MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
WHICH PARAMETERS NEED TO BE KEPT IN
MIND WHILE MAKING AN INVESTMENT ?
Returns
Risk/Volatility
Safety of Capital
Liquidity
Tax Efficient
WHAT ARE THE INVESTMENT OPTIONS ?
Bank FD/ RD/ Debt Funds
Gold
Equity (through buying stocks or MF)
Lets see how do these options stack up based
on investor requirements ?
DEBT/FD
PARAMETER FIXED DEPOSITS SMILEY DEBT FUNDS IMPACT
Returns in the Return in the
Returns range of 5-6% range of 7-9%
Risk/Volatility Low Low
Safety of Capital Not Guaranteed,
Guaranteed but High
High, but subject
Liquidity to Penal charges in High
cases of premature
withdrawals
Indexation
Highest Tax Rate benefit for
Tax Efficient investment more
than 3 years
GOLD
PARAMETER GOLD IMPACT
Returns Equal to inflation
Risk/Volatility Average
Safety of Capital Average
Liquidity High, but with cost
Tax Efficient High
Historically, Gold has given returns equivalent to
inflation.
EQUITY
PARAMETER EQUITY IMPACT
Returns High
Risk/Volatility High
Safety of Capital No Capital Guarantee
Liquidity High
Tax Efficient LTCG 10% only on Equity
Equities tend to beat inflation by a wide margin
over longer term.
SO INVESTMENTS ARE BASICALLY A TRADE OFF
BETWEEN RISK AND RETURNS
High Risk = High Returns RETURN
Low Risk = Low Returns Low Risk High Risk
High High Returns
Returns
Low Risk High Risk
Low Returns Low Returns
RISK
WHAT IF WE HAD AN OPTION OF GETTING
HIGH RETURNS WITH LOW RISK?
TWO INVESTOR INVESTED R 1 LAC
Mr. X Mr. Y
Invested in
Invested in
Equity & Debt
Nifty 500
MF Schemes
CHANGE OF GOVERNMENT NIFTY 500
GOES FROM 4,756 TO 7,346
Market went up
from Oct’13 to
Mar’15
Mr. X Mr. Y
Period Period
16/12/13 - 03/03/15 16/12/13 - 03/03/15
Invested Invested
R1,00,000 R1,00,000
Return Return
54.4% 50.9%
Current Value Current Value
R1,54,458/- R1,50,900/-
FALL IN THE MARKET NIFTY 500 FALL
FROM 7,346 TO 5,833
Market fell for the
next year
Mr. X Mr. Y
Period Period
03/03/15 - 12/02/16 03/03/15 - 12/02/16
Return Return
-20.6% -2.3%
Current Value Current Value
R1,22,645/- R1,48,300/-
MARKET RUNS AGAIN NIFTY 500 GOES
FROM 5,833 TO 6,804
Market again
started moving
from Feb’16
Mr. X Mr. Y
Period Period
12/02/16 - 30/11/16 12/02/16 - 30/11/16
Return Return
21.4% 21.0%
Current Value Current Value
R1,48,928/- R1,78,397/-
Mr. Y MADE HIGHER RETURNS
Mr. Y made
high returns
as his Equity
and Debt
Mr. X Mr. Y
allocation kept
Period Period
16/12/13 - 30/06/21
changing 16/12/13 - 30/06/21
Invested along with the Invested
R1,00,000 market R1,00,000
Return Return
183% 7% HIGHER 190%
Current Value RETURN WITH Current Value
R 2,83,300/- LOWER RISK R2,90,300/-
RISE LOWER TO MARKET BUT FALL LOWER
DURING MARKET FALL
* Till 30 Jun 2021
Mr. Y Invested in
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
WHAT IS MARS?
MARS = Mutual Fund Automated Rebalancing System
It allocates your money between Equity and Debt based on market
valuation and invests in Top Performing Equity MF Schemes
The Asset Allocation in MARS is reviewed on a half yearly basis while the
scheme rebalancing is done once a year
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
HOW WAS MARS ABLE TO DO THIS ?
MARS uses a research model to find out correct allocation to Equity based
on current valuations.
So if markets are expensive, MARS will allocate less amount to Equity and if
markets are cheap, the Equity Allocation will go up
It sounds so easy, but it’s easier said than done!!
