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Value | The Binomial Value Model

Updated: Feb 22, 2022

We always work towards adding value to our customers - we at Rupeeting love to say and believe this, just like every other product and brand out there does. It also makes up for one of our core principles in our investment philosophy. Well, of course, if as investment advisors, we don't value, what are even here for?! But here's a little more elaboration on how:

We look at value from two dimensions - quantitative and qualitative. Quantitative for the portfolios we recommend, and qualitative for the benefits our customers get for simply investing in these portfolios.

Quantitative - that's what you're investing for!

We often get asked, "What kind of returns can your portfolios generate?". We find this question to be very naive given the ignorance of an underlying context. Other than the first layer of factors like what kind of a portfolio, and a portfolio meant for who; the larger second layer question is - return compared to what?

Returns are not singular in nature. I made 10% on an invested portfolio in a certain year doesn't make any sense unless reflected upon by comparison to a benchmark or by equalising it for the level of risk taken to achieve that rate of return. If the underlying index made 40% in that year, your portfolio is in a sorry state. If the index was at a negative 20%, but the amount of risk you took to achieve the excess return was astronomically higher relative to your risk-taking ability, you're heading towards a disaster stemming from inconsistency, unpredictability and unsuitability.

The whole purpose of building robust and diversified portfolios is to maximise returns on a risk-adjusted basis, and generate more returns than a comparable benchmark made of a similar asset class composition.

But even compared to a simple Nifty 100 benchmark, here's how the Rupeeting Core Portfolios have performed over the last 10 years.



Qualitative - a natural outcome of leaving things to us

The second investment you own marks the commencement of a portfolio, which becomes a life-long struggle for any investor. There are a few ways of tackling the construction of a portfolio:

  1. DIY the living shizzle out of it: Learn, try, fall, rise, get burnt, stress, and repeat it several times over your life

  2. Mutual funds sahi hai: Build a diversified portfolio of mutual funds over time and pay anywhere between 1-2% per annum for your money to be managed

  3. Get an advisor: Take advice from people you have no option but to trust, earn them a boatload of money over their lives irrespective of whether you make or may not make money

  4. Get rich enough for PMS: Be able to park Rs. 50 lakh with a portfolio management service provider, get all the attention you need, get a call from your banker even if you sneeze, and pay a hefty 2.5% for all the money they will make you (plus the TLC)

The point of listing these three options out is that we can give you the qualitative benefits of investing in Rupeeting portfolios versus any of the above options. So here they are:

  1. Focus on earning your money. Let us do the rest. You already have a job that stressed you enough. Why take on more on yourself?

  2. Our investment strategy builds portfolios of passive instruments, but makes sure allocation involves proven investment methodologies and investment experience. Get expert management while still beating the benchmark without any stress on yourself.

  3. Get the best of suitability and performance through Rupeeting's portfolios. Worry not about whether your portfolios suit your needs or not.

  4. Make investing easy by just telling us about yourself and letting the rest happen by itself.

  5. Ensure low costs while still getting the benefits of personalisation, diversification, optimised returns on a risk-adjusted basis and rebalancing of portfolios.

The benefit of two dimensions

With this approach, we make sure we are solving not just for the amount of money you make, by putting it at the right place and giving it right treatments; but also by making sure you attain a high level of value relative to any other approach of investing you choose for your money. You will see the numerical benefits of investing in these portfolios over time; and we will also demonstrate that through back-testing and constant bombarding of our performance versus the benchmark. But its the qualitative benefits that we hope will enable you to make more money for yourself, invest more with us, and have money make you more money!

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