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 – firstname.lastname@example.org or email@example.com
Please find below links to our latest newsletters and presentations:
**For product/sales related queries please write to firstname.lastname@example.org**
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 email@example.com 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.
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 firstname.lastname@example.org**
If you want to read our other published material, please visit https://marcellus.in/
Copyright © 2022 Marcellus Investment Managers Pvt Ltd, All rights reserved
Note: the above material is neither investment research, nor investment advice. Marcellus does not seek payment for or business from this material/email in any shape or form. Marcellus Investment Managers Private Limited ("Marcellus") is regulated by the Securities and Exchange Board of India ("SEBI") as a provider of Portfolio Management Services and as an Investment Advisor. Marcellus is also a US Securities & Exchange Commission ("US SEC") registered Investment Advisor. No content of this publication including the performance related information is verified by SEBI or US SEC. If any recipient or reader of this material is based outside India and USA, please note that Marcellus may not be regulated in such jurisdiction and this material is not a solicitation to use Marcellus's services. This communication is confidential and privileged and is directed to and for the use of the addressee only. The recipient, if not the addressee, should not use this material if erroneously received, and access and use of this material in any manner by anyone other than the addressee is unauthorized. If you are not the intended recipient, please notify the sender by return email and immediately destroy all copies of this message and any attachments and delete it from your computer system, permanently. No liability whatsoever is assumed by Marcellus as a result of the recipient or any other person relying upon the opinion unless otherwise agreed in writing. The recipient acknowledges that Marcellus may be unable to exercise control or ensure or guarantee the integrity of the text of the material/email message and the text is not warranted as to its completeness and accuracy. The material, names and branding of the investment style do not provide any impression or a claim that these products/strategies achieve the respective objectives. Further, past performance is not indicative of future results. Marcellus and/or its associates, the authors of this material (including their relatives) may have financial interest by way of investments in the companies covered in this material. Marcellus does not receive compensation from the companies for their coverage in this material. Marcellus does not provide any market making service to any company covered in this material. In the past 12 months, Marcellus and its associates have never i) managed or co-managed any public offering of securities; ii) have not offered investment banking or merchant banking or brokerage services; or iii) have received any compensation or other benefits from the company or third party in connection with this coverage. Authors of this material have never served the companies in a capacity of a director, officer or an employee.
This material may contain confidential or proprietary information and user shall take prior written consent from Marcellus before any reproduction in any form.