QVGS Galactic milestones

Galactic Milestones

Long-term Capital Growth
using Tactically Managed Equity

Overview

The Milestones portfolio is exposed to Indian Equities through broad-based indices in order to and is useful to grow capital with dynamically-allocated and tactically managed market cap.

Core Investment Objectives

of the Milestones Portfolio

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I. GROWTH

Thriving through exposure to Broad-based Equity with:

  1. the fundamental investment objective of funding, and
  2. the quantitative investment objective of fat-tailed returns.
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II. PRESERVATION

Creating a safety net through exposure to Equity-Arbitrage with:

  1. the fundamental investment objective of financing, and
  2. the quantitative investment objective of risk-free.
    3 Configurations

    The Milestones portfolios comes in 3 configurations - Concervative (C), Balanced (B) & Aggressive (A)
    suitable for different Risk Profiles

    Milestones C

    Long-term Capital Growth through Bluechip Largecap Companies.

    • Suitable for: Conservative risk profile
    • Exposed to NIFTY50 and Equity Arbitrage.
    Milestones B

    Long-term Capital Growth through Largecap Companies.

    • Suitable for: Moderately Conservative & Balanced risk profile
    • Exposed to NIFTY50, NIFTY NEXT50, and Equity Arbitrage.
    Milestones A

    Long-term Capital Growth through Largecap and Midcap Companies.

    • Suitable for: Moderately Aggressive & Aggressive risk profile
    • Exposed to NIFTY50, NIFTY NEXT50, MIDCAP150 and Equity Arbitrage.

    Invest in the Galactic Milestones Portfolio


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    Milestones Portfolio


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    Principal Officer
    Rolling Returns

    The Milestones Portfolios shows superior 10 Year Rolling Returns in comaprison to the respective benchmarks


    Notes on Inclusions & Exclusion in Performance and Curves


    A note on Rolling Returns in 5 Numbers
    Recent Returns

    3, 5 and 10 Year Performance

    Recent Returns are not an indicator of future performance.

    Portfolio Features

    Solutions, System & Strategy

    Solution

    Investment Objective 

    Core Portfolio
    • Grow wealth with a time horizon of 10 years and beyond
    • Gain by investing in Tactically-managed Broad-based Equity portfolios.
    • Start with a minimum lump sum and add more using SIP or lump sum at any schedule
    System

    Parameters 

    Broad-based
    • 1 Asset Classes (India Equity)
    • Monthly Signal Review for India Equity
    • Low Churn
    • Majority of trades fall under LTCG
    • Mutual Funds holdings only
    Strategy

    Portfolio Features 

    Cygnus Algorithm
    1. Strategic Asset Allocation
    2. Strategic & Tactical Barbell Principle
    3. Tactical Management for Growth & Preservation Assets
    Suitability

    Preferences, Capacity & Requirements

    Risk Preferences

    Exposure to volatility 

    Multi-Configuration

    Suitable for: All Risk Profiles

    Risk Preferences Criteria for Core Portfolios
    Risk Capacity

    Minimum ticket size of investment 

    MEDIUM
    • Minimum Capital: 1 Lac.
    • Ticket Size: Low ✕ | Medium ✓ | High ✓
    Risk Capacity Criteria for Core Portfolios
    Risk Requirements

    Minimum Holding Period 

    10 Years+
    • Long-term (to be realized after 10 years or beyond)
    Applications

    Practical Uses 

    Goals Waterfall
    • Use Expected Returns to compute the CAGR required for goal funding.
    • Goal Attributes: Funding  | Essential | Time-critical
    Understand Goal Attributes
    Asset Allocation

