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Investment Methodology at Truemind Capital

Disciplined Investment Solutions

Investment Methodology

Our aim, at Truemind Capital, is to deliver an end-to-end investment management experience for our clients. Our endeavour is to provide customized solutions to each client that maximize the post-tax returns (net of all expenses).

Our investment management team is led by professionals with extensive qualifications like CFA and CFP designation and they bring to table more than a decade-long experience in investment management, research and analysis. We have designed a service that attempts to build a diversified portfolio that is customized for your particular risk appetite. As a force of discipline, our investment management team meets every morning to relook at the investment strategy, armed with new sets of market information. This helps us achieve better results for our clients.

Our Principles

We use the principles of Mean Reversion, calculative assumptions and suitable allocation across sub-categories to project expected returns on equity and debt asset classes. The asset allocation between debt and equity typically depends upon your risk appetite and our assessment of market volatility. Allocation across sub-categories in equity and debt depends upon our valuation analysis of market caps in case of equity mutual funds and nature of the yield curve in case of debt mutual funds and corresponding potential expected returns. This method of allocating funds based on current market situation is also known as Tactical Allocation. The allocation also depends upon the amount and the mode of investment - One Time or Monthly SIP.

KEY FACTORS

Asset Allocation Decision

It contributes 80% to the returns

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Risk Profile

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Investment Horizon

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Liquidity Requirement

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Market Valuation

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Mode of Investment

KEY FACTORS

Scheme Selection

It contributes 20% to the returns

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We apply Mean Reversion principles, calculated assumptions, and tactical asset allocation to optimize returns on equity and debt classes. Asset distribution depends on your risk profile, market volatility, and our analysis of equity mutual fund valuations and debt yield curves. Allocation also varies by investment mode—one-time or monthly SIP.

Our investment methodology employs five steps

01

Identifying a set of broader asset classes like equity, debt and gold and sub-asset classes (within the broader asset classes) depending upon the current investment environment

02

Curating a suitable asset allocation based on our assessment of risk-reward across different asset classes along with your risk appetite, investment horizon, liquidity needs and mode of investment

03

Applying mean reversion principal, educated assumptions and tactical asset allocation to prepare a customized investment plan

04

Schemes are recommended after a thorough research & analysis of qualitative and quantitative parameters and are reviewed quarterly

05

Regularly review, monitor and rebalance portfolio to arrive at appropriate asset allocation aligned with changes in the investment environment to maximize returns while minimizing downside risk

We recommend our clients to review and revisit their investment plans periodically to remain abreast with the changes in market conditions.
This helps us to maintain the best possible portfolio allocation attuned to the latest investment strategy.

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