The strategy’s long-term dynamic asset allocation approach aims to maximize alpha-a-wise relative to the benchmark and yet control beta to optimize risk-adjusted returns, providing alpha during market upswings and protection during market downsides by investing in a basket of select quality ETFs. gives Which provides exposure to wealth magnifiers and preservers.
The fund is for cautious investors who want to participate in the Indian equity bull run but insist on limiting the downside if markets turn hostile and emphasizes sectors that are lagging earnings growth with high profitability, low leverage in comparison. And have a steady cash flow. to colleagues.
Best MF to invest in
Looking for the best mutual fund to invest in? Here are our recommendations.
“With Tracer Smart Alpha, we are offering investors a unique opportunity to participate in India’s economic growth story while managing risk and minimizing drawdown by fully leveraging our macro top-down expertise,” said Amit Goyal, Co-Founder and Chief Global Strategist at Pace 360 as he emphasized the value of investing in ETFs.
Also Read: Gold, Silver Mutual Funds Return Up To 9% In 2024 Here’s how to allocate your money
“The Tracer Smart Alpha strategy, which focuses on equity ETFs, presents significant advantages over strategies with concentrated stock exposure. For instance, during the 2020 Yes Bank meltdown, the NIFTY Bank Index showed stability, which demonstrated the benefits of sector-wide exposure.” Similarly, we saw indices and sub-indices eventually recover and reach all-time highs after the 2008 financial crisis and the Covid-19 pandemic, while many individual stocks went into oblivion as regime change inevitably follows every economic crisis. ,” added Goyal.
He further explained how ETFs provide greater diversification, help reduce risk and volatility, allow investors to benefit from overall market growth while mitigating company-specific risks, making them a more stable investment choice, especially in uncertain times. .
The fund rotates between opportunities based on macroeconomic indicators, market cycles and analysis of themes or sectors, both fundamentals and technicals, targeting more than one when the market is overvalued and more than one when it is undervalued. This strategy seeks to offer enhanced risk-adjusted alpha by controlling beta at appropriate levels for various stages of equity markets. By investing in a diverse range of ETFs across geographies and across sectors such as auto, FMCG, pharma, IT, financial services and themes like electric vehicles, defense and infrastructure, Tracer Smart Alpha provides a well-diversified portfolio for long-term growth.
(disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. (These do not represent the views of The Economic Times)
