Long Term Evergreen Portfolio

A Detailed Overview of What you get

Why you should Invest in our Evergreen Portfolio?

The Evergreen portfolio represents a diversified allocation designed for investors with a long-term horizon of at least 5 years. Suitable for both SIP & Lumpsum investments.

• The primary objective of this long term portfolio is to provide better risk-adjusted returns than the Nifty 50 enabling a much more smooth and steady ride.

• The Evergreen portfolio includes a Balanced mix of assets including Stocks, Bonds and Precious metals that demonstrates resilience across market cycles.

• Each chosen asset class tends to perform differently based on market conditions. By spreading risk across multiple uncorrelated assets, the Evergreen Portfolio aims to balance gains in one area against losses in another, reducing overall portfolio volatility.

• We follow a dynamic asset allocation model - We increase weightage to Stocks when they are relatively cheap and reduce the weightage when they are costly. The focus is to preseve capital when markets are down and enhance returns when the markets are up.

• The Evergreen Portfolio relies on occasional rebalancing based on market conditions.

For more details please check the following link.

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How we build Systems for Long Term Investing?

Our Long Term Evergreen Portfolio ensures good balance of the key aspects of Long Term Investing.

1

Timeframe of Investment

Timeframe of Investment Strategic foundation of all investment decisions. Defines your horizon for wealth building and compound growth potential. Critical for withstanding market volatility.

2

Risk Tolerance & Return Expectations

Risk Tolerance & Return Expectations Personal risk appetite drives portfolio construction. Balance between growth ambitions and comfort with market fluctuations shapes investment selection.

3

Asset Allocation & Diversification

Research & Evidence-based distribution across asset classes thereby reducing portfolio risk and optimizing return potential.

4

Lower Volatility & Higher Risk-Adjusted Returns

Strategic mix of both offensive and defensive assets to achieve better risk-adjusted returns over the long term and across different market cycles.

5

Costs & Tax Minimization

Strict Fund Selection Criteria to minimize costs + Smart tax strategies that preserve and compound wealth over time.

6

Liquidity to be able to withdraw when needed

Strategic balance between accessibility and long-term commitment. Built-in flexibility for unexpected needs without disrupting core strategy.

7

Review & Rebalancing

Regular portfolio review ensures alignment with goals. Systematic rebalancing captures market opportunities while managing risk.

The above elements work in harmony to create robust long-term portfolios that help you build wealth over the long term.

Note: In this service, we will not be providing individual stock recommendations for the long term. We have a separate service where we provide Stock Recommendations for the Medium term to ride the up move. It is momentum based. All Long Term investments are only through Mutual Funds/ETFs. I explain the rationale below.

Why only ETFs/Mutual Funds and not Individual Stock Picks?

I will add a datapoint from the US Markets to illustrate why it is difficult to pick stocks for the long term.

94% of the US Large Cap Funds underperformed their benchmarks over a 20 Year period.

In India, about 75% of the large cap active funds have underperformed their respective benchmarks over the last 15 years. You have some of the brightest financial minds in India, armed with Bloomberg terminals, exclusive Management access, and decades of market experience. Yet, 75% of them are losing to a simple rule-based index over the long haul. It is quite difficult to pick winning stocks over the long term.

Mutual Funds/ETF route provides multiple advantages. I have listed some below.

1

Quick Diversification

Mutual Funds provide the ability to invest in a basket of asset classes. Mitigates losses from single-stock underperformance or equity market shocks.

2

Convenience

Easy to Automate your Investments systematically via SIPs with even ₹500

3

Lower Costs & Taxes

Maintaining an Individual Stock Portfolio might turn out be costlier. When you rebalance your individual stock portfolio it becomes taxable. Dividends from the stocks are also taxed. Whereas in Mutual Funds we suggest, rebalancing is tax free and dividends are re-invested.

4

Professional Management

Professional managers handle your Mutual Fund investments and the system is very well regulated by SEBI. This helps you focus on your primary job. Your only goal should be to increase income and the SIP amount every year.

5

Minimizing Regret

Reduces emotional trading mistakes and biases. Saves Energy and Time that can be diverted to other productive areas to increase income. The focus should be on building a strong financial base by avoiding unnecessary risks. Picking Individual Stocks for the Long Term is very risky. That game is not for everyone and requires deeper understanding.

6

Picking winning stocks for the Long Term is becoming increasingly difficult

Rapid Innovation cycles, Global Competition, Increasing Market Efficiency, Changing Regulations have made stock picking over the long term very difficult.

How to Subscribe?

If you wish to subscribe to our Long Term Evergreen Portfolio, please use the link below.

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