Prabhudas Lilladher has launched its latest Digital Advisory suite of products, Strategy Shop (https://www.plindia.com/strategyshop/, starting with a products from WealthDesk. (https://wealthdesk.plindia.com/) .
Wealth Desk allows you to capitalise on the opportunities in specific themes and sectors that are best positioned to benefit from the country’s future trends and innovations. And have a select, diversified set of stocks – and entry/exit alerts – always working at your service.
WHY INVEST IN BASKETS
While you may consider investing yourself into stocks or via a mutual fund scheme into select themes or sectors, there is either lack of discipline or lack of availability that doesn’t ultimately allow you to execute such preferences. Or you may miss out on exits at the right time (fundamentally speaking). And a PMS is of course far beyond reach of most due to its minimum investment size of Rs 50 lakh.
WealthDesk changes that! Bringing a range of Advisory services to Prabhudas Lilladher clients!
As the name suggests, WealthBaskets are simply an investment basket that comprise stocks of companies or ETFs, representing your chosen theme or investment strategy. Each WealthBasket is a research-backed portfolio of stocks or ETFs built around a theme, strategy, goal, or risk-return objective. Originating from the best quantitative and qualitative research from top RIAs, PMSs, RAs, FSBs, these advised investment products have generated better than market returns for retail investors at lower cost.
AN ILLUSTRATIVE LIST OF BASKETS
OpenQ Hybrid Equity : Asset Allocation
This Asset Allocation basket creates a portfolio by dynamically allocating and switching between equity, debt and gold, depending upon the market situation. It also ensures that the investor gets great continuous quant research coupled with a balanced portfolio that combines growth and stability in the long run. The minimum investment in this basket is just Rs 25,000.
OpenQ Make in India : Thematic
With initiatives like Make in India and Atma Nirbhar Bharat, Government is building the ecosystem for giving boost to the Indian Manufacturing set up. Large domestic market, rising income levels, geographical advantage and hub for export to South Asian Countries, are some of the factors that India can see share of manufacturing increasing in GDP in times to come. OpenQ Make in India is a portfolio that identifies stocks that are well placed to benefit from the long term theme of promoting manufacturing in India. The Minimum investment here is Rs 10,000.
OpenQ India Consumption : Sectoral
With favorable demographics,increasing urbanization, higher integration with global economy and risingdisposable income, share of discretionary spending in the hands of IndianConsumer is going to increase. The fund invests in cyclical as well as non cyclical consumer stocks who are expected to benefit from this trend. Stocks are selected based on a proprietary algorithm which has shown to have generated consistent returns over last 10 years of backtest.
OpenQ Defensive Momentum: TechnoFundamental
Momentum as a factor has widely been discussed in academic literature as an important source of systematic alpha. This factor tends to capture the price trend and generate excess risk adjusted return over long term. Defensive Momentum tends to capture the risk premium arising out of Momentum factor which has been defined using the proprietary algorithm selected after evaluating multiple options over 2 business cycle of beta neutral performance.
OpenQ Digital India :Thematic
As traditional business models undergoes disruption, technology will play a major role in defining which business is able to adapt to the changing business climate. Technology is being used by the government in Digital India initiatives on Infrastructure building, delivery of services and also people empowerment. The fund tends to invest in stocks that will benefit the most due to digital India initiatives. Stocks are selected based on proprietary algorithm which have generated consistent returns over last 2 business cycles.
There are many more such baskets on their way on their platform as new advisors and strategies get added across sectoral, thematic and technofundamental areas.
From a portfolio building perspective, WealthBaskets can meet your every need. You can invest in WealthBaskets that can help you create the core of your portfolio and enable you to meet your long-term strategic goals. On the other hand, the thematic and sectoral WealthBaskets can be the satellites that can potentially generate alpha.
A WealthBasket can add value to your investment portfolio in several ways:
Niche exposure: Every WealthBasket will give you exposure to a select theme or idea or long term Investment Strategy that can potentially meet your unique requirements. For example, an MNC WealthBasket can give you exposure to multinational companies that can benefit from global growth or a chemicals basket can give you exposure to chemical companies that are expected to perform well. WealthBaskets allow you to participate in focused ideas and themes which can potentially enhance portfolio returns.
Simplified and real-time transacting: These WealthBaskets are very easy to buy and redeem as they are wholly integrated with your broking account. Each WealthBasket is treated as a single unit. All you need to do is click on the desired WealthBasket and all the stocks that form a part of the WealthBasket are immediately added to your demat account, in the same proportion as the baskets. In a single click, you can buy several stocks once you follow the on screen instructions.
Transparent: One of the best things about WealthBaskets is that they are completely transparent. The stocks that form a part of the WealthBasket actually reside in your demat account. This way, you are always aware of what you are holding.
No monitoring and Ease of rebalancing: The WealthBasket is regularly monitored by the advisor and changes are made as per requirement. If the weights of the stocks in the basket or the composition of the stocks changes then you can automatically rebalance your portfolio with a single click approval. You do not need to buy and sell individual stocks one at a time in the basket. The platform takes care of it for you.
Invest through an SIP: Several WealthBaskets also offer you the option to invest via a systematic investment plan (SIP). You can invest a fixed amount of money, on a periodic basis, in a WealthBasket of your choice. This way you can also capitalise on the advantages of SIPs which include compounding and rupee-cost averaging.
A small advisory and management fee to the advisor paid once semi-annually/quarterly and can be as low as Rs 50 per annum for a 10,000 rupee investment and is retained by the Advisory firm whose products you use.. Brokerage charges are as per usual trades in your PL Account.
WealthBasket investments are more liquid compared to MFs. MF Redemption requests typically take three working days to get processed. In contrast, WealthBasket securities live in the investor’s Demat account and are redeemable immediately. Dividends come directly into your bank account.
Please do watch a simple explainer video for Wealthbaskets at https://www.youtube.com/watch?v=vSJEIl-uQJA
In case you havent checked out TradePlus, our Web Trading platform, do visit https://trade.plindia.com/TradePlus/login to sign in and learn all the features over this weekend!
ánd Yes, do keep watching this space as we unveil more advisory products – including TradeTron for the fast and furious traders, next week! Keep visiting (https://www.plindia.com/strategyshop/ to see our latest tieups and products!