Investing isn’t just about picking funds -it’s about making smart decisions that work for you. At SIPY, we’ve reimagined what a portfolio should be: simple, transparent, and effective. Curious? Let’s dive into the details together.
Introducing our Steady Saver Portfolio: designed to preserve your capital while outpacing the FD returns & Inflation
1. Who is it suitable for:
Ø Pre-retirees — Individuals in their late 50’s who are looking to shift to safer investments as they approach retirement and want to ensure their savings grow steadily
Ø Risk-Averse investors — Anyone who want to beat the returns of traditional savings instruments like FDs without the volatility of equity-heavy portfolios
Ø Self Employed individuals — small business owners who have accumulated capital and are looking for safer investment options to grow their wealth without exposing it to high market risks
2. What’s in the Portfolio?
Think of your portfolio as a recipe. You need the right mix of ingredients to balance the flavour and Nutrition. Similarly, you need the right mix of assets that balances the growth with stability. Here is how SIPY approaches it
Debt: The Stabilizer. With 50% allocated to short-term, low-duration debt instruments, the portfolio remains steady during market volatility, ensuring peace of mind
Equity: The growth Engine. With a 40% allocation to index funds, this component ensures your investments align with the broader Indian market. It eliminates the hassle of fund selection while offering a low-risk opportunity to grow your wealth steadily
Cash: The Safety net. 10% of allocation in Liquid funds ensure that your emergencies are taken care of
Why this mix? It provides growth during good times and stability to your portfolio during market crashes. The data backs it up.
In the last 3 years, this Portfolio delivered 9.3% annual returns at 5% volatility
What does Risk mean — Ex. 1 lakh invested for 3 years can vary as below
3. How Do We Pick the Best Funds?
As of May 2024, there are more than 2500 mutual funds in India. Let’s see how did we choose the winners
a. Hygiene — We focus on funds that have been operational for at least 3 years and have a clean compliance record, free from significant regulatory issues
b. Consistency — The funds must consistently outperform their benchmark (3 out of 4 times) across different time periods. For index funds, we track the difference in performance relative to their index.
c. Risk Management — We prioritize funds that demonstrate strong risk management. Funds that consistently minimize downside risk (3 out of 4 times) and maintain favourable market capture ratios are given higher weight in our selection process.
d. Fund Manager performance — The expertise of the fund manager is critical. We evaluate their performance using metrics such as Information Ratio, Alpha, and Sortino Ratio, ensuring that they deliver sustainable returns over time
e. Portfolio Quality — We give preference to funds holding high-quality assets, especially top-rated bonds and sovereign bonds in their debt portfolio, ensuring stability and reliability
f. Cost — Funds with lower expense ratios are preferred because they allow more of your money to be invested, reducing costs and improving net returns.
In total, we evaluate over 35 different data points across these categories to ensure we’re selecting only the best funds for your portfolio
Check how SIPY’s Steady Saver Portfolio performed during past market crises, ensuring minimal risk exposure to the portfolio
4. What About Costs?
Let’s talk numbers. Most portfolios sneak in high expense ratios (1%-2% per year), eating away at your returns. With SIPY, you pay a flat advisory fee, saving significantly over time.
Here’s an example:
Monthly Investment -30,000
Investment Horizon -10 years
Expected CAGR — 9.3% pa
SIPY Portfolio value after 10 years — 63.3 Lakhs
Other Portfolio value after 10 years — 60.1 Lakhs
With SIPY you save 3.1 Lakhs extra which is 9% of your investments
Orange — SIPY , Blue — Others
5. How do we manage your portfolio
At SIPY, we neither believe in set & forget nor churn the portfolio often. We actively monitor the portfolio for
a. Risk management — We monitor for major outlier events that could alter the long-term risk and return profile of the portfolio
b. Market Dynamics — Evaluate the market conditions and take tactical calls that will help achieve the stated portfolio objective
Conclusion: Ready to Simplify Your Investments?
SIPY isn’t just a portfolio — it’s a smarter way to invest. With transparent costs, thoughtful fund selection, and proven performance, it’s time to put your financial goals first.
Take the first step toward smarter, stress-free investing. Reach out to SIPY today and let us simplify your financial journey — https://www.sipy.in/