A BUSINESS BUILT ON TRUST

"To reach new heights, the foundation has to be strong."

Over the last 30 years, NJ Group has been on a fulfilling path of discovery, growth, and evolution to emerge as one of the respected names in the financial services industry. The organisation stands today upon the foundations of upholding trust, passion for delivering, and the commitment to excellence. The interests of our investors and stakeholders continue to be the guiding light behind all our endeavours. With these virtues, we have created business opportunities for our partners, written success stories for investors, and thus transformed their lives.

The growth story of NJ Group progresses as we venture into newer horizons and businesses, driven by the same passion and commitment to serve and excel, doing what feels right for a larger cause. NJ Group feels privileged to give back to society through its social initiatives, especially by empowering the next generation with education. The journey continues, one step at a time, one path at a time, now by all of us together.

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