C A P S T E M

Let your
long-term investments work for you

Introduction

“Stable Income/Retirement Benefits is your reward for all the hard work.”

We always chase instruments that give us a stable yield. The volatility of Equity markets is not suitable to the needs of everyone. People have invested in FDs and earned a respectable return in the past. Interest rates in India were high and FDs offered by banks had high yields. Now, with falling interest rates and focus on monetary expansion and inflation tracking by RBI, many are looking for alternatives.

This has led to new products in debt MFs like Credit Risk Funds, Ultra Short-Term Funds etc. These funds were investing in illiquid and less credit worthy bonds and have taken a hit over time due to defaults and delinquencies.

So, let the Annuity Fund help you make sure of things you’ve dreamed about. It’s flexible, which means you can build a portfolio to match your needs.

Methodology

We offer the prospect of generating returns on your mutual fund/stock holdings.

We will first collateralize your mutual funds/Equity investments. For every asset that you put up, you receive margin after a ‘haircut’. ‘Haircut’ is determined by the exchange as a protection against market downturns.

We use the margin received post the ‘haircut’ to execute stable, conservative and market neutral derivative strategies.

This enables you to invest in long term growth story of India as well as cashing on the opportunities that markets give in short term due to volatility and imbalances.

Strategies

Most of the trades are hedged and delta-neutral. Predominant strategies deployed would be Calendar/Diagonal and Vertical Spreads. This reduces the risk on the book for any black swan event, thereby keeping your capital protected at all times.

Advantages

Additional return over and above the returns generated by the assets held
Low risk trades which are market/delta neutral improving risk adjusted return
Offers stable income each month, can redeem to meet needs or let it compound

All have their own catch, here we are

Market Risk

The underlying portfolio can erode in value due to market conditions leading to lesser margins and lower returns on the product.

Liquidation Risk

In case of losses over and above cash held in the account, the broker will start liquidating the underlying assets held to meet the obligations unless the client pays additional cash.

Volatility Risk

Markets can turn volatile and exchanges can increase the margins needed for the contracts leading to reduction in returns due to reduced positions.

Ready to power up your income at no additional cost in a sustainable way

Whether you would like to invest or hear any advice, reach out to us. We'd like to hear your message!
Send
Send