Let’s break down what the Sortino ratio is, how it’s calculated and why it matters. This is especially important if you’re planning to invest in PMS or evaluating portfolio management services in India.

What Is the Sortino Ratio?

The Sortino ratio is a risk-adjusted performance measure that indicates how much return an investment generates for every unit of downside risk.

Unlike the Sharpe ratio, which treats all volatility as detrimental, the Sortino ratio focuses solely on negative returns, the kind that harm your portfolio. It doesn’t penalise you for strong performance or upward momentum.

In simple terms, the Sortino ratio helps you judge how efficiently an investment earns profits without exposing you to large losses.

If you’re exploring portfolio management services in India, this metric helps you filter between managers who simply chase returns and those who manage risk prudently.

Why Investors Use the Sortino Ratio

1. Focuses on Downside Risk Only: It ignores volatility caused by gains and only considers periods where your returns fall below a threshold, usually the risk-free rate.

2. Ideal for PMS and Wealth Management: When you invest in PMS, you’re often trusting a manager with large sums. You want high returns, but with controlled downside risk. Sortino tells you how well the manager is achieving that.

3. Better Comparison Tool: Two funds may show the same returns, but the one with fewer deep drawdowns will have a higher Sortino. That makes it a safer choice.

How to Calculate Sortino Ratio

Here’s the official formula:

Sortino Ratio = (Average Return – Risk-Free Rate) ÷ Downside Deviation

Let’s break it down:

• Average Return: The annualised average return of your portfolio or investment
  
• Risk-Free Rate: Typically, the return on a government bond (e.g., 6% in India)
  
• Downside Deviation: The standard deviation of negative returns only, i.e., how much your portfolio fell below the risk-free rate
  

Example: How to Calculate Sortino Ratio

Let’s say you invest ₹50 lakhs in a PMS. Here’s the data:

• Average Annual Return: 15%
  
• Risk-Free Rate: 6%
  
• Downside Deviation: 4%
  

Now plug it into the formula:

Sortino Ratio = (15 – 6) ÷ 4 = 9 ÷ 4 = 2.25

Interpretation:

A Sortino ratio of 2.25 means your portfolio is earning 2.25 units of return for every unit of downside risk. That’s a strong performance. Most professionals consider anything above 2 as excellent.

Sortino Ratio vs. Sharpe Ratio

Here the general differences between sortino and sharpe ratios:

Feature	Sharpe Ratio	Sortino Ratio
Measures	Total volatility (up and down)	Only downside volatility
Penalises	Both gains and losses	Only losses
Ideal For	Broad comparison	Downside risk analysis
Use in PMS?	General overview	More accurate for risk protection

If your goal is capital protection along with growth, especially relevant when you invest in PMS, the Sortino is more useful than the Sharpe.

When Should You Use the Sortino Ratio?

• Comparing multiple PMS strategies that claim similar returns
  
• Evaluating mutual funds, ETFs, or alternative investments
  
• Selecting stable portfolios with a long-term horizon
  
• When your investment objective prioritises wealth preservation
  

If you’re considering high-ticket portfolio management services in India, ask about their Sortino ratio to evaluate how well they manage downside risk.

Limitations to Keep in Mind

• Requires historical data to compute accurately
  
• Doesn’t penalise erratic positive returns, which could be risky for some investors
  
• Assumes the risk-free rate is constant, which may not always be true
  

Still, when used properly, the Sortino offers a clearer, more practical picture of investment quality.

Summing Up

In the world of investing, returns without context can be misleading. The Sortino ratio gives you a sharper lens to evaluate:

• Is the portfolio growing your wealth?
  
• Is it doing so without exposing you to large risks?
  

So the next time a manager promises double-digit returns, go one step further and ask:

“What is the Sortino ratio of this strategy and how do you manage downside risk?”

Because in the long run, it’s not just about how high your portfolio climbs, but how well it avoids the fall.

Looking to invest in PMS with strong downside protection?

Understanding the Sortino ratio is your first step. Choosing the right partner to apply to is the next step. 9Point Capital helps you compare options, decode manager strategies and build a portfolio that works for you, not against you.

Read for more expert investor guidance and actionable insights:

• The Power of the Calmar Ratio: Risk-Adjusted Returns 101
• Invest in ETFs: Know the Expense Ratio and Hidden Costs
• Understanding CAGR vs. Volatility: What Investors Need to Know

Investing in digital assets like Bitcoin has become increasingly popular globally, including rising interest in Bitcoin ETFs in India.

What is Bitcoin ETF?

A Bitcoin ETF (Exchange-Traded Fund) allows you to invest in Bitcoin without having to buy and hold the cryptocurrency yourself. You don’t buy Bitcoin directly; instead, you buy a fund that trades on stock exchanges and follows the price of Bitcoin. This is great for people who want to invest in digital assets without having to deal with digital wallets or exchanges directly. It is safe, easy to use and convenient.

Bitcoin ETF in India

The interest in Bitcoin ETFs in India is growing due to the country’s increasing awareness and acceptance of digital assets. Indian investors see Bitcoin ETFs as a safe and regulated way, aligning perfectly with their traditional long-term investment strategies.

