Even after having the asset allocation strategy in place, a lot of investors struggle to implement it into reality due to multiple challenges faced because of systems and investor behavioral traits. We help investors to stick to the asset allocation plan over the long term and have a special advisory mainly focused on equities and fixed income asset class.
Indian investors have hardly been exposed to owning equities as an asset class due to its volatile nature. Most out of the few who have been participating do not consider equity to be a true asset class and rather see it from the short term orientation. It is natural for investors to be concerned about the value of their investments. However as equity investing is risky, one should not consider to invest in it with a view of less than five years. Equities, being volatile, carry a higher level of risk against any form of fixed income opportunities but it also has historically proved to be one of the best ways to grow wealth in the long run.
On the equity advisory, Prospero Tree’s meticulous research on companies, the availability of various financial instruments along with an understanding of behavioral aspects and valuation techniques helps us to un-earth excellent investment ideas across multiple equity or related instruments.
We thereby guide investors to create a portfolio allocation strategy within equities as an asset class. Based on the needs of the clients, we advise direct equity exposure or passive exposure via instruments like Mutual Funds, AIFs, and Portfolio Management among others.
Gone are the days when the only form of fixed income instruments were those supplied by the banks commonly known as fixed deposits. The growth of the Indian debt market is just an indication of the plethora of options coming on the way for investors to choose from.
When it comes to the plethora of fixed income investment options, today the universe is expanding rapidly for the investor. Each sub-segment within the fixed income category, however, carry different levels of risk, returns and liquidity. Additionally, different fixed income products react differently to the interest rates, economic changes and tenure of instrument. To elaborate more, fixed income instruments are only understood from an angle of credit risk considering that there were very few options in the past. However, the new set of instruments brings an added layer of complexity for the fixed income seekers mainly in the form of interest rate risk and reinvestment risk among others. On the fixed income category, we therefore say all fixed income investments are not created equal.
Through our research, we provide a practical, wise and more sensible approach to the problem of fixed income investing. We aim to cut the complexity, avoid un-necessary risk and present a simplified approach to fixed income investing that is cost and tax efficient.
We thereby advise on all category of fixed income instruments through their primary as well as secondary market issuances ranging from bank fixed deposits, company fixed deposits, government bonds, corporate debt, debt mutual funds, structured products or any other complex instruments that have elements of fixed income securities.
In a nutshell, our portfolio advisory is aimed to provide you specific insights into two main financial asset classes of Equity and Fixed Income.