Creating a Global Portfolio

For people who are interested in creating a global portfolio I had published various options to select from(Model Portfolio). Paradox of choices is a problem when deciding among many good options.We need first have a starting point then narrow down the products.

Step 1

To make things easy I will publish the asset allocation of 2 of the most popular global Roboadvisor. You may use it as a benchmark and a starting point to create your own portfolio!

https://www.forbes.com/sites/marcgerstein/2016/01/16/evaluating-the-wealthfront-and-betterment-portfolios/#444d00d61f34

Step 2: I publish a model portfolio which also has list of top performing most popular assets globally.

Now how many assets you wish to invest depends on the quantum of money you have to deploy.

I strongly suggest to invest atleast 2.5 Lakh to get started considering forex bid ask spread,platform fees etc.

Now I classify the investors in two categories

A) less than 3-4 Lakh total investment

B) more than 4 Lakh total investment.

For the first category 3-4 funds are enough and the goal is to minimize the cost.The ideal platform is Vested for them :

Vested

Benefit:

Drawback:

  • In total only 110 stocks and 10-11 ETF available which means you can create a broad portfolio and leave it for long term
  • For ETF they do charge an annual fees which (0.5% Percentage of AUM) .If you have a small portfolio to start with it works out fine but can be a drag in a large portfolio.For a large portfolio Stockal is more economical.

For People new to foreign stocks and want to get started and choosing VESTED base portfolio should be as given:

1)US Market ETF

2) US REIT ETF

3) Mid Cap and Small Cap ETF

4) Emerging Market ETF

B) People who have more than 4 Lakh to invest

Create a portfolio of the above in Vested and also Register in Stockal to get access to few more ETF and REIT. If you wish to put than 50k in any ETF invest through stockal while for smaller amounts or single stocks you can choose vested

https://www.stockal.com/signup

under partner ID  use “Randomdimes” to get additional future benefits and renewal discounts

Now we have covered all the basic ETF and completed 70-80% work. Now people with higher capital can experiment with some alternate ETF like:

  1. PSP (Private Equity ETF) : They can invest in all the publicly listed private equity companies like black rock,KKR etc

2. Small Cap REIT exposure : Invesco KBW premium yield REIT ETF , SRET ( global high dividend REIT expsoure) etc

3.High Performing individual REITS to increase specific REIT exposure.

Using these 2 platforms your global portfolio would be constructed which would be low cost, efficient. You get yourself a country hedge, Currency appreciation benefit and also access some of the best companies in the world!

Footnotes:

  • Global Investing Platform

Vested Referral

Use this to register and get 5$ in your account (https://app.vested.co.in/referrals?code=RORA74993 )

Stockal Referral

https://www.stockal.com/signup

under partner ID  use “Randomdimes” to get additional future benefits and renewal discounts

  • For buying zero cost MF and lowest Derivative Trading

Zerodha Referral

  • For alternate investment you can use these links

Finzy Referral Code:

https://finzy.com/invest?partner=MAN635

or you can apply the code : MAN635

Faircent Referral

I2I Account Referral Link

(First Use the link to register then add the Code “discount50@i2i” while paying to get 50% off)

Rupee Circle Referral Code- PIND145
Rupee Circle

LendenClub Referral Code – LDC11989
LendenClub

OMLP2P Referral Link

OMLP2P

FinancePeer

(Use Code MNJ6547)

  • Invoice Discounting Platform TradeCred Link:

https://buy.tradecred.com/onboarding/apply-now/TC0152

For other Invoice discounting platform ping me on 9967974993 or mail me on rohanrautela9@gmail.com

P2P Portfolio Analysis Dec’2019

Wish you all a very Happy New Year! Hope to find more interesting investment opportunities and hacks in 2020 .

