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How much could a DB scheme safely release from its surplus? The first step is to work out a cashflow-based understanding of scheme's assets. So, a scheme should ask if it can buy enough gilts and high-quality corporate bonds with cashflows that would more than cover benefits, even under very stressed market scenarios. Learn more here: https://bit.ly/4bACB0d Capital at risk. For professional investors only.

Systematic Investment Plan (SIP) inflows soared to a record high of ₹18,838 crores, marking the seventh consecutive month with inflows surpassing ₹15,000 crores and the twenty-ninth consecutive month with inflows exceeding ₹10,000 crores in January 2024, according to an insights report by Geojit This robust performance underscores the sustained confidence of investors in systematic investment plans, reflecting a consistent trend of substantial inflows into the market. What is SIP investment? SIP is a methodical strategy for investing that entails setting aside a modest, predetermined sum of money for market investment at consistent intervals, typically on a monthly basis. The SIP method stands out as the favored approach for investing in stocks and Mutual Funds due to its ability to facilitate market participation while enhancing risk management capabilities. The report further revealed that the number of SIP accounts soared to a record high of 7.92 crore in January this year, marking a substantial increase year-over-year. Active SIP accounts witnessed a notable uptick, rising by approximately 1.7 crore compared to the previous year, reflecting a significant surge of 27.4%. This surge underscores the growing popularity and adoption of SIP among investors.

I often say that investment programs, which may look fairly well diversified across all asset classes, may not be as diversified as one may think they are. This is because most of the asset allocation models do not encourage allocators to think SAA construction from a risk factor lens. As an example, as AQR cites in the below chart, a portfolio with 40% global equity exposure and 10% private equity allocation would carry nearly 65% equity risk but if you further decompose the risk factor variance then you will realise that the program actually runs a 85% equity risk contribution and only 10% credit risk contribution. In this cycle, it is important to watch out for the real factor exposures in the portfolios and not to take the artificial comfort offered by superficial diversification Source - AQR

This strategy can be very attractive for insurers reporting under the Solvency II standard formula, as the short duration makes this very capital efficient.

Our global short-dated high yield bond strategy has a long-term track record in minimising defaults. This track record is primarily a result of seeking securities which mature in two years or less, and rigorously screening credits with a bottom-up credit analysis process which focuses on cash generation. By minimising defaults, we aim to maximise the potential to have an excess spread available to our investors. Read more in our latest paper: https://bit.ly/3SSHXgO Capital at risk. For professional investors only.

How can I make 100 crores in 20 years by investing in the equity market as I am holding a lump sum amount of 2.5 cr as am 33 years old now? Growing a 2.5 crore investment to 100 crores in 20 years through the equity market is ambitious and requires a high-risk, high-reward approach. Here's some information to consider: Required Rate of Return: To achieve your goal, you'd need an average annualized return of around 15-16% over 20 years. This is significantly higher than the historical average return of the Indian stock market. Investment Strategy: Diversification: Spread your investment across different asset classes within equities (large-cap, mid-cap, small-cap), sectors, and potentially even geographically. This helps mitigate risk. Active Management: Consider a mix of actively managed funds by experienced professionals alongside Index funds for broader market exposure. This approach requires research and carries additional fees. Important Considerations: Risk: The equity market is inherently volatile. There's a chance you might not reach your target or even lose some principal. Time Horizon: 20 years is a good timeframe for equity investments as it allows recovery from market downturns. Professional Advice: Consulting a qualified financial advisor can help create a personalized investment plan considering your risk tolerance and financial goals. Remember, this is not financial advice, and you should always do your own research before making any investment decisions.

Discover why relying solely on the Capital Asset Pricing Model (CAPM) might lead you astray in the unpredictable investing world. Understand the Basics: CAPM stands for Capital Asset Pricing Model, a formula used to determine the expected return on an investment. Identify Risk-Free Rate: Find the current risk-free rate of return, typically the yield on government bonds. Select the Market Return: Determine the market's expected return, often the historical average return of a major stock index. Calculate Beta: Beta measures a stock's volatility compared to the market. A beta greater than 1 means more volatile than the market. Understand the Formula: CAPM = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate). Gather Data: Collect necessary data - risk-free rate, market return, and the beta of the investment. Compute Expected Return: Use the CAPM formula to calculate the expected return on the investment. Assess Investment Risk: Higher beta means higher risk and potentially higher return; lower beta means lower risk. Compare Against Actual Return: Compare the CAPM expected return to the investment's actual or historical return. Diversify Portfolio: Use CAPM to assess the risk-return profile of different investments for a diversified portfolio. Reassess Regularly: Market conditions change, so update your data inputs for accuracy. Make Informed Decisions: Use CAPM as one tool among many for making investment decisions. Consider Limitations: CAPM assumes markets are efficient and risk preferences are constant, which may not always be true. Look at the Big Picture: CAPM provides a theoretical expected return but considers other factors like economic conditions and company performance. Educate Continuously: Stay informed about CAPM and financial theories to better understand investment risks and returns.

Do you know the role cash should play in your portfolio? Before you consider it as an investment, learn how cash fits into your long-term strategy.

Do you know the role cash should play in your portfolio? Before you consider it as an investment, learn how cash fits into your long-term strategy.

Do you know the role cash should play in your portfolio? Before you consider it as an investment, learn how cash fits into your long-term strategy.