What is Tactical Asset Allocation?

Tactical asset allocation is a powerful investment strategy that changes the types of assets (stocks, bonds, Bitcoin ETFs, etc.) in your portfolio based on the market conditions. Tactical asset allocation lets you change your allocation in the short term to take advantage of market opportunities or manage risks. This is different from strategic asset allocation, which keeps a fixed allocation based on your long-term investment goals and risk tolerance.

Strategic vs. Tactical Asset Allocation

Strategic asset allocation involves setting fixed target percentages for your investments (stocks, bonds, Bitcoin ETFs) and regularly rebalancing to maintain this mix. Tactical asset allocation is more flexible, changing allocations based on market signals and trends to maintain risk-adjusted outperformance for the benchmark.

Tactical Allocation for Bitcoin ETFs in India

Using tactical allocation for Bitcoin ETFs means adjusting your investment based on market trends or volatility. 

Simple Example of Tactical Allocation

Imagine your initial investment is:

• Stocks: 60%
  
• Bonds: 30%
  
• Bitcoin ETFs: 10%
  

If Bitcoin prices start rising sharply, you might adjust your portfolio:

• Stocks: 60%
  
• Bonds: 25%
  
• Bitcoin ETFs: 15%
  

If Bitcoin becomes volatile or risky, you might shift again to protect your money:

• Stocks: 60%
  
• Bonds: 35%
  
• Bitcoin ETFs: 5%
  

Quantitative Approach for Tactical Allocation

Let’s make this slightly technical, but still friendly.

Say you have a simple signal that tells you when Bitcoin is trending (like moving averages or volatility bands). When the signal is positive, you allocate more to Bitcoin ETFs. When it’s negative or flat, you reduce exposure.

For example:

• If BTC’s 30-day return > 10% and volatility < 50% → Increase ETF weight by +5%
  
• If BTC’s volatility > 70% and return < 0% → Reduce ETF weight by -5%
  

This system helps you stay objective and not overreact. It’s like using weather radar before sailing: you’re still going to the same destination, but you’re making smart changes to your sails.

Benefits of Long-term Investment

• Balance Growth & Safety: While Bitcoin is a high-growth asset, ETFs add a safety cushion. Tactical allocation lets you enjoy profit while managing risks.
  
• Stay Calm During Volatility: By adjusting only small portions of your portfolio, you stay invested but not overexposed.
  
• Better Risk-Adjusted Returns: You don’t chase returns blindly. You let the data guide you. This often leads to better Sharpe ratios and lower drawdowns over time.

In Summary

Tactical allocation isn’t about predicting the future, it’s about planning for it. For Indian investors eyeing Bitcoin but hesitant to go all in, Bitcoin ETFs + a tactical approach would be the perfect match. At the end of the day, it’s about staying invested, staying flexible and using logic over emotion.

If you’re interested in knowing how to invest in US stocks from India but aren’t sure how to get started, this comprehensive guide covers everything you need to know, from investment basics and brokerage fees to taxation, plus recommendations for some of the best US stocks to buy.

Why Invest in U.S. Stocks from India?

• Global Diversification: Spread your risk across markets beyond India.
  
• High Growth Potential: Invest in global leaders like Apple, Amazon and Google.
  
• Currency Advantage: Benefit from the long-term depreciation of INR vs USD, historically translating to 3–5% extra returns.

How to Invest in US Stocks from India

Follow these steps to start investing in US stocks online:

Step 1: Choose a Broker

Select a brokerage platform offering international trading to invest in US stocks from India. Ensure the platform:

• Ensure the platform is regulated for investor protection
  
• Look for the availability of expert guidance
  
• Verify competitive brokerage charges
  
• Prefer platforms with easy account opening procedures
  
• Confirm robust security and regulatory compliance

A trusted platform like 9Point Capital provides all of these features, ensuring a smooth and secure investing experience for Indian investors.

Step 2: Open an Account

Open an international trading account with your chosen broker. You will typically need:

• PAN Card
  
• Aadhaar Card
  
• Bank account details
  
• Proof of address
  
• A completed KYC form
  

Step 3: Fund Your Account

Transfer funds from your Indian bank account to your brokerage account. You can remit funds via the Liberalised Remittance Scheme (LRS), allowing individuals to remit up to $250,000 per financial year.

Step 4: Start Investing

Once your account is funded, you can start investing in US stocks. The process typically involves:

• Searching for the desired stock or exchange-traded funds (ETFs).
  
• Deciding on the investment amount or the number of shares.
  
• Confirming the purchase.
  

Brokerage Charges to Consider

When investing in US stocks from India, brokerage charges typically include:

• Account Maintenance Fees: Some brokers charge a monthly or annual fee.
  
• Transaction Fees: Charged per trade or as a percentage of the traded value.
  
• Currency Conversion Charges: Charged when converting INR to USD.
  

Always review the fee structure clearly before selecting your brokerage platform.

Taxation on US Stocks in India

Taxation is an important aspect to consider when investing in US stocks from India:

Dividends:

• Dividends earned from US stocks are subject to a withholding tax of 25% in the U.S.
  
