Every investor while investing wishes to maximise his returns while minimising his risk. Asset Allocation and Superior scheme selection are time tested proven ways for doing the same. But time and again it has been proven that for an investor to manage his asset allocation and select superior schemes is extremely tough and difficult to execute due to operational and behavioural reasons.
MARS (Mutual Fund Automated Portfolio Rebalancing System) tries to overcome these issues for investors whereby they can manage their asset allocation and invest in better performing schemes by the click of a mouse and maximise their returns. As the process is system driven and operationally smooth, it also helps weed out behavioural biases. MARS gives a wide array of portfolios to choose from to the investor based on his risk appetite and periodically triggers portfolio rebalancing based on deviations from the asset allocation of the model portfolio resulting in superior returns to the investor over a period of time.
- Features
- Process
- Mars Portfolio
- Resources
- FAQ's
- NJ MARS PF
Salient portfolios of MARS are as follows:
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E100 Portfolio: An all-season diversified portfolio for equity investors.
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E100 Aggressive: A portfolio of Small-cap and Mid-cap schemes.
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ELSS Portfolio: Best suited for your ELSS investments.
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Balanced Advantage & Aggressive Dynamic Portfolio: The asset allocation between equity and debt would vary depending on the risk in the equity markets; higher the risk, lower the allocation into equities and vice versa.
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Aggressive Hybrid Portfolio: A portfolio of diversified Aggressive Hybrid Schemes.
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Conservative Hybrid Portfolio: A portfolio ideal for Conservative equity investors.
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SIP Portfolios: Best suited for your SIP investments.
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Liquid Portfolio: A Portfolio of liquid and overnight schemes.
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Other Portfolios: Diversified portfolios with fixed asset allocation like E50, E70 & E80.
BENEFITS OF MARS
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Clients can select model portfolio(s) depending on their requirements and investment needs.
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Helps the client to invest in well-researched mutual fund schemes in his portfolio.
HOW CAN CLIENT INVEST IN MARS PORTFOLIOS?
- All MARS Portfolios are available on MARS tab in NJ E Wealth Account (NJ EWA) and E-MF Account.
- Client has an option to select any of the available portfolios with the help of his NJ partner.
- The client can buy into MARS by transferring his existing MF portfolio or by putting in fresh money through auto debit mandate/ RTGS /Net banking.
- In case, the partner initiates the MARS purchase transaction for the client, the client will be required to authorize the purchase transactions.
It gives clients a wide range of diversified portfolios to choose from like:-
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EQUITY INVESTORS |
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Portfolio Name |
Features |
Minimum Lump Sum (Rs) |
Minimum |
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SIP (Rs) |
TOP-UP (Rs) |
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E100 |
100% Equity schemes portfolio |
50000 |
5000 |
- |
|
E100 Aggressive |
100% Equity portfolio of Mid cap/Small cap scheme |
50000 |
5000 |
- |
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ELSS |
100% ELSS scheme portfolio |
10000 |
5000 |
- |
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CONSERVATIVE EQUITY INVESTORS |
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Balanced Advantage Portfolio |
100% Balanced Advantage Scheme Portfolio |
50000 |
5000 |
- |
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Aggressive Dynamic AA Portfolio |
Aggressive Dynamic Asset Allocation Portfolio |
50000 |
5000 |
- |
|
Multi-Asset Allocation Portfolio |
100% Multi-Asset Allocation Schemes |
50000 |
5000 |
- |
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OTHER PORTFOLIOS |
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E80 |
Fixed Asset Allocation Portfolio |
50000 |
5000 |
- |
|
E70 |
Fixed Asset Allocation Portfolio |
50000 |
5000 |
- |
|
E50 |
Fixed Asset Allocation Portfolio |
50000 |
5000 |
- |
|
Aggressive Hybrid Portfolio |
100% Aggressive Hybrid Schemes |
50000 |
5000 |
- |
|
Conservative Hybrid Portfolio |
100% Aggressive Hybrid Schemes |
50000 |
5000 |
- |
|
Liquid Portfolio |
100% Schemes in low-risk mutual fund schemes. |
50000 |
5000 |
- |
|
SIP Aggressive Portfolio |
SIP in Midcap and Small cap Equity schemes. |
50000 |
2000 |
600 |
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SIP Diversified Portfolio |
SIP in Diversified Equity schemes. |
50000 |
2000 |
600 |
MARS Performance (As on Date 31st October 2024)CONCEPT
What is MARS ?
