About Multi-Asset Dynamic Portfolio

Multi Asset Dynamic Portfolio is a quant driven, trigger based tactical asset allocation strategy, which takes passive exposure to asset classes via Index Funds or ETFs to eliminate stock and sector selection risk, while focusing solely on asset allocation in order to drive superior absolute risk adjusted returns across economic and market cycles.

The strategy invests in Domestic & International Equities for growth, Gold & Liquid for Safety, and Corporate Bonds and GILT Securities for stability. The asset allocation is done by our Proprietary Quant models like Macrometer, Cyclometer, Monetary Meter, Global RORO, Sentimeter, Relative Value Meter, Momentum Meter, Technometer and Goldmeter. Accordingly, our Model assigns weights to asset classes as per output of the meters, purely based on data and rules, avoiding any human and emotional biases. The strategy concentrates on trigger based agile asset rotation across multiple asset classes, with an aim to consistently provide stable and sustainable returns with minimal drawdowns across market cycles.

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  • Tactical Multi Asset Allocation
  • Strategic Asset Allocation or Long only equity
  • Trigger Based Rebalance
  • Periodic or judgment based rebalance
  • Passive Investing through Index Funds or ETFs
  • Active Stock or Sector Selection
  • 100% quant based
  • Prone to human, emotional & behavioural bias
  • Fundamental + Alternative + Technical processed using quantitative methods = Quantamental
  • Technical or Fundamental only
  • Balanced focus on risk management and return enhancement
  • Focus either on Risk mitigation or Return enhancement
  • Domestic + International Equity + Fixed Income + Gold
  • Exposure only to domestic stocks in long only equity funds
  • Performs across market cycles
  • Moves in-line with broader equity markets
  • Downside Protection + Upside Participation
  • Drawdowns in line with equity markets
  • Protects capital in bad years
  • Erodes capital during equity market crashes

Featuresof MADP

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Asset Allocation
Matters the Most

Asset Allocation drives 91.5% of returns, while security selection and market timing contribute only 7%
With our Multi Asset Approach, combine the power of equity and debt. Grow your wealth in equity and protect it with fixed income instruments.

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Buy the Market,
Not the Stocks

We invest tactically across index funds and ETFs that represent the broader market instead of a basket of stocks, eliminating stock as well as sector concentration and selection risk

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Performing across
Market Cycles

Being a dynamic multi asset strategy, it identifies opportunities across asset classes under different market and economic cycles and allocates accordingly

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Quantamental
Framework

The strategy follows Quantamental investment framework based on Fundamental + Alternative + Quantitative + Technicals (FAQT) techniques to decide tactical rotation across asset classes.

7 Reasonsto Invest in MADP

MADP combines stability, safety and growth in one portfolio, offering ease of investing across diverse asset classes.

In addition to being multi-asset, MADP invests in different asset classes at different time periods, harvesting tactical returns

The strategy relies on the proprietary quantitative models to decide the allocations among asset classes, thus eliminating human emotions and biases.

The focus is on taking exposure to the right asset class at the right time rather than singling out specific securities and purchasing them independently. This is achieved via investing in low cost ETFs, some of which have expense ratio as low as 0.01%

Since the strategy invests in equity index ETFs, the risks associated with holding concentrated portfolio are reduced significantly. Additionally, the strategy invests in highly rated (AA and above) debt securities, thus eliminating credit and liquidity risks.

Our quantitative strategy protects your capital from market crashes but allows you to participate in trending asset classes by diversifying tactically across asset classes.

Our agile model indicates when to rebalance, depending upon market dynamics instead of a fixed time interval

The strategy provides exposure to some of the fastest growing and largest tech stocks via Nasdaq 100.S&P 500 brings geographical diversification and access to companies in the world’s largest economy. Dollar assets generate additional returns for the Indian investors.

WeInvest In

Diversified multiasset investing through Index/mutual funds & ETFs only, to eliminate all stock and sector selection risk

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Domestic Largecap Equity

Nippon India Nifty Bees/ Nippon India Junior Bees

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Domestic Midcap Equity

Nippon India Nifty Midcap 150 ETF

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International Equities

Motilal Oswal Nasdaq 100 ETF/ Motilal Oswal S&P 500 Index fund

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Gold

Nippon India Gold BEES

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Government Securities

Nippon India Long Term Gilt Fund/ ICICI Pru 10 year Constant Maturity Fund

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Corporate Bonds

Bharat Bond ETF/ HDFC Corporate bond Fund

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Liquid Funds

Nippon India Liquid BEES/ DSP Liquidity Fund

OurStrategy

Multi-Asset Dynamic Portfolio is our flagship quantitative investment strategy built after three years of extensive research and rigorous testing. MADP is a tactical asset allocation strategy built using our proprietary meter based models


It focuses on identifying the level of the economic cycle and its direction, using 25 monthly economic indicators. By combining the level and the momentum of the economic activity, we differentiate periods into 5 macro regimes namely, Strong Growth, Steady Growth, Deceleration, Recovery and Slowdown

It quantifies the steepness of the yield curve and the liquidity in the markets that affect bond yields and hence bond prices. This meter tracks interest rate regime and money supply

Cyclometer tracks the equity market cycle by quantifying valuation zones and trend of Nifty 50 index using high frequency valuation indicators

We follow a variation of Dual Momentum strategy where we consider the absolute and relative trend of asset classes. It is used as a confirmation tool

It captures momentum in gold by comparing price performance of Gold against other asset classes such as EM and DM equities, commodities and net long positions held by the investors

It evaluates Equity Market Cycle – Nifty 50, Midcaps and Nasdaq 100, from a Technical Risk Reward Perspective to look for reversals and breakouts using a combination of technical indicators held by the investors.

It captures the sentiment in domestic equity market. Using high frequency market sentiment indicators, the indicators give us bullish and bearish signals.

This risk on- risk off indicator tracks global risk appetite by evaluating relative risk reward across equity and debt instruments of developed & emerging markets

It tracks relative value of small and midcaps vis-à-vis large caps. In this indicator, we capture the relative attractiveness in terms of risk –reward of investing in mid and smallcaps compared to large caps.

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*The returns before June 2021 are based on backtest and not actual returns. Above returns are only for understating purpose and there is no assurance or guarantee that the objectives of the investment will be acheived as investment in Securities is subject to market risk.
Source : PL

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