• Portfolio design should be an outcome of logic and mathematics and not of judgement.
• We tried to apply mathematics to figure out a logical answer to construct a portfolio.

Note:

• The asset classes used for comparison include equity and debt.

• The investment vehicles included in equity are equity mutual funds and equity structured products.
• For debt, the investment vehicles included are debt mutual funds, debt structured products and hedged equity.

• The returns and the risk (Standard Deviation) is calculated for 3 years rolling returns with monthly shift starting from the period of Jan. 2001 to Jul. 2018.
• For equity mutual funds we have added an alpha of 2% to Nifty’s annualized rolling return.
• KEYWORDS:  Portfolio Design, Standard Deviation, Debt Mutual Funds, Rolling Return.