    Meeting the Investment Objectives of the Milestones Portfolio

    Dynamic Marketcap Allocation
    • Dynamic Market Cap allocation varies allocation between market cap basis a formula that is linked to a set of variables such as time, economic measures, ratios, etc.
    • Inter-asset Dynamic Asset Allocation: The portfolio dynamically allocates capital between the Cygnus sub-portfolio’s primary asset (EQUITY) and alternate asset (ARBITRAGE). The change is triggered when the Tactical status of any of the Index changes from in-market to out-of-market or vice versa. When all the market caps are out-of-market and the market is likely to face volatility, the portfolio chooses volatility exposure (equity arbitrage) as the preferred option.
    • Intra-asset Dynamic Allocation: Within the Cygnus sub-portfolio capital is allocated to different market caps based on a formula to maximize the output of the Growth asset – equity.
    Rebalancing
    • The Milestones portfolio is rebalanced every month to meet the target asset allocation between NIFTY50, NIFTY NEXT50 (NIFTY JUNIOR), MIDCAP150, and ARBITRAGE.
    • The default variance from the target asset allocation is 5%.
    • When any of the components undergo a change in Tactical Management, i.e. from in-market to out-of-market (or vice versa), the funds are reallocated to the balance asset classes or are moved to volatility exposed assets i.e. ARBITRAGE
    Long Term Performance

    Long Term Equity Curve and Stats


    The Milestones Portfolios exhibit a Burst Return Profile.
    A note on Burst Return Profile


    Notes on Inclusions & Exclusion in Performance and Curves
    Invest in the Milestones Portfolio

    You can invest through our partner Administration Platform.


    Open a Mutual Fund Investment Account to invest in the
    Foundation Portfolio


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    Principal Officer
    Galactic Suite

    Multi-Asset Broad-Market Portfolios for Preservation, Accumulation & Growth
    using Mutual Funds


    Click to Compare Galactic Suite MF Portfolios.

    QVGS Galactic foundation
    View Details
    View Details
    QVGS Galactic prosperity
    View Details
    The Galactic Family of Portfolios

    When you decide to invest for your future self, be it 10, 20, 30, or 50 years from today, we respect your choice that requires a long-term commitment. During this time you may encounter:

    • Turbulence in the markets
    • Personal challenges

    Investment portfolios suffer the greatest damage when these events coincide (need for money and drop in portfolio value). The Galactic Suite provides a comfortable and doable investment journey while avoiding unsavory outcomes using 5 strategies combined to make 5 portfolios for the long to medium term.

    Inspiration Behind The Galactic Suite

    The Galactic Suite is inspired by The Milky Way galaxy, which has 5 arms in the shape of Golden Spirals. 5 itself is a Fibonacci number.

    Correspondingly, the Galactic Suite’s portfolios, are themselves a portfolio of 5 strategies representing the 5 arms of the Milky Way.

    Each of these strategies gives exposure to a separate asset class and is named after the arms of the Milky Way galaxy:

    1. Cygnus
    2. Perseus
    3. Sagittarius
    4. Scutum-Crux
    5. Norma
    Cygnus Algorithm
    Construction, Rolling Returns & Equity Curves
    • The Cygnus algorithm enters and exits India Equity using Tactical Management algorithms run on the flagship index the Nifty 50.
    • Consequently, the algorithm leads to 100% exposure to equity during In-market periods [N% of the time] and 100% exposure to the alternate-asset (Arbitrage) during Out-of-market periods [(1-N)% of the time] i.e. Tactical Barbell.
    • Over a period of time, this exposure is akin to holding [N% of equity] and [(1-N)% of alternate-asset] 100% of the time i.e. a Strategic Barbell.
    • The Alternate Asset used is Equity Arbitrage (Volatility-linked asset).
    • The Tactical Barbell yields not only better returns, but also lower volatility (and drawdowns) in comparison to a simple Strategic Barbell.
    Exposure

    The Tactical Barbell created using the Cygnus algorithm gives better results than a Buy and Hold Strategy as seen from the Rolling Returns and Equity Curves below.

    Cygnus Algorithm on various Component Indices
    Nifty 50

    Nifty 100

    Nifty Next 50

    Nifty Midcap 150

    Notes on the Performance Curves
    • 1: Integrated Actual and Backtest Curves – The Equity Curve and the Monthly/ Weekly returns plots represent the integrated picture of backtesting as well as the live performance of the strategy.
    • 2: Inclusions & Exclusions in Curve – The curve and figure do not include any trading costs, taxes, or advisory fees charged. Actual returns to the investor will be net of such costs and may also vary as per the execution prices achieved by the investor when placing and executing orders.
    5 Numbers Framework
    Rolling Returns

    Five Numbers compare the Rolling Returns offset by 1 review period (1 month or 1 week) for the specified timeframe.

