Good portfolios aren’t built on hunches—they’re engineered. This is the philosophy behind Ametra's factor-driven, rule-based approach.
Most investors hear the term “factor investing” but rarely see how it’s actually applied. Here's how Ametra turns proven academic concepts into practical, rule-based portfolios built for Indian markets.
Watch the deep-dive discussion between our Co-founders on why and how we stand out:
1. Why Factors Work (and Why We Rebuilt Them for India)
Global markets have shown one thing consistently:
Most major factors have beaten benchmarks over the long term.
And this is how we begin applying it in the Indian market.
Check if meaningful alpha exists
Understand why the alpha exists (behavioural, structural, risk-based, anomaly-driven)
Test consistency across cycles
Identify when each factor performs or contracts
Ensure predictability and replicability
Only after this are factor definitions finalised — including stock-selection rules, weighting methods, and rebalance frequency. All rule-based, no discretionary tinkering.
2. Tactical Quants: The Second Layer of the Ametra Edge
Factors create long-term compounding with not all factors work in all market conditions.
But returns also live in 3–5 year windows too.
So Ametra adds a tactical layer:
The Tactical Risk Rotation Model (TRRM).
It uses five key market signals:
US VIX
India VIX
Nifty regression
Nifty valuation multiples
India govt bond yields
These combine to predict whether markets are entering a bullish, bearish, or consolidation phase.
What the model does next:
Bullish: tilt toward Momentum, Alpha, Value, Small/Micro caps
Bearish: shift to Low Vol, Dividend, Quality, Contrarian
Consolidation: maintain balanced, moderate-risk exposure
Everything is rule-based → no emotional allocation shifts.
3. The Final Mix: How Portfolios Are Actually Constructed
Three moving pieces come together:
Independently managed factor portfolios
Tactical regime signals
Allocation across factors based on those signals
Capital Allocation
~95% → multi-factor “bouquet” chosen based on market regime
~5% → strategic positioning + hedging
This combo delivers:
Long-term alpha
Short-term adaptability
Lower behavioural bias
Consistent, repeatable outcomes
