Objective behind Timeless Asset Allocation<\/h3>\n\nOur goal has been to constantly design & develop investment products that are<\/div>\n\n\n- liquid (enabling you to invest & redeem at the click of a button)<\/li>\n
- low-cost (significantly cheaper in terms of fees compared to alternatives) and<\/li>\n
- provide higher value than found anywhere else<\/li>\n<\/ul>\n
While Equity (stock markets) is undoubtedly the best asset class to invest in for the long term, it becomes difficult for most of us to overlook market fluctuations in the short term and stay invested for the long term\n<\/p><\/div>\n<\/div>\n
\nThe idea for the Timeless Asset Allocation smallcase arose from a need to build an investment product that can be used by investors in all environments–whether the markets are up or down. This smallcase would generate Equity (stock market-like) returns over the long term, but would also significantly reduce fluctuations to provide a smooth wealth creation journey<\/p>\n\nThis is precisely what the Timeless Asset Allocation smallcase provides – exposure to Equity, Gold & Fixed Income with low-cost ETFs, rebalanced quarterly to ensure your money is in the right asset class at the right time<\/div>\n\u00a0<\/div>\n\nFixed Income ensures a positive, stable return; When the markets are up, Equity generates wealth & when they’re down, Gold provides a cushion to ensure stable returns in the long term<\/strong><\/div>\n<\/blockquote>\n\n\u00a0<\/div>\nStable Returns at Lower Risks<\/h3>\n
To build the Timeless Asset Allocation smallcase, our Research team studied many mathematical models and optimizers to build the best algorithm for you\u00a0to intelligently allocate your money into equities, gold and fixed income. To ensure the smallcase is liquid, we used Exchange Traded Funds (ETFs) to provide this exposure vs stocks, physical gold or fixed deposits<\/span>\n<\/div>\n<\/div>\n<\/div>\nAfter extensive testing (construction methodology here<\/a>), we are confident that the Timeless Asset Allocation smallcase provides the perfect asset allocation mix for long-term wealth creation<\/div>\n\u00a0<\/div>\nIn the last 11 years since its inception, it has generated a post-tax CAGR (yearly rate at which your investment would have grown, if you had invested in 2007) of 10.15%. This is much better than the Nifty CAGR of 7.41%<\/div>\n\u00a0<\/div>\n\u00a0<\/div>\n\n![\"\"](\"https:\/\/zerodha.com\/z-connect\/wp-content\/uploads\/2018\/08\/Screenshot-2018-08-01-11.49.56-1024x789.png\")
<\/a>Post-Tax CAGR –
\nAWI has outperformed all asset classes in last 11 years, from Jun 2007-Mar 2018<\/p><\/div>\n<\/div>\n
\u00a0<\/div>\n\n\n\nAt the same time, we have ensured the volatility for this smallcase is minimal. We have tested the algorithm in different market scenarios, including the 2008 crash, to check the performance of the strategy for more than a decade.\u00a0The table below shows the performance of the strategy in various periods when the markets crashed<\/span><\/p>\n\u00a0<\/div>\n\n\n\n\nTime Period<\/td>\n Nifty Performance (Market)<\/td>\n Timeless Asset Allocation\u00a0Performance<\/td>\n<\/tr>\n \nFeb 2015 – Feb 2016<\/td>\n -42%<\/td>\n -8%<\/td>\n<\/tr>\n \nOct 2010 – Dec 2011<\/td>\n -32%<\/td>\n 2%<\/td>\n<\/tr>\n \nJan 2008 – Oct 2008<\/td>\n -75%<\/td>\n -22%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n\nEvery quarter, our research team runs the algorithm to decide the optimal allocation\u200a\u2014\u200ahow much money should go into equities, gold and fixed income, and you can apply the same allocation with just 2 clicks<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\nHow does Timeless Asset Allocation stack up against alternatives (FDs, Liquid Funds, Balanced Funds)<\/h3>\nFDs & liquid funds give you a fixed return only via fixed income exposure. With Timeless Asset Allocation, you get the fixed returns along with equity & gold exposure that work well in both up & down markets<\/div>\n
\nCompared to Balanced Mutual Funds (that provides equity & fixed income only), the smallcase provides gold exposure which acts as a cushion in market crashes, and is much cheaper from an expense ratio perspective (the total expense ratio for all ETFs in the smallcase is ~0.65% vs expense ratio for a Balanced Fund at 1.5-2%)<\/div>\n<\/div>\n\n\n\nHow to Invest in Timeless Asset Allocation<\/h3>\n<\/div>\n<\/div>\n
The Timeless Asset Allocation smallcase should form the core of your portfolio – a low-cost way to obtain stable returns for the long term. You can also look at how you can take a core-satellite approach<\/a>, but more on that later\n<\/div>\n<\/div>\nWith its low volatility, the Timeless Asset Allocation smallcase is ideal for you to hold a large part of your portfolio in. You can invest as much as you like in this smallcase without worrying about market fluctuations<\/p>\n
