SANDIP SABHARWAL

You Can Contact Us on

info@asksandipsabharwal.com
OR WhatsApp on 7303163931

MONTHLY PERFORMANCE UPDATE

The month of February was a very volatile one for the Indian Markets while globally markets did well. The impact of the crash in Adani group stocks was felt through the month and both the Large Cap and Midcap Indices declined by around 2%. With this markets are down 5% for this year already while most global markets are up 5-15%

Market liquidity as reduced and there is little interest in small and mid caps at this stage. That is usually a good time to accumulate these stocks. Broader Market recovery usually follows a stabilization and upmove in the frontline indices. So this is time to be patient with your portfolios if you believe you hold the right stocks. It is also an opportunity to restructure your portfolios towards winners of the future as many themes which worked due to Covid or due to the disruptions of Covid might not work going forward. In my view with all ups and downs overall 2023 will be good for the Equity Markets.

Performances were volatile for this month with some plans ourperforming while others did not do as well. Overall a mixed month.

LONG TERM INVESTMENT PRODUCTS

TARGET MIDCAP PORTFOLIO

Our flagship Midcap product which invests in 9 selected Midcap companies has done exceptionally since inception. The portfolio held up well during February where we saw extreme volatility and severe sell off in many Midcaps while some performed. The portfolio was down 0.73% while the Midcap Index declined by 1.8% and Nifty by 2.03%. We did not make any change during the month. Last year we outperformed all the Midcap Mutual Fund schemes where the average return of the category was just 2% with the best plan being near 11%. The Midcap Index was up 3.5% during the year. Our value with growth approach has worked well and we are geared towards benefiting from a positive investment and consumption cycle. l. The CAGR returns since inception to around 47%. This is an ideal product for long term wealth generation.

The last one year returns are running at 32%.

PLATINUM PLAN

Our oldest long term plan Platinum had an average month with small caps taking a beating. This portfolio which combines the stability of large caps with the alpha of small caps has outperformed the Nifty substantially over the years. The total number of holdings remainin the range of 12-15 stocks. The portfolio was down 2.88% during the month and is up 496% since inception. The average return of Flexicap/Multicap Mutual Fund schemes was just 2% for the year 2022. We have been able to keep our targeted outperformance over the Nifty of 5-7. Small cap opportunities continue to be strong and we expect to do well going forward too. CAGR since inception is 27%

TARGET BLUECHIP PORTFOLIO

Our low volatility steady return Bluechip Portfolio had an below par month with underperformance via the Nifty with many stocks selling off. The portfolio was down 5.12% while the Nifty declined 2.03%. This reduced the big outperformance that we gained in January and as such the portfolio is down 2.8% for the year 2023 while the Nifty is down 4.46%. . We had been holding substantial cash for some time which we largely deployed in January. We target this portfolio as an absolute return one which is tough. The portfolio is up 150% since inception a huge outperformance over the Nifty return of 69%. The targeted outperformance over the Nifty of 5% was achieved during the last few years. This is an ideal low risk portfolio for conservative investors.

WINNERS PLAN

Our small cap Winners Plan did well during 2022 given the extreme volatility in the small cap segment. We have 13 recommendations running in the plan at this stage. The average return of open and closed recommendations during 2022 was 14% which is very strong given that the Nifty 100 Smallcap Index was down 14% and the 250 Index was down 4% during the year. Returns for new clients was better as we helped in the timing of entries into open positions. There is strong value in most of the open recommendations and should do well going forward. As we book profits in some open recommendations we should be able to give new recommendations going forward. Smallcaps will always have volatility but can generate strong returns over the long term. Historically this product has been able to generate several multibaggers and we hope that we can do the same going forward.

UNLOCK GAINS PORTFOLIO

The unlock gains portfolio saw many of the stocks moderate during the month as consumer slowdown started impacting the companies in the unlock theme. Nevertheless this 9 stock portfolio has potential and we hope to improve gains going forward. The focus remains on stocks from the reopening theme including hospitality, restaurants, aviation,entertainment etc. This is a fixed term plan of two years in which we expect that the full potential of the stocks of the portfolio will be realized.

SHORT TERM INVESTMENT PLAN

POWER ALPHA STOCKS

It was a challenging month for Power Alpha as the broader markets continued to sell off. Usually in such situations the plan does not do well. The open calls are also trading below the recommended levels. We booked one loss during the month.

Power Alpha Stocks our flagship short term investment plan had an exceptional 2022. After the last two years where we generated nearly 70% return on average capital deployed in each of the years 2020 and 2021 this was a tougher year29 recommendations were closed last year with profit booking in 26, small loss in 2 and relatively bigger loss in one. Assuming a 2 lakh investment per recommendation the profits in 2020 were Rs 420000, in 2021 Rs 400000 and this year Rs 278000. The ROI on average capital deployed of Rs 6 lakhs was over 45% for 2022 which is huge given the context of the markets this year, even on Rs 8 Lakhs the returns are over 35%. This is an ideal product for deploying idle funds to generate ALPHA.

The beauty of this product is that if you keep your capital constant then in general over the last many years the entire capital has become free in 3-4 years.
Assumption Rs 2 Lakhs investment per recommendation

TRADING PRODUCTS

ONLY FOR TRADERS

Only for Traders our short term trading product had a good month in the context of the extreme volatility following strong two months. The profits on one lot basis was Rs 18750 and Rs 37500 for those trading two lots per recommendation. This is very strong performance in a very tough month. In an ideal situation we could have 8 positive and 4 negative return months. We will look towards lesser volatility in monthly returns going forward. The number of calls were low during the month.

POSITIONAL TRADING CALLS

Positional Trading Calls our longer term trading product had relatively less activity with one loss booking. Overall loss was Rs 42900 on one lot trading basis and Rs 85800 on two lots. Good part about trading products is that a couple of good months can take care of few months of underperformance and sub par returns as we saw with only for traders in December and January. In a trading product we will always have 4-5 good months, 4-5 average months and 2-3 poor months every year. The challenge is to keep the poor months with less losses than the profits of the good months. In the year 2023 our attempt will be to cut down the volatility in performance of both the trading products.

For more details write to us at info@asksandipsabharwal.com . You can also call us up at 7303163931/022-66666931 or visit www.asksandipsabharwal.com