Introducing CM EasyInvest: Now buy Capitalmind Portfolios with a click

We launched Capitalmind Premium in 2014. Our aim, to build India’s best research platform for active investors.

For those new to Capitalmind, Premium brings together: 

• premium research on a wide variety of investment topics, from macros, sector deep dives, company analysis to quantitative investment approaches
• five meaningfully different model portfolios, four equity, one fixed income, each with a distinct investment philosophy and a purpose to be part of an investor’s portfolio
• community on slack, now 2,000+ members strong: easily, the most diverse, eclectic community of investors and traders in India, sharing and learning about everything from long-term themes to short-term profit opportunities

More than 90% of subscribers invest in one or more Capitalmind Model Portfolio. Introducing Capitalmind EasyInvest. A new feature built for Capitalmind Premium members.

An essential first step toward enabling Capitalmind Premium members to buy, sell, and rebalance their portfolios directly from the Capitalmind Dashboard.

CM EasyInvest enables Premium members to:

1. 1. Initiate first investment buy orders for any Capitalmind Portfolio with a single click
   2. Invest more or SIP into any portfolio using google sheet based tool
   3. Rebalance portfolios using google sheets based tool
   4. Partially liquidate portfolios while keeping weights intact
   5. Execute better by choosing to set Market / Limit / After-Market Orders

 

 

 

 

 

The beta version has all of the above functionality with the single manual step of pasting existing holdings when investing more or rebalancing.

Check out these short videos to get an overview of how easy it is to place portfolio orders using Capitalmind EasyInvest.

Investing in a portfolio, quickly

Once you have decided to invest in a portfolio, it just takes 2 minutes to invest. Works on your smartphone too.

Rebalancing and Adding more to existing portfolios

Starting up is always easy while keeping up requires a little more effort. The same is true with investing in portfolios also. However, EasyInvest makes it a lot easier by enabling you to:

• Invest more while keeping the weights intact.
• Review how the portfolio will look after the investment is done.
• Invest any amount irrespective of the minimum lot size.
• Use this approach to do a SIP (investing at regular intervals) into any portfolio with ease.

This is, like we said, the beta version. Subsequent versions will allow rebalancing entirely through the dashboard without the manual step of editing a google sheet.

Reducing rebalance transaction costs with ‘Threshold value’

Model Portfolios have target weights for each holding. Rebalancing means comparing the weights in your current portfolio with model portfolio weights and generating buy and sell transactions to bridge the gap. However, doing this at every rebalance means lots of buys and sell transactions for small amounts. These add transactions charges. E.g. Every sell transaction, whether it is for 1 share or 100 shares incurs a DP charge of ₹ 15.93 (₹13.5 + 18% GST). Setting a threshold value helps reduce the number of such small-value transactions.

Here, the utility will not generate transactions below a threshold value. This is best explained with an example – suppose your total portfolio size is 10,000/-. If you try to invest 2000/- more in this portfolio with a threshold value of 1% then it will not suggest any buy /sell transaction of value less than Rs 100 (1% of 10000). Hence, saving you costs related to small rebalance transactions.

Pro Tip:

• Generally, you can keep these threshold values to avoid small rebalance transactions:
  • Less than 1 lac = 2%.
  • 1 – 3 lacs = 0.5%
  • 3+ lacs = 0.25%
  • Can go even lower for sizes greater than 10 lacs or so

Rebalancing a portfolio without investing more

While the “invest more” option already takes care that your portfolio is aligned with the model portfolios along with allocation more funds, there will be instances where you would not want to add funds and just rebalance the existing portfolio. In this case, you can follow the process highlighted in the above video and keep the investment amount as zero. The utility will give buy and sell transactions accordingly. Let’s see how it works:

(Please note, in some instances, you may be required to add some cash or some cash will be freed up because we take percentage weights while calculating a rebalance and round it up to the next integer to get the number of shares)

Refer to rebalance frequency of model portfolios on this page and follow the rebalancing schedule.

Partially selling a portfolio

You can liquidate a part or all of your portfolio by following the process shared in the above section (“How to rebalance and invest more in an existing portfolio?”) with a simple modification of inputting the amount you want to withdraw with a negative (-) sign in the “Add/Withdraw” field. So if you want to withdraw Rs 7000/- out of a Rs 15000/- portfolio then the input in “-7000” in the add/withdraw field. The utility will suggest suitable transactions to liquidate that part of your portfolio.

Hopefully, this Capitalmind EasyInvest will make executing, rebalancing, and SIPing into the portfolios fairly easy.

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Premium Members: As always ping us your feedback and queries on the #helpdesk slack channel

If you’re not a CM Premium: What are you waiting for? 😃 Still have queries? Ping us on Twitter or email us premium [at] capitalmind [dot] in

Happy Investing!