Furthermore, setting up an SIP on this smallcase & rebalancing the smallcase quarterly ensures your money works harder for you<\/p>\n
- \n
- liquid (enabling you to invest & redeem at the click of a button)<\/li>\n
- low-cost (significantly cheaper in terms of fees compared to alternatives) and<\/li>\n
- provide higher value than found anywhere else<\/li>\n<\/ul>\n
While Equity (stock markets) is undoubtedly the best asset class to invest in for the long term, it becomes difficult for most of us to overlook market fluctuations in the short term and stay invested for the long term\n<\/p><\/div>\n<\/div>\n
\nThe idea for the Timeless Asset Allocation smallcase arose from a need to build an investment product that can be used by investors in all environments–whether the markets are up or down. This smallcase would generate Equity (stock market-like) returns over the long term, but would also significantly reduce fluctuations to provide a smooth wealth creation journey<\/p>\n\nThis is precisely what the Timeless Asset Allocation smallcase provides – exposure to Equity, Gold & Fixed Income with low-cost ETFs, rebalanced quarterly to ensure your money is in the right asset class at the right time<\/div>\n\u00a0<\/div>\n\n
Fixed Income ensures a positive, stable return; When the markets are up, Equity generates wealth & when they’re down, Gold provides a cushion to ensure stable returns in the long term<\/strong><\/div>\n<\/blockquote>\n\n\u00a0<\/div>\nStable Returns at Lower Risks<\/h3>\n
To build the Timeless Asset Allocation smallcase, our Research team studied many mathematical models and optimizers to build the best algorithm for you\u00a0to intelligently allocate your money into equities, gold and fixed income. To ensure the smallcase is liquid, we used Exchange Traded Funds (ETFs) to provide this exposure vs stocks, physical gold or fixed deposits<\/span>\n<\/div>\n<\/div>\n<\/div>\n
After extensive testing (construction methodology here<\/a>), we are confident that the Timeless Asset Allocation smallcase provides the perfect asset allocation mix for long-term wealth creation<\/div>\n\u00a0<\/div>\nIn the last 11 years since its inception, it has generated a post-tax CAGR (yearly rate at which your investment would have grown, if you had invested in 2007) of 10.15%. This is much better than the Nifty CAGR of 7.41%<\/div>\n\u00a0<\/div>\n\u00a0<\/div>\n\n<\/a>Post-Tax CAGR –
\nAWI has outperformed all asset classes in last 11 years, from Jun 2007-Mar 2018<\/p><\/div>\n<\/div>\n\u00a0<\/div>\n\n\n\nAt the same time, we have ensured the volatility for this smallcase is minimal. We have tested the algorithm in different market scenarios, including the 2008 crash, to check the performance of the strategy for more than a decade.\u00a0The table below shows the performance of the strategy in various periods when the markets crashed<\/span><\/p>\n\u00a0<\/div>\n\n\n\n
\n Time Period<\/td>\n Nifty Performance (Market)<\/td>\n Timeless Asset Allocation\u00a0Performance<\/td>\n<\/tr>\n \n Feb 2015 – Feb 2016<\/td>\n -42%<\/td>\n -8%<\/td>\n<\/tr>\n \n Oct 2010 – Dec 2011<\/td>\n -32%<\/td>\n 2%<\/td>\n<\/tr>\n \n Jan 2008 – Oct 2008<\/td>\n -75%<\/td>\n -22%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n \nEvery quarter, our research team runs the algorithm to decide the optimal allocation\u200a\u2014\u200ahow much money should go into equities, gold and fixed income, and you can apply the same allocation with just 2 clicks<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\nHow does Timeless Asset Allocation stack up against alternatives (FDs, Liquid Funds, Balanced Funds)<\/h3>\n
FDs & liquid funds give you a fixed return only via fixed income exposure. With Timeless Asset Allocation, you get the fixed returns along with equity & gold exposure that work well in both up & down markets<\/div>\n
\nCompared to Balanced Mutual Funds (that provides equity & fixed income only), the smallcase provides gold exposure which acts as a cushion in market crashes, and is much cheaper from an expense ratio perspective (the total expense ratio for all ETFs in the smallcase is ~0.65% vs expense ratio for a Balanced Fund at 1.5-2%)<\/div>\n<\/div>\n\n\n\nHow to Invest in Timeless Asset Allocation<\/h3>\n<\/div>\n<\/div>\n
The Timeless Asset Allocation smallcase should form the core of your portfolio – a low-cost way to obtain stable returns for the long term. You can also look at how you can take a core-satellite approach<\/a>, but more on that later\n<\/div>\n<\/div>\n
With its low volatility, the Timeless Asset Allocation smallcase is ideal for you to hold a large part of your portfolio in. You can invest as much as you like in this smallcase without worrying about market fluctuations<\/p>\n
Furthermore, setting up an SIP on this smallcase & rebalancing the smallcase quarterly ensures your money works harder for you<\/p>\n