Long Term Portfolio
The Market Fund
Cost effective investing in the largest Indian and US Technology stocks
the premise
The evidence is in
- Indices are now consistently outperforming comparable mutual funds
- Regulatory and Market factors have stacked the odds in favor of indices going forward
the strategy
Best of India and top US tech stocks
- Buy the Top 100 companies in India and the 100 largest, fast growing technology stocks in The US
- 80% India and 20% US
the result
Simple, Efficient and High Performing
- No Lock Ins, performance fee or exit charges
- Management fee: 0.25% (Resident Individuals) , 0.5% (NRIs)
- Annual tax loss harvesting
Why buy the Indices?
Outperforms most mutual funds
- We crunched the numbers and an Index Portfolio now consistently beats the average and a majority of the largest Indian Mutual Funds.
Well diversified
- 100 Indian Companies
- 100 US Companies with a Technology bias
- USD Exposure for the years the Rupee decides to fall 5%
No Fund Manager or Stock Picker Risk
- Bypass the time consuming and difficult hunt to identify a great manager from hundreds of talented managers in the market.
- Don’t have to re-evaluate every year to check if they have called the future correctly.
Why are indices now outperforming?
Regulatory Factors
- Mandated buying by the Provident Fund provides price support
- SEBI now requires large cap funds to restrict 80% of their buying to the same universe of top 100 stocks
- Stricter insider trading and regulations disclosures have levelled the playing field
Maturing and More Efficient Markets
- Following the trend of index outperformance as seen in the US and developed markets over the last few decades
- Hundreds of analysts and funds have reduced the information arbitrage
- Derivatives like futures and options have lowered volatility of index stocks making them more attractive
More on that outperformance
After years of tracking, we finally see regular outperformance of the Market Portfolio vs the average and a majority (75%) of the largest twelve Indian mutual funds.
Allocating to Market Fund
Nifty 50 (40%)
Our biggest companies for (relative) stability and steady growthNifty Next 50 (40%)
Up and coming firms that have already proven themselves and are vying to become the next giantsNasdaq 100 (20%)
US Technology companies you likely use and USD exposure for the years the Rupee decides to fall 5%Join Capitalmind Wealth with Market Portfolio (0.25% p.a fees )
We're a SEBI registered portfolio manager INP000005847For Existing Customers
- Add a new goal targeting the Market portfolio. You can invest additional money into this.
- Convert part of your current allocation to the Market portfolio
- Use a “gains only” mechanism:
- Park money in debt
- Take out gains every quarter and invest in index.
For New members
- Minimum investment of Rs. 50 Lakhs (SEBI rules)
- You can elect for a high starting debt investment to smooth out entry point risk:
- A 40:60 portfolio would have 10 lakh in indexes, 15 lakh in debt
- Over time, increase your equity exposure
- We also offer
- Multi-cap portfolio
- Momentum Portfolio
A quick note on taxes
Do this on your own
Good Investing isn’t rocket science. If you don’t have the 50 lakh minimum or aren’t keen on joining us, here’s how to do this on your own:- Step 1Open a demat account with cost effective brokers like Zerodha or Upstox (a regular broker could charge you something like 0.75% just to buy/sell your investments. That’s more than these ETFs charge annually!)
- Step 2Add money to your demat account
- Step 3The stock codes/tickers/symbols are SETFNIF50 (Nifty 50), SETFNN50 (Nifty Next 50) and N100 (Nasdaq 100). Buy these monthly, quarterly or once a year – whatever works for you
- Step 4Every March sell and buy back whatever is at a loss to realize a tax loss and every March sell and buy back to lock in non taxable gains
- Step 5Keep investing. The magic of an index portfolio is that a consistent average yearly performance can translate into a phenomenal long term result.