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
MARS ASSET ALLOCATION TIME LINE
Date Equity (%) Debt (%) Nifty 500 Sensex PE Nifty 500*
16/12/13 80 20 4,756 20,660 18.32
27/05/14 60 40 5,844 24,550 20.74
27/08/14 55 45 6,355 26,560 31.33
03/03/15 40 60 7,346 29,594 25.28
12/02/16 65 35 5,833 22,986 20.02
09/09/16 30 70 7,576 28,797 28.56
01/03/17 50 50 7,755 28,984 26.76
31/08/17 40 60 8,695 31,730 29.63
05/03/18 25 75 9,136 33,747 30.37
07/09/18 25 75 9,875 38,390 34.08
09/04/19 40 60 9,678 38,939 31.26
04/10/19 50 50 9,092 37,673 27.47
13/03/20 70 30 8,163 34,103 25.72
08/04/20 85 15 7,161 29,894 22.31
27/07/20 70 30 9,025 37,935 31.77
20/08/20 50 50 9,369 38,220 36.40
05/10/20 35 65 9,516 38,974 41.39
05/04/21 25 75 12,299 49,159 35.85
03/06/21 45 55 13,381 52,232 31.30
* As per new formula of calculating Nifty PE ratio w.e.f 31st Mar, 2021
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
MONTHLY ASSET ALLOCATION TIMELINE
(ONLY FOR FRESH PURCHASES AND TOP UPS)
Date Equity (%) Debt (%) Nifty 500 TRI
01/06/2020 85 15 12,092
01/07/2020 85 15 12,904
27/07/2020 70 30 13,636
01/08/2020 65 35 13,655
20/08/2020 50 50 14,171
01/09/2020 40 60 14,286
01/10/2020 35 65 14,321
01/11/2020 30 70 14,543
01/12/2020 30 70 16,432
01/01/2021 25 75 17,557
01/02/2021 25 75 17,857
01/03/2021 25 75 18,505
01/04/2021 25 75 18,717
01/05/2021 35 65 18,802
02/06/2021 45 55 20,211
01/07/2021 45 55 20,552
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
HOW DOES MARS FIT IN INVESTMENT PARAMETERS
PARAMETER MARS IMPACT
Returns High
Risk/Volatility Low
Low risk of Loss of
Safety of Capital capital if invested for
3 years and above
Liquidity High
Tax Efficient LTCG 10% only on Equity
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
IS THERE ONLY 1 INVESTMENT OPTION IN MARS ?
No, MARS offers Multiple investment options based on risk profile
and need of the customers
MARS Portfolios are available in 2 types
DAA – Dynamic Asset allocation Portfolios
(Asset Allocation in these portfolios changes with market valuations)
Fixed Asset Allocation
(The AA remains fixed)
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
DYNAMIC ASSET ALLOCATION PORTFOLIOS
DAA PORTFOLIO EQUITY ALLOCATION DEBT ALLOCATION INVESTOR SUITABILITY
Medium to High Risk
Aggressive 0 - 100% 0 - 100%
Profile Investors
Low to Medium Risk
Moderate 0 - 60% 40 - 100%
Profile Investors
Low Risk Profile
Conservative 0 - 30% 70 - 100%
Investors
3 Types of Portfolios are available to chose with Dynamic Asset Allocation Theme
Ex- If Asset Allocation in Aggressive Portfolio is 80% in Equity, Equity Allocation
in Moderate Portfolio will be 48% and in conservative will be 24%
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
FIXED ASSET ALLOCATION PORTFOLIOS
FAA PORTFOLIOS EQUITY DEBT INVESTOR SUITABILITY
Balanced Portfolio 65-80 0-35 Medium to High Risk Profile Investors
SIP Aggressive Portfolio 100 0 High Risk Profile Investors
SIP Diversified Portfolio 100 0 High Risk Profile Investors
ELSS Portfolio 100 0 High Risk Profile Investors
E 100 100 % 0% High Risk Profile Investor
E 90 90 % 10 % High Risk Profile Investor
E 80 80 % 20 % Medium to High Risk Profile Investors
E 70 70 % 30 % Medium to High Risk Profile Investors
E 60 60 % 40 % Medium Risk Profile Investors
E 50 50 % 50 % Medium Risk Profile Investors
E 40 40 % 60 % Low to Medium Risk Profile Investors
E 30 30 % 70 % Low to Medium Risk Profile Investors
E 20 20 % 80 % Low Risk Profile Investors
E 10 10 % 90 % Low Risk Profile Investors
14 Portfolios are available with Fixed Asset Allocation Theme.
These portfolios are rebalanced once in a year
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
PERFORMANCE OF DAA AGGRESSIVE
6M 1 Year 2 Year 3 Year 5 Year 7 Year Since
Inception
DAA-AGGRESSIVE 6.63 24.55 13.95 11.32 11.46 12.40 15.18
Nifty 500 TRI 17.64 60.77 19.44 15.01 15.40 13.08 16.12
Avg. Equity Proportion 33 42 49 42 41 44 46
Performance is as on 30 Jun 21
Inception Date for DAA Aggressive is 16 Dec 13
Returns for one year or less period are on an absolute basis and for more than a year period are on CAGR basis
Avg. Equity proportion is based on equity proportion of the model portfolio
Clients performance may differ from the model portfolio performance.
Past Performance may or may not sustain in the future.
