Before answering the overarching question, we should know what Equity all rounder is.
Equity All Rounder is an AI-based multi-asset portfolio that includes equity, debt, gold, and global stocks.
As the name suggests, this portfolio provides all-round performance by identifying trends in different asset classes.
What does that mean? Let me present the data
Every year the winners among asset classes keep changing. So, one needs to identify the trend and the winners.
Equity all rounder, a multi-asset portfolio, does the same. Based on market trends, its AI algorithm identifies the right mix of asset classes.
The multi-asset portfolio brings another advantage – It protects your investment from volatility in one asset class.
In 2020, returns in equities took a major hit. If someone had invested purely in stocks, their portfolio would have been bleeding, but the portfolio with the right proportion of gold and debt wouldn’t have gotten much damage.
Once it identifies the right portfolio, it’s important to manage the right allocation, which can be done with portfolio rebalancing. Confused? Let me explain.
Say, you invest in a portfolio with 70% allocation in stocks, 20% in debt, and 10% in gold. The following year equities perform really well. The proportion of your equity investment increases to 80%.
This increase will make your portfolio risky. If the market is volatile and equity falls, it will impact your returns. Because if something goes up, it’s bound to come down.
So, regular portfolio rebalancing will help you minimise this risk by selling the excess equity portion and shifting this allocation towards debt or gold.
This is what an equity all rounder is and how it works.
Now coming to our question back, why you should invest in equity all rounder?
In the discussion above, we have already talked how all rounder brings diversification through multi-asset investments, reduces volatility, and optimizes returns.
But there are some other benefits of investing in equity all rounder:
Capital preservation: The fund managers invest in such a portfolio that capital remains 100% preserved
No capital lock-in: Investors can redeeom their investments anytime and anywhere because trading happens through your demat account.
Affordable: The minimum investment is much lower than PMS (minimum investment starts with Rs. 50 lakhs). You can start investing in all rounder with just Rs. 2 lakh lumpsum and SIP is available too.
New age investment: With AI-driven investment, it makes the model completely new age with the combination of human and artificial intelligence.
Good returns: In an ideal scenario, the all rounder can double the investment in just 2 years.
That is an average of up to 24% CAGR every year.
An average retail investor faces these three problems with their investment:
- Be it low returns on investment
- Choosing the right investment product
- Getting right guidance
All rounder provides solution to all these problems. Now, there is no worry of losing the capital, timing the market, or behavioural biases.
This multi asset portfolio will take care of all these issues. You can get in touch with our experts at swarajfinpro. Also, download our app from Play Store or App Store for a swift investment experience.
