Research Model Overview
India Edge is a systematic small cap momentum research model. It targets fundamentally superior companies in the ₹1,000 Cr to ₹10,000 Cr market cap range at the precise moment when technical momentum confirms a high-probability breakout entry signal.
This model was developed through 12+ years of Indian equity market research. Every position criterion is rules-based and backtested. The model portfolio operates at 7% equal weight per position, capped at ~14 stocks, providing a research benchmark for systematic momentum-based small cap selection.
⚠️ India Edge is a research model only. It is not an actual investment fund, PMS scheme, or managed portfolio. Investox does not manage money and is NOT SEBI registered. All data is backtested historical simulation. Past model performance does not predict future returns.
Backtested Model Performance
The India Edge model has been backtested from January 2012 through July 2025 — covering the 2015–16 correction, 2018 mid-cap bear market, 2020 COVID crash, and subsequent recovery cycles.
Backtested Model CAGR vs Reference Benchmarks*
⚠️ *Backtested historical model data Jan 2012–Jul 2025. These are NOT actual fund returns. NAV data from Investox research records. Benchmark figures are approximate reference only. Past model performance is not indicative of future results. Investments are subject to market risk.
Fundamental Screening Criteria
Every India Edge model candidate must satisfy all four fundamental filters before any technical signal is considered. This ensures only fundamentally sound businesses enter the model portfolio.
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Margin Expansion
Improving operating margins over recent quarters or a credible near-term earnings outlook confirming margin recovery and earnings growth trajectory.
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Low Debt/Equity
Conservative balance sheet with manageable leverage. Debt-heavy small caps are categorically excluded — balance sheet strength is non-negotiable.
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Rising ROCE & ROE
Improving return on capital employed and return on equity — confirming the business generates real economic value beyond accounting profits.
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Small Cap Universe
Strict market cap range: ₹1,000 Cr to ₹10,000 Cr only. Maximises momentum opportunity while avoiding micro-cap illiquidity.
Technical Entry Criteria
All six technical criteria must be confirmed simultaneously before a stock enters the India Edge model portfolio. No exceptions.
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5× Volume Breakout
Volume on breakout day ≥ 5× the 10-day average. This institutional-level signal separates genuine breakouts from noise.
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Healthy Consolidation
Post-breakout base-building behaviour — constructive sideways movement, not a deep selloff indicating distribution.
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RSI Above 50
Relative Strength Index above the 50 midpoint, confirming the model stock is in a momentum regime, not oversold territory.
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Above 20-Week EMA
Price trading above the 20-week exponential moving average — the medium-term trend filter anchoring momentum validity.
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RS vs Nifty 50
RS breakout >5–10% vs Nifty 50, consistently outperforming by >1% over the last full month.
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Shallow Correction
Some pullback from highs acceptable — but a deep correction (>20%) disqualifies the entry signal entirely.
Model Construction Rules
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7% per position — strict equal weighting. No single stock dominates.
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Maximum 14 stocks — concentrated enough for alpha, diversified enough for risk management.
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Small Cap only — ₹1,000–₹10,000 Cr market cap. No large cap substitutions.
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Exit criteria — exit if stock falls below 20WEMA for two consecutive weeks, RS breaks down vs Nifty, or fundamentals deteriorate.
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Weekly review — all model holdings reviewed weekly against entry criteria. Dynamic, not buy-and-forget.
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Research only — this model is published for educational purposes. It does not represent actual investment recommendations.
Model Quick Facts
TypeResearch Model
UniverseSmall Cap
Market Cap₹1K–₹10K Cr
Max Stocks~14
Position Size7% equal weight
Historical CAGR35.3%*
Latest NAV₹6,052.60*
Data ThroughJul 2025
Backtest StartJan 2012
SEBI StatusNOT Registered
Technical Signals
Volume Breakout5× 10-day avg
RSI FilterAbove 50
Trend FilterAbove 20WEMA
RS vs Nifty>1% monthly
Research Enquiries
Questions about India Edge methodology? Reach out — for research and educational queries only.
Contact Research Desk →
⚠️ NOT SEBI registered. Research use only. Not investment advice.