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
PERFORMANCE OF FAA PORTFOLIO
6M Since
1 Year 2 Year 3 Year 5 Year 7 Year Inception
FAA E100 16.54 55.08 19.66 14.93 15.10 14.95 18.58
Nifty 500 TRI 17.64 60.77 19.44 15.01 15.40 13.08 16.12
Balanced 12.93 40.92 17.07 13.37 NA NA 10.77
Avg. Aggressive Hybrid 14.72 45.78 16.02 12.15 NA NA 10.00
SIP Aggressive Portfolio 14.15 76.59 49.17 31.97 NA NA 26.40
Nifty Midcap 100 TRI 12.80 76.75 51.02 31.78 NA NA 25.83
Performance is as on 30 Jun 21
Inception Date for FAA E100 is 16 Dec 13
Inception date for Balanced Portfolio is 11 Sep 17; Inception Date of SIP Aggressive Portfolio is 10 Jan 18
Returns for one year or less period are on an absolute basis and for more than a year period are on CAGR basis
Returns of SIP Aggressive Portfolio represents SIP Returns.
Clients performance may differ from the model portfolio performance.
Past Performance may or may not sustain in the future.
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
ROLLING RETURN OF DAA AGGRESSIVE
1 YEAR 2 YEAR 3 YEAR 5 YEAR
DAA AGGRESSIVE ROLLING ROLLING ROLLING ROLLING
NO OF OBSERVATIONS 79 67 55 31
AVERAGE RETURNS 13.43 11.44 11.30 11.37
OBS. WITH NEGATIVE RETURNS 3 1 0 0
MAXIMUM RETURN 48.90 23.39 21.89 16.48
MINIMUM RETURN -7.93 -1.27 2.35 6.26
1 YEAR 2 YEAR 3 YEAR 5 YEAR
NIFTY 500 TRI ROLLING ROLLING ROLLING ROLLING
NO OF OBSERVATIONS 79 67 55 31
AVERAGE RETURNS 13.34 10.08 10.74 10.50
OBS. WITH NEGATIVE RETURNS 17 6 2 0
MAXIMUM RETURN 77.58 27.69 17.97 17.29
MINIMUM RETURN -26.62 -10.26 -3.14 1.29
Period: 31 Dec 2013 to 30 Jun 2021
Returns are on a CAGR basis
Observations are based on monthly data
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
ROLLING RETURN OF FAA E100
1 YEAR 2 YEAR 3 YEAR 5 YEAR
FAA E100 ROLLING ROLLING ROLLING ROLLING
NO OF OBSERVATIONS 79 67 55 31
AVERAGE RETURNS 15.66 11.77 11.94 11.81
OBS. WITH NEGATIVE RETURNS 15 7 2 0
MAXIMUM RETURN 71.51 28.93 25.41 18.35
MINIMUM RETURN -21.62 -9.29 -2.58 3.05
1 YEAR 2 YEAR 3 YEAR 5 YEAR
NIFTY 500 TRI ROLLING ROLLING ROLLING ROLLING
NO OF OBSERVATIONS 79 67 55 31
AVERAGE RETURNS 13.34 10.08 10.74 10.50
OBS. WITH NEGATIVE RETURNS 17 6 2 0
MAXIMUM RETURN 77.58 27.69 17.97 17.29
MINIMUM RETURN -26.62 -10.26 -3.14 1.29
Period: 31 Dec 2013 to 30 Jun 2021
Returns are on a CAGR basis
Observations are based on monthly data
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
PORTFOLIO REBALANCING AND SCHEME CHANGE
Asset Allocation of Dynamic Portfolios is rebalanced twice in a year in
April and October
Asset Allocation of Fixed Portfolios is rebalanced once in a year in April
Scheme change is done once in a year in April. In case a scheme does not
qualify for investment as per NJ research, the investment in that scheme
is redeemed and allocated to another fund
The entire investment and rebalancing process is automated, the client
only has to press a single button to complete his investment
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
There are no
charges
Its absolutely
free
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
SHIFT YOUR INVESTMENTS TO
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
Equity investment with much lower risk
Multiple Portfolios Available as per investor risk profile
Fully automated, only 1 click required
Better risk adjusted returns
Money invested in better performing schemes at all times
All this at no extra cost!!
MARS
MUTUAL FUND AUTOMATED PORTFOLIO REBALANCING SYSTEM
Disclaimer: This Handbook document is made by NJ India Invest Private Limited (“NJ India”) for private circulation and information purposes only. The information/data
mentioned in this Handbook is taken from various sources for which NJ India does not assume any responsibility or liability and neither does guarantee its accuracy or
adequacy. Mutual Fund investments are subject to market risks. Investors are advised to read the offer documents/scheme related documents and other risk factors carefully
before investing in any scheme. The past performance of a scheme is not indicative of its future performance. Investors are advised to take advice of experts before making
any investment decisions. This Handbook shall not be construed as a financial/investment advice and/or as solicitation/advice to buy or sell any financial product.
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