How Does Savart Create Your Portfolio

We have been asked this question numerous times and it has become hard to count. So, let’s take a deep dive into the technology that Drives Savart and look at some examples of how we build your portfolio for you. 

But first, let’s look at two different kinds of subscribers to Savart. 

Kirthi, 34, is a software engineer with a monthly income of INR 1.5 lakhs. She has been investing with Savart for the past year. Her basic monthly expenses, including rent, groceries, and utilities work out to INR 50,000. Kirthi is also an avid fitness fanatic and goes to her mixed-martial-arts (MMA) class every day. Kirthi needs to buy some supplements every month to sustain her fit lifestyle, which comes up to INR 5,000. She also has two children she loves taking out to movies and restaurants every weekend. She and her husband also shop for themselves and their children once a month. Altogether, including her EMIs, Kirthi spends about 1.2 lakh every month in expenses. This leaves her with INR 30,000 to save. Kirthi wants to save for her children’s education. 

Jyoti, 21, has just started working at a bank. He earns about INR 25,000 each month and hopes to save INR 5000 every month to begin his investment journey. He lives in a shared accommodation, where he also gets his daily meals. So, he only needs to spend on rent and travel. Jyoti is looking to plan for his retirement. 

Savart has helped both these individuals with their financial goals. Let’s look at how we achieve that. 

The backbone of Savart is our Vantage algorithm. This powerful system analyses every aspect of an asset, whether it is a stock, mutual fund, or bond. Vantage also analyses an individual’s financial status and risk appetite. All this research is combined to bring the investor the right portfolio. 

In fact, Vantage automates not just advice but also research, making it unique among peers. A traditional robo-advisor automates the ‘advisory process’ using a set of rules fed by inputs directly or indirectly from a human analyst. However, Vantage controls the entire process from start to finish, thus eliminating human bias. 

It accomplishes this with three arms. 

  1. Quant: provides a mathematical and statistical edge to our research. The consequence is that the system-generated strategy is far less biased and is thoroughly stress tested using not only historical data but monitored and tested in real-time. 
  1. Iris: It uses textual, visual, and graphical data to generate insights that are critical to the investment but often elusive to spot, thereby blindsiding human analysts. 
  1. Synapse: This looks at the emotional and financial aspects of every individual investor to tailor portfolios. It not only helps create highly personalized portfolios but also ensures timely rebalancing and exits based on real-time data, change in investment thesis, and consequences for the underlying asset. 

With these three arms, let’s look at how Vantage has created a portfolio for Kirthi and Jyoti. 

Kirthi has an investment window of just 14 years before she must start paying up for her children’s education. She hopes to send them to a good university abroad one day. Out of the INR 30,000 she will save, INR 10,000 is her long-term retirement investment, while the remaining goes towards investing in her children’s future. Her goal amount for her children’s education is INR 50 lakh, while her retirement goal is INR 4 crores. She has set both goals on the Savart app. 

For the children’s education goal, Savart will recommend to her low-risk equities and mutual funds, in addition to some bonds. Assuming a CAGR of 13% of her investment, Savart will help her earn INR 61 lakhs for her children’s education, which is 11 lakhs higher than her goal amount. Similarly, for her retirement, Savart can help her earn INR 4.57 crores in returns based on the same 13% CAGR.  

In both cases, Savart has beaten her expectations. 

Let’s now look at Jyoti, he has started investing INR 5,000 and he will invest for the next 39 years. Assuming he invests the same INR 5,000 every month for that duration, which is very unlikely if we consider salary increases and increased savings, he will still earn close to INR 10 crores when he retires. This will surely help him have a peaceful retirement. Jyoti will be recommended both blue-chip stocks and mid-cap stocks because of his higher time frame for investing. 

In both cases, Savart has given stellar gains to these investors. All thanks to Vantage! 

You too can enjoy the awesome gains Savart can give. Vantage, will crunch the data for you and bring to you the best investment portfolio that suits your lifestyle and financial goals. To get such customized investment advice delivered to you, reach out to Savart today! You can also download our app from the Google Play Store or the Apple App Store. For a detailed explanation of how to use our app, watch the walkthrough video here.  

Disclaimer: This article is for illustrative and educational purposes only. Returns are influenced by market forces, are not guaranteed. Investors are advised to conduct thorough research before making any investments