How do model portfolios utilise your money?
In Model portfolios your capital is utilised at 100% at any point in time.
For example – Let’s say you invested Rs 4000 into a Model portfolio X. It has a distribution of 25% in 4 different coins. Even on a crash of 50% in a coin, it will still stay invested, unless rebalanced by the manager at a pre decided interval.
How do Sypto Superfolio’s utilise your money?
Your capital is not utilised at 100%.
It enters and exits the market as operated by the strategy.
For Example – Let’s say you invested Rs 4000 into a Superfolio. It has a distribution of 25% in 4 different coins. There might be cases where 50% of capital is utilised in 2 coins which are showing good momentum and 50% of the capital is waiting to be deployed when strategy identifies the correct time of entry, it will be utilised.
This is in our opinion a serious option to protect capital from huge drawdowns which the crypto market can give.– Abhimanyu Kucheria
How do Model portfolios select which coins to invest in?
Model portfolio’s follow a theme-based portfolio – say NFT Coins, Meme coins, Dapp coins.
This makes it such that the out-performer in the theme would be combined with the low performers. Hurting the overall portfolio returns in long term.
A point of internal discussion that requires past data analysis, whether to even offer theme-based portfolios. Eventually, we might have a strategy for coin picking rather than just grouping based on a property.