In this post I will be covering two topics:

  • Analysis of the P2P platforms for 2019
  • New Loan and Invoice Products
  • Introduction to Model Portfolio

P2P Platforms performance

In the 2019 I experimented with multiple P2P platforms .Some of them proved to be successful while others felt short of expectations.

My year end status of investing across P2P platforms:

As it is evident there are 4 platforms where I am currently putting more money , while 2 where I am only reinvesting and other 2 where I am lowering my exposure.

Current Yield and NPA:

In LendenClub/Cashkumar I will be gradually taking out money every month and invest it in Finzy if the performance stays consistent for the next few months!

In RupeeCircle I will be increasing by capital in the next few months while I will keep it constant in OMLP2P and FinancePeer and monitor it closely.

New Product Evaluation:

Couple of new products were available for investors recently.

  1. I2IFunding Education Loans

2. TradeCred invoice with Bank Guarantee

3. Finzy Investment Review

I2I Funding Education Loans:

I2I has recently tied up with an online education company to provide loans to people who are

i2ifunding has partnered with a India’s leading online immersive live tutoring platform which offers live tutoring and personalized online coaching sessions to students from class 5 to 9 in Math and Sciences from both CBSE and ICSE boards. This loan is given for the purchase of online tutoring classes. Company (Tutoring platform) is a guarantor in these loans and in case of default they will cancel the subscription of tutoring classes and repay the outstanding loan amount. “

Prima Facie the deal seems a good bet as guarantor is the company which will receive the money from the borrower thus the loan is hedged to an extent

TradeCred Invoice with Bank Guarantee:

TradeCred has recently launched a few deals with Zetwerk.Interestingly in some of the deals the vendor has been provided bank guarantee which gives an additional level of comfort.

Zetwerk has recently raised 32 million dollar funding so I consider it to be well capitalized in the short term.

Also TradeCred has enabled instant liquidity options to its client. Any deal with less than 60 days to maturity can be instantly redeemed and money will be provided in T+5 days to the account.

I always recommend that people should do their own due diligence before making the final decision

Finzy Investment Review:

I started my investment in Finzy . The process is very simple in whichFinzy provides an option to create portfolio on your behalf and they distribute the money across various risk category.

Minimum investment is 1000 hence I was able to invest in 50 Loans. Finzy creates a group of 5 loans and calls it a portfolio. Each portfolio will have loans from different risk category.

I was able to create 10 portfolio of 5000 each. My dashboard looks like this now:

Finzy Portfolio does not pick any loans from C category. Average ROI after investing in all loans is around 17.9% . After Fees and NPA I expect to able to generate 14% return.The disbursal is a tad slow but that is not a major issue to worry.

I will closely monitor any NPA and delays and update in the performance in the subsequent months.

Portfolio Asset Allocation: From now Onwards I will create a page with my asset allocation across various assets. I will also publish performance of top rated funds/platforms etc in each asset category. It will make it easy for investors to compare and pick up assets for their portfolio.It will have assets across the globe and will be beneficial for people to start global investing.

Snapshort of the portfolio I am going to publish:

Footnotes:

Global Investing Platform Stockal

https://www.stockal.com/signup

under partner ID  use “Randomdimes” to get additional future benefits and renewal discounts

For buying zero cost MF and lowest Derivative Trading

Zerodha Referral

For alternate investment you can use these links

Finzy Referral Code:

https://finzy.com/invest?partner=MAN635

or you can apply the code : MAN635

Faircent Referral

I2I Account Referral Link

(First Use the link to register then add the Code “discount50@i2i” while paying to get 50% off)

Rupee Circle Referral Code- PIND145
Rupee Circle

LendenClub Referral Code – LDC11989
LendenClub

OMLP2P Referral Link

OMLP2P

FinancePeer

(Use Code MNJ6547)

Invoice Discounting Platform TradeCred Link:

https://buy.tradecred.com/onboarding/apply-now/TC0152

For other Invoice discounting platform ping me on 9967974993 or mail me on rohanrautela9@gmail.com