• In India, dividends received from foreign companies are taxed at your applicable income tax slab rates. You can claim a credit for US withholding taxes paid under the Double Taxation Avoidance Agreement (DTAA).
  

Capital Gains:

• Short-term Capital Gains (holding period less than 24 months): Added to your taxable income in India and taxed according to your income tax slab.
  
• Long-term Capital Gains (holding period more than 24 months): Taxed at 12.5%

Ensure proper documentation and consult a tax advisor for specific guidance on your tax situation.

Best US Stocks to Buy

If you’re wondering which stocks to start with, consider blue-chip companies renowned for their stability and growth potential. Top choices include:

• IBIT (BlackRock iShares Bitcoin Trust): A recently launched spot Bitcoin ETF by BlackRock, IBIT offers exposure to Bitcoin through a traditional brokerage account. It’s ideal for investors seeking cryptocurrency exposure without directly holding digital assets. 
• Apple (AAPL): Known for consistent innovation and strong earnings.
  
• Tesla (TSLA): A leader in the electric vehicle industry.
  
• Amazon (AMZN): E-commerce and cloud computing giant.
  
• Alphabet (GOOGL): Google’s parent company with strong advertising and technology revenue streams.
  
• Microsoft (MSFT): Tech giant with consistent dividend payouts.
  

Invest through Exchange-Traded Funds (ETFs)

Exchange-Traded Funds (ETFs) offer a smart and accessible way to invest in the U.S. market without picking individual stocks. They provide built-in diversification by spreading your investment across a mix of companies, industries, or major market indices like the S&P 500 or NASDAQ.

Here are a few types of ETFs gaining popularity:

• Bitcoin ETFs: These offer a simpler path to invest in digital assets without directly buying cryptocurrency. Notable examples include the iShares Bitcoin Trust ETF (IBIT) and the Grayscale Bitcoin Trust ETF (GBTC).
  
• SPDR S&P 500 ETF Trust (SPY): Tracks the performance of the S&P 500, giving exposure to 500 of the largest U.S. companies.
  
• Invesco QQQ Trust (QQQ): Focuses on the NASDAQ-100 Index, which includes major tech-driven companies.
  
• Vanguard Total Stock Market ETF (VTI): This fund offers a broad investment in the entire U.S. stock market, including small-, mid, and large-cap stocks.
  

ETFs are a flexible and efficient tool to build a well-rounded portfolio with ease.

Things to Keep in Mind

Before investing in US stocks from India, consider:

• Taxation: Understand the tax implications in both the US and India.
  
• Currency Risks: Evaluate how currency fluctuations may affect returns.
  
• Regulatory Compliance: Stay updated with RBI guidelines regarding overseas investments.
  

Conclusion

Investing in US stocks from India can significantly boost your investment portfolio’s potential. You can efficiently diversify and enhance your investment strategy by carefully selecting a brokerage platform, understanding brokerage charges and taxation and identifying the best US stocks or ETFs. Always ensure you remain informed and compliant with regulatory requirements to maximise your returns.

Ready to take your portfolio global?

What is the Calmar Ratio?

The Calmar ratio (short for California Managed Accounts Report) is a way to measure the performance of an investment by comparing its average annual return to its worst recent drop, also called maximum drawdown. 

In simple terms, it tells you: “How much reward am I getting for the risk I’m taking?”

• A higher Calmar ratio = better risk-adjusted performance.
  
• A lower Calmar ratio = more risk for less return.
  

This makes it an essential tool for comparing different investment strategies, especially if you’re investing in portfolio management services in India or globally.

How to Calculate Calmar Ratio?

Here is the formula:

What are Risk-Adjusted Returns?

It’s the return you get for each unit of risk you take. Tools like the Calmar measure help you see whether you’re being fairly compensated for the risk involved.

Why Risk-Adjusted Returns Matter?

Everyone loves high returns. But what if you had to endure a 50% drop just to get those gains? That’s not a good deal for most people. This is where risk-adjusted returns shine, they show whether an investment is truly worth it after accounting for the risk.

For example:

• Investment A returns 15% with a max drawdown of 5%.
  
• Investment B returns 20% with a max drawdown of 20%.

The Calmar ratio of A is 3.0 (15 ÷ 5), while B’s is 1.0 (20 ÷ 20). So even though B offers higher returns, A is much safer for each percent of return.

What is Maximum Drawdown?

Maximum drawdown represents the worst peak-to-trough decline in an investment’s value. It captures the potential losses an investor could have faced during difficult market conditions.

An investment with strong average returns but a deep drawdown may not be suitable for investors with low risk tolerance. The Calmar metric directly addresses this concern by including the maximum drawdown in its calculation.

Calmar Ratio vs Other Metrics

Other risk-adjusted return metrics include the Sharpe ratio, Sortino ratio, and RAROC (Risk-Adjusted Return on Capital). However, these often involve standard deviation or complex capital calculations.

What sets the Calmar ratio apart?

• Focuses solely on maximum drawdown, a realistic and intuitive measure of downside risk.
  
• Simple to compute and interpret.
  
• Especially useful for long-term performance evaluations.
  

