Systematic Equity Investment Portfolio Performance Tracking
So far in my experience these risk funds - credit / duration have not really been worthwhile in terms of risk over larger holding periods.
In credit risk funds, structure itself is bad as they hold illiquid papers and give fully liquidity to customers. Big issue is that often pricing is wrong and big/informed people are able to exit at good price before mark down / segregation.
And duration funds are just more volatile, they might give good returns in short term but often give it back with fund manager seemingly just sitting on hands.
And they ask a large portion of returns as expenses.
So i just prefer to use high rated Short term funds or liquid or overnight. Right now, almost all in overnight funds with small amount in liquid
In credit risk funds, structure itself is bad as they hold illiquid papers and give fully liquidity to customers. Big issue is that often pricing is wrong and big/informed people are able to exit at good price before mark down / segregation.
And duration funds are just more volatile, they might give good returns in short term but often give it back with fund manager seemingly just sitting on hands.
And they ask a large portion of returns as expenses.
So i just prefer to use high rated Short term funds or liquid or overnight. Right now, almost all in overnight funds with small amount in liquid
Yes just read the letter from FTI here
https://drive.google.com/file/d/1gJvdZdwXOJXmWtK9NT6cOxIzJm9s8TB7/view
I other debt fund will have ripple effect now. Tomorrow there will be too many redemption requests across debt funds.
https://drive.google.com/file/d/1gJvdZdwXOJXmWtK9NT6cOxIzJm9s8TB7/view
I other debt fund will have ripple effect now. Tomorrow there will be too many redemption requests across debt funds.
This time I was lucky, last time had taken a hit with the vodafone-idea event.
The problem is it will not be Franklin India alone there would be domino effect on other similar Credit riskexposed funds and even to hybrid and dynamic funds.
I have no idea how it will turn out in coming days so need to monitor and record this event for future reference.
The problem is it will not be Franklin India alone there would be domino effect on other similar Credit riskexposed funds and even to hybrid and dynamic funds.
I have no idea how it will turn out in coming days so need to monitor and record this event for future reference.
Date: 30-04-2020:
1. Ending the month on a positive note, the strategy by itself made 13%.
2. This end a cycle of DD and recovery in the portfolio.
3. This boring systematic Investing process continues with Stock selection, MM and asset allocation.
Strategy Equity Curve:
Monthly Returns:
Sector Allocation:
Trades Taken:
1. Ending the month on a positive note, the strategy by itself made 13%.
2. This end a cycle of DD and recovery in the portfolio.
3. This boring systematic Investing process continues with Stock selection, MM and asset allocation.
Strategy Equity Curve:
Monthly Returns:
Sector Allocation:
Trades Taken:
With this I conclude this experiment as I wanted to journal one complete cycle of DD to recovery in the portfolio. Initially had thought this would be a minor DD but it turned out to be a mother of all draw-down in decades..
The key takeaway for the readers should be as follows:
1. If the investing process is systematic and one has confidence to stick to the strategy rules one can easily recover from any DD.
2. A strategy by itself is not key, more important is money management and asset allocation along with patience to follow the strategy rules.
3. Combining multiple non-correlated strategies help smooth the equity curve and improve performance.
4. It is possible to beat MF/FD returns with lower risk and generate steady consistent returns through equity investment.
5. It will not beat the lower time frame day trading returns but provides enough diversification to allow one to sleep well at night as there is no problem in scaling up even for a very huge account size.
Hope everyone enjoyed the journey and learned something to simulate your grey cells... Thank you!!!
The key takeaway for the readers should be as follows:
1. If the investing process is systematic and one has confidence to stick to the strategy rules one can easily recover from any DD.
2. A strategy by itself is not key, more important is money management and asset allocation along with patience to follow the strategy rules.
3. Combining multiple non-correlated strategies help smooth the equity curve and improve performance.
4. It is possible to beat MF/FD returns with lower risk and generate steady consistent returns through equity investment.
