Focus on qualitative and quantitative factors

Vinay Paharia, fund manager, Religare Invesco Mid N Small Cap, talks about the quantitative and qualitative factors they focus on for stock selection. What is your investment universe? The equity investment universe for the fund house includes uncommon companies in BSE 200 Index and CNX MidCap Index along with some select bottom up stock ideas. The stock universe for the fund includes midcap and smallcap companies from the equity investment universe for the fund house. The total universe of stocks for the fund house as on 30th June, 2015 was at 290 stocks. What attributes should a stock have for it to become a part of your portfolio? We only invest in companies that meet the stock selection principles as laid out in our investment process. We look at both qualitative and quantitative factors. A key quantitative parameter which we tend to follow is return on capital. We tend to buy into co