ABSOLUTE RETURN PORTFOLIO
The Absolute Return Portfolio is a model portfolio that takes into account general market conditions, specific sector outcome probabilities, and takes a balanced position with an objective to generate positive return in each quarter. While we state clearly that it is not possible to guarantee positive return, the key differentiator of the product is that its “benchmark” return is an absolute return rather than an outperformance/ underperformance versus a chosen benchmark index.
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The philosophy of the product is that while long-term returns are the ultimate objective of most investors, a discovery of whether the chosen method for long-term growth is indeed correct should not be merely a leap of faith but rather short-term evidence of performance. We work for a long-term that is sewed up of many good short-term performances.
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The Absolute Return Portfolio is a balance of stocks that in our opinion have a healthy likelihood of brining in strong returns and stocks that have a strong likelihood of bringing in healthy returns. It is built of topical ideas as well as purely bottom-up ideas. The product is advised for clients with moderate risk appetite.
DHYAAN
Dhyaan constitutes largely of stocks that we think have a healthy probability of bringing in strong returns within the quarter. It would mostly be a subset of the Absolute Return Portfolio, but with differing weights. Like the Absolute Return Portfolio, the performance of the advisor will be evaluated on a quarterly basis, so that investors may be able to form a judgment about the suitability of the product to their objectives.
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Since diversification is lower in the case of Dhyaan, and the performance of the portfolio depends on our correct reading of topical issues in the market, we believe this is a riskier product and is suitable only for clients with high-risk appetite.
BAJIRAO
Bajirao is a product that seeks to utilize near-term disturbances in the market for the investor’s benefit. The product involves investment in cash equities as well as derivative instruments. The scrips chosen are consciously different from the Absolute Return Portfolio/ Dhyaan, as the holding period is much shorter (ranging from a day to a month). Since it involves use of derivatives and on account of positions that are more concentrated, the product is appropriate only for clients with a very high risk appetite.