The Impact Expertise

Impact Asset Management


Impact AM Model uses fundamental, technical, quantitative and macro-economic metrics to identify value and predict trend direction.







Components


Impact AM Model has four components

Macro-Economics

Macro-Economic Model - looks at the broad macro-context within which equities perform. Though macro-economic factors do not affect equity markets in the short-term, they provide the framework for all growth.





Example 1 : Indian Industrial Growth

Indian Industrial Growth - shows when the industrial sector goes through critical trend changes.


Example 2 : US Housing Market

US Housing Market - How bad is it and how much will it affect the US Banking Industry


Fundamentals

Fundamental Model - identifies the actual value inherent in the price of equities based on the company's business and financial performance. The fundamental value of the stock sets the broad value range within which the prices oscillate.




Example: Valuation Spectrum

Valuation Spectrum - the broad range within which prices oscillate. (Nifty Index)


Quantitative

Quantitative Model - identifies the intermediate trends in the market which cause the prices to oscillate between the broad ranges. The model also considers linkages with other markets such as global equities, bonds, currencies, commodities and credit markets.



Example 1 : Quant Spectrum

Quant Spectrum - shows how prices trend within a broad range. (Nifty Index)


Example 2 : Momentum Indicator

Momentum Indicator - shows the cyclicality inherent in markets. (Nifty Index)


Technicals

Technical Model - identifies the short-term price movements for entry and exit of positions and apart from traditional technical analysis also looks at underlying derivatives and options data.






Four Waves

The Impact Asset Management model uses the “four-waves” approach to determine the broad ranges of the market and the movement within these ranges.