SBI Aeon Alpha

In a world of generally low growth, low inflation, and low rates, the last decade has been all about deflationary assets.
Bond proxies performed well in equities (Consumer stocks for example). Is it possible that this will alter in the following decade if growth and inflation return?

Another choice that aids in both drawdown reduction and return improvement, however it is more difficult to choose!

An All-Weather Portfolio Strategy –

Active Cash Management –

• • A backup plan in the event that opportunities aren’t available.
  • Aims to prevent drawdown
  • Assists in avoiding forced purchases
  • Allocation range of 0% to 35% of entire portfolio

CORE Holdings –

• • A backup plan in the event that opportunities aren’t available.
  • Aims to prevent drawdown
  • Assists in avoiding forced purchases
  • Allocation range of 0% to 35% of entire portfolio

SATELLITE Holdings –

• • Concentrate on tactical opportunities for the medium term.
  • Clearly defined departure plan leading in a greater turnover percentage
  • Relative return with a “high risk – high reward” expectation
  • Range of allocation: up to 50% of the equity part

• Proven track record as part of the SBI FM ecosystem
• The stable staff of 52 experts with an average of 14 years of experience
• Portfolio managers with an average of 20+ years of experience

1. An all-weather solution
2. Active cash calls
3. Core and Satellite strategy
4. Expected lower drawdown during turbulent periods

CORE –

The core portion of the long portfolio would be the most important. The portfolio will invest in high-quality equities with a long-term outlook, as determined by the fund management.

Three essential aspects will primarily influence this:

1. business,

2. management, and

3. valuations.

Option 1 –

Fixed Investment Management Fee –

A Fixed management fee of 2.5% per annum (% of average monthly AUM p.a.) of the value of the Portfolio. Additional applicable taxes shall be charged on the amount of fees Recurring operational expenses will be in addition to the above fees

Option 2 –

Fixed Investment Management Fee – Nil

Performance Linked Fee –

Fee as a percentage of the Average AUM   are Performance fee will be charged at 33% of the excess returns over and above the hurdle rate, net of charges on higher watermark framework

Hurdle Rate are Annualised performance of NIFTY 50 TRI Index

Higher watermark are Performance fee for subsequent years will be payable on the gains, made during the year, over and above the higher watermark as at the start of the year.