Active Rabbit
Equity - Derivatives – Active – Calculated Risks
Salute to all you successful champions, millionaires & achievers. Introducing myself, I am the Active Rabbit. I learnt from my past that overconfidence can catch you sleeping and make you lose the race. I am cautious and i like to win. Though there are times when I miss, but then, I catch up soon. I tend to beat the consistent tortoise in the very long run. I am hardworking, smart, diligent, active and very dynamic. I believe in fundamentals of investing on one hand, and am also smart enough to use derivatives, not just to hedge and protect my portfolio in time of uncertainty, but also to ensure that I make monthly returns on the same. For your very long term 5-10+year goals like children’s education, wedding or buying a house, long compounding can create lot of wealth for you.
I am the best of both worlds – equity as well as derivatives.
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Volvin Growth Fund - Active Rabbit
Volvin Growth Fund – Active Rabbit is similar to a diversified equity fund, which is passive, and actively uses derivatives for hedging or booking profits in a volatile market and to generate monthly returns using the covered call strategy.
It is India’s 1s Alternative Investment Fund in Category 3, that uses Volvin Philosophy of Covered Call writing to give the best of both worlds of Equity & Derivatives
Stability – Diverse Portfolio The Fund creates a Portfolio similar to a diversified Equity Mutual Funds by investing in 40-60 stocks available on the NSE F&O. The screening is done various parameters of valuation, growth, dividend yield parameters. The fund is not comfortable investing in high PE technology or high PE FMCG stocks already discounting them for future performance.
Monthly winnings through Covered Call Strategy The fund uses complex derivative primarily as option seller/writer and generates monthly returns by collecting premiums on the options sold. Most of the options sold are on the underlying portfolio helping us to generate returns in any market condition; more so, when the market is stable or not performing.
Active Management Derivatives are used actively for selling options and also for booking profits in the futures segment when we feel the underlying stock has delivered its targeted returns. Derivatives are also helpful in hedging by buying puts or shorting stock futures, shorting index futures in case of adverse or volatile market conditions
Higher Sharpe Ratio* The illustration on the top shows a scenario of a period from 1st July 2021 to 30th June, 2022. The illustration shows that the NIFTY moved 0.39% in the year, whereas the fund can generate returns even in those months where NIFTY is stagnant or stable. As the Equity segment will try to emulate the performance of the benchmark NIFTY 200 and the derivatives segment will most likely deliver monthly returns, the overall Active Rabbit Equity + Derivatives performance may be better than pure Equity Portfolio performance. This results in lower risk and better Sharpe Ratio.
Truly, the fund is Best of Both Worlds: Equity & Derivatives
*There is no guarantee of the returns and the illustration at the top is an indicative chart of the possible returns. Please consult your Financial Advisor to understand the risks before investing.