INVESTMENT INTELLIGENCE GIVES RETAIL INVESTORS THE POWER TO CHALLENGE TOP FUNDS

• Assesses investor’s risk
• Creates a suitable plan
• Allocates money to different asset classes
• Tracks and rebalances portfolio
• Protects portfolio downside
• Manages portfolio risk
• Delivers superior and consistent returns over benchmark

There is something fascinating about how problem-solving in our day-to-day lives results in numerous innovations. Take the case of Uber, which came into existence to reduce the cost of transportation. The darling of entertainment streaming, Netflix started as a DVD rental over two decades ago before finding its calling in streaming. The list is endless, and innovation will continue as long as one wishes to solve problems. Strangely, the world of investing has not really taken to solving every investor’s mundane problem intelligently.
Take, for instance, the current state of the stock markets. The war in Ukraine has sent the stock markets across the world into a tailspin. Naturally, both new and seasoned investors face similar queries, starting with markets going down; should I invest? War in Ukraine or not, investor’s challenges are more to do with reassurance to their doubts and concerns. They constantly look for answers to; where to invest? How much to invest? Should they book profits when the markets go up or stay invested?

Finding a solution

It is obvious that when given a choice, most people would opt for investments that maximize returns at minimal risk. Since its introduction by Henry Markowitz in 1952, Modern Portfolio Theory (MPT) has become a key tool for successful investors. There are two assumptions that MPT makes: firstly, it is tough to forecast future investment returns; hence investors should look backward at historical data (returns) to approximate how they might perform in the future. The second equally important assumption is that you should not view assets in a portfolio in isolation because each performs differently at different times. When you look at a portfolio as a whole, you can select different assets whose performances aren’t correlated to balance the risk offered by each choice. Refined over the years, a successful investment strategy is about asset allocation, diversification, and rebalancing. As simple as it seems, there is no ready-made customized product or service that works on this principle. ET Money Genius is the solution to investor problems, as it addresses the need for asset allocation, diversification, and rebalancing. And it does all of this by helping investors understand their tolerance to risk. It is an innovation that solves investors’ important and relatable concerns. Through ET Money Genius, investors get a choice of assets – equities (domestic and foreign), debt, and gold. Within each asset class, there is scope for diversification.

• Personalized investment Plan
• Understand risk profile of investors
• Asset allocation, diversification, and rebalancing
• Superior risk-adjusted returns

The Genius Advantage

Importantly, based on one’s risk profile, ET Money Genius intelligently guides investors to choose portfolios suitable to them. This way, worries around the impact of inflation, interest rate, valuation, and other facets that impact returns are taken away from investors. Our solution works in real-time in the background with a monthly automatic rebalancing. The result – irrespective of market movements and noise in the markets, one’s investments are optimized to outperform the benchmark and challenge top portfolios.
Over time, not only do your investments gain, so does your confidence to invest. You stop looking for the next multi-bagger, as your investment in the ET Money suggested portfolio does well. This may eventually change your perception of investing, making you divert more of your idle savings into investments. By creating a dynamic portfolio with allocation and rebalancing, not only the downside protection is addressed, there is always consistent alpha created over the benchmark in every phase of the market and economy.
Over the decades, several other Ukraine-like incidents and many other factors have impacted stock markets. The ET Money Genius model has been successful through them when tested for the efficacy of the suggested portfolios and the solution based on asset allocation and rebalancing. You work hard for your money; now put your money to work with ET Money Genius, which makes investing a breeze.

• Recommended asset allocation Equity (global and Indian), debt and gold
• Dynamic self-risk assessment
• Dynamic portfolio rebalance
• Perpetual downside protection
• Wide choice to suit investment time frame