Our proprietary algorithm creates an investment plan depending on your risk tolerance for achieving financial goals in a desired time frame. It maximizes your expected returns while limiting the associated risk to a level you are practically comfortable with.
Your goal-oriented risk profile is based on the consistency of your answers to quick simple questions designed to assess your objective ability as well as subjective willingness to take risk.
Our model estimates your probable investment time horizon by analyzing your cash flow expectations and current financial position. This influences asset class allocation since equity, although riskier, tends to outperform debt (fixed-income) and provides inflation-beating return over a long-term.
The actual amount that you intend to invest determines the granular distribution across various sub-categories of each asset class as well as the final selection of mutual funds.
Above 3 factors help in optimizing the equity (domestic, international), debt (fixed-income) and commodity (gold, etc.) asset allocation of your portfolio. Further diversification of equity (large-cap, mid-cap, small-cap) and debt (short-term, long-term) enhances performance by limiting the downside risks to an extent.
Mutual funds are shortlisted purely on their performance merit (consistently above average risk-adjusted returns in their respective categories), appropriateness and relevance with respect to the overall diversified investment portfolio composition.
Only DIRECT (zero commission) plans of mutual funds are selected which can be bought online from a single platform - MF Utilities - absolutely free of cost. Money saved in fees and commissions, compounded over time, is extra money earned by you without much effort.