Growth Mantra PMS Fund Returns 20% in FY26: Quant Strategy
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- Growth Mantra PMS Fund delivered around 20% returns in FY26, ranking among the top 5 in its category and top 10 overall, with Rohan Mehta attributing the performance to quant-driven exposure in silver, power, auto, and PSU banks.
- Turtle Wealth Management's strategy uses a three-rule PPP framework: stocks must be at all-time-high prices, at all-time-high profits, and outperforming both the NIFTY 500 and their sector — combining fundamentals, technicals, and momentum with equal weight.
- The fund holds 15–20 stocks drawn from a NIFTY Total Market universe of around 750 names, is market-cap agnostic, and pre-decides downside exit prices on every position to manage risk.
- March 2025 tested the model: the fund was only around 6.5% down for the month despite broader market turbulence, with Mehta citing systematic trimming of weak names as the buffer.
- Turnaround indicators tracked by the framework include sectoral and structural demand, new CEO or management change, new products or services, and regulatory shifts — but Mehta insists each story must be data-backed.
- Exit triggers fire when a stock retains only one of the three PPP positives, with replacements drawn from newly emerging outperformers, contributing to a roughly 21% long-term CAGR.
- Mehta recommends the fund for first-time PMS investors with a moderate-to-high risk appetite and a 3-year horizon, arguing that 12%+ market corrections historically surface the best new opportunities.
Why it matters: For investors weighing discretionary versus quant PMS strategies, Mehta's 20% FY26 return and ~21% CAGR — delivered while limiting March drawdown to about 6.5% — show that a rigid, data-only framework can both identify emerging leaders (silver, PSU banks, power) and avoid the emotional holding of laggards, a contrast to traditional PMS funds where manager attachment often caps performance.