5. It will not beat the lower time frame day trading returns but provides enough diversification to allow one to sleep well at night as there is no problem in scaling up even for a very huge account size.
Hope everyone enjoyed the journey and learned something to simulate your grey cells...
Thank you!!!Now to reveal the reason behind this experiment...
A good friend of mine (very successful investor himself) had been asking me to explain the MM & Asset Allocation rules I follow in Investing. We both knew there will be some DD after the equity run in March and he challenged me to prove it in real time.
I jokingly promised him that I will explain the complete rules in this thread if someone specifically asks me about it and the condition was that he will not ask me anything here but I need to explicitly mention in the first post itself that I will explain it if someone asks me about it.
I knew most of the readers will focus on the DD, returns, doubt the system and everything else but miss the obvious questions they could have asked. Lucky for me that is exactly what happened...
Anyway not to disappoint, will give few hint on what kind of questions one should focus on:
1. How multiple strategies were combined? (I combined Momentum, Growth & mean reversion strategies here)
2. What money management rules need to be applied between strategies and assets?
3. What rules need to be applied when making changes to the Asset allocation?
4. What should be the thought process when in DD and when recovery starts?
5. How to decide when to increase the equity exposure and when to reduce it?
6. How to trade in the investment portfolio?
7. How to regularly book profits and losses?
Analyse how these points fit into your strategy and I am sure you will be able to develop a stronger system. Across various posts/threads I have shared the core Ideas needed to succeed in trading, investing and also psychology. I have given enough hints that I am sure it will help the right seeker.
Few final parting thoughts:
Be humble but confident of your success, at the same time have controlled aggression and over-confidence which comes naturally when you have seen many cycles in market and is a much needed ingredient for success. Hence key is to focus on sustaining multiple cycles and at the end you will feel God and on top of the world..
Many dont accept it, but I can tell you that I have shown these tendencies at times and know this has created unnecessary conflicts and hard feelings with lot of friends here in this forum and outside.I want to take this occasion to explain that it was nothing personal...just my uncontrolled over-confidence at play...
Thanks Everyone...Take care
A good friend of mine (very successful investor himself) had been asking me to explain the MM & Asset Allocation rules I follow in Investing. We both knew there will be some DD after the equity run in March and he challenged me to prove it in real time.
I jokingly promised him that I will explain the complete rules in this thread if someone specifically asks me about it and the condition was that he will not ask me anything here but I need to explicitly mention in the first post itself that I will explain it if someone asks me about it.
I knew most of the readers will focus on the DD, returns, doubt the system and everything else but miss the obvious questions they could have asked. Lucky for me that is exactly what happened...
Anyway not to disappoint, will give few hint on what kind of questions one should focus on:
1. How multiple strategies were combined? (I combined Momentum, Growth & mean reversion strategies here)
2. What money management rules need to be applied between strategies and assets?
3. What rules need to be applied when making changes to the Asset allocation?
4. What should be the thought process when in DD and when recovery starts?
5. How to decide when to increase the equity exposure and when to reduce it?
6. How to trade in the investment portfolio?
7. How to regularly book profits and losses?
Analyse how these points fit into your strategy and I am sure you will be able to develop a stronger system. Across various posts/threads I have shared the core Ideas needed to succeed in trading, investing and also psychology. I have given enough hints that I am sure it will help the right seeker.
Few final parting thoughts:
Be humble but confident of your success, at the same time have controlled aggression and over-confidence which comes naturally when you have seen many cycles in market and is a much needed ingredient for success. Hence key is to focus on sustaining multiple cycles and at the end you will feel God and on top of the world..
Many dont accept it, but I can tell you that I have shown these tendencies at times and know this has created unnecessary conflicts and hard feelings with lot of friends here in this forum and outside.I want to take this occasion to explain that it was nothing personal...just my uncontrolled over-confidence at play...
Thanks Everyone...Take care
Last edited:
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