What are Educases?
Educases are a bucket of mutual funds, which allows an investor to buy a bucket of mutual funds, which are predefined combinations of funds based on the calculated risk and returns parameters.
Why Educases are needed?
There are more than 4,500 mutual funds we have in the industry. But which fund will suit which type of investor based on the risk could be a difficult task. So, here in EduFund, we have a bucket of mutual funds for every investor, known as Educases.
Strategy behind Educases
A team of EduFund experts sits together and decides what will be the parameters of risk and returns to meet the objective.
Parameters like standard deviation, alpha, share ratio, returns, etc. Then, a report is run over 4,500 mutual funds to extract the top mutual funds based on different risks.
What if the fund is new? In that case, if the fund is active/passive, then we wait for some quarters to check its performance compared to the benchmark & its peers; and the fund’s expense ratio. That’s not all; we also look for other parameters.
And then, the past data of these educases are back-tested to check the volatility in returns and how the portfolio has performed under different market conditions.
We try to ensure that the portfolio should face less volatility than the market and should remain in sync with the risk and returns parameter. These educases are rebalanced to make the best fit for the risk. In the end, a monthly review is done on these educases.
For example, suppose the equity market is corrected by more than 15%. In that case, we try to ensure that your equity portfolio in the aggressive risk category should not be corrected by that much.
- Risk-oriented – These educases are designed to meet the investor’s risk profile. For example, if you are young and you are planning for the long-term, then there is an aggressive risk educase is for you.
- On-going monitoring – These educases are monitored on a regular basis so that it meets the risk and returns profile of the investor.
- Auto rebalancing – These educases are auto-rebalanced. Suppose the risk of one fund in educase is increased by 15%, then the allocation of the educases having that fund will be rebalanced accordingly.
- Well-diversified – Educases contain multiple mutual funds in one particular basket. So, having a well-diversified portfolio is one of the best quality of educases.
- No cost – These educases are free for every investor to invest in. EduFund does not charge anything for these educases. So, you don’t need to pay a single penny to invest in this educases.
How can you invest?
Download the EduFund app, fill in the basic details, and then the app will calculate your risk profile and the suggested amount for your desired target.
Then, you can go ahead and explore the funds or go to the section on Educases.
There you can see the suggested educases with the past performance of these educases including its holdings of mutual funds as per your risk profile.
If you are looking for a diversified mutual fund investment as per your risk profile, then Educase is the right choice for you.