While RAROC is more commonly used in banking and institutional finance, the Calmar metric is more relevant and accessible for individual investors and for evaluating portfolio management services in India.

Interpreting Calmar Ratio Values

Here is the overview of Calmar metrics:

Calmar Ratio	Interpretation
Above 3.0	Excellent risk-adjusted performance
2.0 – 3.0	Strong and balanced strategy
1.0 – 2.0	Moderate; review volatility
Below 1.0	Weak; returns may not justify risk

When evaluating an investment, especially if planning to invest in PMS, a Calmar ratio above 2.0 is generally considered a strong signal of a well-managed strategy.

Why Calmar Ratio Is Crucial for PMS Investors?

If you plan to invest in PMS, you’re likely looking for higher returns than traditional mutual funds. But these services can involve more aggressive strategies and higher risk. That’s why evaluating a PMS provider’s Calmar is key. It tells you whether their impressive returns come at the cost of stomach-churning volatility or whether they deliver true, stable value.

So before you sign up, ask:

• What’s the Calmar ratio of this PMS strategy?
  
• How did it perform in tough market years?
  

Summary: Smart Investing for Modern Investors

If you’re serious about growing your wealth without losing sleep, the Calmar indicator should be part of your investing toolkit. Whether you’re considering hedge funds, alternative assets, or portfolio management services in India, understanding risk-adjusted returns is non-negotiable.

It helps you:

• Compare investments wisely
  
• Avoid hidden risks
  
• Choose better-performing strategies over time
  

So next time you’re evaluating where to invest your money, don’t just ask “What’s the return?” — ask “What’s the Calmar ratio?”

Read more for expert investor guidance and actionable insights.

• CAGR vs. Volatility: The Two Sides of Every Investment Decision
• Invest in ETFs: Know the Expense Ratio and Hidden Costs
• Concentrated vs. Diversified PMS Strategies: Which Performs Better in Volatile Markets?

In today’s financial markets, many investors invest in ETFs for smart, low-cost wealth building. However, as their popularity increases, one question is typically left behind: What is the true cost of investing in an ETF?

What is an ETF?

An Exchange-Traded Fund (ETF) is an investment that you can purchase a combination of assets such as stocks, bonds or commodities all in one package. It is somewhat like a mutual fund but is traded on the stock market like a standard stock. This feature gives them flexibility and liquidity, which are major advantages for those who invest in ETFs.

What is the Expense Ratio: The Silent Cost

The expense ratio of ETF is one of the most important cost metrics for anyone looking to invest in an ETF. It represents the annual fee that all ETFs charge their shareholders for managing the fund. Expressed as a percentage of assets under management (AUM), this cost typically covers services such as portfolio management, administrative functions, custodial support, legal compliance and audit-related expenses.

What Expense Ratio Means for Investors

The expense ratio is not directly charged to the investors but is taken from the fund’s assets on a daily basis. The deduction leads to a small, incremental decrease in the net asset value (NAV) of the ETF that eats into investment returns over time silently and therefore is referred to as a “silent cost.”

Typical Range and Factors Influencing It

Expense ratios vary widely depending on the type and complexity of the fund:

• Passive ETFs, which simply track a broad market index, usually have very low expense ratios, often between 0.03% and 0.20%.
  
• Actively managed ETFs tend to have higher fees, often in the range of 0.50% to 1.00% or more, due to the increased cost of research, analysis and trading activity.
  
• Sector-specific, thematic, or international ETFs may also have elevated expense ratios due to higher administrative and operational burdens.
  

Example of Cost Impact

If you put INR 1,00,000 into an ETF with an expense ratio of 0.50%, you pay INR 500 a year as fees. While that might seem small for one year, throughout a long investment timeline, the effect snowballs:

• In 10 years, that INR 500 a year can become INR 5,000 in costs alone, excluding the opportunity cost due to less compounding.
  
• An increased expense ratio of 0.75% would cost INR 7,500 over the same interval in the absence of any growth as well as contributions.
  

Why Expense Ratio Matters?

Expense ratios apply no matter how the ETF does, so they represent a certain cost that quietly eats into the returns. Even minute fee differences make a difference with long-term growth, particularly when they accrue over time. Lower expense ratios spare more of your investment profits.

Beyond the Expense Ratio: The True Cost of ETFs

Though popular for being cost-efficient, it is vital that one is aware that the expense ratio is not the only fee that is involved. A more comprehensive grasp of all the fees involved ensures more realistic calculations of expected outcomes.

1. Bid-Ask Spread: The Unseen Transaction Cost: The bid-ask spread is the discrepancy between the price you get when you buy an ETF (ask price) and the price you receive when you sell it (bid price). It is a latent transactional cost, particularly for low-liquidity or specialized ETFs.
   
2. Brokerage Fees: Fees range from zero up to substantial amounts per trade with some brokers. While most platforms now have commission-free ETFs, active traders should continue to monitor these possible costs.
   
3. Tracking Error: Deviation from the Benchmark: Tracking error is the divergence of the fund’s performance from the performance of the underlying index that the fund is tracking. Tracking error arises due to fund structure and fees among other factors.
   
