Sampadha Prosperous Indices
Prosperous indices product is a semi discretionary and quantitative strategy that is recommended on highly liquid and the world’s most traded index derivatives.
Sampadha Prosperous Indices Objective
The objective of the strategy is to long-term capital appreciation through trades in equity index derivatives.
However, there can be no assurance that the investment objective of the strategy or product will be achieved.
Product / Strategy Suitability
The strategy is suitable for traders/investors/participants who are seeking
- High and multiple times capital appreciation over the long term.
- Suggest trades primarily in equity index derivatives based on technical and derivatives analysis.
- Subscribers who are looking for uncorrelated returns to the market dynamics.
- Participants like to focus on the process instead of outcomes and like to deal with uncertainties of life and businesses.
About the strategy
- Only index derivatives will be suggested.
- The strategy is developed to minimise losses in losing trades and maximise profits in winning trades.
- As the strategy is implemented on derivatives, hence it is a highly volatile and risk-reward strategy
- Monthly product and will be evaluated quarterly.
- However, the strategy can help meet the long term goal of capital appreciation.
- The ideal ticket size of Rs 12, 50,000/- cash margin or a combination of Rs 5, 00,000/- Collateral (Approved Stocks or Approved Mutual Funds) and Rs 7, 50,000/- cash margin.
- Clearing Corporation and Exchanges Approved collateral may be used.
- For Better performance subscribe for a minimum of 2years.
- Very Actively suggested and high conviction strategy.
- Risk management inbuilt in the strategy process.
The amount is always at high risk but we always try to manage and reduce risk
What to expect
- Less frequent huge winning trades to the tune of Rs 10,000 to Rs 40,000 per trade.
- Very frequent or Series of losing trades to the tune of Rs 15,000 to Rs 25,000 per trade.
- The losing streak may be up to 30 consecutive trades.
- Slow and steady high capital appreciation over the long term
What not to expect
- Quick Profits from the strategy
- Overnight get rich
- High Series of winning trades
- Equity as an asset class has the best potential to beat inflation in the long run and generate long term wealth.
- Derivatives as an asset class have the triple advantage of asymmetric returns, hedging or reducing underlying risks and generating cash flows.
- The strategy suggests trades in highly liquid derivatives instruments of the world.
Strategy Subscribers/ Clients / Investors should consider that the below risks are involved while investing and trading.
- Assess your financial status so that you have sufficient resources and emotional tolerance to bear any losses which may result from this strategy or product.
- Consult your financial planner whether the strategy suits your risk profile, investment requirements and financial goals.
- Check our risk profile questionnaire to find out suitable product and strategy for you.
Investments or trades are subject to market, economic, regulatory, market sentiment and political risks. All investors or traders should consider these risks that may impact their capital, before investing. The value of the investment may become worth more or less than at the time of the original investment. The strategy may experience high volatility from time to time
Derivatives and Leverage
The product or strategy uses derivatives which shall result in increased leverage and may lead to significant losses.
Risk of investing in probable unsustainable/weak companies. There may be a case where the good/strong company may become weak/unsustainable, may slip from India’s most favoured company tag and become illiquid in the derivatives segment and subsequently may be removed from the derivatives segment
Price and Liquidity Risk
The product or strategy may suggest trades and investments in high volatile phases of markets and may also hold positions and which may become illiquid. Risk of overpaying for a company. Proper timely exit or cost of efficient sale can be impaired due to reduced trading volumes or increased price volatility.
The product or strategy is subject to regular market fluctuations or volatility and the risks are associated with trading or investing in financial markets. Therefore the value of asset or investment and income from the asset or investment shall rise or fall and you may not even get back the originally invested amount or in the case of derivatives may even lose more than the originally invested amount.
The investment/trading analysis techniques and risk analysis done by Sampadha will not produce the desired risks or returns, and that certain policies or developments may affect the investment/trading techniques in connection with managing the product/strategy.
Total Returns Risk
While our product or Strategy aims to provide capital appreciation, but a positive outcome is not guaranteed over any period and the entire capital is at risk.
Long Short Strategy Risk
The underlying or strategy could face higher losses if it’s long and short exposures move unfavourably and both in opposite directions at the same time.
Short Selling Risk
A short sale exposes the strategy or product to the risk of an increase in the price of the underlying or derivative sold short; this could result in a theoretically unlimited loss.
The additional risks of using derivative strategies can be:
- Illiquidity and mispricing of the Futures/Options
- Lack of opportunity
- The inability of derivatives to perfectly correlate with the underlying (stocks, Indices, Assets)
- The cost of a hedge can be higher than the adverse impact of market movements during high volatile periods
- Exposure to derivatives above the hedging requirements can lead to losses
- Exposure to derivatives can also limit the profits from a genuine investment transaction
- The prices which are seen on the screen need not be the same at which execution will take place
- In the case of option writing, the downside of the strategy could be more than the option premium earned.
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