Portfolio Restructuring

stands for Mutual Fund Automated Portfolio Rebalancing System - MARS

SALIENT FEATURES OF MARS

  • It gives clients access to a range of well diversifed portfolios to choose from
  • There are 2 broad sets of asset allocation portfolios:
    A) Dynamic Asset Allocation: the asset allocation between equity and debt would vary
    depending on the risk in the equity markets; higher the risk, lower will be the allocation into
    equities and vice versa.
    B) Fixed Asset Allocation: the asset allocation between equity and debt will be kept Fixed.
  • The underlying MF schemes will be selected by the NJ Research Team.
  • The asset allocation rebalancing would be done yearly for Fixed Asset Allocation and quarterly for
    Dynamic Asset Allocation.
  • The MARS portfolios are only available to clients holding Trading and Demat Accounts with NJ

HOW DOES MARS WORK

  • Portfolios designed by the NJ Research team will be made available on the MARS platform.
  • Client has an option to select any of the available portfolios with the help of his NJ partner
  • The client can buy into MARS by transferring his existing MF portfolio.
  • The client can also buy into MARS through cheque / net banking / debit card / auto debit mandate
  • The client will be required to authorize all the purchase transactions either online through a single
    click or signing the TIS provided by NJ Partner.
  • Rebalancing of the portfolio is triggered as per schedule of various portfolios. The client needs to
    authorise the same to realign the portfolio with his target asset allocation.

PORTFOLIO REBALANCING

Values of individual asset classes can go up and down in line with the underlying market
movements. While this is no reason for the client to panic, it is important for the client to review his
initial asset allocation with the current asset allocation and make course correction through
portfolio rebalancing.

 

 

BENEFITS OF MARS

  • Client can select a model portfolio depending on his requirements and investment needs.
  • Helps the client to invest in well researched mutual fund schemes in his portfolio.
  • Simple execution tools for portfolio rebalancing.
  • Enhanced returns resulting from disciplined asset allocation.

WHAT IS ASSET ALLOCATION

Asset Allocation, simply means, investing money across asset classes, namely equities, bonds and
cash. It is the key ingredient for any investor wanting to create wealth in the long term.
Asset allocation is also important because dierent asset classes, due to their inherent nature,
behave dierently. Equity, which represents ownership in a business or enterprise, is volatile in
nature and tends to go up and down in the short term. On the other hand, bond, which represents
lending money to a business or enterprise, is relatively more stable and provides regular income in
the form of interest. Diversifying the client’s investments across dierent asset classes will result in
diversifying the investment risk and create a well balanced portfolio that can oset the impact of
investments that are currently not doing well and take advantage of investments that are currently
growing and performing well.