4. Tax Implications: ETFs tend to be more tax-effective because of how they are structured. Nonetheless, investors can still face capital gain taxes in specific situations with actively managed ETFs.

These fees, though less obvious, can add up and influence the effectiveness of your investment plan.

Why Investors are Choosing ETFs

Investors go into ETFs for many reasons:

• Transparency: Holdings are disclosed daily.
  
• Liquidity: Is bought and sold within market hours.
  
• Cost-Effectiveness: Lower expense ratios than actively managed mutual funds.
  
• Diversification: One type of ETF provides access to dozens or even scores of stocks or bonds.

These aspects make it appealing for individuals wanting to invest in an ETF as part of their overall financial strategy.

ETFs and the Best Investment Plan

In the process of selecting the ideal investment scheme, ETFs become the go-to option for both new investors and veterans alike. They are favourable for straightforward inclusion in long-term growth-oriented portfolios as well as balanced portfolios.

For investors looking towards safe investments with superior returns in India, ETFs find a perfect balance between reward and risk when combined with market movements and personal objectives.

Leveraging 9Point Capital for ETF Investments

9Point Capital is changing the way of investing in ETFs using technology and deep financial intelligence. Leveraging smart investment backed by algorithms as well as portfolio intelligence, it is a lean and inexpensive investment strategy.

Perhaps most importantly, it presents clients with direct access into such key factors as expense ratios and the performance of the ETFs.

In Summary

As the financial environment changes, the growth of ETFs represents a turning point towards open and accessible investing. Investors are able to make sounder judgments and get the most out of their investments by monitoring the expense ratio, the charges on an ETF and other fees.

If you’re considering investing in an ETF, don’t forget to account for not only the apparent but the not-so-apparent costs. With reliable platforms such as 9Point Capital, investment plans that target safe return in India, ETFs might just become your path to the ideal investment scheme.

For a more detailed exploration of ETF, you can refer to 9Point Capital’s guide here: How to Invest in ETF in India: A Beginner’s Guide

What is CAGR?

CAGR stands for Compound Annual Growth Rate. It tells you how much your investment has grown on average per year over a certain period.

Think of it like this: If your investment grew steadily each year and reached a certain amount at the end, CAGR is the rate it would need to grow every year to get there.

How to Calculate Compound Annual Growth Rate:

Practical Example:

Suppose you invested $1,000, and after 5 years, your investment grows to $1,500. Your CAGR would be:

What is Volatility?

Volatility shows how much an investment’s price goes up and down over time.

• High volatility = Big swings 
• Low volatility = Small changes 

It tells you how smooth or shaky your investment ride will be.

Importance of Understanding CAGR vs. Volatility

Clearly understanding CAGR vs. Volatility helps investors evaluate long-term growth prospects and the risks associated with achieving this growth. A careful balance between these two metrics is crucial for aligning your investments with your risk tolerance and financial objectives.

Balancing CAGR vs. Volatility for Optimal Investment

• CAGR provides a clear understanding of expected returns over the long term, essential for financial planning and goal-setting.
  
• Volatility highlights the stability or instability of your investment journey. High volatility can potentially deliver higher returns but also introduces significant risk and emotional stress.
  

Example Scenario:

• Investment A: 25% CAGR, High volatility.
  
• Investment B: 8% CAGR, Low volatility.
  

Investment A might attract aggressive investors willing to accept risk for higher returns, whereas Investment B could appeal to conservative investors seeking stable and predictable outcomes.

How Investors Can Apply This Knowledge

• Risk Assessment: Determine your comfort level with fluctuations associated with high-volatility investments.
  
• Strategic Planning: Choose investments whose CAGR aligns with your financial goals, such as retirement, education funding, or wealth accumulation.
  

CAGR vs Volatility: Why Bitcoin Might Just Be Worth It

Imagine you’re planning a road trip.

You have two choices:

• Route A is super smooth — no bumps, but slow.
  
• Route B is a rollercoaster — lots of bumps, sharp turns, but you get to your destination way faster.
  

Most people naturally prefer Route A because it feels safer. But what if I told you Route B, despite being bumpy, gets you to a much bigger, better destination?

In investing, CAGR and Volatility are exactly like these two roads.

• CAGR (Compound Annual Growth Rate) is how much your investment grows every year on average. It’s the final destination.
  
• Volatility is how bumpy the ride is — how much the price swings up and down along the way.
  

Understanding Volatility: Bitcoin vs. Traditional Assets

Here is the comparison:

• Bitcoin (BTC) has a CAGR of 73.71%, which is high.
• NIFTY, India’s top 50 stocks, grows around 10.74% annually.
• The S&P 500 (top US stocks) gives 10.05%.
• Gold grows at 10.38%.

Bitcoin’s volatility is 57.22%, which is significantly higher than NIFTY at 16.59% and Gold at 14.87%. This makes Bitcoin a much more unpredictable investment.

However, higher volatility does not always mean lower returns. Historically, Bitcoin has outperformed traditional assets for those who remained invested over time.

Key takeaway:
Volatility is part of the investment journey. It should be understood and managed, not feared. Long-term discipline often matters more than short-term market movements.

