Stay the Course with Equities. Volatility isn’t the Time to Sell.
- Investment Decision Management in clear display
- Process driven policies beat people driven decisions
- Vivekam beats all diversified mutual funds convincingly
- Multiple investments of varying amounts tested uniformly
Vivekam’s stated philosophy has always been that “Investment is a Science, and not an Art”. By saying so, we infer that investment decision management (IDM) built on proven scientific findings will help investors deploy cash with confidence and also take buy or sell decisions of their portfolio stocks in time to achieve optimum returns. In order to help investors learn IDM, Vivekam developed several strategies and called them PRODUCTS. For the needy clients, Vivekam undertook the job of Alert and Assist service so that timely decisions can be taken and executed.
Vivekam announced its entry into investment world arena on 26 January 2012 through a function hosted at a leading hotel. Before this date some ardent followers of Vivekam had chosen to take the help of Vivekam in their investments and started investing based on suggestions given by Vivekam’s products. As is well known, Vivekam has a bouquet of products to cater to the varying needs of investors of different sizes. Vivekam’s unisiquely designed products even pave way for systematic monthly investments by investors through its SMILES products.
Vivekam always maintained that investment is a science, and not an art. Having said so, there might be some small variants in products to suit the individual tastes and needs, but the philosophy underlying such strategies will remain same. The prime objective of all these products will be to outperform the benchmark index or nifty while deploying a few filters to differentiate between different products. For instance, BIO Secure may sell out a stock if it appreciates by 40% in one quarter while BIO Growth may continue to hold the stock till it reaches its expected market price. The logic of identifying undervalued growth companies will remain the same but some additional filters are used to shortlist such companies while investing for bio secure product. Barring such small refinements the theme will remain the same.
If the Central theme of investment or DNA is strong, the end result of all investments in Vivekam’s products should yield a return that is comparably higher than the benchmark nifty over long-term. It is even better if investments are made on multiple dates but still the end result of all investments stands higher than what nifty could have earned with the same investments for the same time period. In fact, it is ideal to measure the efficacy of any investment strategy using such methodology.
By the very nature of Vivekam’s investment theme, all products attempt to build a diversified portfolio for any client with whatever investment that is sought to be made. Therefore, to compare an apple to apple, we selected diversified mutual funds in India which had a corpus of at least Rs. 500 crores. We came up with 21 funds and one of them has not been active from the time initial investments were made into Vivekam’s products. Removing that, we were left with top 20 mutual funds that are diversified and are available to all classes of investors.
Taking NAV values of all these mutual funds on a daily basis, we arrived at the number of units that could have been bought with the amount of investment that was made into Vivekam’s products on different days. There were more than 300 instances of investments from a period starting in 2011 August extending all the way up to December 2013. Afterwards, we aggregated the total number of units that could have been bought in different mutual funds and multiplied the same with the NAV of mutual funds on 10 January 2014.
Current value of investments = Aggregate of all units * NAV on 10 Jan 2014
Using the same methodology, we computed the number of units that could have been bought if the amount is invested in nifty each time. Summing up all such units and multiplying that number with the closing nifty price on 10 January 2014, we arrived at the nifty equivalent of all our investments. Vivekam is extremely delighted to announce that the performance of Vivekam’s products taken together have beaten index and all mutual funds in India at this point of time. The amount accumulated by Vivekam products at the end of the period on January 10, 2014 stood at Rs. 108,113,111. The second-best performance was from ICICI Prudential dynamic plan which returned Rs. 104,346,213 followed by Birla Sun Life equity fund which returned Rs. 100,155,373. All other mutual funds have failed even to cross Rs. 100 million in the same timeframe. Nifty returned a value of Rs. 92,551,558 way below Vivekam’s performance. Even among the top 20 mutual funds there were two funds which underperformed nifty and are marked red in colour.
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Investment Avenues |
Value on 10-1-14 |
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1 |
Birla SL Dividend Yield Plus(G) |
93,252,364 |
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2 |
Birla SL Equity Fund(G) |
100,155,373 |
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3 |
DSPBR Equity Fund-Reg(G) |
94,468,601 |
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4 |
Franklin India Flexi Cap Fund(G) |
97,524,386 |
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5 |
Franklin India High Growth Cos Fund(G) |
98,567,479 |
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6 |
Franklin India Prima Plus Fund(G) |
95,208,635 |
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7 |
HDFC Equity Fund(G) |
96,743,588 |
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8 |
HDFC Growth Fund(G) |
91,804,565 |
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9 |
ICICI Pru Dynamic Plan-Reg(G) |
104,346,213 |
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10 |
Kotak Opportunities Fund(G) |
93,795,363 |
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11 |
L&T India Spl.Situations Fund(G) |
96,064,768 |
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12 |
Morgan Stanley Growth Fund-Reg(G) |
93,159,915 |
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13 |
Reliance Equity Opportunities Fund(G) |
98,588,232 |
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14 |
Reliance Growth Fund(G) |
97,583,144 |
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15 |
Reliance Reg Savings Fund-Equity Plan(G) |
95,002,723 |
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16 |
Reliance Top 200 Fund(G) |
95,873,367 |
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17 |
Reliance Vision Fund(G) |
93,739,512 |
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18 |
SBI Contra Fund-Reg(G) |
91,311,667 |
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19 |
SBI Magnum Multiplier Plus’93-Reg(G) |
99,687,650 |
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20 |
Templeton India Equity Income Fund(G) |
92,959,261 |
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21 |
Index Nifty |
92,551,558 |
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22 |
Vivekam products |
108,113,111 |
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From the above it is amply clear that a process defined by science and executed with precision will have a very high chance of outperforming the other investment avenues. Retail investors will not be affected by large sums of infusion or withdrawal as is the case with mutual funds, if they go with Vivekam’s products.
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