At Sagar Investments our goal is to work closely with you to ensure that you have a thorough understanding about how we approach investing your assets to meet your stated goals through responsive and personalized service. Accordingly, we serve as a fiduciary, with a legal and moral responsibility to represent your interests. We do not act as a custodian or take possession of your assets, but instead utilize the services of Charles Schwab & Co. to provide this function. We receive a Limited Power of Attorney (LPOA) from you which allows us to place trades in your account, receive electronic copies of your trade confirmations and monthly account statements. We are also able to deduct our fees on a quarterly basis. The chart below shows how the account set-up would look like.
The completion of our Investor Risk Profile questionnaire allows us to determine the amount of risk you are willing to withstand for your investments. We run three types of portfolios - conservative, moderate and aggressive. Each of these portfolios is described below.
Conservative/Income Producing Portfolio:- This portfolio is used for clients who are either conservative by nature or are retired, conservative and need income to support their lifestyle. This portfolio is typically allocated 20% to equities and 80% to bonds and other fixed income assets. For clients who need retirement income from the account, we recommend taking not more than 5% of the account value as distributions each year.
Moderate Portfolio:- This portfolio is used for clients who have a few years to retirement, are not very conservative per their risk profile and would like a greater exposure to the equity markets. A retired individual could also utilize this portfolio and withdraw 5% each year as retirement income. This portfolio is typically allocated 40% to equities and 60% to bonds and other fixed income assets.
Aggressive Portfolio:- This portfolio is used for clients who based upon their risk profile questionnaire are aggressive and can emotionally withstand the gyrations of the equity markets. This portfolio switches between equities and cash as market conditions warrant and also uses "long only" options for hedging the portfolio. We are extremely selective as to who we will allow in this type of portfolio since market gyrations could be severe from time to time.
Please call us if you would like to know how each of these portfolios have performed over time.
