• High Fee Structure Dragging Net Returns: With a 2.5% fixed fee and a 1.5% fixed + 15% performance fee (above a 10% hurdle rate), the fund's expense burden is exceptionally high compared to standard PMS strategies.

• Extreme Concentration and High Volatility Risk: Holding a concentrated portfolio of only 8 to 10 stocks creates severe stock-specific risk, where a downturn in just one or two holdings can severely impair returns.

• Short Track Record & Small Asset Base: Incepted only in October 2024 with an AUM of ₹6 Crore, the scheme lacks a proven multi-year history, making its 1-year (38.9%) and since-inception (21.6%) returns unreliable indicators for long-term consistency relative to its benchmark.

• Outperformance reason & risk associated: It has outperformed because of its small- and micro-cap allocation; in recent months it has run up substantially. Furthermore, it would be difficult to manage the liquidity crunch with ~75% of the allocation in small- and micro-cap companies and such a small AUM.

Ayush Singh

Research Analyst || Alpha Capital

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