Introduction
There are two ways in which investors can access our strategies: DIY, through substack and Managed Portfolios, through freefloat.in
The best way to get started managing your own portfolio is to just dive into it. We have a subscription that emails you trades for our All Star Portfolio whenever there is one. It is a low turnover strategy so should be ideal for beginners. Great for portfolios between Rs. 2-15 lakhs.
For investors looking for a longer-term, higher capacity, systematic investment strategy, we have FreeFloat Managed Portfolios. Here, portfolio risk is calibrated to your risk-profile and trades are linked to your Zerodha brokerage account. You will be notified about changes to your portfolio that you can execute with a single click. This is ideal for portfolios between Rs. 5-20 lakhs.
The All Star Portfolio
We setup the All Star Portfolio back in May last year with the single aim of providing a low-churn, easy to execute momentum strategy to DIY investors. And we are happy to report that we are on track!
From a performance point of view, the All Star beat both the large-cap and mid-cap indices after transaction costs and slippage. The portfolio is up 87% since inception compared to NIFTY 50’s 55% and MIDCAP’s 80%
Churn, in any given month, has never exceeded 100% i.e. less than half the portfolio was affected during rebalancing.
We feel that we’ve made the right trade-offs between simplicity, cost and performance with our All Star Portfolio.
Sharks, Dolphins and Whales
We launched our FreeFloat robo-advisory back in September last year. The robo automatically matches investors to an appropriate portfolio based on their risk-score.
Risk-seeking investors get mapped to “Shark,” risk-averse get mapped to “Whale,” and the in-betweeners get mapped to “Dolphin.”
Sharks
The Shark, living up to its name, has beaten both the large-cap and mid-cap indices after transaction costs and slippage. The portfolio is up 36% since inception compared to NIFTY 50’s 24% and MIDCAP’s 34% with consistently lower drawdowns that the market.
The biggest problem with 20- or 25-stock portfolios is that they tend to be far more volatile than the broad-based indices that track 50- or 100-stocks. And the problem with volatility is that it makes being disciplined to the process extremely hard. So, one of our main goals with FreeFloat has been to reduce this volatility without losing out on the investment strategy’s efficacy.
Whales
The largest drawdown experienced by the Whale was 3% during a time when both large and mid-cap indices saw 7% drops. In spite of being conservative, it put in a respectable 25% since inception compared to NIFTY 50’s 24% and MIDCAP’s 34%
Dolphins
As expected, the Dolphins swam between the Sharks and the Whales.
A respectable 31% since inception compared to NIFTY 50’s 24% and MIDCAP’s 34% with far lower drawdowns.
Choose your race… and run it!
The world of investing is large enough to accommodate a wide variety of investment strategies. Trend-following, momentum, quality, value, moats, low-volatility, high-frequency, buy and hold - they all work.
It is all up to the investor to make it work for them. And we are here to help.
Looking for a sensible way to invest? Here’s how to get started.