Investment policy statement
The investment policy statement communicates the investment goals & serves as a guidepost for ongoing management of the portfolio. It creates the necessary guard rails so that risk limits are not busted in ‘good times’.
-
The investment horizon
-
The investment objective
-
The portfolio liquidity required
-
Asset allocation choices
-
The possible product concentration
-
The review and execution mechanism
Investment approach
Once the investment policy is clear, we work out the appropriate portfolio based on the investment objective and horizon. This involves:
Selecting the right asset class
From multiple money market funds, sovereign bonds, AAA securities, ETF, liquid and ultra short funds, as also other asset classes based on the risk preference.
Creating the bucketed approach
Based on the investment horizon and goals, we focus on a 3-bucket approach for fixed income investments. This approach looks at creating a judicious blend of ‘cushions / insulators’ + ‘flexible strategies’ + ‘yield enhancers’ which may be required to navigate volatile markets. This ‘3-bucket’ approach includes:
Places to “hide” 
Manage duration risks 
Yield enhancers As an illustration, these could include ideas that avoid near-term mark to market impact such as debt-oriented or long-short AIFs, market-linked debentures and rate reset-ideas.
This bucket may offer tranche entries into medium to long term, Government of India Securities/ State Development Loan roll-down strategies – essentially a prudent mix of high-quality accrual with reducing duration risk instruments.
This bucket refers to those ‘yield boosters’ such as Marked-linked debentures, Alternate Investment Funds and other strategies.
Constant monitoring and reporting
We constantly monitor the investment to ensure that the risk is within controllable limits. A dedicated platform enables reporting of the investment and a consolidated view.
One size doesn’t fit all
We offer a range of personalised wealth solutions for clients from diverse backgrounds such as entrepreneurs, company founders, CXOs, professionals such as doctors, lawyers and CAs, in addition to family offices and company treasuries.
A platform for performance insights
Information overload often clouds the decision-making process. The Centrum Wealth Wealthverse platform brings you anytime access to your portfolio and enables analysing holdings in your way.
Know More
Leadership Perspectives
-
Business
Executive Opinion: Interim Budget 2024
Our Executives share their opinions on India’s Interim Budget, delving into its potential impact on various sectors and offering strategic insights for navigating the fiscal landscape. Their astute opinions unravel the implications, providing a crucial lens for understanding the budget’s impact on the industry and beyond.
Know More
-
Business
Today’s Prudent Safety Anchors Tomorrow’s Optimism: Outlook 2024
What does 2024 bring for investors. The India story is strong, valuations are high but with the geopolitical landscape dynamic, what should the investors be mindful of in 2024? Hear Centrum Wealth’s Sandeep Das, Shankarraman R , and Manish Jain discuss the Investment Outlook for 2024. The experts explore the investment landscape while also advising vigilance for blue-skies risks during […]
Know More
-
Business
India’s 2024 Outlook & RBI Policy Review
Centrum Wealth’s R Shankar Raman discusses the outlook for India’s growth, interest rates, currency, and the investment approach for 2024.
Know More