PORTFOLIO UPDATE:
All returns are post fees & net of expenses (TWRR). The returns are as on 29th December 21.
Inception Date & Benchmark:
Consistent Compounders Portfolio: Inception: 1st Dec,2018 Benchmark: Nifty 50 TRI
Little Champs Portfolio: Inception:28th Aug,2019 Benchmark: S&P BSE Small Cap TRI
Kings of Capital Portfolio: Inception:28th July ,2020 Benchmark: Bank Nifty TRI
Why topping up regularly in equity market makes sense…….
“I don’t look to jump over seven-foot bars; I look around for one-foot bars that I can step over.” — Warren Buffett
Over the past 36 months, investors who waited for a market correction before deploying top-ups from their recurring income into Marcellus’ CCP PMS would have experienced a drag (of at least 2-3% on annualized returns, if not more) vs regular top-up based investments. This is due to a combination of three factors: a) low correlation between CCP with Nifty50 during periods of weakness in the broader market; b) difficulty of predicting short term share price movements based on the expected outcome of a looming uncertainty; and c) the various psychological challenges around investing at a level higher than that of previous top-ups or investing in falling markets (e.g. investing at 52-week high share prices, high P/E multiples, boring aspect of investing in the same set of stocks repeatedly, drawing conviction to invest in times of weakness given the negative news flow around such times etc.). Regular top-ups in CCP addresses these three challenges by taking away the ability of an investor to make judgement-based calls around market timing.
Defining two types of investors – Mr. Mortal_Top-up and Mr. Market_Timer
Let us define two types of investors here, both had recurring monthly cash inflows on the 1st day of each month, of which they had set aside Rs 5 lakhs per month for investment in Marcellus’ CCP PMS over the past 36 months.
The first investor is Mr. Mortal_Top-Up who top-ups regularly. He invested Rs 5 lakhs through a monthly SIP in Marcellus CCP PMS on the 1st day of every month.
The second investor is Mr. Market_Timer who tries to time the market. He decides to invest based on the following algorithm revisited on the 1st day of every month:
· If Nifty50 has delivered a positive return over the past month, then Mr. Market_Timer accumulates funds in his bank account for another month before revisiting the algorithm on the 1st day of the next month.
· If Nifty50 has delivered a negative return over the past one month, then Mr. Market_Timer invests all accumulated funds into Marcellus’ CCP PMS.
The outcome (based on the last 36 months of actual data): 28.3% XIRR for Mr. Mortal_Top-up on his investment’s vs 26.4% XIRR for Mr. Market_Timer.
Top-up in Marcellus PMS products is very easy (click here to know more) and beneficial for investors in long term. For more details, please reach out to us – sales@marcellus.in or clientsupport@marcellus.in
Please find below links to our latest newsletters and presentations:
**For product/sales related queries please write to sales@marcellus.in**
OPERATIONS UPDATE:
1. FOS – Form Support Service from Marcellus
To enhance onboarding experience for our channel partners & clients. Marcellus has taken an initiative to extend support on Prefilling of all New Clients PMS & Requisite Demat + others forms by Marcellus Onboarding Team. Through this initiative we expect to solve complexities involve in PMS documentations due to multiple set of accounts to be opened for single client with different entities.
Key benefits of this Process are listed down:
ü Enable KRA check and identify need for IPV/OSV upfront and filter AML Validation.
ü Improvise TAT of account opening and enable clients to invest sooner.
ü Eliminate Re-iteration of seeking information and ratification from client to solve observations.
ü Service & Operations efficiency at both Marcellus and Business Partner end.
Process Steps for the Marcellus Form Support:
R Download the Client Information Form [CIF] for Resident Client, NRI & Non individual through links shared below:
Ø Resident Client: https://marcellus.in/new-cif-for-individual-clients-ver-2-0/
Ø All Non-Individual: https://marcellus.in/new-cif-for-non-individual-clients-ver-2-0/
Ø Non-Resident Indian: https://marcellus.in/new-cif-for-nri-clients-ver-2-0/
R Fill in complete client (s) details in CIF and refer to supporting KYC documents to be shared along with CIF.
R Ensure to share CLEAR scan copies of supporting documents & confirm dispatch address details.
R Email CIF and Supporting KYC documents to clientsupport@marcellus.in for validation.
R Respective SRM will validate the complete information in CIF and supporting KYC documents.
R If Validation is complete, team will carry of necessary KRA AML checks and prepare the Prefilled form based on the CIF & KYC documents.
R In case of need for IPV & OSV respective SRM will reach back to Partners.
R Prefilled forms will be couriered to the requested address with T+1 days of the complete validation date.
Important Notes:
Ø All information in CIF is mandatory and will be used in filling of complete form.
Ø Incomplete CIF, or missing info. or unclear documents will be rejected by SRM at the time of validation process and will not be processed for form preparations.
Ø Request clients to share clear images of the proof scan copies requested and in the readable format, unclear copies will not be accepted.
Ø All CIF submitted before 12:00 pm will be considered for validation on same day and dispatch by next working day.
Ø All CIF Received after 12.00 PM will be considered for dispatch on T+2 working day.
Ø Ensure to mention the “Dispatchment Address” in the CIF.
Ø If CIF is valid, forms will be prepared and dispatched by end of next working day evening.
Ø In case of any further queries & clarification, request you to connect with your respective Service Relationship Manager for assistance.
**For operational related queries please write to clientsupport@marcellus.in**