MARS is a platform that provides multiple ready-made curated portfolios built after thorough research, best suited for needs of different investors.
What is the objective of MARS?
The objective of MARS is to save time of Partners from cumbersome activity of Mutual Fund Schemes selection as well as reviewing the existing schemes in the portfolio. Partners can offer curated portfolios to investors and focus on the core role like client acquisition, client interaction, etc.
How many portfolios are there in MARS?
In MARS there are 14 active portfolios. Partners can suggest MARS Portfolios as per the need and risk appetite of the investors.
Which are currently Active MARS Portfolios where fresh subscription is allowed?
Active MARS Portfolios are:-
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E100
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ELSS
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E100 Aggressive
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Balanced Advantage Portfolio
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Aggressive Hybrid Portfolio
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Multi Asset Allocation Portfolio
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E80
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E70
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E50
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SIP DIVERSIFIED
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SIP AGGRESSIVE
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Conservative Hybrid Portfolio
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DAA Aggressive
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Liquid Portfolio
On what basis the schemes are selected in the MARS portfolios?
Schemes are evaluated on the basis of Qualitative and Quantitative parameters. Diversification & management style are also considered while selecting the schemes in the portfolios.
How to decide the ideal MARS portfolio for investors?
Partners can use Automated investment solutions (AIS) for suggesting the ideal MARS portfolio. With AIS, partners can suggest MARS portfolios as per the investment objective and risk appetite of the investor. AIS was launched to standardize the process of determining the asset allocation of investors.
What will be the frequency of Scheme change within the MARS portfolios?
Schemes selected would not be changed for longer periods of time unless necessitated.
When will NJ re-balance the existing MARS portfolios?
NJ will not re-balance the existing portfolios of MARS. The re-balancing utility is given to the partners, partners can trigger the re-balancing if needed. Partners can initiate rebalance orders in both Active and Inactive portfolios.
Can partners generate a re-balance order any time for the existing MARS portfolio or this facility will be available at a fixed interval?
Partners will be able to generate re-balancing orders any time and for any client once the utility is made available. Though we do not suggest the rebalance in the portfolio and suggest to keep the portfolio for a longer time.
Will NJ create new SIPs & ELSS portfolios every year?
No. NJ will not create new SIPs and ELSS portfolios every year. However, this year(2024) NJ has created a new SIP Diversified, SIP Aggressive & ELSS portfolios.
▪ Please note that NJ has renamed the old ELSS portfolio as ELSS Portfolio 2019 and SIP Aggressive Portfolio as SIP Aggressive 2018.
Can I register SWP in the existing SWP portfolio?
Yes. You can register SWP in the SWP Portfolio provided you have holding in it. New Investments in the SWP Portfolio have been stopped.
There is no SWP portfolio. Will NJ create a SWP Portfolio in the Future?
▪ For clients with SWP needs, partners can refer to Balance Advantage Portfolio(BAP) and Aggressive Hybrid Portfolio.
▪ BAP will be an ideal portfolio for SWP for investors with lower risk as the equity exposure is relatively lower.
Can we start offering SWP from MARS Balanced Advantage Portfolio and Aggressive Hybrid portfolio immediately?
Yes, the facility is available.
What is the maximum SWP withdrawal Percentage allowed?
The maximum SWP withdrawal allowed is 7% of the portfolio value on the date on which the SWP is registered.
Is MARS only for EWA clients or can we give it to EMF clients?
MARS is available to both EWA & EMF clients.
Available to NRI clients ?
Yes, NRI can invest in MARS only through NRO accounts
Is there any lock-in in MARS?
All the schemes in MARS are open-ended, hence there is no lock-in for the client. Underlying schemes in MARS ELSS portfolio have a lock-in period of 3 years.
What are the subscription fees for MARS?
The subscription in MARS is currently free of cost to the client.
Can a client invest in multiple MARS portfolios?
Yes, clients can invest in one or more MARS portfolios as per the needs.
Where are the MARS Portfolios available on the Partner desk?
MARS Portfolios are available on the partner desk as follows,
Pathway:- Partner Desk>> Investments >> MARS >> View Model Portfolio
Why is NJ not promoting MARS dynamic asset allocation aggressive portfolio (DAAP-A)?
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NJ believes that DAA is one of the best ways to manage risk in the equity markets.
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Rule-based DAA strategies were an essential part of NJ MARS offerings.
