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Introducing All Weather Investing

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Introducing All Weather Investing

Author Anugrah Shrivastava
Published July 22, 2018
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In India, the rate of increase in the prices of goods and services has always been very high as compared to the returns generated by the money invested in bank fixed deposits and other traditional products. Thus, anybody using only such investment products is actually becoming poorer instead of building wealth. So, what is the solution?

Stocks? Yes, if you don’t need that money in the next 3–5 years. In the past few decades, the stock market has generated tremendous wealth for investors who have had the ability to look beyond short-term fluctuations and hold onto their investments in all sorts of conditions. But what if you need to liquidate your investment due to some emergency and the stock markets are at a low?

Real Estate, Gold and other alternative investments have their own peculiar problems. It is always extremely difficult to sell a house or land when you immediately need money, and things get worse when such deals get stuck because of approvals and paperwork. Gold is more of a wealth protector than wealth builder. In the past 5 years, gold has generated CAGR of 2.19%. On top of it, it is extremely difficult to manage physical gold.

Hence, the solution is All Weather Investing. One single smallcase consisting of Equity (stock market returns), Gold and Fixed Income (bank FD returns), built using low-cost ETFs

How is All Weather Investing built?

At smallcase, our goal is to offer investment products that are

  • liquid — so you can invest & redeem your money instantaneously
  • cost-efficient compared to alternatives
  • greater value than can be found anywhere else

All Weather Investing fits all three conditions very well. Our objective was to develop a product that can be used by investors in all situations — whether markets are low or high. The product should generate equity-like returns in long term, but should significantly reduce fluctuations to provide a smooth wealth creation journey

After extensive research, we built an algorithm to intelligently allocate your money into equities, gold and fixed income. We have tested the algorithm in all sorts of market scenarios, including the 2008 stock market crash, to check the performance of the strategy over more than a decade. And we can very proudly say that we have come up with a solution that generates higher returns at lower risks

Every quarter, our research team runs the algorithm to decide the optimal allocation — how much money should go into equities, gold and fixed income, and you will be able to apply the allocation with just 2 clicks!

Let the machines do the hard work of ensuring your money is in the right place at the right time.

Higher returns at lower risks

The strategy aims to provide stable and high long-term returns. In the following table you can see how the strategy protects your investments when markets fall.

PeriodNifty All Weather Investing smallcase
1 Jan 2008 to 31 Oct 2008-53%-18%
28 Oct 2010 to 30 Dec 2011-23%1%
27 Feb 2015 to 26 Feb 2016-21%-3%

Invest in All Weather Investing

Start investing for free

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Author

  • Anugrah Shrivastava

    Founder & Head - Investment Products at smallcase. Loves Fridays.

    View all posts

all weather investingequity investingfixed incomegoldlong term investing
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Anugrah Shrivastava

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Founder & Head - Investment Products at smallcase. Loves Fridays.

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4 thoughts on “Introducing All Weather Investing”

  1. SHRIKANT SHAMRAO SHINDE says:
    October 7, 2019 at 2:11 pm

    Can I invest for one year in All weather investment

    Reply
    1. Rahul Satish says:
      October 9, 2019 at 10:04 am

      Hi Shrikant 🙂 There is no lock-in period for any smallcase. You can stay invested in it for as long as you want to. However, having said that, all smallcases are long term investments and the All Weather Investing smallcase, in particular, is a passive long term (4 years +) strategy that helps you against recession while building wealth over the long run.

      Reply
  2. Khushpinder says:
    November 3, 2019 at 5:38 pm

    I m anable to see stocks in my holdings
    Wht to do??

    Reply
    1. Rahul Satish says:
      November 6, 2019 at 2:29 pm

      Hi Khushpinder – this could happen due to one of several reasons such as settlement process of the trades, not having signed the POA, short delivery, etc. If you can write to us on help@smallcase.com we can take a look into this for you.

      Reply

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