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METHODOLOGY

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SEP’20

MODEL PORTFOLIOREGULAR INCOME WITH

GROWTHMF ONLY

mailto:[email protected]

http://www.investyadnya.in/


Introduction to Model PortfoliosWith Yadnya’s Model portfolios, what we are offering is making complicated investing

simple.

These Model Portfolios use same asset allocation philosophy that we use for some of the

big investors and its pillars are our research-based products –

o Mutual Fund Subscription

o Financial planning product

The idea is to utilize quantitative and qualitative factors observed based on our extensive

research for suggesting model portfolios that make sense for individual investors like you.

Fund Selection ApproachMutual Funds help in easy diversification and tapping on professional fund management

and research expertise via an easily accessible channel. It is truly an invest and forget

type of product unless and until there is a significant change in management or a market

event-based trigger.

Debt Funds are much safer & less volatile than Equity. Arbitrage Funds are a good

substitute of Liquid funds for investors in 30% tax bracket as they are tax efficient option

for short term investing. Hybrid Funds reduce our overall downside risk during bear

market and are a good option for conservative investors.

ETFs and Index funds are passive investing funds that are linked to an underlying

benchmark index and provide a low-cost alternative for taking exposures in the financial

market.

We have utilized our proprietary fund selection methodology - MFYadnya.In for shortlisting

and adding equity, hybrid & Debt mutual funds and ETF/index funds in model portfolios.

https://mfyadnya.in/

https://finplanyadnya.in/


Regular Income Portfolio

Investment ObjectiveThe aim is to generate long term regular income with the current corpus with tax efficient

& above inflation returns

StrategyStrategy is to invest in Debt for short term income and gradually take some Equity and

other market driven allocation for medium & long-term income

Rationale for this PortfolioYou’ve saved for retirement for years. Now that retirement is approaching, how can you

create a regular stream of income from your savings to help pay your bills?

Or you have inherited a large sum of money and want to invest in such a way so that you

can get regular income for long term.

Investors do not want to take much risk with these investments and look for regular

income for as long as possible. Primary objective is to get tax efficient returns and some

higher than inflation returns to avoid the loss of capital.

We have assumed that you already have a separate Emergency Corpus apart from this

investment and would withdraw an optimum inflation adjusted monthly income so that

your investment corpus can sustain for long term. Example: An approx. Rs. 50 Lakhs

corpus can give you 7% inflation adjusted Rs 21k/month income (increasing ₹21k income

by 7% every year) for 20 years with this portfolio.

We have included multiple modes of investment vehicles in this model portfolio – Fixed

Deposits/Liquid Funds/Arbitrage Funds, Debt Funds, Hybrid Funds, Large Cap Funds and

Gold Funds. For meeting the investment objective of regular income with tax efficient &

above average inflation returns with multi-asset portfolio, looking at their long-term

expected returns and risk levels of each asset class based on our long-term view of

Indian economy, we suggest the strategic allocation of 50% in Liquid/Debt, 45% in Equity

& 5% in Gold.


Methodology

1 Strategic AssetAllocation

FDs/Liquid/Arbitrage Funds, Debt Funds, Equity Funds & Gold

2 Selection Universe

Indian Funds covered in MFYadnya.inAll Gold buying options

3 Fund Screening

Performance Consistency, MFYadnya.in star Rating, Risk-Return Ratios, AUM

4 Mutual Funds Allocation

Allocation based on risk profile and market cap

5 Portfolio Rebalancing

6 months to bring back asset class weights as per SAA

6 Portfolio Monitoring

Monthly for market, fund related events

Strategic Allocation by Asset Class

Debt/Liquid Allocation, 50%

Gold, 5%

Equity Allocation, 45%


Is this model portfolio for you?This long term Regular Income with Growth portfolio is appropriate for a moderate risk

investor who wants a long-term regular income.

It is assumed that the investors have a separate Emergency Fund apart from the

investment in this portfolio. They are wary of capital loss but are willing to accept periods

of some market volatility in exchange for the possibility of receiving returns that outpace.

We also tried to reduce the risk by hedging the portfolio with some Gold investment.

This portfolio might get an average annualized return of 8-9%. Its best yearly gain might

be 12-15% and its biggest decline in a year may range from -0 to -5%.

Time Horizon – Min. 10 years

Benchmark – Crisil Hybrid 35+65

Rebalancing – 6 Monthly

Important DatesLaunch Date – May 30th, 2020

Last reviewed – May 30th, 2020

Next Rebalancing on – December 1st, 2020


Regular Income Model Portfolio Cumulative Performance

PerformanceThis chart shows the portfolio’s cumulative performance starting from Jan 2015 until 31st

Aug 2020. The Model Portfolio is compared against Crisil Hybird 35-65 Aggressive

cumulative returns & Nifty 50 TRI Index.

157.1

160.1

147.7

80.0

90.0

100.0

110.0

120.0

130.0

140.0

150.0

160.0

170.0

Dec

-14

Feb-

15

Apr-

15

Jun-

15

Aug-

15

Oct

-15

Dec

-15

Feb-

16

Apr-

16

Jun-

16

Aug-

16

Oct

-16

Dec

-16

Feb-

17

Apr-

17

Jun-

17

Aug-

17

Oct

-17

Dec

-17

Feb-

18

Apr-

18

Jun-

18

Aug-

18

Oct

-18

Dec

-18

Feb-

19

Apr-

19

Jun-

19

Aug-

19

Oct

-19

Dec

-19

Feb-

20

Apr-

20

Jun-

20

Aug-

20

Regular Income Portfolio Crisil Hybrid 35-65 Index Nifty 50 TRI


Disclaimer: The information on this site is provided for reference purposes only and

should not be misconstrued as investment advice. Under no circumstances does this

information represent a recommendation to buy or sell stocks or MF. All these portfolios

are created based on our expert’s experience in the market. These Model Portfolio are

prepared by SEBI Registered RIA.

Regular Income with Growth Portfolio Last 1 Year Monthly Returns

The chart below shows last one year’s monthly performance of the Regular Income with

Growth Model Portfolio against the monthly returns of benchmark Crisil Hybrid 35-65

Aggressive.

-1.4%

0.3%

2.6% 2.1%1.1% 0.7% 0.5%

-1.7%

-11.1%

6.1%

-0.5%

4.1% 4.0%

1.30%

-3.2%

0.3%

2.6% 2.7%1.5%

0.5%

-0.2%

-3.3%

-14.8%

10.2%

-0.8%

5.6% 5.1%

1.90%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20

Regular Income Portfolio Crisil Hybrid 35-65 Aggressive Index

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