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Ambit Asset Management launches TenX portfolio for HNIs; all you need to know

Ambit Asset Management launches TenX portfolio for HNIs; all you need to know

 Investors need a minimum of Rs 50 lakh to invest in the strategy.

According to Ambit Asset Management, Ambit TenX Portfolio will invest in forward-looking companies that have the potential for ten times earnings growth over the decade. According to Ambit Asset Management, Ambit TenX Portfolio will invest in forward-looking companies that have the potential for ten times earnings growth over the decade.

With an objective to multiply investors’ wealth in the long run, Ambit Asset Management on Tuesday announced the launch of the ‘Ambit TenX Portfolio’ for high-net-worth investors (HNIs). Investors need a minimum of Rs 50 lakh to invest in the strategy.

The money manager is betting on India’s GDP growth. Ambit believes that the country’s growth will multiply three times to touch the $10 trillion mark over the next decade on the back of structural growth drivers, providing abundant opportunities to Indian businesses to expand manifold over the same period.  

According to Ambit Asset Management, Ambit TenX Portfolio will invest in forward-looking companies that have the potential for ten times earnings growth over the decade - this includes those businesses that have low penetration to market, have strong leadership within the niche sector, and have strong balance sheets to expand and seize growth opportunities.

Ambit believes that India presently is at an inflection point, and there is immense growth potential in the economy, which is driven by factors such as low-interest regime, swift formalisation of businesses, a strong capex pipeline, and government reforms.  

TenX Portfolio will zero in on listed firms that are present in an underpenetrated market with lower per capita consumption, and have net debt to equity ratio below 1x.

“The portfolio selection of companies will be based on Ambit’s proprietary good and clean framework approach, derived under three strong pillars – clean accounting, conservative capital allocation, and good governance. TenX is a flexicap portfolio that will primarily comprise 15-20 high-quality mid-and-small-cap companies with an option of picking up fast-tracked large caps as well,” Ambit said in a release.

It further added that the portfolio can include new-age businesses, mid and small-sized that have the potential to become the large-caps of tomorrow.  

Sushant Bhansali, CEO, Ambit Asset Management said, “As Indians are increasingly moving to financial savings, there is a strong realisation to shift from traditional saving options to equity funds for higher investment returns. TenX portfolio will aim to create sustainable wealth for investors through long-term and patient capital.”