Hi, the objective is always to manage any scheme with tighter bands than the SID. We have mentioned Zerodha Multi-Asset Passive FoF | Invest in NFO the appx allocation and endeavour is to maintain individual allocations within a (+/-)5% band of the proposed exposure passively.
Looks like backtesting results are available here now. This is a pretty good one fund solution.
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Thanks @VishalJain . One final Q. Is there a plan to launch an aggressive Hybrid FOF? Its the one category that we are missing in passive and almost everyone will benefit from it instead of 100% passive equity.
Fantastic. Having invested in an active multi asset fund I can say the 1 year returns were great. of course the party may not last long. Its still the best category for investment
If you are referring to Passive Hybrid then there are some clarifications industry is awaiting on the debt portion of the index.
FYI, in case anyone’s interested…
There’s an ongoing AMA (Ask Me Anything) thread with @VishalJain
on the IndiaInvestments sub-reddit today.
I see quite a few in-depth questions on that thread
about various aspects of the Zerodha Multi Asset Passive FOF
already asked (and answered) on it.
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So we could possibly expect that in another year. Myself have been eagerly waiting for Passive Aggressive Hybrid Fund with a 65:35 ratio between equity and debt funds and taxed as equity category.
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Hey Gaurav, the Zerodha Multi Asset Passive FOF should re-open tentatively around Aug 20th. Rgds
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Can you start one fund where gold and silver etf are combined and 50 50 ratio so we don’t need to invest 2 different fund @VishalJain
And zerodha have any plan to launch global etf like cover hong kong our new york market @VishalJain ??
Not in the immediate future as the international limits for mutual funds are not open as of now.
Hi @VishalJain , could you elaborate more on choosing Nifty 8-13 Yr G-Sec rather than a much shorter YTM index to avoid interest rate risk?
Is this just about the start of your fund and interest rate cycle?
Are you flexible to change it to shorter YTM index?
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Hey Gautam, if you are referring to the multi-asset fund, the objective here was to give a representation of the respective asset-class for each equity, gold & debt. In the debt segment the 10 yr segment is generally considering as a benchmark of interest rates in the economy and the 8-13 Yr Index was chosen here due to that. The idea of the fund is not to time either the equity, gold or debt markets but to provide better risk-adjusted return through diversification. The exposure for each asset class has been clearly defined and will not change. Hope this clarifies. Rgds
Long term gilt may also have some negative correlation with stocks during crashes, some of them anyway when rbi has bandwidth to reduce interest rates. Haven’t tested it out but have seen it sometimes.
This is the combination that i had in mind to test. Dalio i think does something like this + other commodities.
Hi @VishalJain
Request you to device a mechanism to accurately show the percentages. Currently it’s adding up to 103.63%
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When will we be able to pledge this mutual fund for margin? It’s almost 3 months since the NFO, what is the timeline for this to come into approved list of collateral securities?
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What is the logic behind allocating 25% to gold, goes against conventional wisdom where ppl recommend only 5-10% of portfolio to gold?
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Hey Rahul, not sure whose conventional wisdom it is 
. Our objective is to keep it REALLY simple, a product that could be used for long-term wealth creation with a lower volatility.
A 60% allocation towards equity (Divided into largecap and midcap) to benefit from India’s growth story. The 25% Gold aims to provide stability as it has lower correlation with equity apart from the growth potential as has been seen.The G-Sec component offers balance and lowers risk.
This product could be for anyone looking to diversify with a single investment. It could be someone who is just starting out or someone who has a decent portfolio size and now wants to make it simple.
One could easily build a bespoke ETF portfolio based on your needs.
Hope this helps. Rgds
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