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© 2020 Copyright of Yadnya Academy Pvt. Ltd. All rights Reserved. Redistribution Prohibited
METHODOLOGY
SEP’20
MODEL PORTFOLIOREGULAR INCOME WITH
GROWTHMF ONLY
© 2020 Copyright of Yadnya Academy Pvt. Ltd. All rights Reserved. Redistribution Prohibited
Introduction to Model PortfoliosWith Yadnya’s Model portfolios, what we are offering is making complicated investing
simple.
These Model Portfolios use same asset allocation philosophy that we use for some of the
big investors and its pillars are our research-based products –
o Mutual Fund Subscription
o Financial planning product
The idea is to utilize quantitative and qualitative factors observed based on our extensive
research for suggesting model portfolios that make sense for individual investors like you.
Fund Selection ApproachMutual Funds help in easy diversification and tapping on professional fund management
and research expertise via an easily accessible channel. It is truly an invest and forget
type of product unless and until there is a significant change in management or a market
event-based trigger.
Debt Funds are much safer & less volatile than Equity. Arbitrage Funds are a good
substitute of Liquid funds for investors in 30% tax bracket as they are tax efficient option
for short term investing. Hybrid Funds reduce our overall downside risk during bear
market and are a good option for conservative investors.
ETFs and Index funds are passive investing funds that are linked to an underlying
benchmark index and provide a low-cost alternative for taking exposures in the financial
market.
We have utilized our proprietary fund selection methodology - MFYadnya.In for shortlisting
and adding equity, hybrid & Debt mutual funds and ETF/index funds in model portfolios.
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Regular Income Portfolio
Investment ObjectiveThe aim is to generate long term regular income with the current corpus with tax efficient
& above inflation returns
StrategyStrategy is to invest in Debt for short term income and gradually take some Equity and
other market driven allocation for medium & long-term income
Rationale for this PortfolioYou’ve saved for retirement for years. Now that retirement is approaching, how can you
create a regular stream of income from your savings to help pay your bills?
Or you have inherited a large sum of money and want to invest in such a way so that you
can get regular income for long term.
Investors do not want to take much risk with these investments and look for regular
income for as long as possible. Primary objective is to get tax efficient returns and some
higher than inflation returns to avoid the loss of capital.
We have assumed that you already have a separate Emergency Corpus apart from this
investment and would withdraw an optimum inflation adjusted monthly income so that
your investment corpus can sustain for long term. Example: An approx. Rs. 50 Lakhs
corpus can give you 7% inflation adjusted Rs 21k/month income (increasing ₹21k income
by 7% every year) for 20 years with this portfolio.
We have included multiple modes of investment vehicles in this model portfolio – Fixed
Deposits/Liquid Funds/Arbitrage Funds, Debt Funds, Hybrid Funds, Large Cap Funds and
Gold Funds. For meeting the investment objective of regular income with tax efficient &
above average inflation returns with multi-asset portfolio, looking at their long-term
expected returns and risk levels of each asset class based on our long-term view of
Indian economy, we suggest the strategic allocation of 50% in Liquid/Debt, 45% in Equity
& 5% in Gold.
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Methodology
1 Strategic AssetAllocation
FDs/Liquid/Arbitrage Funds, Debt Funds, Equity Funds & Gold
2 Selection Universe
Indian Funds covered in MFYadnya.inAll Gold buying options
3 Fund Screening
Performance Consistency, MFYadnya.in star Rating, Risk-Return Ratios, AUM
4 Mutual Funds Allocation
Allocation based on risk profile and market cap
5 Portfolio Rebalancing
6 months to bring back asset class weights as per SAA
6 Portfolio Monitoring
Monthly for market, fund related events
Strategic Allocation by Asset Class
Debt/Liquid Allocation, 50%
Gold, 5%
Equity Allocation, 45%
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Is this model portfolio for you?This long term Regular Income with Growth portfolio is appropriate for a moderate risk
investor who wants a long-term regular income.
It is assumed that the investors have a separate Emergency Fund apart from the
investment in this portfolio. They are wary of capital loss but are willing to accept periods
of some market volatility in exchange for the possibility of receiving returns that outpace.
We also tried to reduce the risk by hedging the portfolio with some Gold investment.
This portfolio might get an average annualized return of 8-9%. Its best yearly gain might
be 12-15% and its biggest decline in a year may range from -0 to -5%.
Time Horizon – Min. 10 years
Benchmark – Crisil Hybrid 35+65
Rebalancing – 6 Monthly
Important DatesLaunch Date – May 30th, 2020
Last reviewed – May 30th, 2020
Next Rebalancing on – December 1st, 2020
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Regular Income Model Portfolio Cumulative Performance
PerformanceThis chart shows the portfolio’s cumulative performance starting from Jan 2015 until 31st
Aug 2020. The Model Portfolio is compared against Crisil Hybird 35-65 Aggressive
cumulative returns & Nifty 50 TRI Index.
157.1
160.1
147.7
80.0
90.0
100.0
110.0
120.0
130.0
140.0
150.0
160.0
170.0
Dec
-14
Feb-
15
Apr-
15
Jun-
15
Aug-
15
Oct
-15
Dec
-15
Feb-
16
Apr-
16
Jun-
16
Aug-
16
Oct
-16
Dec
-16
Feb-
17
Apr-
17
Jun-
17
Aug-
17
Oct
-17
Dec
-17
Feb-
18
Apr-
18
Jun-
18
Aug-
18
Oct
-18
Dec
-18
Feb-
19
Apr-
19
Jun-
19
Aug-
19
Oct
-19
Dec
-19
Feb-
20
Apr-
20
Jun-
20
Aug-
20
Regular Income Portfolio Crisil Hybrid 35-65 Index Nifty 50 TRI
© 2020 Copyright of Yadnya Academy Pvt. Ltd. All rights Reserved. Redistribution Prohibited
Disclaimer: The information on this site is provided for reference purposes only and
should not be misconstrued as investment advice. Under no circumstances does this
information represent a recommendation to buy or sell stocks or MF. All these portfolios
are created based on our expert’s experience in the market. These Model Portfolio are
prepared by SEBI Registered RIA.
Regular Income with Growth Portfolio Last 1 Year Monthly Returns
The chart below shows last one year’s monthly performance of the Regular Income with
Growth Model Portfolio against the monthly returns of benchmark Crisil Hybrid 35-65
Aggressive.
-1.4%
0.3%
2.6% 2.1%1.1% 0.7% 0.5%
-1.7%
-11.1%
6.1%
-0.5%
4.1% 4.0%
1.30%
-3.2%
0.3%
2.6% 2.7%1.5%
0.5%
-0.2%
-3.3%
-14.8%
10.2%
-0.8%
5.6% 5.1%
1.90%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20
Regular Income Portfolio Crisil Hybrid 35-65 Aggressive Index