Data has proven that Index funds provide the best consistent returns to an investor over the medium to long term. It is also a well established fact that asset allocation drives 90% of the returns in any portfolio.

We at MIRA MONEY™ have developed a stratergy RAPID (Risk Adjusted Portfolio with Integrated Diversification™) to provide the right asset allocation using index funds as the underlying holdings. RAPID  is trained with 15+ years of proven investing strategies to protect the capital and maximise the growth. RAPID is a data driven strategy which has historically provided an alpha of 2-5% above the Benchmark in our live testing and backtesting over medium to long term (3-5 years)

Our Index investment universe covers equity, debt and comodity markets. In equities we cover  indices based on market caps(Large cap, Mid Cap, Small Cap etc), sectors(Banking, IT, FMCG etc) and factors (Value, low volatility, Alpha etc). Debt investment is based on indices of various maturity duration and credit quality

Core philosophy behind RAPID is to create a basket of different index funds to outperform the benchmark by reducing risk in the portfolio and choosing allocation that has the best potential for superior returns. RAPID uses various parameters from past and present data, macro economic data and future projections from reputed sources. This data is used against all the indices to find the right allocation

RAPID also customises portfolios based on individual risk appetites and at what stage of the goal an investor is.

For example:

  1. A conservative investor would have more debt allocated in his/her portfolio compared to a moderate or an aggressive investor
  2. An investor’s equity allocation would be reduced gradually and debt allocation increased gradually as the deadline for  the goal is getting closer. This is to reduce volatility in the portfolio as the target date of the goal is approaching

RAPID at certain stages of the investment cycle can take cash calls too. That is to invest in low risk, capital protecting liquid funds if the equity environment is proven to be over valued.

Hence, using our smart investment strategy RAPID for asset allocation and rebalancing when need be, our aim is to maximise returns for our investors

Tagged in: