Elever launches quant-based PMS to deliver consistent Alpha to investors

Mumbai, Jan 29: SEBI registered wealth- tech platform, Elever has announced the launch of its new Portfolio Management Services (PMS) to deliver consistent, long-term returns to investors. Elever uses a combination of data and technology to suggest systematic investments to its clients. Its quant-based investment approach is designed to help investors achieve significant alpha on invested amounts.

Elever’s rule-based models, factor investing strategies and tactical quant methods help not only to pick good quality stocks but also select the right investment weightage. This all-weather strategy aims to enhance portfolio performance by combining data-driven insights with a systematic approach ensuring superior risk-adjusted returns.

The launch of the PMS addresses a critical market gap, as traditional active money management strategies have increasingly struggled to outperform benchmarks. According to Elever’s analysis, over the past 18 years, most large-cap active funds underperformed their benchmarks in 13 years, while mid-cap funds faced similar challenges since the mid-2010s. This underperformance has fueled demand for advanced, data-driven investment solutions like Elever’s PMS, which delivers superior, consistent returns for investors.

This has created a strong demand for advanced, data-driven investment solutions like PMS that can deliver higher and more consistent returns for investors. To meet this growing demand, Elever's PMS employs a sophisticated multi-factor model that analyzes over 500 factors across 17 years. The platform's proprietary tactical risk-rotation models utilize machine learning algorithms to predict market signals with up to 90% accuracy for the next 6-12 months, allowing for dynamic portfolio adjustments in response to changing market conditions.

"Generating alpha consistently in today's market is a significant challenge," said Karan Aggarwal, Co-founder and Chief Investment Officer at Elever PMS. "Our investment philosophy is built on three core pillars: rule-based investing, factor alpha, and tactical allocation. By eliminating human bias through our 100% rule-based approach and combining proprietary factor models with tactical risk rotation, we aim to navigate market cycles effectively and deliver superior risk-adjusted returns.” he said.

Karan, the CIO of Elever is a CFA and brings over 15 years of experience in developing equity and fixed income products and has previously managed investment strategies totaling more than USD 5 billion at Indxx Capital. His expertise spans serving AMCs, ETF sponsors, hedge funds, and pension funds, with a specialized focus on factor investing and quantitative research.

The launch aligns with significant growth in India's wealth management sector. According to a recent Deloitte report, the unmet demand for wealth management services in FY24 was estimated at US$0.4 trillion, with target customer segment wealth expected to rise from US$1.1 trillion in FY24 to US$2.3 trillion by FY29. PMS AUM in India has nearly tripled growing from US$149 billion in FY17 to US$405 billion in FY24. Higher awareness about PMS as an investment vehicle and stock market returns post-COVID are the key drivers of this growth.

"At Elever, we are pioneering factor investing in PMS because it offers a systematic and transparent approach to delivering consistent value," said Anshul Sharan, Co-founder and CEO of Elever. "By tailoring strategies to market conditions and leveraging proprietary factor combinations that outperform in varying scenarios, we empower investors with adaptive portfolios that optimize risk-adjusted returns across bull, bear, and consolidation phases.With this launch, we aim to cater to India’s new-age affluent, including HNIs, founders, entrepreneurs, and CXOs across various industries, while also expanding our reach to global investors keen to be part of India’s remarkable growth story,” he said.

Anshul brings extensive leadership experience across strategy, product management, and risk management. During his tenure as Head of Strategy at Credit Access Grameen, he played a pivotal role in leading the company to a successful IPO in 2018 and subsequently became the Chief Risk Officer of the listed entity.

As part of its PMS offerings, Elever has launched 4 unique schemes, each tailored to meet diverse investment needs and risk profiles: the flagship FactorAlpha PMS for all-weather performance, FactorAlpha SmallCap PMS for capturing small-size potential, FactorShields PMS for risk-conscious investors seeking stability, and FactorIncome PMS for those seeking steady income & inflation-beating returns. This comprehensive suite reflects a deep understanding of diverse investor needs in today's complex market environment.