Global Asset Financial Strategies and Analysis’ Post

Like any classic combination (🥓🍳, ⚾🥜), pairing an unconstrained bond fund with a traditional bond fund can result in something greater than the sum of its parts. In Better Together: How Unconstrained Bonds Can Enhance Fixed Income Portfolios, Brett Cornwell, CFA, Hans Sapra, and Thomas Cook, CFA, CIPM, explore the potential benefits unconstrained bonds offer: improved portfolio efficiency, better risk-adjusted returns, and significantly less drawdown than traditional bonds and stocks during periods of market volatility. https://lnkd.in/gZJA8dVg This information is proprietary and cannot be reproduced or distributed. Certain information may be received from sources Voya Investment Management ("Voya IM") considers reliable; Voya IM does not represent that such information is accurate or complete. Certain statements contained herein may constitute "projections," "forecasts" and other "forward-looking statements" which do not reflect actual results are based primarily upon applying retroactively a hypothetical set of assumptions to certain historical financial data. Actual results, performance or events may different materially from those in such statements. Any opinions, projections, forecasts and forward-looking statements presented herein are valid only as of the date of this document and are subject to change. Nothing contained herein should be construed as (i) an offer to buy any security or (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. Voya IM assumes no obligation to update any forward-looking information. Past performance is no guarantee of future results.

Like any classic combination (🥓🍳, ⚾🥜), pairing an unconstrained bond fund with a traditional bond fund can result in something greater than the sum of its parts. In Better Together: How Unconstrained Bonds Can Enhance Fixed Income Portfolios, Brett Cornwell, CFA, Hans Sapra, and Thomas Cook, CFA, CIPM, explore the potential benefits unconstrained bonds offer: improved portfolio efficiency, better risk-adjusted returns, and significantly less drawdown than traditional bonds and stocks during periods of market volatility. https://lnkd.in/em2EBynz This information is proprietary and cannot be reproduced or distributed. Certain information may be received from sources Voya Investment Management ("Voya IM") considers reliable; Voya IM does not represent that such information is accurate or complete. Certain statements contained herein may constitute "projections," "forecasts" and other "forward-looking statements" which do not reflect actual results are based primarily upon applying retroactively a hypothetical set of assumptions to certain historical financial data. Actual results, performance or events may different materially from those in such statements. Any opinions, projections, forecasts and forward-looking statements presented herein are valid only as of the date of this document and are subject to change. Nothing contained herein should be construed as (i) an offer to buy any security or (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. Voya IM assumes no obligation to update any forward-looking information. Past performance is no guarantee of future results.

Like any classic combination (🥓🍳, ⚾🥜), pairing an unconstrained bond fund with a traditional bond fund can result in something greater than the sum of its parts. In Better Together: How Unconstrained Bonds Can Enhance Fixed Income Portfolios, Brett Cornwell, CFA, Hans Sapra, and Thomas Cook, CFA, CIPM, explore the potential benefits unconstrained bonds offer: improved portfolio efficiency, better risk-adjusted returns, and significantly less drawdown than traditional bonds and stocks during periods of market volatility. https://lnkd.in/gTr3gDYH This information is proprietary and cannot be reproduced or distributed. Certain information may be received from sources Voya Investment Management ("Voya IM") considers reliable; Voya IM does not represent that such information is accurate or complete. Certain statements contained herein may constitute "projections," "forecasts" and other "forward-looking statements" which do not reflect actual results are based primarily upon applying retroactively a hypothetical set of assumptions to certain historical financial data. Actual results, performance or events may different materially from those in such statements. Any opinions, projections, forecasts and forward-looking statements presented herein are valid only as of the date of this document and are subject to change. Nothing contained herein should be construed as (i) an offer to buy any security or (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. Voya IM assumes no obligation to update any forward-looking information. Past performance is no guarantee of future results.

