Our Approach
Explore the world of mutual funds that can help you achieve financial goals and create wealth.
01
01
There are over 2500 mutual fund schemes in India. Choosing the best funds is an onerous task.
We select mutual funds from each category like Small Cap, Mid Cap, Large Cap, Flexi Cap, Debt Funds, Index Funds, Multi Asset Fund, Sectoral Funds, etc. How do we decide the best performing funds from each category? Apart from the past returns, we consider several quantitative and qualitative factors like –
- Sharpe Ratio
- Drawdowns
- Return Consistency
- Portfolio Holdings and Valuations
- Portfolio Turnover ratio
- Portfolio Concentration Ratio
- Standard Deviation
- Consistency of fund management team
- Expense ratio (TER)
02
02
The next step is to understand our client’s needs after a thorough discussion, and drafting a customised Investment Policy Statement (IPS) which clearly outlines the following, amongst other things :
- Risk Tolerance
- Liquidity requirements
- Time Horizon (Short/Medium/Long)
- Establishing benchmark and performance measurement accountabilities
- Client Specific restrictions/preference on/for certain investments
- Return Objectives and Goals
- Target asset allocation
- Tax implications
03
03
We then choose the best mutual fund(s) for our clients leveraging information from Step 1 and 2 above.
04
04
Once the funds are chosen and investment made in the form of lump sum/SIP, our job gets more interesting and demanding. We monitor your portfolio performance carefully and adjust it time-to-time. We carefully exit funds which have given great returns and don’t have much steam left or funds which have been consistently underperforming. We enter funds with potential alpha opportunities, using our filters at Step 1. Before we exit any fund, tax impact is also taken into consideration.
05
05
We measure your portfolio performance annually and compare it against our benchmark. We look at hits and misses and ponder where we did well and went wrong. This analysis helps us improve our game and we are better equipped to deliver superior returns the next year. We believe experience is the best teacher.
