About Wealth For Women Portfolios

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Read about Wealth for Women portfolios at https://www.plindia.com/blog/wealth-for-women-build-wealth-and-financial-security/

Where is my money invested via Wealth for Women?

Since we want your money to be invested in Assets, we do this by investing in ETFs namely:

  1. For Domestic Largecap Equity: Nippon India Nifty BEES
  2. For Domestic Midcap Equity: Nippon India Nifty Midcap 150 ETF
  3. For International Equity: Motilal Oswal Nasdaq 100 ETF
  4. For Gold: Nippon India Gold BEES
  5. For G-Sec: Nippon India Long Term Gilt Fund
  6. For AAA Corporate Bonds: Bharat Bond ETF
  7. For Liquid Funds: Nippon India Liquid BEES

Does that mean I’m invested in all 7 Asset ETFs?

No, not necessarily. You can be invested in only 5 or 6 too out of the Total 7 Asset ETFs, depending on what our Proprietary Quant Meters suggest after assessing various factors including macro and market trends.

Can you explain your investment strategy in simple words?

We invest across asset classes rather than invest within asset classes. Hence, we ensure your money is invested in the Right Assets at the Right Time. For example, in Equity, your money will be invested in the Nifty 50 Index via ETF rather than say individual stocks like Reliance, HDFC Bank etc. This means stock selection risk is eliminated and via Nifty 50 ETF, you are exposed to the top stocks of our country.

Does the strategy invest in Equities?

Yes, we do invest in Equities via Index ETFs. However, because we invest in Indices and Not stocks, stock-selection risk is eliminated. We could take exposure to the following Equity ETFs:

  1. For Domestic Largecap Equity: Nippon India Nifty BEES
  2. For Domestic Midcap Equity: Nippon India Nifty Midcap 150 ETF
  3. For International Equity: Motilal Oswal Nasdaq 100 ETF

In fact, only best stocks are a part of an Equity Index ETF. For example, Nifty 50 ETF would give you exposure to the top stocks in the country.  

How will you make sure that my money is in the Right Asset at the Right Time?

Our 8 Data-driven Proprietary Quant Meters help us achieve this:-

  1. Macrometer – Which phase of the Economic Cycle are we in?
  2. Cyclometer – Which phase of the Equity Market Valuation Cycle are we in?
  3. Monetary Meter – Are Fixed Income Assets looking attractive given the Interest Rates and Money Supply?
  4. Global RORO – What is the Risk Appetite of Market Participants globally?
  5. Sentimeter – Are Equity Market sentiments Bullish or Bearish?
  6. Momentum Meter – Which Asset Classes are trending?
  7. Technometer – What is the Risk-Reward for the Technical Reversals and Breakouts?
  8. Goldmeter – How is Gold poised given its Global Trading Positions and Momentum?

Accordingly, our Quant Models will suggest which Asset ETFs you must invest your money in, based purely on data and rules, avoiding any human and emotional biases.

What is the ideal Time Horizon?

To generate optimal returns, we suggest you to stay invested for 3 years.

We do not suggest this product in case your investment horizon is less than a year.

What is the kind of Returns I can expect?

As per the backtest from July 2006 till April 2021, the portfolio has provided on a gross basis:

  • Compounded Annualized Return of ~25.1% since inception
  • Minimum Return of ~4.5% in the year 2015
  • Maximum Return of ~76.7% in the year 2009
  • Inflation-Beating Returns since 2007 and across Market Cycles
  • Positive Return every year since 2007 and even across Market (Down)Cycles

What is the kind of Risk/Volatility I can expect?

As per the backtest from July 2006 till April 2021, the portfolio has had a Maximum Monthly Negative Return of -7.2% in Feb 2009 and never gone negative on a Yearly Basis. Hence, we suggest you to stay invested for atleast a year.

Is WFW less volatile than Equities?

Yes. That is true. You will see that WFW has lesser negative monthly returns than the most popular benchmark for Equities in India, i.e., Nifty 50 Index. This means as an investor you will experience lesser volatility vs the Nifty 50 Index

You have mentioned that WFW has Higher Returns with Lower Risks. How do you justify this?

Higher the Sharpe Ratio, the Better it is. WFW has a Sharpe Ratio of 2.58 which indicates for every Rs 1 of Risk that you took, you got Rs 2.58 as Return over the last 3 years (As of 7th May 2021). WFW wins over all the individual asset classes like Gold, Debt and even Equities which has a 3 Yr Sharpe of only 0.31 vs WFW Sharpe of 2.58.

You have mentioned that WFW Maximizes Returns at Minimal Risk. How do you justify this?

WFW Portfolio protects you from the Equity Down-Cycles and participates in the Equity Up-Cycles. So not only does it Preserve your wealth but it also Generates new wealth. For example, we ensured, that your money was not in Equities during the Global Financial Crisis and Covid Crash.

How is your product different from a Mutual Fund?

  • If you invest in a MF Scheme, you get units and a monthly holding statement. With us, you directly get the constituents in your Demat A/c which you can track or monitor at any time.
  • At every rebalance, we would suggest what to buy/sell in a very transparent way, with a rebalance justification.
  • You will have full control over your portfolio through us.

Is there any Entry Load?

No, you can enter any time. There are no entry load charges.

Is there any Exit Load?

No, you can exit any time. However, we suggest you stay invested for 3 years for optimal returns. Our Wealth for Women portfolio is focused on Medium Term Investment Horizon.

Is there any stock selection risk?

No, we have an Index-only ETF approach. We rather concentrate on asset allocation and not expose you to stock selection risk.

How would one be taxed?

For detailed tax treatment of ETFs, you can refer to our blog on taxation

How can I know more about the Wealth for Women product?

