Devise Cost-Effective Strategies to Maximize Profits: CEO of Angel One Securities
Angel One AMC CEO Pitches Low-Cost Investing and Market Returns Strategy
In a conversation with FE, Angel One Asset Management Company's (AMC) CEO and executive director, Hemen Bhatia, advocated for a cost-efficient, low-risk approach to investing that prioritizes capturing market returns over chasing alpha, or index-beating returns. Bhatia suggested a core-satellite portfolio strategy,where the core components would consist of low-cost passive investments, while the satellite portion could encompass active funds, PMS (Portfolio Management Services), or stock pickings.
Bhatia raised concerns over the unpredictability of alpha, stating that its success is akin to the durability of an unrefrigerated fish. Angel One AMC aims to provide investors with access to this stable, low-cost core through its array of passive products, which include, but are not limited to, index funds and exchange-traded funds (ETFs). The company plans to launch a few smart beta products in the near future.
Due to the lower expense ratio associated with passive products, fund houses with both active and passive offerings might not emphasize the advantages of passive investments. Bhatia highlighted the necessity of educating investors about the benefits of passive products and the challenges of stock picking.
The strategy aligns with Angel One, a technology-driven financial services company, which focuses on innovation, transparency, and financial inclusion. By offering a structured yet adaptable core-satellite investment framework, the company aims to help investors create wealth in a cost-effective, stable, and flexible manner.
Notably, Angel One AMC will be the second passive-only AMC in India, following Zerodha. The company has five funds distributed across two asset classes - equity and fixed income. Investors who wish to construct a passive-only portfolio with these funds can do so with ease as Angel One provides both the core and satellite elements.
[1] Angel One AMC's focus on low-cost, passive-only products and a core-satellite portfolio strategy is driven by several key rationales: cost efficiency, risk management, and financial inclusion.
[2] The core-satellite strategy offers diversification, stability, flexibility, and adaptability to help investors navigate the dynamic financial markets effectively.
[3] Angel One AMC's emphasis on innovation, transparency, and financial inclusion positions it as a preferred choice for investors seeking a structured yet adaptable investment framework through technology and financial inclusion.
[1] Angel One AMC's choice of low-cost, passive-only products and a core-satellite portfolio strategy is guided by several significant factors, including cost efficiency, risk management, and financial inclusion.
[2] By adopting the core-satellite strategy, investors can benefit from its diversification, stability, flexibility, and adaptability, aiding them in handling the unpredictable nature of financial markets more effectively.
[3] Angel One AMC's commitment to innovation, transparency, and financial inclusion makes it an attractive option for investors searching for a structured yet adaptable investment framework, facilitated by technology and financial inclusion.
[4] As Angel One AMC expands its offerings, including smart beta products in the near future, and positions itself as a passive-only AMC, it continues to serve as a valuable resource for investors seeking low-cost, market-driven investing strategies in the DEFI and personal-finance landscapes.
