Why should you invest in the balanced multi-factor tactical portfolio?
The simple reason is that the stock market does not move in a linear fashion.
There are times when it booms and at other times it crashes.
Many times, it just keeps moving sideways.
That’s why a fixed strategy can fail to deliver results across market cycles.
The balanced multi-factor strategy changes dynamically to adjust to different market cycles.
- It is a moderate risk strategy.
- The aim is to outperform in all stages of the market cycle.
- The portfolio is adjusted according to the changing market to achieve this out-performance.
- It is a multi stock portfolio of 20-25 stocks selected from the top 300 stocks
- The underlying equity themes consist of trend following which is good for trending markets.
- Other themes like value and low volatility are used in volatile markets.
- The portfolio also contains bonds, gold and international ETFs.
- These are given a higher weightage when markets are volatile.
- The historical performance of this portfolio has beaten the benchmarks by a wide margin in all market conditions.
- The re-balance of the portfolio is usually done every month to keep turnover low.
- However, re-balance can also be done on a weekly basis if the market conditions change drastically.
Look at the performance comparison graph of the Balanced Multi-factor Tactical Portfolio and Equity Largecap.
The Balanced Portfolio has a Sharpe ratio of 3.19 compared to 1.11 of Equity Largecap.
This means that the balanced portfolio offers much better risk adjusted returns.
Enjoy the returns of stock market with better risk optimization.