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Principal Protected Fund

A Pure Quant Based Investing Approach

Kartik Swaminathan
Head of Investor Relations www.quantindians.in
Mob: +91-9820437800 Info@quantindians.in

Akshay Jain Address:


Chief Investment Officer LIG B, Scheme No 71,
Mob: +91-8989495567 Indore 452009
Madhya Pradesh
Our Objective
The Objective of VolEx Investing is: -

- Achieve true diversification by investing in various non-correlated assets.

- Provide a highly positive wealth curve while protecting principal fund.

- Generate significant level of return irrespective of price direction.


Principal Hybrid investing
• Non Correlated Protection • Market beating
• High Liquidity return • Multi asset
• Asset • Market Neutral • Directionally • Multi strategy
Independent Positions independent • Multi timeframe
• Zero downside • Profits from
• Upside volatility increasing spreads
only
Diversification
Return Profile
Volatility Impact on a Portfolio
Consider two funds Fun 1 & Fund 2. Year 1 2 3 4 5 Avg annual Absolute
Both the fund has same positive Return Return
return but Fund 2 has no negative
Fund 1 -50 +80 -25 +15 +35 0.9% 4.8%
year as its downside volatility has
been extracted Fund 2 0 +80 0 +15 +35 35.9% 175.9%

6000%

4460%
5000%
Using similar approach by
extracting negative returns on
4000%
Nifty Return Profile Nifty we notice that Nifty would
1996-2016 have generated 4460% returns
3000%
Percentage

from 1996 to 2016 as compared to


actual return on 901%. That’s
2000%
Zero-loss Return astonishing 3559% additional
returns.
1000%
901%
Real Return
0%
Quant Components and our status

• Market Knowledge • Programming


• Economic theory • HFT / HPT / Cloud
• Psychology • Order Book &
Market tech
Fund type Holding Cost to Life Span
period Profit ratio

Economics Technology Ultra HFT 0- 10 Sec ~50% <6


months
HFT sec to min ~30% 6 months
to 2 years
Medium minutes to ~15% In years
Frequency days
Mathematics Business Low Based on <10% In years
Frequency perception to
change decades
• Probability theory • Regulation
• Statistics • Understand
• Data science Stakeholders
• Machine learning • Client
Requirements

Source: Soton Quants


INVESTMENT STRATEGY
Volatility Extraction – Google Map Analogy

Google Map Volatility Extraction

Medium Available Asset classes available

Traffic Density Volumes (Liquidity)


Speed Range Volatility
Time of the day Market Timing
Routes Available Hedging
Mid course improvement Spread Monitoring

Provide you an optimised route Ensures that returns are


which assures that you reach point maximised and assured and there
A to point B in Minimum time is no downside risk.
FUND STRUCTURE
Investment Partnership
The Fund will be incorporated as an LLP and fund manager will act as a Managing Partner to open accounts/trade
management/holding securities.

Lockup & Withdrawal


The fund will have a minimum lockup period of 1 year after that it can be withdrawal any time subject to 1 month advance notice.

Incentive Allocation
A 50% incentive allocation on new profits will be assessed quarterly on the increase in the fund’s value.

Principal Protection
The invested fund will remain intact and we will share 100% of the losses (if any) suffered during portfolio management.

Ticket Size
The minimum investment accepted in the Principal Protected Fund will not be less than INR 1 Crore.

Reporting
A monthly report will be sent to each investor with their total return. A third party custodian (Lawyer or CA) will be appointed to
audit the fund and update the investor about their portfolio.

Disclaimer: The contents of this document have neither been reviewed nor endorsed by any regulatory authority. If you are in any doubt about any of the
contents of this document you should obtain independent professional advice. The performance of the Fund may produce a substantially different track record
to the historic performance track record displayed both realised going forward and produced empirically through back-testing