Capital Preservation

RISK EQUATED PORTFOLIOS


The conventional method of creating Balanced Portfolios is to allocate money to Equity and Debt in let’s say ratio of 50:50. Investors having done this grapple with the volatility on their portfolio as it baffles them that despite of having hedged themselves, their portfolios are still volatile.


We on the other hand, equate not the amounts of money, but the risks in the portfolio. So let us say that Equities as an asset class carries 20 units of risk, while Debt carries 10 units of risk. So we will make the allocation such that the risk in both these asset classes gets balanced. Because when you are making Balanced Investments what you really intend to do is balance the risk not the money. This way you have a portfolio that is safer than the traditional Balanced Portfolio, as it carries an overall lesser amount of risk.





















Now imagine having to do this jugglery with not two, but three different asset classes, so we form Risk Equated Portfolios using Debt, Gold and Equity.


We have back tested these for the past 31 years, and the results have been phenomenal to say the least, they have truly created a new way of managing risk.


The best part is that this a done based on a proprietary software framework of ours, and involves no human emotion in the decision making process. So your investments are driven by data rather than judgement. We offer you the scope of investing using the framework used by big financial institutions to manage the risks in your portfolio.


Process

      • Study the Risks of Each Asset Class
      • Make Allocations Such that Risk is evenly distributed
      • Implementation

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