Intelsense ETF

WHAT IS THE OBJECTIVE OF THIS BASKET?

Act as the starting point and bedrock of creating a robust portfolio

Have exposure across asset classes and countries to have broad diversification

Keep things simple

WHAT DOES THE BASKET HAVE?

Here is where we come in. We have created a simple all-in-one basket that gives you exposure to the following:

Equity - Indian and Global

Commodities - Gold, Silver

Debt - Bonds, Liquid

Sectoral funds

Multicap

Multistrategy (Momentum, Alpha, Value etc.)

There will be no direct stocks. All investments will be through ETFs (exchange-traded funds only).

HOW FREQUENTLY WILL THE BASKET BE REBALANCED?

We will revisit the portfolio monthly, but we expect changes to be quarterly or half-yearly.

WHAT ARE THE BENEFITS OF THIS APPROACH?

Diversification within equities

Multiple asset classes

Investing in foreign assets

Great mechanism to start an initial SIP portfolio.

WHAT ARE THE RISKS?

As with all equity-oriented portfolios, this also carries the risk of uncertain returns and losses.

At times, ETFs may be illiquid and buying and selling may not be possible in large volumes.

Not all asset classes are available as ETFs. Only those with fairly liquid ETFs will be part of our universe of investment.

Although the portfolio is widely diversified, increasingly asset classes are behaving in a much more correlated manner, that is, they go up and down in sync. This can result in drawdowns and losses when markets go down.

In trending bull markets, a diversified portfolio will underperform equities.

A diversified portfolio will underperform its best constituent asset class. For example, if gold has done the best in the last 1 year, the overall portfolio will do worse than gold.

WHAT IS THE APPROACH OF PORTFOLIO CREATION?

We diversify across multiple ETFs. The weights of ETFs are determined by our quantitative process based on overall market conditions.