Fluid Tornado

Deep Value Investing | Quantamental Focused-equity | Small & Micro-cap Universe | Monthly Review

  • Useful for creating wealth and compounding
  • Time horizon of 5 years and beyond
  • Start with a lump sum of INR 5 lac.
  • SIP friendly

Suitability

Preference, Capacity and Requirement

Risk Preference

High

Risk Capacity

Established Rich

Risk Requirement

Wealth

Expected Returns

5 Year Rolling Returns in comaprison to NIFTY MICROCAP 250 (benchmark) including live and backtested results.

A note on Rolling Returns in 5 Numbers

Invest Now

Invest via smallcase, through your existing brokerage account.

Fluid Tornado smallcase by Modulor Capital

Equity Curve

The Log Equity Curve since inception in comaprison to NIFTY MICROCAP 250 (benchmark) including live and backtested results.

The Log Equity Curve exhibits the performance of the strategy during major up-swings and down-turns of the market including bear markets and crashes. The curve is exclusive of any fees, transaction costs, and taxes. The graph is updated at the end of each month.

Portfolio Features

Solutions, System & Strategy

Strategy-based

5 Stage Investment Process

  1. Tactical – value cycle algorithm
  2. Red-flag – liquidity and volatility filters
  3. Yellow-flag – value, size, and mean-reversion factors
  4. Green-flag – stock price patterns & clusters
  5. Risk-management – position sizing
System-driven

Diversified-equity

  • 20 Stocks
  • Small & Micro-cap Universe
  • Fundamental, Quantitative & Technical construction
  • Monthly Signal Review
  • Low Churn
  • Long-only
  • Delivery-based
  • Majority of trades fall under LTCG
Solution-oriented

Satellite Portfolio

  • Investment Objective – Capital-appreciation
  • Start with a minimum lump sum
  • SIP friendly
  • Suitable for creating wealth and compounding

Understand the 5-Stage Investment Process

Performance Metrics

Performance Metrics in comaprison to NIFTY MICROCAP 250 (benchmark) including live and backtested results.

A note on Performance Metrics

Performance Metrics are exclusive of any fees, transaction costs, and taxes. The statistics are updated at the end of each month.

Recent Returns

1, 3 and 5 Year Returns in comaprison to NIFTY MICROCAP 250 (benchmark) including live and backtested results.

Recent Returns are exclusive of any fees, transaction costs, and taxes. Recent Returns are not always indicative of portfolio performance in the future. The graph is updated at the end of each month.

Invest in the Tornado Portfolio

You can invest through your existing broker integrated with our partner Administration Platforms.

Fluid Tornado smallcase by Modulor Capital

List of brokers integrated with smallcase .

Browse More Satellite Portfolios

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5 Numbers Framework
Rolling Returns

Five Numbers compare the Rolling Returns offset by 1 review period (1 month or 1 week) for the specified timeframe.

  • The Expected Return is the median of all the periods.
  • The Best Case Scenario and Worst Case Scenario Returns are the extremes outcomes. They represent the role of luck in investing/ trading.
  • The Expected Upside and Expected Downside Returns are the averages between the median and the extremes respectively. These are the realistic bounds between which an investor can expect outcomes with high probability.
The 5-Stage Investment Process
The Research and Investment Process

The QVGS framework combines the Key Principles to form 3 Key Processes which are run over and over again to create and manage a portfolio. These are:

  1. Tactical Review Process
  2. 3 Flag Process (Red-flag, Yellow-flag & Green-flag)
  3. Risk Management Process

The result is Simple, yet Sophisticated.

