The Secret Sauce of Investing

In our previous blog, we spoke about how Mool can help you invest. Today, we’re going to tell you one of the reasons why your money wins with us.

Let us first take a look at the history of India’s benchmark Nifty-50 Index.

Excluding the covid-induced market crash of 2020, India has been an equity bull market for over ten years. If you invested in the Nifty-50 over this time through an SIP, you could have earned returns of approximately 14%. When you compare this with the average inflation of about 7%, you see that your investment would have beaten inflation by a comfortable margin. However, like everything in life, none of this comes easy.

The most daring investor is tested (like a rollercoaster ride, except you don’t know which way it’s going to turn next) by all sorts of scares. Volatility has been around 17.5% in general. Then you have crises such as 2020 with a decline in the market of 30%.

But what if we told you that using our intelligent allocation across asset classes, your portfolio would have had:

- Less than half the volatility

- …and still earn returns similar to the Nifty index?

Regular investing solutions make investing sound like a bouillabaisse — fancy, difficult to make (and pronounce), sounding quite foreign, and basically out of bounds for most. Instead, the Mool investment solutions are more in the Maggi mould — simple, works for everyone, and an all-time favourite. Let’s take a look at the ingredients in our ‘Diversify’ plan:

Our recipe has only 3 broad components, debt, equity and gold. But these ingredients look familiar right? Sugar (debt), spice (equity) and everything nice (gold). You’re also probably wondering, where’s chemical X?

As with any recipe, Mool’s secret sauce is not in the ingredients themselves, it is in how we finesse the mix. Let us explain.

The debt element is predictable and comes with few surprises. Over time, it grows steadily to give you average returns. The equity element adds spice to the mix, and can be used to suit your particular taste. Gold exists simply to temper the spice. When things get heated up and the markets go into freefall, this age-old savior rises (quite literally) to the occasion.

Simple enough, right?

But enough small talk, let us show you how Mool’s carefully-curated “Diversify” recipe stands the test of time.

As you can see, over long time horizons the portfolio provides returns that are comparable to the Nifty index, but with less than half the volatility. The last row in the table is particularly interesting. In this scenario we assume the investor had the misfortune of buying at one of the all-time highs and selling at one of the lowest lows, and despite this ended up with negative returns of only ~5%, barely anything next to the decline in the Nifty. It’s in times like these that our mix really brings out its best.

At Mool, we believe we’ve got that perfect blend for each of you. Taste bhi (to your preference), health bhi (of your investments), aur wealth bhi!

So if you’re set to start your investment journey, simplify your investments, or even just curious, get in touch! Mool’s master chefs are ready.