Have you heard the story of Yogesh Patel? A 25 year old strapping young man with a good monthly income, a wife, and no liabilities one day made the wise decision of starting his investment journey. Unfortunately, just like many of us, he really didn’t know where to invest and how to invest. So, he did what many of us would have chosen to do. He went to his mentor, Mr. Jehangir, a 50 year old gentleman who had seen the world, worked in the corporate jungle for nearly 30 years, and amassed a sizable investment portfolio over the years. Today, Mr. Jehagir was getting ready to glide into retirement. So, Yogesh decided to replicate Mr. Jehangir’s portfolio. He made the same investments as him and maintained a similar asset allocation. However, he did not see his wealth growing at the same rate as Mr. Jehangir’s and was completely confused at the lackluster performance of his portfolio.
Do you know why this happened? It was because Yogesh forgot one of the most important aspects of personal finance, i.e., financial planning is personal. Every individual is unique and his or her financial plan should reflect this uniqueness. Yogesh didn’t meet with much success because he was copying the portfolio of a man who was nearing his retirement and was probably moving a large chunk of his allocation from high growth equities to the safety of debt. Plus, he probably was not looking to add any new or innovative investments to his portfolio. Yogesh, on the other hand, was young and capable of taking a lot more risk. Thus, his allocation to equities should have been higher. Now, this is personal finance at its most basic. Simple allocations to debt and equity can meet your basic requirements in terms of adhering to your risk, return, and investment time horizon metrics. However, what do you do if you want to invest in a certain theme, for example, in digital stocks that can benefit from the Digital India push? One option would be to do a lot of research, select the desired stocks, buy them, and track them. The second, and better option would be to invest in a Digital Stoxbox.
A Stoxbox is a basket of Equities, Mutual Funds or ETFs, that can help you gain the desired thematic exposure and build profitable, low-cost, well diversified, long-term as well as short term portfolios. Each Stoxbox reflects an investment strategy or theme or an idea with underlying stocks or ETFs weighted and customized following a rigorous research and back-testing process. You have the option of choosing from a wide variety of themes and investment strategies that can ably meet your unique investment requirements. The best thing is that you can seamlessly purchase a Stoxbox and all the stocks in the box are directly reflected in your demat account. So, while it gives you complete control of your investment portfolio, it takes the responsibility of managing it through stock selection and rebalancing. So, a complete win-win situation for you.
In a world where retail investors have to settle for cookie cutter solutions, curated investment portfolios like Stoxbox can offer you opportunities that can help you gain the desired investment exposure and diversify in a transparent and low-cost manner.