IQ- Corner: Smartfolios Simplify Investing Process


95% investors fail to make money in the stock market is because of poor stock selection. It’s almost impossible for most new investors to pick top quality stocks from all the stocks listed in the market. So when Hari wanted to invest in the stock market his friend Syam advised him to invest through Smartfolios by Geojit.

Syam: Geojit has simplified the stock picking process by introducing Smartfolios – basket of stocks, curated by experts to help you to invest based on your investment appetite and outlook to achieve your financial goals.

Hari: What is Smartfolios by Geojit?

Syam: Smartfolios by Geojit, is an online investment platform with system generated recommendations, where investors can choose from differentiated stock baskets, based on their risk profile, investment horizon and investment mode. At present, Geojit offers 10 differentiated stock baskets, each with a different mix of stocks, sectors and market caps.

Geojit has partnered with Lotusdew, a SEBI and US SEC regulated firm, to launch Lotusdew Prestige.

Hari: What is Lotusdew Prestige?

Syam: Lotusdew Prestige is a small, mid-cap stock basket in Smartfolios that uses behavioural finance and AI to identify dominant market conviction. The knowhow of Lotusdew helps investors identify future stock behaviour and profit from it.

Hari: How are the stocks selected?

Syam: Lotusdew Prestige analyses corporate events like M&A announcements, earnings surprises, order book wins, dividends, stock splits etc. to identify profitable stocks. This is in sharp contrast to the traditional methods like fundamental and technical analyses used by most investment service firms.

Lotusdew Prestige is sector-neutral and adaptive to index changes. The basket, which currently comprises around 80% of small-cap and 20% of mid-cap, covers several high-growth sectors such as pharmaceuticals, software and consumer lending, among others.

Hari: Who can invest in Lotusdew Prestige?

Syam: Lotusdew Prestige fills the gap for an investment basket in the aggressive – long term category of investors. Investors in this scheme will be apprised of every change in the stock mix so that they can be reassured that the basket is actively managed by professionals.

Hari: Please tell me about the past performance of Lotusdew Prestige.

Syam: Lotusdew Prestige has a history of total return of 56.22 percent, since inception (January 2017), against Nifty Small Cap 50 index’s 20.95 percent. The CAGR of Lotusdew Prestige is 12.68   percent against Nifty Small Cap 50 index’s 3.94 percent, over the same period till January 31. The returns during the fourth quarter of 2020 stood at 34.22 percent.

Hari: What is the minimum investment amount?

Syam: The minimum investment lot in Lotusdew Prestige is Rs. 5 lakhs and the client can choose to invest directly via the    Smartfolios platform.


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