The EQUAL-III Theme

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Our recent series on asset allocation walked through how different investment decisions affect portfolio returns and risk.

  1. Number of assets: Three is better than two and four.
  2. Rebalance threshold: Allowing a single asset to drift upto 80% reduces transaction costs and taxes.
  3. Weighing scheme: Equal weight is better than portfolio optimization methods.

You can read through the posts and the various factors that went into the analysis in order:

  1. Allocating a Two-Asset Portfolio
  2. Allocating a Three-Asset Portfolio, Equal Weighted
  3. Allocating a Three-Asset Portfolio, Optimized
  4. Allocating a Four-Asset Portfolio

For investors looking to gain from such a portfolio, we have setup a ready-to-invest Theme, the EQUAL-III, that takes care of keeping track of everything. It maintains an equal-weight portfolio of the M100 (Midcap-100 ETF,) N100 (Nasdaq-100 ETF) and the RRSLGETF (Long Term Gilt ETF.)

Questions? WhatsApp us +91-80-2665-0232

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