Our investment philosophy is based on extensive research, which shows that investors are best served by a low-cost and evidence-based investment strategy.
Great, but what does “low-cost” mean!? It’s pretty simple – if there are two investments with identical risk and return characteristics, we’d prefer to own the one that has lower fees. That way you keep more of your money at the end of the day and pay less in fees.
The “evidence-based” part ensures we don’t invest according to our whims or feelings. Instead, we choose investments with characteristics that have outperformed the market historically. Having a systematic approach to investing eliminates the need to be a stock picker, which is great because it doesn’t work! Ironically, the world’s most famous stock picker, Warren Buffett, agrees with our philosophy.
It’s important to make sure your portfolios remain close to our target allocation. As the price of investments change, we rebalance your portfolio to make sure you remain invested within a range of your optimal portfolio allocation. We use technology to look for rebalancing opportunities periodically, across all of your portfolios.
TAX LOSS HARVESTING
We expect market returns to be positive over long periods of time. In the short-run, however, some positions may temporarily be in a loss position. If these securities are held in taxable accounts (normal brokerage and mutual fund), we’ll look for tax-loss harvesting opportunities, which can shield your portfolio from taxes and increase your effective portfolio return.
If you’re saving for retirement, it’s likely you’re using multiple accounts (EPF, PPF, NPS or Mutual Funds) to save for retirement. Each of these accounts has unique tax advantages, which instructs how we’ll build the portfolio. We’ll choose to hold certain securities in each account depending on the tax advantage of each account and each asset’s individual characteristics. Confusing? Yeah, we know but the payoff is a higher after-tax return for your portfolio!
As per of our Investment Service, we cover the following: