Investment Process
With increasing awareness levels, investors have started realizing the superiority
of equity over other asset classes and of ideal mutual fund portfolios that route
through money market funds over direct equity. But the results have been far from
what it could have been.
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Particulars
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Long term Average
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Range: High - Low
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Years
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No of Diversified Schemes
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237
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399 - 83
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2015 - 2004
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No of out Performers
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151
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337 - 52
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2015 - 2006
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% of out performers
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64
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84.9 - 36.2
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2014 - 2008
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Return of Nifty %
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17
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75.8 - 51.8
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2009 - 2008
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Avg Return %
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22
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82.8 - 53.5
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2009 - 2008
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30 Best Schemes
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41
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115.8 - 40.2
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2009 - 2008
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Research Benefits %
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19
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38.5 - 5.9
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2014 - 2016
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Scheme Repetition Frequency (%)
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Times
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Frequency
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1
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99
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2
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96
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3
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80
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4
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54
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5
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16
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Sector Rotation, Size Rotation:
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2015 - 16
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2016 - 17
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2017 - 18
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Energy 0.5
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Financials 43.9
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Consumer Discretionary 19.1
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Consumer Staples 0
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Energy 43
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Information Technology 18.4
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Information Technology -1.5
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Materials 40.3
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Consumer Staples 16.3
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Consumer Discretionary -4
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Utilities 30.1
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Industrials 14.7
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Utilities -7.9
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Consumer Discretionary 28.4
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Sensex 14.3
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Investment Philosophy
Investment decisions are made by investors for future based on historical data.
There is inherent lacunae to it leading to under performance by almost 1/3rd of
the schemes on a yearly basis and by almost all over five years.The fund managers
need to be tested for their capabilities in terms of superiority and consistency.
As each scheme is just an indirect way of taking exposure in stocks, it is always
safer to diversify ones investment across fund managers having relative strengths
in various components of the markets - size, sector, theme, valuation etc.
As one of the leading fund management companies, we are always committed to reaping
better returns on investments for our clients and thereby, offer strategically created
ideal mutual fund portfolios to them, wherein several mutual fund portfolio samples
in India are put together for helping the clients to build their own portfolios
on the basis of financial goals and preferences.
Investment Objective
This fund aims at generating superior return over Nifty on a sustainable risk adjusted
basis through a robustresearch model which is futuristic in nature even though the
reference data are historical. The focus is to identifythe top rated schemes of
tomorrow than of the past. It is done with the application of a comprehensive processwherein
price action of each scheme is tracked vis-a-vis benchmarks and peers based on rolling
NAVs overdifferent time frames. The absolute and relative outperformance (Alpha)is
then reviewed against the qualityparameters, like allocation, selection and balance
of the scheme and over all portfolio in terms of various marketcomponents.
Investment Process/Strategy
A comprehensive 3 stage 13 filtration process is applied to arrive at right investment
products and advisory.
Know your Portfolio Risk Measures: Your Portfolio quality is higher even if your
steadier returns.
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Alpha
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Alpha is the excess return of the fund over the benchmark.
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Beta
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Beta is a measure of the risk of the portfolio in comparison to the benchmark. A
value of Beta <1 means lower risk than the benchmark while a Beta >1 means the risk
is higher than the benchmark.
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Annual Tracking Error
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Tracking Error is the divergence of the portfolio in comparison to the benchmark.
It explains the excess risk in the porfolio as compared to the benchmark. It should
be understood along with the Information Ratio.
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Information Ratio
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Information Ratio(IR) explains the risk adjusted performance of the fund against
the benchmark. IR is the ratio of portfolio excess returns (against the benchmark)
divided by the Tracking Error. IR>1 is very good as it means that the excess return
generated was greater than the excess risk vis-a-vis the benchmark.
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Maximum Drawdown
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Maximum Drawdown is the maximum historical loss realized by the portfolio on a Mark
to Market (MTM) basis. It indicates the maximum downside risk over a specified time
period. A Maximum Drawdown lower than the benchmark indicates a better risk-adjusted
portfolio.
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Investing Involves Risk. This document is for information purposes only and should
not be viewed as a legal offering document or solicitation. Offers to invest in
this fund are made only by the Discretionary Portfolio Management Services Agreement.
Past performance does not guarantee future results and there is no assurance that
the managed accounts will necessarily achieve its objectives. Any forward-looking
information and/or opinions contained in this document are based on the market information
available at the time of publication and are subject to a number of known and unknown
risks, uncertainties, assumptions as to future events and other factors that could
cause the actual results to differ materially from those implied by the information
set forth herein. This information is confidential and is intended for only the
person or entity to whom it was sent and in no circumstances may this material be
shown, copied, transmitted, or otherwise given to any person other than the authorized
recipient. The sector allocations and holdings shown are based on the strategy's
model portfolio. The holdings shown do not represent all of the securities purchased,
sold or recommended for any particular advisory client and in the aggregate may
represent only a small percentage of an account's portfolio holdings. Actual portfolios
may differ as a result of account size, client-imposed investment restrictions,
the timing of client investments and market, economic and individual company considerations.
Securities are shown for illustrative purposes only and are not a solicitation to
buy or sell any particular security or invest in a particular sector. Narnolia Velox
may act as either a discretionary investment manager or a non-discretionary model
provider in a variety of separately managed accounts. Any performance information
included herein represents the performance achieved by Narnolia Velox as a discretionary
investment manager with trade implementation responsibility for accounts included
in a performance.