ETMONEY’s Technology-led Approach is Enabling Investors to Generate better Returns Using Passive Funds
The platform has partnered with India’s leading AMCs to offer quant-based investment portfolios built with passive funds
ETMONEY, one of India’s leading wealth management platforms, recently launched a one-of-its-kind membership service ETMONEY Genius. ETMONEY Genius uses a proprietary quant investing model that uses a dynamic asset allocation strategy to construct diversified portfolios of equities, debt & gold with the aim of building portfolios that have demonstrated to fall less and gain more than their benchmark during market ups and downs. It offers 6 unique investment strategies that Investors can choose to execute via investing in a portfolio of index funds of India’s leading Mutual Fund companies: ICICI Prudential Mutual Fund, Aditya Birla Sun Life Mutual Fund, and Nippon India Mutual Fund.
Passive funds replicate a particular index and mimic its performance subject to tracking error. For example, a NIFTY 50 index fund will generate similar returns to its benchmark, the NIFTY 50 index. However, on the flip side, they also bring in a similar downside when the markets correct. That has been a drawback of staying invested in passive funds. But now, for the first time, technology is being used to transform passive investing from merely replicating the market’s performance to outperforming it while being true to its core fundamentals. ETMONEY’s quant model does the right asset allocation, timely rebalancing, and smart risk management, all of which is personalized to every investor. An additional layer of ETMONEY’s technology automatically cuts down risk as an investor reaches closer to their goals, giving a massive boost to the passive investing strategy.
Speaking on this, Mukesh Kalra, Founder and CEO, ETMONEY said, “In most developed markets, investment in passive funds has overtaken that of active funds. This has been because passive investing is not dependent on fund managers and is free from biases as they replicate benchmarks. Also, passive funds have a lower expense ratio than active funds. Hence, we believe it’s the right time to build asset allocation products on top of passively managed funds that can enable investors to generate better returns over the long run by putting the dynamic diversification in multiple asset classes at work through asset allocation. ETMONEY is proud to launch Genius as India’s first investment intelligence service from India’s leading Direct Mutual Fund platform.”
Commenting on this association, A. Balasubramanian, MD & CEO of Aditya Birla Sun Life AMC Limited, said, “At Aditya Birla Sun Life AMC, we have always advocated the importance of asset allocation to investors as an all-season investment mantra. As an asset manager, we aim to provide the right solutions to investors both in active and passive schemes for their diverse goals, and this association with ETMONEY Genius perfectly aligns with that endeavor. The personalized approach to portfolio construction and dynamic management with ABSLAMC’s passive offerings across asset classes is a unique proposition for investors. We are excited about this partnership.”
Sundeep Sikka, ED and CEO, Nippon India Mutual Fund, said, “GENIUS brings forth trusted guidance on asset allocation coupled with frictionless investing experience. NIMF being one of the pioneering partners, is excited to offer its Active and Passive product bouquet through GENIUS that will benefit existing and new entrants to the Mutual Fund Industry.”
Abhijit Shah, Head-Marketing, Digital & Customer Experience, ICICI Prudential Mutual Fund, said, “We at ICICI Prudential Mutual Fund are ardent believers in asset allocation strategies and think that it is the best way to invest for the next 20,30 or more years. We are pleased to partner with ETMONEY in bringing to investors a unique technology-led investment solution that aims to help them with their asset allocation objectives.”
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