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Core and Satellite Strategy

Ever wondered if a good investment opportunity presented itself how much you would apportion to that opportunity? This so that it does not affect your overall portfolio in case of the investment not bearing satisfactory results.

The Core and Satellite strategy is one of the oldest and most successful principles of successful investing. As the name suggests the Core part is designed to provide stability and consistency of returns. The Satellite part is designed to provide higher returns with an increased degree of volatility. This part also carries investments which are of shorter duration and/or new investment ideas and avenues.

These two components are at all times kept separate so that any unsuccessful ventures in the Satellite part do not affect the overall health of your portfolio. As time progresses all assets in Core and Satellite portfolios perform differently and need to be rebalanced. This results in complete segregation between the serious long term portfolio and the shorter term new investment assets which carry higher volatility and are purely a testing ground for assets before they are converted into longer term holdings.

Any fresh infusion of capital should ideally also be distributed across the Core and Satellite investments so as to remove bias and not carry any additional risk than was initially desired.

Our value addition

Our platform allows you to monitor all components of your portfolio separately and individually. You can also specify the frequency of rebalancing. At these times any disparities in allocations would be removed. This model can be used on any existing portfolio and our platform sorts out your investments automatically into the various asset classes they fall under. Once you have specified your risk appetite, the system shows you your current allocation against the ideal allocation. Then, over a period of time, our recommendations would gradually shift you from your current to your ideal allocation.

Once ideal allocation is arrived at, at a pre-designated frequency our system would look at the performance of the various assets and subsequently recommend rebalancing transactions. This would ensure that we regularly book profits and trim under-performing assets.

The bottom line

- Your portfolio would always be hedged against sudden volatilities
- Arrive at a more consistent performance of your investments
- Never an allocation into high risk investments beyond the desired exposure
- Complete comfort when experimenting with new asset classes and/or avenues, and also knowing how much can be invested without any imbalance to overall portfolio

Typical asset allocations

Given below are sample allocations for an advanced client for an aggressive, moderate and conservative risk exposure.

Private Client Services

As our Private Client, we can personally assist you in drawing up a portfolio for your customised requirement. We will also meet at a pre-designated frequency to ensure compliance to the preset allocations and to trim any deviation, if any, from our plan. At these times we can also account for any new asset class and/or maturity of any investments that need to be redistributed.

To schedule an in-person meeting or a private conference send us a mail at . This service may be made available free of any charge.

If you have a thought you wish to share with us on improving our services, having an individual custom made plan created for you, or just to share best practices, drop a line to

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Holistic Portfolio Management
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