Yadnya’s Model Portfolios Performance - Gearing up for the Marathon named Long-term Investing

Yadnya’s Model Portfolios - Gearing up for the Marathon named Long-term Investing

Many marathon runners often say, “A marathon is an event where everyone starts as equals, but legends are made at the finish line.” Investing is very similar. The journey begins with small, consistent steps, investing month after month, staying focused on financial goals, and showing patience through market ups and downs.

Like a marathon runner who pushes through physical and mental barriers, investors too must navigate uncertainty — market corrections, economic slowdowns, geopolitical tensions, inflationary cycles, and once-in-a-generation events like the COVID-19 pandemic. In both marathons and investing, success is not built on speed, but on discipline, preparation, resilience, and the ability to stay the course.

It has now been over six years since we introduced our risk profile-based model portfolios, and the journey has been deeply rewarding. Our objective has always been to support investors in this long marathon of wealth creation through disciplined investing, robust research, prudent asset allocation, and a strong risk-management framework.

As we look back, we are happy to share a snapshot of how our model portfolios have performed since inception and over the past year.

^{(**The Quanto-Funda model portfolio strategy was changed in December 2022. In the earlier methodology, we calculated sector-wise scores and picked the top performers in a respective sector based on the performance of stocks on various fundamental and quantitative parameters. In the new methodology, we have shifted to a more momentum-oriented strategy.)}

Model Portfolio Performance Review:

Period: 31st May 2025 to 31st May 2026

The last one year has been difficult for equity markets, with broad market performance remaining negative. While the Nifty50 TRI declined by -6.14%, the broader Nifty500 TRI delivered a negative return of -1.43%. Against this backdrop, most of Yadnya’s model portfolios outperformed both the indices, reflecting the strength of disciplined asset allocation, risk management, and portfolio construction.

Among all model portfolios, Quanto-Funda emerged as the top performer with a 1-year return of 21.70%, significantly outperforming both benchmark indices. However, given its higher equity orientation and risk profile, investors should continue to view it as a high-risk, high-return strategy.

Performance of Risk Profile-Based Portfolios:

The risk-profile-based portfolios, viz. Moderate, Conservative, and Growth continued to demonstrate resilience. Despite volatile market conditions, all three portfolios generated positive 1-year returns, supported by diversified allocation and lower beta.

The Moderate Portfolio delivered a 3.13% 1-year return with a beta of 0.48, while the Conservative Portfolio delivered -0.31% with a beta of 0.63. The Growth Portfolio declined by -1.34% return with a beta of 0.60. Their long-term CAGRs since inception remain strong at 13.30%, 12.15%, and 14.76%, respectively, reaffirming the importance of staying invested through market cycles.

Performance of Stock-Only Portfolios:

Stock-only portfolios, which carry 100% equity exposure, saw wide variation in performance based on strategy and portfolio composition.

The Value – Stock Only Portfolio continued to stand out with a strong 24.19% CAGR since inception despite a -0.17% 1-year return, reflecting the effectiveness of investing in fundamentally strong businesses at reasonable valuations.

The Small and MidCap – Stock Only Portfolio delivered an impressive 4.85% 1-year return, outperforming broader markets, while maintaining a long-term CAGR of 13.32%.

The Student and Early Earner Portfolio declined -1.51% over the year, with a long-term CAGR of 15.43%, showing the benefit of long-term discipline for young investors.

The SIP – Stock Only Portfolio declined by -1.49%, while NextGen Opportunities (formerly known as EV and Green Energy) Portfolio declined by -1.88%.

The Happy Earth also declined by -3.51% over the last year.

Performance of Fund of Fund Portfolios:

The fund-of-funds portfolios continued to validate the importance of multi-asset allocation. The Wealth Creation – MF Only Portfolio delivered a strong 7.88% 1-year return and 20.72% CAGR since inception, making it one of the strongest performers across the model portfolio basket.

The Regular Income with Growth Portfolio generated 7.66%, despite having only 44% equity allocation, highlighting the advantage of diversification across asset classes. The All Seasons ETF Portfolio also performed well, delivering 7.02% with a beta of 0.47, reinforcing its role as a balanced, risk-conscious investment strategy.

Conclusion:

At Yadnya, these model portfolios are not just numbers on a performance table; they represent the trust, goals, and long-term financial journeys of our investors. Market cycles will always bring phases of uncertainty, corrections, and volatility, but what matters most is whether a portfolio stays true to its purpose during such periods.

It is deeply satisfying for the entire Yadnya team to see that most portfolios have continued to deliver in line with the objectives for which they were created, whether it is wealth generation, capital preservation, or disciplined equity participation. This reinforces our belief that patience, asset allocation, and risk management are the real foundations of long-term investing.

As Charlie Munger wisely emphasised, risk is not merely stock price volatility; true risk is the possibility of permanent loss of capital and the risk of inadequate long-term returns. This thought strongly resonates with our investment philosophy. Taking bigger risks for higher returns may look attractive in good times, but the true test of a portfolio comes during difficult market phases.

Returns may fluctuate from year to year, but our commitment remains constant: to protect investor interests, avoid unnecessary risks, and build portfolios that help investors stay invested with confidence. For us, managing downside risk while responsibly participating in long-term wealth creation will always remain the guiding principle.