Investment DNA : What Makes Carnelian Different?
At Carnelian Asset Management, our unique investment philosophy is built on a foundation of rigorous analysis and a disciplined approach, setting us apart in the Indian equity landscape.
QGARP Lens : Quality, Growth, and Value Combined
Every Carnelian portfolio is crafted with a Quality-Growth At Reasonable Price (QGARP) lens. This powerful blend is further refined with two distinct sub-cohorts:
“Magic” Stocks
Identifying companies where significant earnings acceleration is poised to trigger re-ratings and superior returns.
Compounders
Focusing on businesses with the potential for steady, sustainable growth over many years, delivering consistent long-term value.
CLEAR Forensic Screen : Uncompromising Due Diligence
Our proprietary CLEAR forensic screen is a five-point audit every company must pass. This stringent process ensures the highest standards of corporate governance and financial health:
Cashflow Reality
Verifying the authenticity and sustainability of cash flows.
Hidden Liabilities
Uncovering any undisclosed or understated financial obligations.
Earnings Quality
Assessing the true quality and sustainability of reported earnings.
Asset Integrity
Ensuring the integrity and valuation of company assets.
Related-Party Hygiene
Scrutinizing related-party transactions for any red flags.
Aggressive accounting practices or high leverage are automatic exclusions, safeguarding your investments from undue risk.
Risk Management: Three-Bucket Approach
We meticulously manage risk by breaking it down into three distinct buckets, ensuring a comprehensive and proactive approach:
Capital-Loss Risk
Strategies to protect your principal investment.
Volatility Risk
Managing market fluctuations to minimize portfolio swings.
Opportunity-Cost Risk Carnelian Asset Management
Ensuring capital is deployed efficiently to maximize potential returns.
This granular approach to risk management typically results in shallower drawdowns compared to benchmarks.
Concentrated Conviction: Deep Due Diligence
Our portfolios maintain a focused approach, holding approximately 20–25 stocks. This concentration is strategic:
Captures Mega-Trends
Large enough to capitalize on India’s significant economic and demographic mega-trends.
Deep Due Diligence
Small enough to allow for thorough, in-depth research and analysis of each holding.
Why Partner with Carnelian Asset Management? Unmatched Value for Distributors
Listing Carnelian Asset Management on your platform provides your clients with access to a differentiated investment approach and robust support.
1. Cycle-Tested Absolute Returns
Our flagship strategies have consistently delivered strong, cycle-tested absolute returns:
● Capital Compounder:
○ AIF format: 21.4% CAGR since May 2019.
○ PMS format: 18% CAGR since May 2019.
●Thematic Shift Strategy: Delivered an impressive 37.8% CAGR to PMS investors since 2020.
2. Product Breadth Under One Philosophy
Carnelian Asset Management offers a diverse range of products, all underpinned by our consistent and rigorous investment philosophy. This allows distributors to match nearly any client risk profile without concern for style drift:
- Core Multi-cap strategies
- Specialized manufacturing and technology plays
- Contrarian large-cap opportunities
- Bespoke 5-stock mandates
3. Forensic Comfort: A Tangible Risk Mitigation Story
The rigorous CLEAR due-diligence process provides relationship managers with a compelling and tangible risk-mitigation story for even the most cautious allocators. This transparency builds trust and confidence with clients.
4. High-Touch Partner Support
We’re committed to providing exceptional support to our partners:
●Monthly Factsheets: Detailed performance and portfolio insights.
●Daily NAV Feeds: Up-to-date net asset values for all strategies.
●Quarterly CIO Webinars: Direct insights from our Chief Investment Officers.
●Co-branded Decks: Customized marketing materials for large distributor events.
Carnelian Asset Management Product Offerings : Tailored Investment Solutions
Explore our comprehensive suite of investment products designed to cater to diverse investment goals and risk appetites within the Indian equity market.
Capital Compounder
A concentrated multi-cap portfolio strategically aimed at capitalizing on the immense “Trillion-dollar India” opportunity.
● Performance:
○ Beaten the BSE-200 by approximately 750 bps annualized since launch.
○ Latest 12-month return: 12.5% (AIF) and 8.1% (PMS).
Shift / Structural Shift
This strategy plays into two powerful secular trends reshaping the Indian economy: manufacturing re-shoring and digital transformation.
● Performance:
○ PMS investors: 4% over the last year and 37.8% CAGR since 2020.
○ AIF version: 14.5% yearly and 26.3% CAGR since 2022.
Bharat Amritkaal Fund
A flexible-cap portfolio designed to ride seven mega-trends across five key sectors, capturing the essence of India’s transformative period.
● Performance (since April 2024 debut): Marginally positive at +1.4%, demonstrating resilience in a choppy small-cap market (–15% mark-to-market over six months).
India Amritkaal Fund
Offers the same robust framework as the Bharat Amritkaal Fund, specifically designed for global investors seeking exposure to Indian equities.
● Performance (Inception Aug 2024 to March 2025): Currently at –13.6%, offering significant catch-up potential as Indian equities rebound.
Contra Strategy (PMS)
A large-cap-tilted, event-driven book that seeks out temporary market dislocations and special situations, aiming to generate alpha from undervalued opportunities.
● Performance: Delivered an impressive 4% CAGR since January 2022.
Bespoke PMS Mandates
For high-net-worth clients, we offer five- to ten-stock portfolios (minimum ₹20 crore) meticulously tailored to specific themes, including:
- High-conviction “Magic” stock selections.
- Shariah compliance.
- Single-sector focus.
Robust Risk Framework Across All Strategies
All Carnelian strategies adhere to a clear and transparent risk framework to protect client capital:
Single-stock exposure
Capped at 10% on entry.
Sector weight
Limited to 30% on entry.
Carnelian Asset Management PMS Product Performance
| Company Name / Product Name |
Category | Date of inception | AUM | 1y return | 2y return | 3y return | 5y return | 10y return | Since inception return |
|---|---|---|---|---|---|---|---|---|---|
| Carnelian Capital Compounder Strategy | Multi Cap | 15 May 2019 | 850 | 11.60% | 29.70% | 29.90% | 25.00% | – | 20.60% |
| Carnelian Capital Shift | Mid & Small Cap | 06 Oct 2020 | 4200 | 14.50% | 32.50% | 37.40% | – | – | 38.70% |
| Carnelian Capital Contra Portfolio Strategy | Multi Cap | 27 Jan 2022 | 110 | 2.20% | 34.90% | 38.20% | – | – | 32.40% |
Key People
Carnelian is a distinguished boutique investment firm established in 2019, specializing exclusively in Indian equities. We’re proudly founder-owned and currently manage an impressive USD 1.3 billion (₹10,800 crore). Our leadership team brings decades of invaluable market and corporate-access experience:
Mr. Vikas Khemani
CFA: Ex-Edelweiss CEO
Bringing strategic vision and leadership.
Mr. Manoj Bahety
CFA: A pioneer in forensic research
Ensuring robust due diligence
Supported by a dedicated 78-member team across seven Indian cities, we ensure comprehensive research, meticulous risk management, and efficient distribution. Our 100% internal ownership means our partners’ capital is invested alongside yours, guaranteeing full alignment of incentives.