating potential sources of alpha.
- Optimum Portfolio: Optimum Portfolio identified to be included in the portfolio.
- Risk Management: ongoing risk management of portfolio to maintain desired risk-reward balance.
- Evolution: Machine learning process continuously learns and keeps evolving to improve its portfolio management ability.
Investment Process
- Step 1: The portfolio manager may introduce filters and eliminate stocks from the S&P BSE 200 universe based on prevailing market conditions.
- Step 2: The machine identifies the right mix of attributes in stocks. Then selects the optimal one with the best risk-reward balance.
- Step 3: Best stocks (as per the machine output) are algorithmically assigned weights.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| IDFC Neo Equity | 39.1 | 13 | 18.7 | 11.7 |
| S&P BSE 500 TRI | 41.1 | 18.9 | 22.9 | 15.6 |
| Alpha over Broad Mkt BM | -2 | -5.9 | -4.2 | -3.9 |
| Nifty 50 TRI | 32.6 | 15.2 | 19.4 | |
| Alpha over Category BM | 6.5 | -2.2 | -0.7 |
Performance as of: 31-Aug-24 | Inception Date: 11-Jul-17
Fund Managers
Chetan Mehra | 4-star rated FM
Fund Manager
Past Experience: Merrill Lynch, Crossseas Capital
Chetan Mehra is a data scientist with 2 decades of experience in quantitative analysis and in building trading models. He holds a Ph. D. in Computer Science, Multi-agent Systems in Computational Finance from the University of Southampton and an MBA in Finance from the University of Leeds. His Ph.D. focussed on a data science approach to capturing structure in data to build smart portfolios. Mehra has managed global futures, equity, and multi-asset portfolios as well as had trading experience across asset classes.
Vijay K | 4-star rated FM
Director & Head, Liquid Alternatives & PMS | 24 yrs Experience | 8 yrs at current firm
Past Experience: SteppenWolf Capital, Gulmohar Alpha Capital Advisors, The Chatterjee Group, AGRA India Fund
Mr. Vijay Krishna Kumar is an early pioneer and a specialist with a 12-year track record in India Long/Short investing and has a total global investment experience of almost two decades.Before joining IDFC AMC, Mr. Kumar was the Director of Mumbai-based Gulmohar Alpha Capital Advisors and Senior Portfolio Manager of Swiss based multi-manager SteppenWolf Capital LLC. During his time there, he won awards for ‚ÄòBest Emerging Markets Investor ‚ India’ and ‚ÄòBest India Long/Short’ by AI Hedge in 2016. Prior to this, he was the CIO and Portfolio Manager for The Chatterjee Group’s public equities division (TCG, a Soros spinoff). During his tenure, TCG IndiaStar was ranked number two by Eurekahedge in its peer group. Before that, he was the Co-CIO of the AGRA India Fund (PCE Investors, London), seeded by New Alpha Advisers, a consortium of blue-chip European insurance companies. Mr. Kumar holds a Masters in Corporate and International Finance from Durham University, UK.
Fee Structure
| Fee Structure | Fee |
|---|---|
| Fixed Fee Structure | 2.5 |
| Variable Fee Structures | 0% fixed + 20% above 12% hurdle |
| Exit Fees | 1yr(3%), 2yr(2%), 3yr(1%) |
AMC
AMC: IDFC PMS (click link for detailed AMC review)
Not a top recommendation due to being an MF-driven PMS: IDFC PMS has taken a unique approach to follow an AI-driven investment style. We like the fact that an AMC with established credentials in traditional fundamental research, has not gone the standard route of other MF-promoted PMS's of launching PMS portfolios on the back of their in-house mutual fund strengths. While this is clearly an interesting & innovative approach, whether the AI-driven PMS of IDFC does manage to deliver outperformance in real-life markets is still unproven. It is yet too early to recommend investments in IDFC PMS.
IDFC PMS does not meet our criteria for PMS AMC Selection at this time. Understand our AMC rating criteria at AMC Rating Criteria or contact us via the LiveChat to learn more.
Note: PMS AMC & Scheme Reviews and Ratings are based on IME Capital’s Proprietary Review and Rating Methodology (read more here: AMC Rating & Scheme Ratings). These reflect the unbiased views of our central research team, based on our assessment of the investment value of these PMS/AIF strategies for our investors. We follow a highly stringent rating-criteria, where approximately 50% of PMS AMC’s & strategies would be rated 2-star or below (this is not meant to indicate that these funds are not investment-worthy, but that they do not currently fulfill the requirements we focus on for recommending funds to our investors — based on our internal views on the merit of the AMC/strategy relative to peers). Reviews & Ratings are primarily based on research of publicly available information (SEBI disclosures, PMS websites, PMS-aggregation platforms, webinar recording, media interviews etc.) and no explicit consent is required from AMCs for the same. While we endeavour to do further due-diligence via direct interactions with the investment teams of AMCs, this is typically restricted to AMC’s that meet our foundational fund selection criteria (reviews on lower-rated AMCs are often based solely on publicly available information). The views reflected in our Reviews & Ratings, are our independent views and may not be shared by the AMC’s and the investment teams. Please read detailed disclaimer for more.