Managed account Services
Managed account services is a unique equity based growth product that aims to add value to your already existing holdings in the stock market. The product is unlike any other currently available in the industry and is revolutionary in terms of value creation.The product follows a two pronged approach which offers returns that are over and above the returns that markets would usually offer on your existing equity holdings. Your idle share holdings can provide you with consistent yearly returns which are better than most investment offerings currently available, without being actually traded or modified in any way. Feel the true power of your holdings unleashed when you subscribe to this incredibly powerful new tool and give yourself the assurance that you have always been craving for.
Basic Concept of Managed account services
- The strategy consists of consistent monthly returns by the use of empirically tested complementary Strategies to bring down the composite risk of the fund to much lower levels and to augment the returns of the fund.
- Managed Account Services is designed to provide the investors with one of the best Risk Adjusted Returns across the entire spectrum of currently available investment options to the investors.
- It targets to generate more than 24% annual returns. The long term target is to generate more than 35% average annual returns.
- It is designed to keep maximum monthly portfolio equity draw-down under 5%.It has been designed to have much lower drawdowns as compared to similar available investment options. Empirical studies show the maximum drawdown in any month is likely to be less than 3% with more than 95% probability.
Managed Account Services fund’s Capital Allocation Structure
- 40% of the funds are allocated to Trend Following Managed Futures Strategies hedged with their respective options.
- Managed Futures generate high returns by trading the futures of different asset classes such as equityindices across the Nifty using diversified high return multiple trend following trading strategies.
- Balance 60% of the funds are allocated to strategies which target to generate stable monthly returns using complementary low volatility return strategies to balance the minimal risk arising out of futures trading hedged strategies and to increase the overall returns optimally.
Risk Control Mechanism of Managed Account Services
- Managed account services will employ a strict Risk Control
- Mechanism to control the risk within the given limits as per the mandate of the Client.
- Risk Management will be handled by the Risk Management Committee of Upfunds whereas the trading strategies & capital allocation structure will be handled by the our Internal IMC ,which will be reporting to RMC on regular basis so that any violation of the risk management guidelines is controlled at any point of time.
- The risk will be managed at two levels by documented and well defined risk management mechanisms on real time basis.
- Risk will be managed on the trade level basis, where each trade will be monitored on individual trade basis in real time under the defined risk parameters. These risk parameters will be monitored on a continuous basis and suitable measures will be taken to avoid any big risk on every trade on real time basis.
- The risk will also be managed at the total portfolio level, where the risk will be managed within the predefined risk parameters of the fund to avoid the occurrence of higher risk. If during any month the drawdown breaches 5%, IMC will ask Investment manager to stop trading and same will be informed to the client.