Lesson:
Do not let short-term fluctuations shake your confidence. Focus on the long-term goal. Staying invested can lead to better outcomes than reacting to every bump along the way.

Concluding thoughts

Investors typically favour a higher CAGR due to its indication of solid long-term growth. However, growth alone is insufficient. The journey may be challenging if volatility is significant.

This is why it is crucial to concentrate on risk-adjusted returns, which involve identifying investments that provide strong growth while simultaneously managing the fluctuations.

In summary, comprehending both CAGR and volatility is instrumental in ensuring that you make informed decisions and remain on the path to long-term compounding.

Explore more articles to learn how to invest in Bitcoin ETFs and gain a better understanding of digital assets.

• How to Invest in ETF in India: A Beginner’s Guide
• All You Need to Know About DAIS by 9Point Capital
• Bitcoin ETF in Investment Portfolio: Guide to Modern Investors

The answer, like most things in investing, depends on your goals, risk appetite and time horizon. Let’s explore concentrated vs. diversified portfolios and both the strategies in detail to understand which PMS investment style holds up better when markets turn volatile.

Understanding Concentrated vs Diversified Portfolios

At the core of every investment approach lies a strategic decision: concentrated vs diversified portfolios.

A concentrated portfolio involves investing in a small number of securities, typically 10 to 30, based on deep conviction and rigorous research. In contrast, a diversified portfolio distributes investments across a larger set of securities, sectors, or even geographies, seeking to minimise the impact of individual stock volatility.

Both concentrated and diversified strategies have merit. Choosing between them is not about finding a universally “better” option but selecting the right fit for your investment needs and risk tolerance.

Concentrated Portfolios: Fewer Bets, Higher Potential

Concentrated portfolios can deliver impressive results when executed skillfully. Here’s why they appeal to many seasoned investors:

• Focused Expertise: Fund managers allocate capital only to their best ideas, aiming to achieve superior returns.
  
• Higher Upside Potential: A few strong-performing stocks can dramatically lift the overall portfolio’s performance.
  
• Ease of Monitoring: Fewer holdings mean greater ability to track business developments closely.
  

However, concentration increases portfolio volatility. If even one or two major investments underperform, the entire portfolio can suffer significantly. In volatile times, unless the portfolio consists of resilient, quality companies, concentration can expose investors to sharp drawdowns in terms of price and time.

Diversified Portfolios: Spreading Risk for Steady Growth

Diversification, often described as the only “free lunch” in investing, plays a vital role in mitigating risk. Here’s why diversified portfolios continue to be favoured by many:

• Risk Reduction: By spreading investments across sectors and asset classes, diversification cushions against specific stock or sector downturns.
  
• Consistent Returns: Diversified portfolios tend to deliver more stable returns, especially across market cycles.
  
• Protection Against Unpredictability: Unexpected events impacting a single company or sector have a limited effect on a diversified portfolio.
  

Diversification may reduce the chances of achieving “blockbuster” returns, but it significantly improves the likelihood of meeting long-term wealth creation goals with lower volatility, especially important for those seeking safe investments with high returns in India.

Still, over-diversification can dilute returns. Holding too many low-conviction stocks can reduce the chances of meaningful outperformance, a phenomenon known as “diworsification.”

Volatile Markets: Which Strategy Holds Stronger?

In volatile markets, the choice between concentrated vs diversified portfolios becomes even more critical.

• Concentrated Portfolios can outperform dramatically if the chosen investments are resilient and continue to grow despite turbulence. However, they are also more vulnerable to shocks if even one major holding underperforms.
  
• Diversified Portfolios typically weather volatility better. Losses in one sector are balanced by gains elsewhere, leading to smoother portfolio performance overall.
  

Ultimately, the success of either strategy depends not just on market conditions but on the manager’s ability to select and monitor investments effectively. This is why identifying key performing PMS strategies in India, whether concentrated or diversified, becomes essential when investing through portfolio management services in India.

Read more: Digital Assets Investment Service (DAIS) by 9Point Capital

Key Factors to Consider Before Choosing Your Portfolio

When evaluating PMS investment options, investors should consider:

1. Risk Tolerance: Aggressive investors with a high-risk appetite may lean toward concentrated strategies. Conservative investors typically prefer diversification.
   
2. Investment Horizon: Longer horizons favour concentrated portfolios, as time allows investments to play out. Short-term investors may prefer the stability of diversified portfolios.
   
3. Fund Manager Expertise: A skilled manager can make either strategy work. Look for consistency, research strength and performance during past volatile periods.
   
4. Financial Goals: Align the strategy with your broader wealth creation, retirement, or income needs.

A Hybrid Approach: The Best of Both Worlds?

Interestingly, some of the top-performing PMS strategies in India blend both philosophies. They maintain concentration in high-conviction themes while ensuring a basic level of diversification to protect against idiosyncratic risks.

9Point Capital specialises in creating customised PMS solutions that combine the best of both worlds, focused high-conviction opportunities alongside strategic diversification. The goal is to deliver safe investments with high returns in India while optimising risk-adjusted performance for the clients.

