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Creating the Guard Rails

Investment policy statement

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The investment policy statement communicates the investment goals & serves as a guidepost for ongoing management of the portfolio. It creates the necessary guard rails so that risk limits are not busted in ‘good times’.

The investment policy identifies:
  • Icon indicating investment horizon

    The investment horizon

  • Icon indicating investment objective

    The investment objective

  • Icon indicating portfolio liquidity

    The portfolio liquidity required

  • Icon indicating asset allocation

    Asset allocation choices

  • Icon indicating product concentration

    The possible product concentration

  • Icon indicating review and execution mechanism

    The review and execution mechanism

Building the Portfolio

Investment approach

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Once the investment policy is clear, we work out the appropriate portfolio based on the investment objective and horizon. This involves:

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Selecting the right asset class

From multiple money market funds, sovereign bonds, AAA securities, ETF, liquid and ultra short funds, as also other asset classes based on the risk preference.

Creating the bucketed approach

Based on the investment horizon and goals, we focus on a 3-bucket approach for fixed income investments. This approach looks at creating a judicious blend of ‘cushions / insulators’ + ‘flexible strategies’ + ‘yield enhancers’ which may be required to navigate volatile markets. This ‘3-bucket’ approach includes:

As an illustration, these could include ideas that avoid near-term mark to market impact such as debt-oriented or long-short AIFs, market-linked debentures and rate reset-ideas.

*Examples mentioned are purely illustrative and should not be considered as offering investment advice/guarantees of any form.

This bucket may offer tranche entries into medium to long term, Government of India Securities/ State Development Loan roll-down strategies – essentially a prudent mix of high-quality accrual with reducing duration risk instruments.

*Examples mentioned are purely illustrative and should not be considered as offering investment advice/guarantees of any form.

This bucket refers to those ‘yield boosters’ such as Marked-linked debentures, Alternate Investment Funds and other strategies.

*Examples mentioned are purely illustrative and should not be considered as offering investment advice/guarantees of any form.

Constant monitoring and reporting

We constantly monitor the investment to ensure that the risk is within controllable limits. A dedicated platform enables reporting of the investment and a consolidated view.

Minimize Risk, Maximise Returns

Our Approach to Investment

Our investment approach includes a combination of:
  • Investment policy
    Investment policy
  • ‘GIVLS’ framework for markets and macro assessment
    ‘GIVLS’ framework for markets and macro assessment
  • Product selection rigour
    Product selection rigour
  • Focus on portfolio outcomes
    Focus on portfolio outcomes
  • Strategic asset allocation
    Strategic asset allocation
  • Tactical asset allocation
    Tactical asset allocation
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Personalised Solutions

One size doesn’t fit all

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We offer a range of personalised wealth solutions for clients from diverse backgrounds such as entrepreneurs, company founders, CXOs, professionals such as doctors, lawyers and CAs, in addition to family offices and company treasuries.

Ultra HNIs Family Offices Corporate Treasuries
Multiple Products, One Relationship, One View

A platform for performance insights

Information overload often clouds the decision-making process. The Centrum Wealth Wealthverse platform brings you anytime access to your portfolio and enables analysing holdings in your way.

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From our Thought Leaders

Insights that drive performance

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