scorecardresearchFinancial Planning: Geojit launches ‘Smartfolios’; What exactly is this?

Financial Planning: Geojit launches ‘Smartfolios’; What exactly is this?

Updated: 03 Oct 2022, 09:08 AM IST
TL;DR.
The system generates recommendations for rebalancing and restructuring some buckets. Based on the risk profile and investment strategy, one can choose among diversified basket of stocks. The recommendations are sent to investor who have the discretion of either accepting or ignoring the automated recommendations.
The benchmark for both these indices is the MSCI Domestic IMI index which measures the performance of large, mid and small cap segments  

The benchmark for both these indices is the MSCI Domestic IMI index which measures the performance of large, mid and small cap segments  

As part of its smart folio product, Geojit financial Services recently launched two unique equity indexes based on the MSCI-created custom indexes. These curated model portfolio baskets are ‘Select’ and ‘LMS’.

The benchmark for both these indices is the MSCI Domestic IMI index which measures the performance of large, mid and small cap segments. But before diving into these two schemes, we first explain what comprises a smart folio?

What are smart folios?

These baskets of stocks are selected, created and given proper weightage to match a particular risk appetite and along a particular investment strategy.

The system generates recommendations for rebalancing and restructuring some buckets. Based on the risk profile and investment strategy, one can choose among diversified basket of stocks. The recommendations are sent to investor who have the discretion of either accepting or ignoring the automated recommendations.

Some of the smartfolios offered by Geojit include Classic, defensive, prime, alpha, ace, prestige, ethical, guru.

Two recent basket of stocks launched:

Select: The ‘select’ smartfolio is based on MSCI India Domestic IMI Select sub industries index. It represents securities which include food retail, department stores, distillers and vintners, diversified support services, financial exchanges and data, Internet and direct marketing retail, footwear, movies and entertainment, interactive media and services, and interactive home entertainment. The buy value is five lakhs and it's suitable for aggressive investors.

LMS: The ‘LMS’ basket represents stock index that comprises 30 securities with a mix of 10 securities from each market cap segment — large, mid and small cap. The basket is exclusive for Geojit retail customers. The buy value is 10 lakhs and is suitable for moderate investors.

Although investors have the discretion to accept or reject the recommendation but the financial institution suggests that the strategy recommended by analysts is accepted and followed in a disciplined manner.

Article
We explain rebalancing of portfolio 
First Published: 03 Oct 2022, 09:08 AM IST