About SMART 2040
The Smart 2040 AllCap Growth Portfolio (Smart 2040) was launched on March 17, 2025, with an initial investment of Rs 2.50 crores. This carefully designed portfolio consists of 15 to 20 high-potential stocks and has a fixed duration of 15 years, concluding on March 17, 2040.
Smart 2040 follows a strategic and diversified approach, ensuring broad exposure across multiple dimensions, including company size, sectors, themes, business groups, weightages, and market capitalizations. The stock selection is drawn from the entire universe of BSE and NSE-listed stocks, with allocations based on risk assessment and expected returns. Portfolio adjustments are executed every Wednesday between 10 AM and 11 AM.
The portfolio is structured to effectively mitigate unsystematic risk, though market risk remains inherent. Its primary goal is to build long-term wealth by investing in high-quality stocks and leveraging the power of compounding over 15 years. However, it does not provide any guarantees on returns or performance.
Smart 2040 encourages a long-term investment mindset (more than 3 years), enabling investors to capitalize on compounding while navigating market fluctuations with confidence.
Factsheet
- Launch Date: 17 March 2025
- First Value Date: 17 March 2025
- Base Value: Rs 2.50 crore
- No. of Constituents: 15 to 20 stocks
- Updated Date: Every Wednesday, 10 am to 11 am
- Asset Class: Equity Stocks
- Benchmark Index: SMART 2040’s performance is measured against the BSE 500 Index, which serves as a broad representation of the Indian market. Comprising the top 500 companies listed on BSE Ltd., the index encompasses all major industries within the Indian economy. It was officially launched on August 9, 1999.
- Weighting Method: Allocation is based on the expected returns and associated risk of each stock, with individual stock weightage ranging between 2% and 10%.
- Risk: Benchmark Index BSE 500 has a final portfolio risk score of 6.93, indicating a Riskometer of ‘Very High’.
Methodology
- Eligible Universe: Aligned with the BSE 500 Index, which is derived from the BSE AllCap Index constituents. This ensures broad market exposure, allowing the strategy to benefit from stable large caps, high-growth mid caps, and emerging small caps, where institutional participation remains limited.
- Stock Selection Rationale: SMART 2040 employs a disciplined approach to stock selection, prioritizing fundamentally strong companies with compelling growth potential and a long-term investment horizon. Preference is given to dividend-paying stocks, with a strong emphasis on growth-driven opportunities. The PEG (Price-to-Earnings-to-Growth) ratio serves as the primary valuation tool for identifying undervalued stocks, and any stock with a PEG ratio above 2.0 is excluded.
- Diversification: The portfolio comprises 15-20 stocks, strategically diversified across company sizes, sectors, themes, business groups, weightages, and market capitalizations. This approach helps minimize unsystematic (stock-specific) risk effectively.
- Review and Rebalancing: The portfolio is reviewed weekly on Wednesday between 10 AM and 11 AM. Rebalancing decisions are made in accordance with the core investment strategy, and all adjustments, along with their rationale, are transparently communicated to subscribers.
Risk Disclosures
Investing in securities involves inherent risks that may impact your investments. Some of the key risks to consider include:
- Equity Market Risks: SMART 2040 is subject to risks associated with equity investments, including market volatility and the possibility of underperformance relative to benchmarks. While unsystematic risk is reduced through diversification, market risks remain unavoidable.
- Benchmark Risk: The BSE 500 Index, used as the benchmark, has a final portfolio risk score of 6.93, categorizing it under the ‘Very High’ Riskometer.
- Liquidity Risk: Some mid and small-cap stocks in the portfolio may experience reduced liquidity, particularly during periods of market volatility.
- Regulatory & Policy Risks: Changes in government policies, legal frameworks, or regulatory decisions may impact investment outcomes.
Considering these factors, investors are strongly advised to assess their risk profile and tolerance before making any investment decisions or consult a financial advisor for guidance.
Disclosures/Disclaimers
- SMART 2040 is a model portfolio designed to provide guidance for long-term investors only.
- It does not constitute a recommendation to buy or sell individual securities.
- Past performance is not a guarantee of future returns.
- SMART 2040 complies with SEBI RA Regulations (Regulation 25(3)), ensuring adherence to compliance and audit requirements under the model portfolio framework.
- Performance figures do not account for dividends, transaction fees, or other consts.
