model portfolio · 2020. 9. 4. · 5 portfolio rebalancing 6 months to bring back asset class...

© 2020 Copyright of Yadnya Academy Pvt. Ltd. All rights Reserved. Redistribution Prohibited

METHODOLOGY

[email protected]

SEP’20

MODEL PORTFOLIO

WEALTH CREATION MF ONLY

mailto:[email protected]

http://www.investyadnya.in/


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.

Gold & International Funds (Mostly US based) are less volatile in nature than Indian

Equity, help as a cushion from asset allocation perspective and by investing in a different

asset class, we are diversifying our portfolio risk. These funds and asset classes are also

very good hedge against Indian Stock market and have very low correlation.

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 mutual funds and ETF/index funds in model portfolios.

https://mfyadnya.in/

https://finplanyadnya.in/


Wealth Creation Portfolio

Investment ObjectiveThe aim is to generate good growth with Equity based portfolio with reduced downside

risk. We have used some good risk hedging mechanism by creating a multi-cap, multi-

asset growth-oriented portfolio.

StrategyWealth Creation could be an ideal investment solution for investors seeking long-term

wealth generation. Strategy is to Buy and Hold investments with a time horizon of 8

years+

Rationale for this PortfolioWealth Creation Goal comes after your all major life goals are met or being met with

current monthly investments. Wealth Creation goal is for that extra savings which has

capability to improve your lifestyle in future and gives you cushion over your major life

goals like Retirement, Children Education, Marriage and Emergency.

Most of the time with the money you want to invest in Wealth Creation goal, you can take

some extra risk than your other major life goals. Investors mostly have higher propensity

to bear losses in short term on this goal.

Considering this and assuming all your major life goals are achievable, we have not taken

any Debt allocation in this goal. To hedge some Indian equity risk, we have taken

allocation to Gold & International Stocks too.

We have included three modes of investment vehicles in this model portfolio – Large, Mid

& Small Cap Mutual Funds, Gold and International Mutual Funds. For meeting the

investment objective of a growth oriented multi-cap, multi-asset portfolio, looking at the

long-term expected returns and risk levels of each asset class based on our long-term

view of Indian economy, Gold markets & Global financial markets, we suggest this

strategic allocation of 80% in Indian Equity Mutual Funds, 10% in Gold and 10% in

International Fund.


Methodology

1 Strategic AssetAllocation

Indian Equity Mutual Funds, Gold & International Equity Funds

2 Selection Universe

Indian Funds covered in MFYadnya.inAll Gold & International Funds

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

Indian Equity Mutual Funds, 80%

Gold, 10%

International Equity Fund, 10%


Is this model portfolio for you?This Wealth Creation portfolio is appropriate for an investor whose all major life goals are

already achieved or are on target to be achieved with regular monthly investments. This is

planning for that extra savings (monthly or lumpsum) with a medium to high risk tolerance

and a time horizon longer than eight years. These investors are willing to accept periods

of high market volatility in exchange for the possibility of receiving returns that outpace

inflation by a significant margin. We also tried to reduce the downside risk by hedging the

portfolio with Gold & International Funds.

This portfolio might get an average annualized return of 12-15%. Its best yearly gain

might be 20-25% and its biggest decline in a year may range from 15-20%.

Time Horizon – Min. 8 years

Benchmark – BSE 500 TRI

Rebalancing – 6 Monthly

Important DatesLaunch Date – May 30th, 2020

Last reviewed – May 30th, 2020

Next Rebalancing on – December 1st, 2020


Wealth Creation Model Portfolio Cumulative Performance

PerformanceThis chart shows the portfolio’s cumulative performance starting from Jan 2015 until 31st

August 2020. The Model Portfolio is compared against BSE500’s cumulative returns.

180.5

150.2

80

100

120

140

160

180

Dec 14

Feb 1

5

Apr 15

Jun 1

5

Aug 15

Oct 15

Dec 15

Feb 1

6

Apr 16

Jun 1

6

Aug 16

Oct 16

Dec 16

Feb 1

7

Apr 17

Jun 1

7

Aug 17

Oct 17

Dec 17

Feb 1

8

Apr 18

Jun 1

8

Aug 18

Oct 18

Dec 18

Feb 1

9

Apr 19

Jun 1

9

Aug 19

Oct 19

Dec 19

Feb 2

0

Apr 20

Jun 2

0

Aug 20

Wealth Creation Port folio BSE 500 TRI Index


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.

Wealth Creation Portfolio Last 1 Year Monthly Returns

The chart below shows last one year’s monthly performance of the Wealth Creation

Model Portfolio against the monthly returns of benchmark BSE500.

-4.5%

1.0%

5.0%

2.9%1.2% 0.8%

2.3%

-4.0%

-18.2%

9.9%

-2.0%

6.8%6.0%

4.50%

-6.5%

0.0%

4.1% 3.5%1.7% 1.2%

0.0%

-7.0%

-26.5%

18.7%

-2.3%

8.3%7.1%

3.90%

-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

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

Wealth Creation Port folio BSE 500 TRI Index

model portfolio · 2020. 9. 4. · 5 portfolio rebalancing 6 months to bring back asset class...

Documents