Like any classic combination (🥓🍳, ⚾🥜), pairing an unconstrained bond fund with a traditional bond fund can result in something greater than the sum of its parts. In Better Together: How Unconstrained Bonds Can Enhance Fixed Income Portfolios, Brett Cornwell, CFA, Hans Sapra, and Thomas Cook, CFA, CIPM, explore the potential benefits unconstrained bonds offer: improved portfolio efficiency, better risk-adjusted returns, and significantly less drawdown than traditional bonds and stocks during periods of market volatility. https://lnkd.in/e4sC_UyQ This information is proprietary and cannot be reproduced or distributed. Certain information may be received from sources Voya Investment Management ("Voya IM") considers reliable; Voya IM does not represent that such information is accurate or complete. Certain statements contained herein may constitute "projections," "forecasts" and other "forward-looking statements" which do not reflect actual results are based primarily upon applying retroactively a hypothetical set of assumptions to certain historical financial data. Actual results, performance or events may different materially from those in such statements. Any opinions, projections, forecasts and forward-looking statements presented herein are valid only as of the date of this document and are subject to change. Nothing contained herein should be construed as (i) an offer to buy any security or (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. Voya IM assumes no obligation to update any forward-looking information. Past performance is no guarantee of future results.

I am often confronted 😕 with these options: My clients often ask this question – “Should I go for a direct or regular mutual fund” ❓ My answer is – “It depends” ❗ You can decipher your preferred option by evaluating the following parameters!! 🔰 ✅ Knowledge and Expertise: ↪ Direct mutual fund schemes require investors to have a certain level of knowledge and expertise to research, select, and manage their investments independently. Evaluate your comfort level and ability to make informed investment decisions. ↪ If you prefer professional guidance and expertise, a regular mutual fund scheme with the assistance of a distributor or advisor may be more suitable. ✅ Time and Effort: ↪ Direct mutual fund schemes require investors to dedicate time and effort to stay updated on market trends, fund performance, and asset allocation. If you have the willingness and capacity to actively manage your investments, direct schemes may be a good fit. ↪ On the other hand, if you have limited time or prefer a more hands-off approach, a regular scheme with professional support can be beneficial. ✅ Investment Goals and Risk Profile: ↪ Consider your investment goals, time horizon, and risk tolerance. Regular schemes may provide access to diversified portfolios and expert advice to help manage risk. ✅ Investor Support and Services: ↪ Evaluate the level of support and services you require. Regular schemes often offer investor services such as assistance with paperwork, transaction processing, and regular portfolio updates. ↪ If you prefer a higher level of convenience and support, a regular scheme with the involvement of a distributor or advisor may be preferable. As per my experience, lack of time⌛ is the biggest challenge for working professionals. This may hamper them in terms of : 👉Staying updated with the latest investment trends and research. 👉Missed investment opportunities 👉Inefficient or outdated portfolio 👉Hasty Decisions (FOMO syndrome) 👉Opportunity cost (remember time is your biggest asset in investments) So which option do you opt for❓ Please let me know in the comment section. 🔰

Understanding Key Risk Metrics in Mutual Fund Investments Choosing the right mutual fund is crucial and should be informed by various risk factors along with personal considerations like age, risk appetite, dependency, and tax implications. Here are five key metrics to measure the risk associated with mutual fund investments: 1. Standard Deviation (SD):    - What it measures: Volatility of the fund's returns.   - Importance: Indicates how much the return on a fund is deviating from its historical performance. A high SD means higher volatility and potential risk. 2. Sharpe Ratio:   - What it measures: Risk-adjusted return.   - Importance: Helps determine if the returns are due to smart investment choices or excessive risk. Calculated by subtracting the risk-free rate (Ex - Treasury Bond) from the fund's return and dividing by the standard deviation. 3. R-Squared:   - What it measures: Correlation with a benchmark index.   - Importance: Represents the percentage of the fund's movements explained by movements in a benchmark index. A high R-squared (70-100) indicates strong correlation with the index. 4. Beta:   - What it measures: Systematic risk compared to the market.   - Importance: Indicates the tendency of the fund's returns to respond to market movements. A beta of 1.0 means the fund moves in sync with the market; less than 1.0 indicates lower volatility. 5. Alpha:   - What it measures: Performance on a risk-adjusted basis.   - Importance: Compares the fund's risk-adjusted performance to a benchmark index. A positive alpha indicates outperformance relative to the benchmark. Investment Strategy Insights: For aggressive investors, especially those who are young and have no dependencies, focusing on higher standard deviation, higher alpha, lower beta, and lower R-squared can be advantageous. This strategy leverages volatility to potentially enhance portfolio returns beyond passive index tracking. Understanding these metrics will empower you to make informed decisions tailored to your financial goals and risk tolerance. Make sure to consider these factors when evaluating mutual funds to optimize your investment strategy. #Investing #MutualFunds #Finance #RiskManagement #InvestmentStrategy