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However, they were not tax and cost efficient giving rise to both short-term and long-term capital gains.
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Recently, many BAF/DAA mutual fund (MF) schemes have been launched.
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These are more tax and cost efficient since there is no tax on the changes made within each scheme.
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NJ launched MARS Balanced Advantage Portfolio (BAP) in November 2021 to invest in such BAF schemes.
Should I switch my existing investments in BAP from the DAAP-A?
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DAAP-A are tax & cost inefficient.
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They were a good solution till the time there were not enough Balanced Advantage MF schemes.
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Existing investors will be best served by shifting their investments to BAP.
What happens if I remain invested in my current DAAP-A?
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Nothing happens. The portfolios will continue. However, the rebalancing utility will be given to partners before the month of Mar 2024.
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The tax and cost inefficient nature of such portfolios is something that you must keep in mind, especially when there are more tax efficient alternatives available.
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As a result, we expect most partners to make the choice to switch.
What happens to DAA Moderate & Conservative Portfolios?
We have stopped fresh subscriptions in both the portfolios due to tax & cost inefficient ness. Investors can continue to remain invested in the portfolio or switch the portfolio to MARS BAP or Conservative Hybrid Portfolio.
Is PIT (Partners Initiated Transaction) option available for MARS?
Yes, Partners can initiate the MARS transactions through PIT.
Pathway:- Partner Desk>>Investments>>MARS>>Partner Trax
What are modes for investing into MARS?
Payment modes available to invest in MARS portfolios are as below:
1. Partner Trax - MARS
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NEFT/RTGS
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Cheque (Currently Unavailable)
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ACH (As per NJ / BSE mandate registered with segment as "Mutual Fund")
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Net-Banking
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UPI
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Existing Non-MARS MF Portfolio
2. NJ E-Wealth / NJ E-Wealth MF Desk - MARS
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NEFT/RTGS
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Net-Banking
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ACH (As per NJ / BSE mandate registered with segment as "Mutual Fund")
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UPI
What is the Minimum SIP Amount in MARS Portfolios?
The Minimum amount in SIP Aggressive & SIP Diversified portfolio is Rs. 2000.
What is the SIP Top-up amount SIP Aggressive & Diversified Portfolio?
Currently the SIP Top-up amount is Rs. 600 for SIP Aggressive Portfolio and SIP Diversified Portfolio.
What is the Minimum Lumpsum amount in MARS Portfolios?
The Minimum Lumpsum amount in ELSS portfolio is Rs. 10,000 and for other active portfolios it is Rs. 50,000.
Can I make additional purchases in the existing non-active Portfolio?
Yes. Additional purchase is allowed in existing non-active MARS portfolios, for only existing investors.
What would be allocations in MARS portfolio in each scheme particularly where there are Six Schemes?
The allocation in each scheme will be around 16% to 17.5%. Due to this the investment amount in each scheme might not be equal.
Can I transfer a partial amount from one MARS portfolio to another MARS portfolio?
No. This facility is not available as of now. Full Portfolio Switch is allowed.
You can also shift Non MARS schemes to any of the Active MARS portfolios.
Client wants to discontinue his MARS account. What does he need to do ?
In case the client wants to discontinue the MARS service, he needs to intimate the partner for the same. The partner can then unmap the client from MARS service through the Partner desk. After unmapping the schemes, the investment in the underlying schemes will continue as regular schemes.
What is Rolling Returns?
Rolling returns are the annualised average returns that’s calculated based on historical data gathered over a specific time frame.
Due to recent out-performance or under-performance of a category or scheme, the point to point returns might be misleading sometimes. Rolling Returns gives a clear picture of a fund's consistency and its ability to deliver returns across changing market conditions.
What are Negative Observations?
Negative Observations are one of the indicators of Risk. It tells us how many times the scheme has given negative observation in the selected period. Higher the Negative observation, higher will be the risk involved.
For example, in a period of 10 years, the three years negative observations of scheme A is 19% and of scheme B is 31%, we can say that scheme A is relatively more consistent and less riskier than scheme B.
What is Drawdown?
A drawdown refers to how much an investment/fund has fallen from its peak to its trough (Lowest Point). An asset with a low drawdown value is indicative of relatively lower risk as compared to one with a higher value.
For example, in a period of 10 years, the drawdown of scheme C is 51% and that of scheme D is 21%. In a 10 years period, the NAV of scheme C has fallen more than that of scheme D, hence scheme D is relatively less riskier than scheme C.