Conclusion

There’s no universal winner in the concentrated vs. diversified portfolios debate. Concentrated strategies can outperform with conviction and patience, while diversified portfolios offer stability through market cycles.

The right choice depends on your goals, risk appetite, and investment outlook. With expert PMS guidance in India, you can align strategy with purpose.

Ultimately, it’s about optimising risk-adjusted returns. Diversification helps cushion downside risk, while concentration can reward informed conviction. In a volatile world, thoughtful allocation is key to long-term wealth creation.

If you’re a beginner wondering where to start, this guide breaks it all down on how to invest in ETFs, which ones to choose and why they may be perfect for your long-term investment goals.

What is an ETF?

An ETF (Exchange-Traded Fund) is a fund that holds a diversified portfolio of assets like stocks, bonds or commodities and trades on stock exchanges like any other equity share. Think of it as a hybrid between a mutual fund and a stock, offering diversification with the flexibility of trading.

Why Invest in ETFs?

When you invest in ETFs, you get:

• Low Cost: Minimal expense ratios compared to mutual funds
  
• Diversification: Broad exposure to markets or sectors
  
• Transparency: Daily disclosure of holdings
  
• Liquidity: Can be bought or sold throughout the trading day
  
• Ease of Access: Invest with as little as the price of one ETF unit
  

These features make ETFs attractive for those looking for safe investments with high returns in India without active fund management.

Types of ETFs in India

Understanding the variety of exchange-traded funds (ETFs) available can help investors build a well-aligned and diversified portfolio. Here’s a concise overview:

Digital Asset ETFs: These provide exposure to regulated digital assets like U.S.-listed Bitcoin ETFs. Ideal for long-term diversification, they can be accessed through India’s GIFT City framework or under the Liberalised Remittance Scheme (LRS).

Index ETFs: Track major benchmark indices such as the Nifty 50 or Sensex. Suitable for investors seeking broad market exposure at a low cost.

Sectoral ETFs: Offer targeted exposure to specific sectors like banking, IT, or pharmaceuticals. Useful for expressing a thematic or tactical view.

Gold ETFs: Backed by physical gold, these are often used as a hedge against inflation and macroeconomic uncertainty.

Debt ETFs: Invest in fixed-income instruments such as government or corporate bonds. Designed for conservative investors seeking stable returns.

International ETFs: Provide access to global indices like the Nasdaq 100 or S&P 500, allowing Indian investors to diversify beyond domestic markets.

Smart Beta ETFs: Combine passive investing with factor-based strategies such as value, momentum, or low volatility to optimise risk-adjusted returns.

How to Invest in ETFs in India

Choose a trusted platform like 9Point Capital to access a wide range of ETFs, including regulated digital asset ETFs such as U.S. listed Bitcoin ETFs. Here’s how to get started:

1. Define Investment Objectives
Start with a one-on-one discussion with our advisory team to define your financial goals, risk profile and investment preferences. This step helps to build a foundation tailored specifically to you.

2. Open an Investment Account
Set up the appropriate account based on investment preferences. This could include:

• A domestic brokerage account for Indian-listed ETFs
  
• A GIFT City account for tax-efficient access to global markets
  
• An international account under the Liberalised Remittance Scheme (LRS) for exposure to U.S. listed ETFs, including digital asset options
  

3. Execute Investments Securely
Begin allocating funds into carefully selected ETFs via regulated platforms like 9Point Capital. Experience smooth execution backed by compliance, transparency and institutional-grade security.

ETF vs Mutual Fund: A Quick Comparison

Here is the vital difference between ETFs and mutual funds:

Feature	ETFs	Mutual Funds
Trading	Real-time	End-of-day NAV
Expense Ratio	Low	Moderate
Minimum Investment	Price of 1 unit (as low as 10rs)	Usually ₹100–₹5,000
Liquidity	High	Moderate
Transparency	Daily holdings	Monthly/quarterly holdings

If you prefer control, low cost and flexibility, invest in ETFs.

Common Mistakes to Avoid

• Ignoring ETF liquidity
  
• Overweighting one sector or theme
  
• Not reviewing tracking error
  
• Investing without a long-term view
  
• Misunderstanding ETF taxation
  

Are ETFs Safe Investments with High Returns in India?

ETFs that track indices like Nifty 50 or Sensex and also digital assets like Bitcoin, Ethereum are considered relatively safe and historically provide 10–12% annualised returns over time. While all market instruments carry some risk, ETFs offer a balanced approach to building wealth, making them attractive investment plans with high returns for risk-aware investors.
Read more: How to safeguard your portfolio with ETFs

ETF Taxation in India

Here is the breakdown of various ETF taxation in India:

Type of ETF	Holding Period	Tax Treatment
Digital Asset ETFs (Bitcoin ETFs)	Less than 3 years	Taxed as per individual income tax slab
	More than 3 years	12.5% Long-Term Capital Gains (LTCG) with indexation
	TCS (LRS)	20% Tax Collected at Source on remittances above ₹10 lakh (claima)
	TDS	Not applicable (unlike direct crypto investments)
	Access	Via LRS through GIFT City–based platforms
Equity ETFs	Less than 1 year	20% Short-Term Capital Gains (STCG)
	More than 1 year	12.5% LTCG with Exemption for gains of up to Rs.1.25 lacs.
Debt ETFs	Less than 3 years	Taxed as per individual income tax slab
	More than 3 years	Taxed as per individual income tax slab
Gold ETFs	Less than 3 years	Taxed as per individual income tax slab
	More than 3 years	12.5% LTCG with indexation

Conclusion: Should You Invest in ETFs?

