Dynamic Asset Allocation Portfolio
Investment Objective:The investment objective is to provide long term capital appreciation with relatively lower volatility through a dynamically balanced portfolio of equity and debt securities including mutual fund schemes.
Portfolio Composition:Portfolio would consist of both asset classes - Equity & Debt in variable proportion from time-to-time. Portfolio would be invested in mutual fund schemes belonging to these asset classes. Within the equity asset class, investments would be largely done in Diversified / General Purpose Equity Mutual Fund Schemes.
The idea is to manage the asset allocation tactically, between equity and debt asset classes, to generate superior returns and reduce risks to the portfolio. The Portfolio Manager would undertake internal analysis to forecast not just expected returns, but also risk in the portfolio. Typically, when market risks are low, the portfolio would be returns oriented and when market risks are high, the focus will be on risk reduction.
The asset allocation decisions would be taken through quantitative analysis by a mathematical model developed by NJ. There would be no reliance on instinct and emotions in the decision making process. It will follow a disciplined, rule based investment approach and execution of the model without deviations. The model has been exhaustively tested by NJ across various market cycles and time horizons. The back testing results clearly indicate that the decided objective of offering better risk adjusted returns is very much possible.Portfolio will invest in diversified equity mutual fund schemes and debt mutual fund schemes as per the asset allocation decided. The idea is to select quality, good performing schemes that are expected to perform better. Scheme selection would be research driven, due-diligence based and which, in the opinion of the Portfolio Manager, can add value to the portfolio.