Visit Wealth for Women Webpage

HOW TO INVEST

If you are an existing PL Client, you can invest via Wealthdesk

You can also become a PL Client and then invest via Wealthdesk. For Non-Individual A/c opening, please contact us.

If you don’t wish to have a PL Trading-cum-Demat A/c, you can also invest via Smallcase which supports brokers like Zerodha, Upstox, Angel, Kotak Sec,5 Paisa, HDFC Sec, Motilal Oswal, Edelweiss, IIFL Sec, Axis Direct, Trustline, Alice Blue.

VIA WEALTHDESK

What are the Subscription fees?

For Wealthdesk, Rs 3,999 is the fixed annual fees (excluding GST) + 0.5% brokerage.

Is there any Minimum Investment Amount?

For Wealthdesk, Rs 50,000 is the minimum investment amount.

What do you mean by Rebalance? Why do I need to Rebalance?

Macro trends, market trends, etc change. Hence, Rebalancing alerts you to sell some assets and buy some assets so that your money is in the Right Assets at the Right Time, if required due to (for example) changed macro or market trends. Hence, we suggest you Rebalance on time when alerted and invest in the same weightage as suggested by the PL Quantifi Team to mirror the real returns of our strategy.

Do I have to Rebalance by myself?

Yes, rebalancing is simple and you need to approve and confirm the rebalance whenever a rebalance alert is sent out.

How would I know there is a Rebalance?

If you invest via Wealthdesk, then you would get a SMS alert and an email alert on a real-time basis. You can also see this via Wealthdesk platform under Pending Actions incase a rebalance is due.

Does Rebalancing happen frequently?

Rebalances are trigger-based and not based on any specific frequency of say monthly, half-yearly, etc. However, our backtest starting from July 2006 till April 2021 indicates an average rebalance frequency of 3 times a year.

Is Rebalancing easy?

Yes, absolutely. Within a few clicks from your phone or laptop you would be able to rebalance.

There would also be Youtube link on How to Rebalance on Wealthdesk.

What if I skip/not do/edit the Rebalance?

We suggest you to NOT skip/edit the Rebalance.

To mirror the real returns of our strategy, we suggest you Rebalance on time when alerted and invest in the same weightage as suggested by the PL Quantifi Team.

Is SIP facility available?

Yes. SIP facility is available.

VIA SMALLCASE

What are the Advisory fees?

For Smallcase, a one-time fee of Rs1000 + an Assets under Advisory (AUA)  Fees of 2.0% annually. The % fee will be charged at every End of the Month as 0.167% of AUA. AUA means we charge on the average portfolio value for the month. Hence, if the average AUA at the End of Month comes to Rs 1 Lac, then we charge you 0.167% of Rs 1 Lac which is Rs 167.

Is there any Minimum Investment Amount?

For Smallcase, there is a default minimum investment amount depending upon the allocation of the portfolio and it changes daily due to market price changes. You can visit and check the minimum investment amount on https://www.smallcase.com/smallcase/wealth-for-women-PRLIET_0001 before investing.

Why E-NACH to subscribe to the Wealth for Women smallcase?

We do not want you to pay us upfront but instead we would like you to first take our advisory service and then pay us at the end of every month after availing our service for that particular month. E-NACH is a process where we would Auto-debit your Bank A/c with Advisory fees of 0.167% on AUA only at the end of every month, after you use our advisory service. Thus, we would Auto-debit you only for Advisory fees NOT Investment Amount. SIP or Lumpsum Investment amount is your choice completely and does not fall under E-NACH Auto-payment facility.

In simple words, just the way you give standing instructions to your Bank to pay up for your Electricity Bill, similarly you instruct your bank to pay up for your Subscription Fees so that the hassle of remembering to pay every month is off your head.

What do you mean by Rebalance? Why do I need to Rebalance?

Macro trends, market trends, etc change. Hence, Rebalancing alerts you to sell some assets and buy some assets so that your money is in the Right Assets at the Right Time, if required due to (for example) changed macro or market trends. Hence, we suggest you Rebalance on time when alerted and invest in the same weightage as suggested by the PL Quantifi Team to mirror the real returns of our strategy.

Do I have to Rebalance by myself?

Yes, rebalancing is simple and you need to approve and confirm the rebalance whenever a rebalance alert is sent out.

How would I know there is a Rebalance?

If you invest via Smallcase, you must enable the Whatsapp notification (under Bell Icon) as soon as you invest the first time and you must download their mobile app from Google Play Store or Apple App Store. Therefore, apart from email alerts and mobile app alerts to rebalance, you would get a Whatsapp notification at 9:45 AM on the day you need to rebalance on your registered mobile number.

Does Rebalancing happen frequently?

Rebalances are trigger-based and not based on any specific frequency of say monthly, half-yearly, etc. However, our backtest starting from July 2006 till April 2021 indicates an average rebalance frequency of 3 times a year.

Is Rebalancing easy?

Yes, absolutely. Within a few clicks from your phone or laptop you would be able to rebalance.

For Smallcase, here is a video on How to Rebalance https://youtu.be/6Cv681A5zV8 . Also, ensure to enable whatsapp notifications via Bell Icon on Smallcase after which you will remain updated of any rebalance alerts when due over Whatsapp.

What if I skip/not do/edit the Rebalance?

We suggest you to NOT skip/edit the Rebalance.

To mirror the real returns of our strategy, we suggest you Rebalance on time when alerted and invest in the same weightage as suggested by the PL Quantifi Team.

Is SIP facility available?

Yes. SIP facility is available.

Video Playlist to help you on Smallcase

To help you get started, below is a playlist for Smallcase on: –

How to Subscribe ?

How to Invest ?

How to Rebalance ?

Please ensure to enable whatsapp notifications via Bell Icon on the Smallcase Platform.

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