Benefits of using an International Portfolio Bond. The International Portfolio Bond is a single premium investment bond that allows you to invest in a wide range of funds. A portfolio bond is a medium to long-term savings vehicle, which is adaptable to the different stages of the investor’s lifetime. The Structure The investor owns the portfolio bond, and its value is linked to the chosen assets, which are owned by the portfolio bond provider. The bond allows investors to consolidate investments into a single portfolio, which enhances portfolio monitoring capabilities and reduces. ongoing administration. The structure can be funded by transferring existing assets, without the need to disinvest and risk being out of the market. The Investments Portfolio bonds have flexibility and freedom with regard to investment’s which can be held inside the structure. Many types of mutual funds, exchange-traded funds, multi-currency deposits, fixed interest securities, structured notes and equities can be held. It is also possible to appoint a professional investment manager, such as a Discretionary Fund Manager. This allows investors (along with the support of their adviser) to create risk adjusted portfolios in line with their needs and goals. Another benefit is that institutional share classes are available to retail investors, and along with the global buying power of the portfolio bond provider, the cost of running the investment is reduced.

The key to successful investing is fund selection, along with the category. Our observation shows that selecting the right fund is crucial, and it can only be done with the help of professionals who track funds daily. The performance of the value/contra category speaks for itself - in less than 2.5 years, the NAV of quant Value fund is doubled! Even the well-known names in that category are far behind from the quant. While many investors focus on expense ratios, it's important to note that cheaper isn't always better. Our observation shows that in this list of funds choosing the right fund can lead to a return over 30%. It's important to choose your fund wisely and not be penny-wise and pound-foolish. For those concerned about volatility more than return though it is meant for long term investments, make sure to select your fund carefully. Remember, successful investing is all about the right category/fund selection. Disclaimer: Please note that investing in mutual funds carries market risks. It is important to carefully read all scheme-related documents before making any investment decisions. The information contained in the reports is intended for informational purposes only and should be used solely by the recipient. While we have taken great care in compiling the data and contents of this report, we make no representations about the reasonableness of the assumptions or accuracy of any data. Any decisions made based on this information are the sole responsibility of the recipient. We reserve the right to correct any errors or discrepancies in the reports if they are observed or brought to our attention at any time.

A well-diversified portfolio might not reap the expected returns… Ever thought that the investment manager’s investment style and philosophy could hold the secret? Balanced funds, also known as multi-asset funds, combine various asset classes like bonds, equities, and real estate. They aim for diversification, offering both income generation and capital appreciation based on risk exposure. Despite the appeal of well-diversified portfolios, a 10-year analysis of multi-asset low equity funds reveals wide returns dispersion, influenced by factors such as global markets, interest rates (currently one of the fastest rate hike cycles), and the manager’s investment style. The study/article emphasizes the importance of thorough manager research and selection for more predictable performance based on asset allocation and risk exposure.

For many investors, owning bonds is an important component of their investment portfolio. However, deciding which bonds to pick can sometimes present challenges as there are many options to choose from. Wells Fargo Investment Institute's special report provides a comprehensive overview of the differences between individual bonds and bond funds as well as key factors for investors to consider when evaluating their options.