    • The Expected Return is the median of all the periods.
    • The Best Case Scenario and Worst Case Scenario Returns are the extremes outcomes. They represent the role of luck in investing/ trading.
    • The Expected Upside and Expected Downside Returns are the averages between the median and the extremes respectively. These are the realistic bounds between which an investor can expect outcomes with high probability.
    Asset Allocation
    for Core Portfolios

    Asset allocation involves dividing your investments among different assets, such as stocks, bonds, gold, cash, etc.

    External View: Different assets have different characteristics and increase or decrease in value at different points of time (market cycles) owing to various conditions affecting an economy or the world at a point in time. Since these conditions are very hard to predict diversifying into various assets becomes essential for an investor.

    Internal View: Asset allocation is also relevant to the investment objectives of the investor. For an individual or a family, the asset allocation will be guided by the life-stage and wealth levels. Since wealth levels are relative (at a given point of time) and life stages are predictable (for a few generations), asset allocations can be reasonably determined. For a non-individual, the allocation will be guided by more-clear cut objectives defined by its investment policy or charter.

    Asset allocation can be done in 2 ways:

    I. Dynamic

    Dynamic asset allocation requires frequent adjustment of the mix of asset classes to suit market conditions basis an underlying formula.

    • For medium-term portfolios 5 to 10 years.
    • Rebalance according to a schedule.
    • Efficient for portfolio characteristics like lowering volatility or enhancing returns.
    II. Strategic

    Strategic asset allocation requires investors to set target allocations for various asset classes and only rebalance the portfolio at certain triggers.

    • For long-term portfolios beyond 10 years.
    • Rebalance according to an event occurrence.
    • Efficient for lower tax and better returns.
    5 Point Risk Criteria
    for Core Portfolios

    Criteria of 5 Point Scale for Indian Equities:

    • Conservative (limited to NIFTY50)
    • Moderately Conservative (limited to NIFTY50 & NIFTY100 in different proportions)
    • Balanced (limited to NIFTY50, NIFTY100 & NIFTY NEXT50 in different proportions)
    • Moderately Aggressive (limited to NIFTY50, NIFTY100, NIFTY NEXT50 & MIDCAP150 in different proportions)
    • Aggressive (limited to NIFTY100, NIFTY NEXT50 & MIDCAP150 in different proportions)

    Criteria of 5 Point Scale for U.S. Equities:

    • Conservative (limited to S&P500)
    • Moderately Conservative (limited to S&P500 & NASDAQ100 in different proportions)
    • Balanced (limited to S&P500 & NASDAQ100 in different proportions)
    • Moderately Aggressive (limited to S&P500 & NASDAQ100 in different proportions)
    • Aggressive (limited to NASDAQ100)

    Criteria of 5 Point Scale for Gold:

    • Conservative (limited to Sagittarius A Strategy)
    • Moderately Conservative (limited to Sagittarius A & Sagittarius B Strategy in different proportions)
    • Balanced (limited to Sagittarius A & Sagittarius B Strategy in different proportions)
    • Moderately Aggressive (limited to Sagittarius A & Sagittarius B Strategy in different proportions)
    • Aggressive (limited to Sagittarius B Strategy)

      Criteria of 5 Point Scale for Corporate Bonds:

      • Conservative (limited to 100% AAA)
      • Moderately Conservative (limited to 100% AAA & 90% AAA in different proportions)
      • Balanced (limited to 100% AAA, 90% AAA & 80% AAA in different proportions)
      • Moderately Aggressive (limited to 100% AAA, 90% AAA & 80% AAA in different proportions)
      • Aggressive (limited to 100% AAA, 90% AAA & 80% AAA in different proportions)

      Criteria of 5 Point Scale for Government Bonds:

      • Conservative (limited to Fixed Maturity)
      • Moderately Conservative (limited to Fixed and Variable Maturity in different proportions)
      • Balanced (limited to Fixed and Variable Maturity in different proportions)
      • Moderately Aggressive (limited to Fixed and Variable Maturity in different proportions)
      • Aggressive (limited to Variable Maturity)
      3 Point Risk Capacity Criteria
      for Core Portfolios

      Criteria 3 Point Scale:
      Minimum ticket size invested one-time or cumulatively per annum.

