Open Strategy means 3 ways transparent system.
1. Actual decision making logic running behind is disclosed to users.
2. Historical impact of logic across various stocks is disclosed to users.
3. Users are free to choose any set of stocks.
1. Our decision making logic is built around a core framework of investment that is SMART . The set of rules mentioned in SMART framework is acceptable by any expert or academician in this field in undisputed way. Only challenge is implementation especially by retail investors. We rolled out a service APS (Active Portfolio Service) which puts investors under SMART in auto-magical way with virtually no extra burden.
2. We have Stock Review feature where users can verify how any stock performed in last 5 years with and without APS. Keeping our transparency as key feature we have also shared those stocks' results where APS did not perform well. We believe in overall statistical result and so, never shy away from couple of bad performance because a right composition works without fail. NIFTY 50 stocks performance collective result shows that even with failure in couple of stocks overall our APS system out shined spot investors.
3. Unlike common belief, one needs to select a right stock to make money, we say almost all liquid stocks have the potential to make money for you. Stocks move in wave form. Hence, something which is not working for you now will work later. We recommend two criteria for choosing stocks.
(i) Chose only liquid stocks in your portfolio: We have selected a set of around 450+ stocks and work around them only. If user is able to register any stock in our portfolio driven system then it means it is a liquid stock.
(ii) Spread across multiple sectors & stocks: We have proven through our tool Portfolio Builder that if any investor distributes the investment money across all leading sectors of the economy in the same ratio as they weigh in economy then it always returns decent profits.
Typically at this juncture we have seen two questions strike most folk's mind.
1. If we have kept strategy open then why somebody will pay us.
2. Will past performance repeat?
Do you know how to make pizza? If you don't then just google and find the recipe. Still, when you feel hungry and busy with your core job (whatever you do as an expert) I am sure you must be calling Pizza Hut (or someone else who's Pizza tastes good) to deliver to you. In nutshell you focus on what you are good at doing and outsource the other jobs to experts.
Manufacturing companies invite external bodies to declare what best practices they are following to produce best quality product and get certification like ISO, FPO, ISI etc. Here, to review our process and methodology you do not need to visit the factory. Just visit our website and we have provided all tools to navigate the system. Once satisfied then just outsource the work like you do for Pizza.
Coming back to past performance issue, a car has no accident record for the last five years. Will you trust? next five year it is not going to accident? Probably, NO.
Another version of this problem. Out of 100 cars 5 met with an accident in last five years. Can we workout with some premium to cover the cost of five accidents' loss distributed across 100 cars? Definitely YES. All insurance companies run on the same principle and none has filed for bankruptcy.
This is the core fundamental behind our Portfolio Builder tool due to which no one makes loss but decent profit.
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