Chairman's Message
We have come a long way since the first edition of the NJ Factor Book was released in April 2022. As expected, Science has
progressed across the globe with India's achievements outstripping the global pace.
At NJ Asset Management, we have moved towards establishing capacity that provides for the future. We now have a database that includes complete market and fundamental information of more than 1,200 companies spanning the last 20 years.
A mammoth effort has undergone to aggregate and define the data from various sources such that are stored in a uniform
format to minimise errors, ensure completeness and get consistent results.
To facilitate the same we have created a state of the art data analytics platform, The NJ Smart Beta Platform, which not only allows our researchers to test the most complex factor based strategies using this database within minutes but also audit the output to gauge its accuracy.
The capabilities here also include portfolio attribution, and performance analytics to further dissect the attributes
responsible for the result.
To ensure that the database and NJ Smart Beta platform are used to their potential, we have instituted best-in-class processes for the development and testing of parameters that form the foundation of our ability to derive and implement investment rules.
Using these capabilities, our researchers have tested thousands of portfolios from which we identified the best few for implementation. We have dedicated ourselves to continuous improvement of our data, platform, processes and of course, our portfolios.
The analytics we run corroborates our belief that investment portfolios must be built on a foundation of "Quality". The more
we do, the clearer it becomes that owning quality stocks is the best and the most visible way to create long term wealth.
To reiterate our philosophy, we take "Quality" as our primary factor and within the universe of quality stocks we run other
factors to improve the results.
As factor investing makes rapid strides globally, NJ Asset Management has participated in the evolution with the effective use of technology over more than a decade now. We continue to believe that a scientific approach to investing with a strong technology foundation has a high likelihood of success, aided by its inherent discipline and lack of emotional biases.
I am pleased to launch the fifth edition of NJ's Factor Book, a compilation of the insights and research conducted by NJ Asset Management's research team on various factors in India along with NJ AMC's proprietary Forensic and Governance Model. I hope you benefit from reading it and participating in the factor investing revolution.
Mr. Neeraj Choksi
Director & Chairman - NJ Asset Management Private Limited
