Money-making in capital markets is fraught with extremes. On one end you have those who swear by invest-and-forget kind of ideas and then on the other end, you have folks who believe trading is the road to riches.
In reality, if you are a retail participant, the answer is neither. As with dieting, the best investing approach is the one that you can stick to. So it boils down to your personality and finding something that suits you, any improvement should be an extension of that personality.
Having observed the financial world, both from the investors’ and the advisors’ perspectives, we would like to solve for a few ways that increase the odds of you making money from your investments, in ways that suit your individual temperament.
Times they are changing, what else would you say, when even Warren Buffet the messiah of value investing adds a crypto position to his fund.
The idea is to be nimble and open to investing across asset classes and products. There are times when investing in individual stocks makes sense, and there are other times when you may want to bet on themes that are performing better, then there are times when it may make perfect sense just to be in debt or cash.
Maybe all you want to do is to use derivatives to insure your portfolio against bad weather. We strongly believe you should be able to do all of it in one place on one app.
Before you pop a pill, you want to check for its efficacy, don't you?
So you ask the doctor if the medicine works, and if it has any side effects, the doctor, in turn, refers to all the studies and tests done on lab rats and humans alike and tells you the possibility.
Thankfully in investing, we don't need guinea pigs, as we have past data to simulate, though we cannot predict the future, we definitely can get the odds in our favor.
We run simulations for all the strategies we offer, running simulations on past data helps us identify trends and time them. You no longer have to get stuck to underperforming assets or rely on what the fund manager thinks is right for you do. We believe humans are prone to making mistakes, and as much as possible it's better to rely on data for our decision making.
One of the biggest advantages of using past data is that it helps us identify trends. You see, assets have their price cycles, there would be months and years when pharmaceuticals do well and then there are times when perhaps mundane things like metals do well.
A data-driven approach helps us in picking the right asset class to be invested in at a given point in time. But on an individual level how do you figure out which asset class is going strong and which one is weak. Running algorithms across market data to continuously scan for opportunities is neither easy nor does it come cheap.
Also, as retail investors, it just isn't worth your time and effort to do it individually. It's better left to nerds who love to wallow in data, and we are proud to be that. We alert you when it’s the right time to participate and also when it’s the right time to get out, think of nudges as your investing superpower.
Therefore we put all our quant and engineering might to ensure you get timely nudges.
You would ask - I am just a super passive SIP investor, do you have something for me? Yes, we do. What if we told you, there are better returns on the table with an alternate approach to SIP-based investing?
From SIP investors to active Crypto traders, doesn't matter who you are. Our approach is to nudge you to be more systematic, more data-driven in your investing or trading style so as to get better returns.
On top of investing and trading, there is another way to reconfigure risk in a portfolio irrespective of what you invest in. Which comes with using derivatives. Derivatives were designed for that, but we threw the champagne out with the cork. We’ll curate and simplify the use of derivatives to make it more accessible.
So we’ll cater to all risk profiles and share many ways to hedge your portfolio from downside risk, all that just to make sure you sleep well.
Sometimes looking at our holdings on the broker application, we all have wondered, when did I buy this stock? Which strategy did it belong to? Worse is when you have the same stock in multiple portfolios.
User experience and design is at the core of what we are building. It’s a science after all and we’ll crack it.
We’ll get you a slick and secure way to track your positions and strategies, the idea is to give you clarity on what your positions are up to, and add to that you will be able to seamlessly execute our buy and sell signals.
Not sure if you’ve said this to yourself, “Oh, I should have exited my portfolio earlier”, we have. Not once but many times, and in our attempt to find ways out of it we’ve designed strategies to time our exits optimally.
Part of data-driven investing and timing the market is also about exiting on time, perhaps more important than entering a position. We’ve noticed that loss-aversion is a very strong human bias and it's very hard for us to exit loss-making positions. Having rules to exit makes it easy and in a way normalizes the behavior.
We also sometimes make a huge fuss about taxes and it’s impact if we exit early, but what about the trauma of seeing your notional profits go all the way to nothing.
We understand that it's no fun watching your portfolio bleed, therefore most of our strategies would have ways to systematically exit positions.
The key to making money in the markets is as much about finding the right plan as it is about sticking to it. Our rationale in building Investmint is twofold, one is to offer curated systematic rules-based investing plans that suit your personality, and two is to nudge you, all through the cycle of investing to make sure you stick to the plan.
At Investmint, we believe if there indeed is a holy grail to investing, this is it.