Sophisticated investment decisions can be made by just answering 5 questions (from the 3 Key Processes) using mathematics, statistics, and probability:

  1. Is now the right time to be in the market or not? – Tactical Management Stage
  2. Which stocks should be removed from consideration? – Red Flag Stage of the 3 Flag Process
  3. All things being ideal, which stocks would be our top preference? Yellow Flag Stage of the 3 Flag Process
  4. Considering the real scenario, which stocks are likely to show movement sooner? Green Flag Stage of the 3 Flag Process
  5. What is the confidence ascribed to the signal considering stages 1, 3, and 4 to take the optimum position size? Risk Management Stage
Understanding Performance Metrics
  • CAGR Since Inception indicates the performance of the strategy so far and may vary in the future.
  • The Final NAV represents the current value of INR 100 invested at the beginning in the Strategy as well as the Benchmark Index.
  • Up Months/Weeks indicate the percentage of Months/Weeks the strategy gives positive returns in comparison to the Benchmark Index.  A higher percentage means less volatility.
  • Jensen’s Alpha indicates the risk-adjusted outperformance of the strategy w.r.t to the benchmark at a given risk-free rate. Higher alpha is desirable.
  • The Beta of the strategy in comparison to the Benchmark indicated comovement of the strategy with respect to the market (benchmark) Lower Beta implies lesser risk than the Benchmark Index.
  • Annualized Volatility is the overall volatility of monthly/weekly returns. Volatility is composed of both up moves and down moves. When considered with Up Months/ Weeks it provides a picture onto which side (Up or Down) volatility contributes to the overall figure.
  • Maximum Drawdown shows the worst fall in the portfolio from its highest value so far. This may not hold true in the future.
  • Sharpe ratio is an indicator of returns earnt in comparison to the risk taken. A higher Sharpe ratio is desirable.
Brokers integrated with smallcase
  • 5paisa
  • Angel One
  • Groww
  • HDFC sec
  • ICICIDirect
  • Kotak Sec
  • Upstox
  • Zerodha
  • Alice Blue
  • AxisDirect
  • Edelweiss
  • IIFL Sec
  • Motilal Oswal
  • Trustline
Investment advisory – Number of complaints
Data and Trends

Data for the month ending August 2022

Sr. No. Received From Pending at the end of last month Received Resolved Total Pending# Pending Complaints > 3 months Average Resolution time^ (in days)
1 Directly from Investors 0 0 0 0 0 0
2 SEBI (SCORES) 0 0 0 0 0 0
3 Other Sources (if any) 0 0 0 0 0 0
Grand Total 0 0 0 0 0 0

^ Average Resolution time is the sum total of time taken to resolve each complaint in days, in the current month divided by total number of complaints resolved in the current month.

The trend of monthly disposal of complaints

Sr. No. Month Carried forward from the previous month Received Resolved* Pending#
1 August 2021 0 0 0 0
2 September 2021 0 0 0 0
3 October 2021 0 0 0 0
4 November 2021 0 0 0 0
5 December 2021 0 0 0 0
6 January 2022 0 0 0 0
7 February 2022 0 0 0 0
8 March 2022 0 0 0 0
9 April 2022 0 0 0 0
10 May 2022 0 0 0 0
11 June 2022 0 0 0 0
12 July 2022 0 0 0 0
13 August 2022 0 0 0 0
Grand Total 0 0 0 0

*Inclusive of complaints of previous months resolved in the current month.
#Inclusive of complaints pending as of the last day of the month.

The trend of annual disposal of complaints

Sr. No. Year Carried forward from the previous year Received Resolved* Pending#
1 2020-21 0 0 0 0
2 2021-22 0 0 0 0
3 2022-23 0 0 0 0
Grand Total 0 0 0 0

*Inclusive of complaints of previous years resolved in the current year.
#Inclusive of complaints pending as of the last day of the year.

Investor Charter
Investor Charter in respect of Investment Adviser (IA)

A. Vision and Mission Statements for investors

  • Vision

Invest with knowledge & safety.

  • Mission

Every investor should be able to invest in the right investment products based on their needs, manage and monitor them to meet their goals, access reports, and enjoy financial wellness.

B. Details of business transacted by the Investment Adviser with respect to the investors

  • To enter into an agreement with the client providing all details including fee details, aspect of Conflict of interest disclosure, and maintaining the confidentiality of information.
  •  To do a proper and unbiased risk – profiling and suitability assessment of the client.
    • To obtain registration with Know Your Client Registration Agency (KRA) and Central Know Your Customer Registry (CKYC).
    • To conduct an audit annually.
    • To disclose the status of complaints on its website.
    • To disclose the name, proprietor name, type of registration, registration number, validity, complete address with telephone numbers, and associated SEBI regional/local Office details on its website.
    • To employ only qualified and certified employees.
    • To deal with clients only from official numbers.
    • To maintain records of interactions, with all clients including prospective clients (prior to onboarding), where any conversation related to advice has taken place.

