Gaurav Goel

GRAVITY HBRID PORTFOLIO

Attraction is universal. Everything in the cosmos whether it is a galaxy, star, planets, humans, animals, trees or plants attract everything else. Even a “pinch of salt”, if you are inclined to use it metaphorically. There is a fundamental, invisible force the unites all and pulls others towards itself. This is Gravity and dominates every moment of our conscious experience.

Similarly, all fundamental investment asset classes have their own relevance andgravitas. The all-inclusive investment philosophy advocates allocation across asset classes for practically all sets of investors. If the net worth is 100, an investor should ideally diversify across multiple asset classes. The percentage allocation in each class depends upon an individual risk-taking ability. The aptitude for risk along with attitude towards risk gets influenced by variety of factors like age, environment, family, culture, value system etc. It also changes with time, experience, events and knowledge.

However, as in most case in life, its not as easy to construct a portfolio of this nature as it appears.

One key challenge that an investor regularly faces are the right asset classes and sub asset classes that can take advantage of the prevailing environment. Which asset class to buy and when to buy remains one of the biggest investor challenges. One consequence of this “chakravyuh” or eternal dilemma usually leads toinaction or resignation or deviation.

The genesis of GRAVITY hybrid portfolio was to find that one possible solution from the clutches of this chakravyuh. Our Gravity portfolio is a hybrid, multi- dimensional collection of ETF’s and stocks from multi asset classes. It has a unique blend of precious metals likeGold & Silver, International Equity allocation particularly US Equity, Indian Debt market exposure and Indian Equity allocation to large cap, midcap and small cap stocks from Nifty in the proportion of their attractiveness based on our fundamental study. While the components of the asset classes will remain largely static, the percentage allocation of each asset class will be dynamically managed by us.

An appropriate hypothetical example, something near similar to current environment would be:

1)  Difficult global environment with high inflation, near peak interest rate environment, certain strife ridden geographies and concerns around global economic growth with high possibilities of recession in some key global economies.

2)  An increased search for an alternative currency to US dollar and as a result higher allocation towards Gold by central banks across the globe.

3)  A rise economic giant, with huge demographic, digital, structural and opportunity advantages.

4)  A vibrant equity market with reasonably valued large cap stocks, attractive mid cap stocks and super lucrative small cap stocks.

Our endeavour throughGRAVITY is to capture all the above themes in a single product. The attractiveness of the above themes will change from time to time and our endeavour would be to sync the changes in the portfolio based on our fundamental analysis.

Cosmos is limitless and beyond the realms of our imagination. Gravity binds it all together. Investment space is limitless too. Our portfolio attempts to bind the various actors of this chaotic space with a rational, conscious fundamental force.

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