Wealth Management
Customized & Personalized Investment Planning
We use algorithms to understand your investment personality, map it to a custom portfolio, & then personalize it with one-on-one conversations with human advisors.
Understanding your Investment Persona
DEFINING RISK PREFERENCE, CAPACITY, & REQUIREMENT
Every individual is unique. Every family has different needs. That is why we focus to understand you more than anything else.
Our first step is defining your Risk Profile using our proprietary risk assessment framework – The PCR Triangle.
The PCR Triangle separately assesses your:
- Risk Preferences (P),
- Risk Capacity (C), and
- Risk Requirement (R).
This allows us to distill the asset classes, instruments, investment universe, and investment styles suitable for your investment objectives.
Risk Preference
3 profiles
- Your Risk Preference is rooted in your personality which is based on hereditary, environmental, and situational factors.
- Preference is linked to volatility, probability of capital loss, and investment experience.
- Preferences determine the Asset Classes and the Equity Market Cap exposure in your core & satellite portfolios.
- Domestic Equity
- U.S. Equity
- Venture Equity
- Fixed Income
- Commodities
Risk Capacity
4 profiles
- Your Risk Capacity is based on active earnings, available funding, and the cushion for drawdowns available to you.
- Capacity is linked to the investment ticket size.
- Capacity determines barbell allocation between your Core & satellite portfolios as well as the investment universe.
- Multi-asset
- Broad-based
- Diversified-equity
- Focused-equity
- Foreign-equity
- Venture-equity
Risk Requirement
3 profiles
- Your Risk Requirements are based on your investment objectives at a point in time as well as the state of life you are in.
- Requirement is linked to the type of equity curve or return profile desired to meet an investment objective.
- Requirement determines the dominant investment styles.
- Dynamic
- Tactical
- Blended
- Value
- Growth
- Sentiment
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The Waterfall Model
Cascading Funding of Requirements
While individuals and families may have a dominant Risk Requirement of Wealth, Goals, or Cash-flow at a point in time, we understand that all three themes run in parallel.
At Modulor Capital, we design investment plans to fund all themes in a cascading waterfall fashion with the dominant theme getting funded first and the spillover funding getting distributed to the secondary themes.
Investment plans for these themes are called Waterfall. Each Waterfall has dedicated Core & Satellite portfolios running specific strategies. This gives your portfolio a multi-asset & multi-strategy exposure with algorithmic decision-making and professional management, giving you the same edge as institutional investors and seasoned investors.
Wealth
Structured Around Life
The Wealth Waterfall is designed to cover contingencies, saving for retirement, creating wealth, and leaving a legacy.
Multi-asset & Value Portfolios
Creating wealth starts with multi-asset core portfolios that invest in broad-based equity, gold, and fixed-income instruments using dynamic asset allocation followed by direct equity quantamental value strategies in the satellite portfolios.
Goals
Structured Around Desires
The Goals Waterfall is designed to cover long-term targets like a house or children’s education and short to medium-term targets like vacations, vehicles, or luxury spending.
Broad-based & Growth Portfolios
Essential goals are funded using broad-based equity core portfolios tactically managed in domestic and international markets. At the same time, aspirational goals are financed using direct equity quantamental growth strategies in satellite portfolios.
Cash-flow
Structured Around Needs
The Cash-flow Waterfall is designed to cover basic household expenses as well as discretionary spending.
Blended & Sentiment Portfolios
Cash-flow for income is created using primarily fixed-income instruments with a tactical equity component to beat inflation in the core portfolios. Satellite portfolios generate profits using direct equity quantamental sentiment strategies to add to discretionary income.