C A P S T E M

“The choices we make, determine our destiny”.

Let’s choose wisely.

Invest in a custom portfolio of mutual funds from the myriad of choices, and build long term wealth and achieve your goals.

Choosing the appropriate funds that suit your needs and goals is of utmost importance. Improper capital allocation can derail your plans and cause unwanted financial stress.

The Selection Process

Pedigree of the AMC as well as the manager is taken into account while selecting a fund.

How it has fared during market cycles and the return it delivered and the extent of outperformance at risk-adjusted level.

Current portfolio is analyzed for possible risks they carry in future w.r.t defaults/side pocketing or underperformance due to business climate.

What category and class the fund is in and its possible drawdowns

How liquid the MF is and the possible slippage you can have upon liquidation.

Direct plans are opted to reduce the TER (Expense Ratio) leading to higher returns.

Operational efficiency

Funds operational efficiency is an important parameter. All funds deduct expenses from the investment in the form of Total Expense Ratio (TER) which include all costs incurred to operate the fund.

Funds having higher TERs but underperforming erode the long-term wealth creation capacity of invested capital due to a lower CAGR.

Risk Adjusted Returns

Stocks and MFs all exhibit different risk and return profile. For better risk adjusted return, we need to pick funds that exhibit higher return for a given/assumed risk. Efficient frontier plotting of stocks/MFs would help us in identifying such funds.

Advantages

Reduced Risk

Mutual Funds are by themselves diversified portfolios, which reduced the unsystematic risk due to diversification.

Fits your needs

There are multitude of options in the MF universe ranging from liquid funds to closed-end debt funds. You can choose the right funds that match your risk, investment horizon and financial goals.

Cost efficient

MFs use their AUM to get better cost on equity and yield in debt improving returns due to economies of scale.

High liquidity

You can sell it any day at the NAV stated by the fund house for that day and redeem your units.

Fractional ownership

It allows you to own high-priced stocks which are difficult to hold in a personal portfolio due to the nature of fractional ownership.

Get your MF Portfolio reviewed and redesigned or build a new one to suit your needs.

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