Lotusdew Prestige to use unconventional methods like M&A analysis, earnings surprises to spot stocks; leverage on history of high returns using behavioural finance
Bengaluru, NFAPost: Geojit Financial Services Ltd, through its Smart folios platform, has tied up with Lotusdew, a SEBI and US SEC regulated firm, to offer a basket of stocks that uses behavioural finance and AI to identify dominant market conviction.
Through this partnership, Geojit will offer a new small and mid-cap basket of stocks called Lotusdew Prestige, which analyses corporate events like M&A announcements, earnings surprises, order book wins, dividends, stock splits etc. to identify profitable stocks. This is in sharp contrast to the traditional methods like fundamental and technical analyses used by most investment service firms.
The knowhow of Lotusdew helps investors identify future stock behaviour and profit from it. Lotusdew Prestige is sector-neutral and adaptive to index changes. The basket, which currently comprises around 80% of small-cap and 20% of mid-cap, covers several high-growth sectors such as pharmaceuticals, software and consumer lending, among others.
Lotusdew Prestige fills the gap for an investment basket in the aggressive – long term category of investors. Investors in this scheme will be apprised of every change in the stock mix so that they can be reassured that the portfolio is actively managed by professionals.
Geojit Executive Director Satish Menon said for over three decades, the company has been offering an extensive range of trading and investment products.
“Investors are at present showing a strong intent to spread risk and expand their equity investment horizon across market caps. There has been a substantial increase in demand from HNWIs and retail investors. Our AI-enabled and insights-driven investment platform will help them explore small and mid-cap stocks that presage great profitability,” said Satish Menon.
Smartfolios by Geojit, is an online investment platform with system generated recommendations, where investors can choose from differentiated stock baskets, based on their risk profile, investment horizon and investment mode. At present, Geojit offers 10 differentiated stock baskets, each with a different mix of stocks, sectors and market caps.
Speaking about Smartfolios’ Lotusdew Prestige, Geojit Chief Digital Officer Jones George said at present that there is a keen interest among investors to enter the equity market and more young people have started trading.
“What makes Smartfolios attractive to new as well as experienced investors is that it offers hassle-free order execution, timely recommendations for rebalancing/restructuring the baskets of stocks, no minimum holding period and no paperwork,” said Jones George.
Lotusdew Prestige has a history of total return of 56.22%, since inception (January 2017), against Nifty Small Cap 50 index’s 20.95%. The CAGR of Lotusdew Prestige is 12.68% against Nifty Small Cap 50 index’s 3.94%, over the same period till January 31. The returns during the fourth quarter of 2020 stood at 34.22%. The minimum investment lot in Lotusdew Prestige is Rs 5 lakhs and the client can choose to invest directly via the Smartfolios platform.
“We are thrilled to partner with Geojit and provide services enabled by AI and behavioural finance on their platform. Given the huge respect that Geojit brand possesses among the investor community, we are sure their clients will enjoy investing in Lotusdew Prestige,” said Lotusdew CEO Abhishek Banerjee.
Geojit Financial Services (www.geojit.com) is one of the leading investment services companies in India, with a strong presence in the Gulf Corporation Council (GCC) countries. It has 11 lakh clients, a network of 460 offices and has Assets Under Custody and Management worth Rs. 47,000 crore. BNP Paribas, C J George – Founder and Managing Director of Geojit, Kerala State Industrial Development Corporation (KSIDC) and Rakesh Jhunjhunwala are the prominent shareholders of the company.
Geojit Financial Services has an extensive presence in the GCC region via joint ventures and partnerships: Barjeel Geojit Financial Services LLC in UAE, BBK Geojit Securities KSC, in Kuwait and QBG Geojit Securities LLC in Oman. The company also has a presence in Bahrain through a business partnership with Bank of Bahrain and Kuwait.