Investment management in India has long escaped the wave of digital disruption. Investment management does have its own pain points. On one hand, with 88% of all equity oriented mutual fund schemes being distributor driven(AMFI), poses a serious incentive problem and on another hand, the probability of managed fund to beat its benchmark being less than a coin flip(SPIVA) raise the question of struggle involved in selecting the right mutual fund. All these issues create an opportunity for companies to address these issues through services ranging from mutual fund(direct) distribution platform till custom portfolio creation.

One such company I came across is smallcase and have been really impressed by its concept of dividing the whole investment process of defining Investment Policy Statement (IPS), asset allocation, security selection, position sizing and to some extent risk management, in small chunkable parts. They popularise the core-satellite approach to investing where one builds the core of the portfolio through passive investments in equity, gold, and debt with a possibility to add satellite portfolios.

I tried to do a quick implementation of core portfolio in python which made me believe even more in the possibility of providing Portfolio Management Service at scale.

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