Moderate Model Portfolio in India | Model Stock Portfolio | Yadnya Investment Academy (Methodology Document)

Introduction to Model Portfolios

With Yadnya’s Model portfolios, what we are offering is making complicated investing simple. These Model Portfolios use the same asset allocation philosophy that many institutional investors utilize. The main pillars of the model portfolios are our research-based products – Stock-O-Meter (https://investyadnya.in/stock-o-meter), Fund-O-Meter (https://investyadnya.in/fund-o-meter) and the financial planning product (https://investyadnya.in/financial-planning). The idea is to utilise quantitative and qualitative factors observed based on our extensive research for suggesting model portfolios that make sense for individual investors like you. The foundation of these portfolios is an asset allocation strategy followed by tactical sectoral allocation at the stock level. As Ray Dalio, the famous Hedge Fund Manager and founder of Bridgewater says, “I think that the first thing is you should have a strategic asset allocation mix that assumes that you don't know what the future is going to hold.”

For moderate risk profile investors, optimum allocation is done between equity, debt, and money market asset classes. Exposure to equities is through Stocks and Mutual Funds while exposure to Fixed Income and Money Market is purely through Mutual Funds.

We have included three modes of investment vehicles in this model portfolio - Stocks, Mutual Funds, and Fixed Income/Debt assets. For meeting the investment objective of a growth-oriented multi-cap moderate risk portfolio, looking at the long-term expected returns and risk levels of each asset class based on our long-term view of the Indian economy and financial market, we suggest this strategic allocation of 56% in Direct Equities, 34% in Equity Funds and 10% in Debt Funds.

Please note this model portfolio is suitable for investors with moderate risk tolerance and risk appetite. Typically, to begin investing, we recommend starting with the mutual fund route, wherein you rely on the professional expertise of fund managers to make stock choices for you. After the initial learning curve, we suggest following it up with the approach of a Mutual fund-driven portfolio with some percentage of direct stock exposure.

We are firm believers in Warren Buffett’s principle which says that an individual should invest only in the companies whose business they understand. Therefore, we have chosen “Consumption” as the core theme for constructing these portfolios along with some peripheral stocks i.e., investing in companies that are consumer-centric businesses that grow with the consumption and businesses that are into financing this retail consumption. We are a believer in India’s consumption story, which includes sectors such as – Banking and finance, FMCG, Consumer Durables, Automobile, Paints, Healthcare, Retail, Telecom, Tourism, Real Estate, etc. This report by the World Economic Forum gives a glimpse of India’s consumption story and expected growth in the next 10 years. There are a few peripherals stocks too that do not fit completely into the consumption theme, but their inclusion is driven by the strong fundamentals of the company and the company’s effort to make their brand and product visible to retail investors. We have purposely stayed away from sectors like airlines.

Mutual Funds help in easy diversification and tapping on professional fund management and research expertise via an easily accessible channel. It is truly an invest-and-forget type of product unless and until there is a significant change in management or a market event-based trigger.

Debt funds being less volatile in nature, help as a cushion from an asset allocation perspective and by investing in a different asset class, we are diversifying our portfolio risk. However, given the growth and medium risk objective, the allocation to this asset class is at 10%. We have considered corporate, liquid, and money-market funds in this asset class.

ETFs and Index funds are passive investment funds that are linked to an underlying benchmark index and provide a low-cost alternative for taking exposures in the financial market.

This moderate portfolio is appropriate for an investor with medium risk tolerance and a time horizon longer than five years. Moderate investors are willing to accept periods of moderate market volatility in exchange for the possibility of receiving returns that outpace inflation by a significant margin.

Most investors tend to fall into the moderate category, which means they want to achieve good returns but are not comfortable taking high levels of market risk. This moderate portfolio might get an average annualized return of 11-12%. Its best yearly gain might be 15-20% and its biggest decline in a year may range from 20-25%.

Inception Date – December 1st, 2019

Launch Date – December 6th, 2019

Last Market Driven Rebalancing – January 21st, 2022
Last Quarterly Rebalancing – Nov 30th, 2024
Last Quarterly Rebalancing – Mar 1st, 2025

Last Quarterly Rebalancing – Aug 23, 2025

Next Quarterly Rebalancing – Nov 22, 2025

This chart shows the portfolio’s cumulative performance since inception until the latest month-end. The Moderate Model Portfolio is compared against the BSE200 TRI Index’s cumulative returns.

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Use of this information is at the users own risk. The Company and its directors, associates and employees will not be liable for any loss or liability incurred to the user due to investments made or decisions taken based on the information provided herein. The investment discussed or views expressed herein may not be suitable for all investors. The users should rely on their own research and analysis and should consult their investment advisors to determine the merit, risks and suitability of recommendation. Past performance is not a guarantee for future performance or future results. Information herein is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The images used may be copyright of the company or third party. As a condition to using the services, the user agrees to the terms of use of the website and the services.

DISCLOSURES UNDER SEBI (RESEARCH ANALYST) REGULATIONS, 2014:
Yadnya Academy Pvt. Ltd. (InvestYadnya) is registered with SEBI under SEBI (Research Analyst) Regulations, 2014 with registration no. INH000008349.

Disclosure with regard to ownership and material conflicts of interest:
1. Neither Research Analyst nor the entity nor his associates or relatives have any financial interest in the subject Company;
2. Neither Research Analyst nor the entity nor its associates or relatives have actual /beneficial ownership of one percent or more securities of the subject Company, at the end of the month immediately preceding the date of publication of the research report or date of public appearance;
3. Neither Research Analyst nor the entity nor its associates or his relatives have any other material conflict of interest at the time of publication of the research report or at the time of public appearance.

Disclosure with regard to receipt of Compensation:
1. The Research Entity and its associates have not received compensation from the subject company in the past twelve months.
2. The subject company is not or was not a client during the twelve months preceding the date of recommendation.