Description

The Moderate Risk Basket is built for investors who want a balance between growth and risk. This portfolio offers exposure to a mix of small-, mid-, and large-cap funds, aiming for moderate capital appreciation while limiting volatility. A diversified approach is adopted, combining growth opportunities with more stable, well-established companies. This basket is ideal for those looking to grow their wealth without taking on the high risk associated with aggressive portfolios. Active rebalancing ensures that the portfolio maintains its intended risk level and continues to perform optimally over time.

Investment Objective:

• Capital appreciation: Achieve moderate capital appreciation over the medium to long term.

• Balanced growth opportunities: Provide a balanced mix of growth opportunities and stable investments.

• Minimize volatility while capturing market growth.

• Diversify Portfolio: Maintain a well-diversified portfolio to manage and control risk.

Asset Allocation

• Small Cap: A small portion of the Moderate Basket is allocated to small-cap funds as these funds offer the highest potential for growth. Small-cap companies are in the early stages of development and have room for rapid expansion. Although they carry higher volatility and risk, they are included to capture high returns in favorable market conditions. This allocation aims to maximize growth for investors willing to accept short-term fluctuations.

• Mid Cap: A portion of the portfolio is allocated to mid-cap funds. Mid-cap companies tend to be more stable than small-caps but still offer considerable growth potential. By investing in mid-cap funds, we strike a balance between high-growth opportunities and moderate risk. This allocation aims to capture the growth of companies that are more established than small-caps but still growing faster than large-cap firms.

• Large Cap: A large portion of the portfolio is dedicated to large-cap funds to provide stability and mitigate the overall risk. Large-cap companies are well-established and offer consistent performance over the long term. By including large-caps, we reduce the volatility of the portfolio while ensuring some level of reliable returns, especially during market downturns.

• Commodity: A smaller allocation is directed toward commodity funds to diversify the portfolio beyond equities. Commodities, such as gold or oil, tend to perform differently from stocks and can act as a hedge against inflation and market corrections. This allocation is designed to provide additional protection during times of economic uncertainty while still contributing to the growth potential of the portfolio.

Key Benefits:

• Balanced Growth

• Controlled Volatility

• Steady Wealth Creation

• Diversified across different market capitalizations and commodities for risk management