      • Low (Up to 1 lac)
      • Medium (1 to 5 lac)
      • High (5 lac and above)

       

        Goal Attributes
        Classifying Goals for Determining Appropriate Investment Strategy
        Funding Vs Financing
        • Funding goals require that principal and gains be retired and consumed when the goal is achieved. These are typically large value goals and are a one-time spend such as buying a house, a child’s education, or purchasing a car.
        • Financing goals are ones that can be recurring and require the preservation of principal and harvesting the gains from time to time. Typically small value goals (in comparison to the entire budget of the investor) such as a recurring vacation or a small luxury purchase are considered financing goals.
        Essential vs. Aspirational
        • Essential goals are need-based and cannot be compromised at any cost. One such example is a child’s education. Another example is purchasing the first house.
        • Aspirational goals correspond to desires and are lower on priority for an investor. Examples such as a larger house or an annual vacation are aspirational.
        Time-critical vs. Open-ended
        • Time-critical goals need to be achieved by a certain date. Typically the date for such goals cannot be extended as it corresponds to an event. Again an example is a child’s education which will specifically come by a certain date in the future.
        • Open-ended goals on the other hand can be achieved later than the desired date and are flexible. For example an investor can delay a luxury purchase if required.
        Burst Return Profile

        A strategy with a Burst Return Profile generates the bulk of the growth of the portfolio in a relatively short time. This means at other times (especially during volatile times in the market) the strategy will move sideways with a possible minor loss of gains. Periods of growth cannot be predicted and require the investor to stay invested in the strategy for at least the minimum recommended period in order to realize its characteristics and generate the desired returns.

        Brief Comparison of the Galactic Suite Mutual Fund Portfolio
        Portfolio Foundation Prosperity Milestones
        Intended Use Financial Foundation Building a corpus Funding essential and time-critical goals
        Instruments Mutual Funds Mutual Funds Mutual Funds
        Signal Review Monthly Monthly Monthly
        Majority Tax LTCG LTCG LTCG
        Min. Capital 5 lac. 5 lac. 1 lac.
        Recommended Hold. 10 Yrs. 10 Yrs. 10 Yrs.
        No. of Asset Classes 5 3 1
        Asset Allocation Strategic: Glide-path Strategic: 1/N Static
        Risk Profiles 5 5 5
        Return Profile Continuous Continuous Burst

         

        SEBI Registration Certificate
        License granted on 11 September, 2020

        Investment advisory – Number of complaints
        Data and Trends

        Data for the month ending April 2022

        Sr. No. Received From Pending at the end of last month Received Resolved Total Pending# Pending Complaints > 3 months Average Resolution time^ (in days)
        1 Directly from Investors 0 0 0 0 0 0
        2 SEBI (SCORES) 0 0 0 0 0 0
        3 Other Sources (if any) 0 0 0 0 0 0
        Grand Total 0 0 0 0 0 0

        ^ Average Resolution time is the sum total of time taken to resolve each complaint in days, in the current month divided by total number of complaints resolved in the current month.

        The trend of monthly disposal of complaints

        Sr. No. Month Carried forward from the previous month Received Resolved* Pending#
        1 April 2021 0 0 0 0
        2 May 2021 0 0 0 0
        3 June 2021 0 0 0 0
        4 July 2021 0 0 0 0
        5 August 2021 0 0 0 0
        6 September 2021 0 0 0 0
        7 October 2021 0 0 0 0
        8 November 2021 0 0 0 0
        9 December 2021 0 0 0 0
        10 January 2022 0 0 0 0
        11 February 2022 0 0 0 0
        12 March 2022 0 0 0 0
        13 April 2022 0 0 0 0
        Grand Total 0 0 0 0

        *Inclusive of complaints of previous months resolved in the current month.
        #Inclusive of complaints pending as on the last day of the month.

        The trend of annual disposal of complaints

        Sr. No. Year Carried forward from the previous year Received Resolved* Pending#
        1 2020-21 0 0 0 0
        2 2021-22 0 0 0 0
        3 2022-23 0 0 0 0
        Grand Total 0 0 0 0

        *Inclusive of complaints of previous years resolved in the current year.
        #Inclusive of complaints pending as on the last day of the year.

        Investor Charter
        Investor Charter in respect of Investment Adviser (IA)

        A. Vision and Mission Statements for investors

        • Vision

        Invest with knowledge & safety.

