Does Savart guarantee profits or a superior investment performance?
It is illegal to guarantee performance as per SEBI regulations, and for good reasons. Investments are linked to businesses or underlying assets, which entail systemic and un-systemic risk. Risk can be minimized but not eliminated completely. Hence, it is neither practical nor ethical to guarantee performance. Anybody who thus guarantees performance is merely a confident fool and it is wise to stay away from them. To understand why you can safely trust us with your investments, read about our performance record and client testimonials.
What is the minimum investment amount?
The minimum investment supported by Savart is INR 1,000. We understand that beautiful things start small!
How much return will I get through Savart?
Savart’s performance target is to achieve a 30% CAGR (average portfolio return) for 30 years and do even better beyond that. Maintaining this consistency especially during market downturns and controlling risk are important for us. It must be understood that is our target, not a guarantee.
What is EFG Analysis?
The EFG (Emotional, Financial & General) analysis is a proprietary psychometric assessment built by Savart to understand your goals and risk preferences. The personal profile, investment profile & goals section within the Savart web & mobile application together comprise the EFG Analysis. Savart also asks you questions infrequently during your engagement with our application to remain updated about your choices and configure your portfolio accordingly. This real-time configuration is handled by a sub-system of EFG termed the Continuous Evaluation, which is critical to achieve high customization with your portfolios. So, does this mean that I always get a customized portfolio? While the EFG initially builds semi-custom portfolios for you. Over time, as our understanding of your preferences grows, the portfolios and advice get highly customized. There are overlaps of investee assets between portfolios – sometimes to a large extent and sometimes no correlation at all. This is not a simple Boolean decision but a complex framework involving multiple decision factors. Interesting fact: Today, Savart maintains over 10,000+ portfolios simultaneously in real time and APART can accommodate over 1,000,000,000 such unique portfolios which evidences its computational prowess.
Can Savart suggest a few books about investing?
We are asked this question a lot! If you love books as much as we do, you should check out our fortnightly newsletter shared to our subscribers for more info.
How can I track my portfolio with Savart?
Our API integration with brokers cover execution support for stock and ETF investments, which are auto-synced and available to track on your Savart dashboard. For mutual fund investments, you can update the transaction details manually to start tracking on your dashboard. This means that your entire recommended portfolio can be seamlessly tracked through the Savart web and mobile application.
Why we don’t believe in trading?
Trading is touted as a get-rich-quick scheme by many people because the profits you can earn in a single day of trading can be quite high. However, there is an equal chance that the you will incur significant losses you earn in a day can be high as well. There are stories of traders who have made millions in a day, only to lose all of them the next. Trading is seen to be just like gambling, and we are not interested, do not recommend it at all for our clients in that. We believe that staying in the market over a long term will help most investors make a healthy profit and reach their financial goals, and this is what we recommend to our investors.
What steps does Savart take to mitigate or reduce risks for investors?
Risk profile management – increase min. loss ceiling| High expectation – high return | tempering expectations – stop loss
What is the right time to invest? Markets are high currently, should I start investing now?
A good time to invest is ‘NOW’. It does not matter if the market goes up or down immediately after you invest. When markets are up, most expect it to keep going up forever and markets are down, most expect it to go down to zero. It is futile to try predicting markets in the short term. Discipline is important. The best example of failure in ‘timing’ the market to perfection is the behaviour of the masses post the market fall in March-April 2020. There were multiple reports of market going down literally to zero and that revival could take around 5-10 years even. All those on the side-lines have missed the rally.
Does Savart suggest SIP or lumpsum investment?
We have favoured SIP and lumpsum investments each at different points of time. However, we have realized that the best way to conduct investments is to combine systematic and lump-sum investment opportunistically to make the most of the available opportunities. We recommend lump-sum investment in select, high conviction opportunities and otherwise to invest systematically.
Why do you recommend maintaining a cash position?
Savart may often recommend maintaining a cash position based on the market situation. We recommend investments in liquid fund, low duration bonds, debt mutual funds that present an opportunity to invest idle cash better than parking in a savings/demat account. This cash position is generally maintained for a short duration until a re-investment is recommended by APART. The cash position recommended by Savart generally varies between 5% to 50%. Here is an actual illustration of how APART’s intelligent asset allocation system saved billions of rupees for our clients before the precipitating fall in March-April 2020.
I need the funds for my personal use, when can I exit my investment?
Emergency funds must never be invested in the market. Once invested, it is suggested to avoid exiting early. If you really need the funds, we suggest that you exit in a step-wise manner selling your portfolio in 4-5 parts. If you are selling only to book profit or for other reason, we sincerely recommend avoiding doing so until we recommend a rebalance or exit from the investment.
Does Savart suggest cheap stocks or penny stock?
A cheap stock, or penny stock, is a stock that is worth less than INR 50 (General/arbitrary definition) while it is trading. Penny stocks can give high returns going even up to 1000 % a year. However, these stocks also have an elevated risk profile and can swing from INR 50 to INR 0 within a day itself. Savart focuses on good long-term investments and is unperturbed by the fact of whether the stock is a penny or a million. Please read why ‘stock price’ does not matter and rather the valuation does as explained in the FAQ.
What will Savart do if there is a drop in portfolio value? There was recent news about adversity in one of our portfolio companies. What should I do?
Savart follows a continuous assessment policy for evaluating a rebalance or exit decision. If the fundamental investment thesis has not changed, then a drop in value must inspire us to invest further, not exit. Hence, we recommend that you do not make any hasty decisions and that we would recommend the requisite action
I can invest in a blue-chip stock for the long term and make money myself, why do I need Savart for that?
Investing is simple but not easy. It is easy to declare success backed by hindsight but difficult to attain success with foresight. While Savart’s advice does not guarantee investment success, it definitely improves your chances of doing so.
What precautions should I take while investing in IPOs (Initial Public Offering)?
The best precaution that we suggest for investment in IPOs is to not invest in them at all, excepting offers from extraordinary company (rare) driven by extraordinary promoters (rarer). Listing gains are of little concern to us and our systems and trained to pick only the best. So, most of the IPOs fail to pass our benchmark for investment eligibility in terms of offer price, quality of business, quality of promoters, moat or otherwise.
Will you provide market updates through app?
Savart does not provide real-time information of the markets. Since our investments and investors are focused on the long term, we filter the loads of data floating in the market and only bring most important insights and recommended action, thus ensuring effective utilization of your time. These communications are made through E-Mail, SMS, or in-application notifications.
I need profits quickly for a goal and cannot invest for the long term. Can Savart help?
If ‘quickly’ means anything less than 3 years of investment horizon/time-period, unfortunately our services would not be of great help to you. We urge you to give your investments enough time to flourish.