The increasing volatility in the financial markets over the last few years has made managing your financial assets more difficult. Knowledge and discipline is required before making an investment decision in these markets. At OptiMix, we bring that knowledge and discipline to investments in our portfolio management services through a multi-manager process aiming for long term consistent superior performance.

One of the biggest enablers for our portfolio management services has been the definitive role being played by technology. We ensure that our product offerings are delivered to our distributors with the same speed, efficiency and versatility that rivals a highly personalized experience.

The Portfolio Management Services offered by the OptiMix division of ING Investment Management (India) Pvt Ltd has a two-fold approach to achieve excellence in service and would endeavor to achieve sustainable competitive advantage by:

• Excellence in creating superior products
• Excellence in creating superior customer experiences

Multi Manager Portfolios

Multi Manager Portfolios is an investment solution that brings together a complementary set of portfolio managers, with the objective of providing consistent and superior long term returns. It is a diversified portfolio created by blending multiple portfolio managers, offered to investors as a single portfolio. The multi manager portfolio adds value and manages risk through an active investment process that tactically blends multiple portfolio managers. This enables it to take advantage of varied investment styles of the underlying managers and generate consistent performance that makes the most of secular, cyclical or fundamental divergences among several managers.

Active Risk Management

Active Risk Management (ARM) is an option available to investors in OptiMix Multi Manager Portfolios, that enables a modification of the risk and return attributes of the portfolio, through derivative-linked strategies. ARM will be implemented through an in-house process implemented directly using the equity derivative markets.

The 'Active Risk Management (ARM)' method would be used for managing risk, through the futures and options contracts and any other combination of assets in the stock markets. The ARM process is a strong blend of quantitative and qualitative factors. Evaluation of the need, timing and blend for the portfolio would be considered while implementing to the portfolio. This is amply aided by a well-defined quantitative model.

The ARM Process would enable the following:

Capital Protection Strategies

Capital Protection Strategies involve the use of index futures and options to be able to hedge the underlying portfolio from risks of capital erosion from unfavorable and unexpected market movements. For example, long puts can be used to hedge a portfolio from downside risks, while retaining upside potential. The options market can be used as a natural insurance strategy for equity holdings.

Yield Enhancer Strategies

Yield Enhancer strategies involve using derivatives and arbitrage strategies to augment the returns of the underling portfolio. For example, Covered calls; where one can sell calls of a higher strike prices of an underlying stock, can also be used to augment returns. Selling options across determined strike prices provides for the premium and the additional income yield.

Structured Products

At OptiMix we endeavor to create an investment solution using the equity derivatives markets to blend the 'right' risk return attribute for all possible combinations of market scenarios, risk tolerance and expected return.

Structured Products are instruments which are customizable in nature for the specific risk appetite and return requirements that the investor desires. A blend of the traditional instruments such as stocks and bonds with equity derivatives reduces the risk and offers the possibility of achieving higher returns. Quantitative models using financial engineering are some of the tools which are used to develop the structured product. The products tend to reduce the volatility of the returns and thus reduce the overall risk.

1. Securities Investments, including derivative investments are subject to market risks and the portfolio manager does not in any manner whatsoever assure or guarantee that the investment objectives or goals will be achieved.
2. The past performance of the Portfolio Manager and/or it's affiliates is not indicative of the performance in the future.
3. The portfolio manager or any of it's associates are not responsible for any loss or shortfall resulting from the operations of the Portfolio Management Service.
4. As with any investments in securities, the value of a portfolio can go up or down depending on the factors and forces affecting the capital markets.
5. The value of a portfolio may be affected by a change in the general market conditions, factors and forces affecting the capital markets and in particular, level of interest rates, trading volumes, margin requirements.
6. The portfolio value may be affected by regulatory requirements, settlement period and transfer procedures.
7. The liquidity of the portfolio investments is inherently restricted by the trading volumes in the securities in which it invests.
8. Investors are not offered any guaranteed/assured returns.
9. Derivatives including index options are specialised instruments that require an understanding of not only the underlying instrument but of the derivative itself. Derivatives require the maintainence of adequate controls to monitor the transactions entered into and the ability to forecast price or interest rate movement correctly. There is a possibility that a loss may be sustained by the portfolio as a result of the failure of another party (referred to as counterparty) to comply with the terms of the derivative contract. Other risks in using derivatives include the risk of mis-pricing or improper valuations of derivatives and the inability of derivatives to correlate perfectly with the underlying assets, rates and indices.
10. ING Investment Management (India) Pvt. Ltd. shall not be held liable for incorrect data provided by an independent agency.
11. Please read the Disclosure Document before investing.