        • Mission

        Every investor should be able to invest in the right investment products based on their needs, manage and monitor them to meet their goals, access reports, and enjoy financial wellness.

        B. Details of business transacted by the Investment Adviser with respect to the investors

        • To enter into an agreement with the client providing all details including fee details, aspect of Conflict of interest disclosure, and maintaining the confidentiality of information.
        •  To do a proper and unbiased risk – profiling and suitability assessment of the client.
          • To obtain registration with Know Your Client Registration Agency (KRA) and Central Know Your Customer Registry (CKYC).
          • To conduct an audit annually.
          • To disclose the status of complaints on its website.
          • To disclose the name, proprietor name, type of registration, registration number, validity, complete address with telephone numbers, and associated SEBI regional/local Office details on its website.
          • To employ only qualified and certified employees.
          • To deal with clients only from official numbers.
          • To maintain records of interactions, with all clients including prospective clients (prior to onboarding), where any conversation related to advice has taken place.

        C. Details of services provided to investors (No Indicative Timelines)

        • Onboarding of Clients
          • Sharing of agreement copy
          • Completing KYC of clients
        • Disclosure to Clients
          • To provide full disclosure about its business, affiliations, compensation in the agreement.
          • To not access client’s accounts or holdings for offering advice.
          • To disclose the risk profile to the client.
        • To provide investment advice to the client based on the risk-profiling of the clients and suitability of the client.

        D. Details of grievance redressal mechanism and how to access it

        • In case of any grievance/complaint, an investor should approach the concerned Investment Adviser and shall ensure that the grievance is resolved within 30 days.
        • If the investor’s complaint is not redressed satisfactorily, one may lodge a complaint with SEBI on SEBI’s ‘SCORES’ portal which is a centralized web-based complaint redressal system. SEBI takes up the complaints registered via SCORES with the concerned intermediary for timely redressal. SCORES facilitates tracking the status of the complaint.
        • With regard to physical complaints, investors may send their complaints to:- Office of Investor Assistance and Education, Securities, and Exchange Board of India, SEBI Bhavan, Plot No. C4-A, ‘G’ Block, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 051.

        E. Expectations from the investors (Responsibilities of investors)

        • Do’s
          i. Always deal with SEBI registered Investment Advisers.
          ii. Ensure that the Investment Adviser has a valid registration certificate.
          iii. Check for the SEBI registration number.

        Please refer to the list of all SEBI registered Investment Advisers which is available on the SEBI website at the following link: https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intm Id=13

        iv. Pay only advisory fees to your Investment Adviser. Make payments of advisory fees through banking channels only and maintain duly signed receipts mentioning the details of your payments.

        v. Always ask for your risk profiling before accepting investment advice. Insist that Investment Adviser provides advisory strictly on the basis of your risk profiling and take into account available investment alternatives.

        vi. Ask all relevant questions and clear your doubts with your Investment Adviser before acting on the advice.

        vii. Assess the risk-return profile of the investment as well as the liquidity and safety aspects before making investments

        viii. Insist on getting the terms and conditions in writing duly signed and stamped. Read these terms and conditions carefully particularly regarding advisory fees, advisory plans, category of recommendations, etc. before dealing with an Investment Adviser.

        ix. Be vigilant in your transactions.

        x. Approach the appropriate authorities for redressal of your doubts/grievances.

        xi. Inform SEBI about Investment Advisers offering assured or guaranteed returns.

        • Don’ts

        xii. Don’t fall for stock tips offered under the pretext of investment advice.

        xiii. Do not provide funds for investment to the Investment Adviser.

        xiv. Don’t fall for the promise of indicative or exorbitant or assured returns by the Investment Advisers. Don’t let greed overcome rational investment decisions.

        xv. Don’t fall prey to luring advertisements or market rumors.

        xvi. Avoid doing transactions only on the basis of phone calls or messages from any Investment adviser or its representatives.

        xvii. Don’t take decisions just because of repeated messages and calls by Investment Advisers.

        xviii. Do not fall prey to limited period discounts or other incentives, gifts, etc. offered by Investment advisers.

        xix. Don’t rush into making investments that do not match your risk-taking appetite and investment goals.

        xx. Do not share the login credentials and passwords of your trading and Demat accounts with the Investment Adviser.