C. Details of services provided to investors (No Indicative Timelines)

  • Onboarding of Clients
    • Sharing of agreement copy
    • Completing KYC of clients
  • Disclosure to Clients
    • To provide full disclosure about its business, affiliations, compensation in the agreement.
    • To not access client’s accounts or holdings for offering advice.
    • To disclose the risk profile to the client.
  • To provide investment advice to the client based on the risk-profiling of the clients and suitability of the client.

D. Details of grievance redressal mechanism and how to access it

  • In case of any grievance/complaint, an investor should approach the concerned Investment Adviser and shall ensure that the grievance is resolved within 30 days.
  • If the investor’s complaint is not redressed satisfactorily, one may lodge a complaint with SEBI on SEBI’s ‘SCORES’ portal which is a centralized web-based complaint redressal system. SEBI takes up the complaints registered via SCORES with the concerned intermediary for timely redressal. SCORES facilitates tracking the status of the complaint.
  • With regard to physical complaints, investors may send their complaints to:- Office of Investor Assistance and Education, Securities, and Exchange Board of India, SEBI Bhavan, Plot No. C4-A, ‘G’ Block, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 051.

E. Expectations from the investors (Responsibilities of investors)

  • Do’s
    i. Always deal with SEBI registered Investment Advisers.
    ii. Ensure that the Investment Adviser has a valid registration certificate.
    iii. Check for the SEBI registration number.

Please refer to the list of all SEBI registered Investment Advisers which is available on the SEBI website at the following link: https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intm Id=13

iv. Pay only advisory fees to your Investment Adviser. Make payments of advisory fees through banking channels only and maintain duly signed receipts mentioning the details of your payments.

v. Always ask for your risk profiling before accepting investment advice. Insist that Investment Adviser provides advisory strictly on the basis of your risk profiling and take into account available investment alternatives.

vi. Ask all relevant questions and clear your doubts with your Investment Adviser before acting on the advice.

vii. Assess the risk-return profile of the investment as well as the liquidity and safety aspects before making investments

viii. Insist on getting the terms and conditions in writing duly signed and stamped. Read these terms and conditions carefully particularly regarding advisory fees, advisory plans, category of recommendations, etc. before dealing with an Investment Adviser.

ix. Be vigilant in your transactions.

x. Approach the appropriate authorities for redressal of your doubts/grievances.

xi. Inform SEBI about Investment Advisers offering assured or guaranteed returns.

  • Don’ts

xii. Don’t fall for stock tips offered under the pretext of investment advice.

xiii. Do not provide funds for investment to the Investment Adviser.

xiv. Don’t fall for the promise of indicative or exorbitant or assured returns by the Investment Advisers. Don’t let greed overcome rational investment decisions.

xv. Don’t fall prey to luring advertisements or market rumors.

xvi. Avoid doing transactions only on the basis of phone calls or messages from any Investment adviser or its representatives.

xvii. Don’t take decisions just because of repeated messages and calls by Investment Advisers.

xviii. Do not fall prey to limited period discounts or other incentives, gifts, etc. offered by Investment advisers.

xix. Don’t rush into making investments that do not match your risk-taking appetite and investment goals.

xx. Do not share the login credentials and passwords of your trading and Demat accounts with the Investment Adviser.

Compliance Audit Status
“Disclosure with respect to compliance with Annual compliance audit requirement under Regulation 19(3) of SECURITIES AND EXCHANGE BOARD OF INDIA (INVESTMENT ADVISERS) REGULATIONS, 2013 for last and current financial year are as under :
Sr. No. Financial Year Compliance Audit Status Remarks, If any
1 FY 2020-21 Conducted NA
2 FY 2021-22 Not Conducted NA