Glossary

A

Alternative Investment Fund (AIF)
A pooled investment vehicle structured under SEBI regulations, enabling investors to access differentiated strategies across listed and unlisted opportunities.
Alpha
Excess return generated through disciplined research, portfolio construction, and timing of entry and exit decisions.
Active Management
A hands-on investment approach where portfolios are continuously evaluated and adjusted based on evolving risk-reward.

B

Bottom-Up Investing
A research-driven approach focused on identifying high-quality businesses based on fundamentals, irrespective of macro conditions.
Benchmark
A reference index used to evaluate performance, while not necessarily dictating investment decisions.

C

Capital Gains
Growth in portfolio value driven by earnings expansion and valuation re-rating.
Concentrated Portfolio
A high-conviction portfolio with limited stocks, typically 8–25, designed to enhance alpha generation.
Compounding
The ability of capital to grow exponentially through sustained earnings and reinvestment over time.

D

Diversification
The practice of spreading investments across various assets to reduce risk.

E

Equity
Ownership interest in a company, typically represented by shares.

F

Factor Investing
An investment approach that focuses on specific characteristics or factors that have historically driven returns.