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CPPI model works when the objective of the fund is to guarantee a returns like Highest NAV on a fluctuating NAV. Article explained here is how to leverage by choosing a F & O options instead of choosing a stock option. A point to be noted here. Risk profile of the client who choose Capital Protection funds are mostly conservative investors feeding an aggressive model might not be in line with his risk appetite. Kindly correct me if I am wrong Thanks Jagadeesh Rangaraj
Good to know the concept but difficult to apply on investors .Because , logically the portfolio should move more towards equity when it is falling down and less when it is rising . In last 9 years of experience , i have observed that mixing of any asset or concept leads to zero output or sometime damage too . Putting separately in pure equity or/ and pure debt always helps to investors and to us for analyzing and reviewing its portfolio. Note : This view is solely based on my experience dealing in all structured ,linked based products , mixed products etc.
very nice information is being given by this Saturday school. practically is to be seen how efficiently we can use it
Good news for Adviser & Safer side to Invester
It is a very nice article. We learnt that the market conditions must be favourable for meaningful returns and frequent rebalancing is vital. Thanks for Saturday School lessons.
I simply LOVE this Saturday school. Very useful informations are being provided. Keep it up.
VERY RELIABLE AND VITAL INFORMATION WHO DOESNT KNOW WHAT IS CAPITAL PROTECTION FUNDS?
This strategy is very risky and few capita protection fund of Birla MF is a victim of this CPPI
It is very easy saying than doing
This is very nice information that successfully managing a CPPI strategy is frequency of rebalancing.
Well elucidated in simple terms Truly appreciate the author and your efforts in sharing the same with the IFA community
exlent and very nice information thanks
This is very nice information. Thanks for the article. Which are the funds with this strategy available in Indian Market now? Some time back ICICI Prudential AMC had a PMS Plan with this CPPI strategy. I remember Deutsche Bank was the insurer. Dont know about its status now.
nice one....your all article has no price...it has value...thanks