PriceBridge team comes with vast experience across wealth management, stock broking,market research and Investment Banking. We at PriceBridge aim to bridge the gaps observed by us during our journey as follows:
Mutual funds are facilitated by intermediaries- may it be your Mutual fund agent or the Bank. When the nature of earnings is commissions there is bound to be a bias which can be denied but cannot hold true whatsoever.
While most investors seek safety; a bulk of Investors’ Mutual fund assets are typically invested in Large cap oriented funds. With the above data- Index funds can replace your large cap funds which will not only bring down the cost of Mutual fund investing but also shield you against underperformance by a fund manager which is the case more than not thereby making it a futile exercise to choose a Mutual fund which will outperform the markets especially in the large cap category.
Factor ETFs have emerged which are rule based index funds which help outperform the benchmarks.
Commissions are paid by way of monthly trailing commissions and subject to remaining invested; thus seldom would you come across advice from either Mutual funds or facilitators to sell your holdings.
Most people try to highlight the research methodology but it’s more forensic post mortem of data which has played out already. Mutual funds are subject to market risks and past performance is not an indicator of future performance.
Diversifying in two schemes of the category is a mistaken diversification; with the performance data what is being tried is actually to shield you against underperforming. At the end of the day you are investing in the same market, same market cap and currency.
Statistically 87.5% of active large cap Mutual funds underperform the benchmark index, more than 54.9% of Mid and small caps underperformed the benchmark index.
Mutual fund investing needs a bottom up approach
Most of them cite that large funds tend to underperform due to the size of assets. While the fact is Mutual funds have been mandated a limits on the expense ratios linked to size of assets, the bigger the fund the less the expense ratio thereby lower the payouts.
While the debate of whether active investing is better or passive is better a balance is core portfolio construct should comprise of Passives ie Index fund, a blend of plain vanilla index and factor ETFs and the balance should be pick choosing market cap allocation in mid and small cap, sector and themes based on bottom up approach and complementary styles of fund managers ie active management, value investing, momentum investing etc.
This approach is globally known as the Core and Satellite approach.
RiskMap TM helps decide broader allocation in debt and equities which is dynamic in nature linked to the risk in the markets. Tactical asset allocation is also equally important by assessing relative risk and opportunity based investing within Equity as an asset class which can lead to alpha generation or outperformance to benchmark. Our USP is Dynamic and Tactical Asset Allocation.
Direct Mutual funds were introduced in Jan 2013. Each fund has a Regular and a Direct Plan. By investing in Direct Plans of Mutual funds you save on the cost of intermediary which is levied over and above the expense ratio of a Direct plan, thus making it that much cheaper for you every year.
At PriceBridge we offer Direct Managed MF PMS where we make investment decision for you in Direct Plans of Mutual funds where we are not entitled to any commissions thereby saving cost for you
We levy a flat fee of only 0.32% only when we perform or deliver returns above 12% annually
It is our entry-level offering and most comfortable for investors who are already invested in Mutual Funds.
Our skill as a pseudo fund manager comes at a significantly low risk to you as our role is limited yet important and helps you save costs while you continue with the comfort of MF Investing.
Based on your experience you may allocate funds to PriceBridge in our active managed stock portfolios PriceBridge Upswing which is a top down approach only after you reap the benefits and get comfortable with us at a later stage
Key Person
Swapnil Kulkarni
Co-Founder, PriceBridge, A PMS of Ayan Analytics Pvt. Ltd.
Swapnil is a CNBC TV 18 Financial Advisor Award nominee (2010). He has 17 years experience in wealth management with Managed Mutual funds being the subject of his expertise. Now an integral part of Ayan Analytics Pvt. Ltd. owing to first hand experience and thereby conviction in its processes, methodology and approach and himself being benefited and passing on the benefit of Ayan’s now proprietary methodology to his clients in the days of him being a Mutual fund Distributor. He has been a beta user and subsequently a paid user of Ayan’s proprietary software which was subscription based in the early days.
In the past as a Mutual fund Distributor he has kept investors’ interest first not bothering about reduced earnings when it comes to protecting investors wealth.
Some of the actions he has performed in client MF portfolios with the consent of clients are
Shielding clients from the fall of 2015-2016 where he moved client Equity MFs to Liquid funds temporarily to redeploy them in broader markets in Jan-Feb 2016 owing to high RiskMap as per Ayan Analytics Pvt. Ltd’s proprietary software Zodiac Analyst.Chart and fall of 2015-2016
Moving away from Broader markets in Dec 2017
Chart and fall and underperformance in Mid and small caps
Shielding clients from the fall of 2020 where he had moved clients 80-90% Equity Mfs in Liquid/Asset allocator in FQ of 2019 owing to RiskMap indicated in Ayan Analytics proprietary software Zodiac Analyst to stagger them into Equities starting end Feb-Mar 2020. Not only did this lead to protecting the investors wealth, it reduced anxiety and lead to growing far ahead due to falling lesser.
Due to these experiences, clients gave us a whooping response when Ayan came out with its own PMS PriceBridge in Dec 2022 and within a short span we garnered over 100 crores of assets.
PriceBridge Managed Direct Managed Mutual Fund strategy was introduced much later ie over 6 months into the PMS due to client demand courtesy the experiences of the past