What if you could almost double your historical returns without doubling portfolio volatility?

Whiteoak Capitals study has an interesting Answer

Here’s what the data shows.
Lets start with 100% Debt

Historical Average
6.76% Return
6.37% Volatility

Now add Equity and Gold

The number change significantly
55% Debt
25% Equity
20% Gold

Historical Average
11.59% Return
6.81% Volatility

Return increased by 4.83% points
Volatility Increases only 0.44% points

But it wasn’t just Gold
Whiteoak also looked at : 80% Debt + 20% Equity.

Historical Return
9.14%
Volatility
6.39%

Compare that with 100% Debt
6.76% / 6.37%

Almost the same volatility.

Then gold enters the portfolio.
55% Debt + 25% Equity + 20% Gold

Return
11.59%
Volatility
6.81%

This is where diversification starts becoming interesting

Why ?
Because these assets don’t always move together

Whiteoak Study Showed
Equity - Gold - 0.43
Debt - Equity – 0.06

*Lower correlation can help reduce overall portfolio risk.*

But diversification doesn’t eliminate volatility.
Increase Equity Further.
45% Debt
35% Equity
20% Gold

Return
12.78%
Volatility
8.71%

Higher Return
Higher Risk

That’s the important point
There's no free Lunch

But the right combination of assets.

You’ve not just choosing assets, you’ve building portfolio

And this is where Multi Asset funds become interesting.
Instead of recycling entirely on Equity you can combine
Debt + Equity + Gold
Each plays different role.

The question isn’t
“Which Asset will perform best ?”
Its
"What combination can help me to reach my return objective without taking unnecessary Risk?”
Ofcourse, these are historical results, they don’t guarantee future returns .
And the 55:25:20 allocation isn’t suitable for everyone.

Your need, horizon and risk capacity matter.

The biggest takeaway
Portfolio construction matters.
Sometimes improving the mix can matter more than chasing the highest returning Asset.

Diversification isn’t about owning more, it’s about owning differently.

Blog by Mr. Santosh G Akerkar for educational and awareness purposes only.

Only past returns should not be the parameter for Mutual funds or any asset class investments.

It's a bad investment decision, If you choose an asset class looking at past returns.

Here's how we shortlist funds for your investments.

Mutual fund risk ratios explained with an example

Nippon India Multi Cap vs Quant Multi Cap, using 3 year data:

1. Standard Deviation

Measures how much the fund's returns fluctuate.

- Nippon: 15.31%
- Quant: 18.11%

Lower generally means the fund has been less volatile.

2. Beta

Shows how sensitive the fund is to market movements.

- Nippon: 0.89
- Quant: 1.03

A beta of 1 means the fund moves broadly with the market. Above 1 means higher sensitivity, below 1 means lower sensitivity.

3. Sharpe Ratio

Shows how much return the fund generated for the total risk taken.

- Nippon: 0.58
- Quant: 0.30

Higher is generally better. It tells you whether the returns justify the overall risk taken.

4. Sortino Ratio

Similar to Sharpe, but focuses only on downside volatility.

- Nippon: 0.78
- Quant: 0.48

Higher means better returns for the downside risk taken.

5. Alpha

Measures the fund's excess return over its benchmark on a risk adjusted basis.

- Nippon: 3.04
- Quant: -1.37

Positive alpha means the fund has generated returns above its benchmark after adjusting for risk.

6. Information Ratio

Measures how consistently a fund beats its benchmark.

- Nippon: 0.35
- Quant: 0.10

Higher = more consistent benchmark outperformance.

Don't just look at returns, understand the risk behind them.

Blog by Mr. Santosh G Akerkar for educational and awareness purposes only.

As the Indian market evolves, sophisticated investors are increasingly looking for strategies that go beyond traditional long-only mutual funds, without the high ticket size of Portfolio Management Services (PMS) or Alternative Investment Funds (AIFs).

To bridge this exact gap, SEBI introduced Specialised Investment Funds (SIFs)—a new class of strategy-driven investment products managed by top SEBI-registered Asset Management Companies (AMCs).

What is a Specialised Investment Fund (SIF)?

An SIF is a regulated, pooled investment vehicle that gives experienced investors access to advanced strategies previously reserved only for high-ticket PMS or AIF clients.

By operating under SEBI’s mutual fund framework, SIFs combine the transparency and regulatory oversight of traditional mutual funds with the flexibility and sophistication of alternative asset management.

Key Features at a Glance

Accessible Entry Threshold: Minimum investment starting at ₹10 Lakhs per PAN per AMC (compared to ₹50 Lakhs for PMS or ₹1 Crore for AIFs).

Advanced Strategies:
Ability to execute sophisticated techniques like Equity Long-Short, Sector Rotation, and Active Asset Allocation.

Hedging & Downside Protection: Unlike standard long-only funds, SIF managers can use derivatives (taking up to 25% unhedged short positions) to manage downside risk and generate potential alpha during market downturns. Institutional Governance: Backed by SEBI’s strict disclosure norms, daily/regular valuation, and institutional oversight.

Who Should Consider Adding SIFs to Their Portfolio?

SIFs are ideally suited for investors who: Want to diversify away from purely directional market risk by utilizing long-short strategies. Have a moderate-to-high risk appetite and a medium-to-long-term investment horizon. Are looking to upgrade from standard mutual funds without locking up ₹50+ Lakhs in a single PMS scheme.

Summary

SIFs represent a major evolution in wealth management, allowing you to access sophisticated institutional strategies under a highly transparent and regulated framework.
Interested in exploring how SIF strategies fit into your asset allocation plan? Reach out to schedule a brief discussion tailored to your personal financial goals.

After clearing SIF exam last month ,now we are ready to suggest you SIF products as per your need and suitability.

Let us know if you want detail presentations of the new SIF.

Blog by Mr. Santosh G Akerkar by educational and awareness puposes only.