New Delhi: Financial advisor Prabhudas Lilladher Pvt Ltd has announced the launch of a first of its kind Multi-Asset Dynamic Portfolio (MADP), which adopts 100% volume-based strategic asset allocation strategy.
MADP will invest in seven asset classes including large-cap and mid-cap domestic equities, international equities, gold, government bonds, corporate bonds and liquid funds.
According to Prabhudas Lilladher, the portfolio will invest only through passive instruments (index funds and exchange traded funds) to eliminate stock selection, sector selection and style selection risks.
Instead of keeping investments in one asset class passive, the MADP will ensure that the investor’s money is spread across multiple asset classes.
“Our MADP’s quant-based model and proprietary meter predict market cycles in advance. As a result, it rebalances portfolios when an asset class is on the verge of a major inflection point. Such an agile and dynamic allocation strategy Protects investors’ capital in a downward cycle and participates in an upcycle and therefore generates better returns.Global research shows that 91 per cent of returns come from correct asset allocation and not market or stock selection. Timely,” said Ameesha Vora, owner and joint managing director, Prabhudas Lilladher.
According to Prabhudas Lilladher, a higher allocation to gold than equities in 2019-20 would have given better returns overall and would have hedged the downside in equities. With higher allocation to equities in 2020-21, the portfolio would have got good returns. This is what the MADP helps to achieve through its asset allocation.
“Each asset class – be it equities, fixed income, precious commodities or real estate is guided by factors such as global liquidity, interest rates, oil prices, movement of the US dollar, global growth rates, etc. The optimum weighting for each asset To determine class in the portfolio, the MADP relies on 9 proprietary meters that track over 100 such factors. The meters have been developed by Quantify, PL’s specialized quantitative research and investment management arm,” said Siddharth Vora, Prabhudas Lilladher, Head, Quant Investment Strategies and Fund Manager-PMS, said.
Prabhudas Lilladher’s MADP team includes a combination of financial experts, economists and technical experts – including market stalwart Ameesha Vora, fund manager Siddharth Vora and economist Ritika Chhabra (Quant Portfolio Strategist) – and many other CFA, CA and technical experts. Experts are involved, who have spent on this. It took two years of extensive research and rigorous testing to develop this industry-first offering.