If you’re seeking transparency, low cost, liquidity and exposure to market indices, invest in ETFs. They’re ideal for beginners and experienced investors looking to create a reliable, diversified investment plan with high returns. In an ever-evolving financial landscape, ETFs stand out as a brilliant tool for long-term investment success. Digital assets like Bitcoin ETF hit the sweet spot for long-term, disciplined investing with liquidity. Reach out to 9Point Capital to explore curated portfolios, GIFT City investment options and a global access platform.

We at 9Point Capital are making it easier for investors by simplifying regulatory complexities and leveraging advanced technology to make digital investments accessible. But why should you consider adding Bitcoin ETFs to your portfolio? Let’s explore. 

The Evolution of Bitcoin ETFs

Bitcoin was once seen as a speculative asset, but the landscape has changed dramatically. Institutional investors, large fund houses and even governments have started acknowledging its potential as an attractive asset class. The introduction of U.S. regulated Bitcoin ETFs has further legitimized Bitcoin as a viable addition to a diversified portfolio.

Key Institutional Milestones

• BlackRock, Fidelity and Vanguard have launched Bitcoin ETFs, bringing credibility to the asset.
• Companies like MicroStrategy and Tesla have integrated Bitcoin into their corporate treasury strategies.
• Countries like the U.S., UAE and Singapore have created regulatory frameworks to integrate Bitcoin into financial systems.

Portfolio Diversification with Bitcoin ETFs

Diversification is the foundation of risk-adjusted investing. Traditional portfolios rely on a mix of stocks and bonds, but Bitcoin ETFs provide an alternative asset class with a low correlation to traditional markets.

For instance,

• Portfolio 1 (Traditional): 60% stocks, 40% bonds
• Portfolio 2 (Bitcoin ETF-Enhanced): 65% stocks, 30% bonds, 5% Bitcoin ETF

Historically, Bitcoin has shown strong asymmetric returns, meaning that a small allocation can enhance overall portfolio performance while managing downside risks.

Bitcoin ETF vs Traditional Markets

Bitcoin ETFs have consistently outperformed traditional assets, delivering exceptional returns with a secure investment structure.

Bitcoin ETF vs. Traditional Markets: 1 Year Performance

 Source: TradingView

Is Bitcoin ETF Right for Your Portfolio?

With inflation concerns, diversification benefits and institutional validation, Bitcoin ETFs are an attractive investment. But how should you approach it?

Actionable Takeaways for Investors:

• Start Small: If you are new to Bitcoin ETF, consider starting with a small percentage of the portfolio, say 2-5%.
• Stay Informed: Stay updated on Bitcoin ETF news and market trends to make informed decisions.
• Diversify: Combine traditional assets with Bitcoin ETFs to balance the portfolio.

How 9Point Capital Simplifies Bitcoin ETF Investing

Managing Bitcoin ETF investments requires expertise, regulatory clarity and security. 9Point Capital, India’s first Digital Asset Investment Service (DAIS), provides:

• Smooth access to regulated Bitcoin ETFs
• Security backed by SIPC insurance and institutional-grade custody
• Tax-efficient investing through India’s GIFT city framework
• Expert portfolio management to optimise risk-adjusted returns

With 9Point Capital, investors can confidently integrate Bitcoin ETFs into their portfolios without regulatory or technological hurdles.

Conclusion: Should Bitcoin ETF Be Part of Your Portfolio?

Bitcoin ETFs have become an important addition to modern investment portfolios. They offer diversification, potential for strong returns and exposure to a growing asset class. For HNIs, UHNIs and professional investors, including Bitcoin ETFs in a portfolio today can provide long-term benefits and reduce overall risk.

Invest with Us

In 2025, a unique opportunity arises to capitalise on Bitcoin ETFs, tokenised assets and stablecoins while leveraging India’s regulatory frameworks, such as GIFT City. Here’s how you can strategically invest in digital assets for long-term growth.

1. Bitcoin ETFs: A Regulated Pathway to Digital Assets

Indian investors can now access regulated financial instruments that provide exposure to the digital asset class, since Bitcoin ETFs have been approved in major international countries. By investing in Bitcoin ETFs through the Liberalised Remittance Scheme (LRS), Indian investors can take advantage of the security of traditional markets without having to deal with the hassles of direct Bitcoin ownership.

Key Advantages:

• Institutional-grade security and regulation.
• Easy entry and exit through stock exchanges.
• SIPC-insured custody for investor protection.

2. Tokenised Assets: The Next Frontier

Tokenization of real-world assets (RWAs) is revolutionising investment opportunities. By converting tangible assets such as real estate, commodities and fine art into blockchain-based tokens, investors can benefit from enhanced liquidity, fractional ownership and global accessibility.

Why Invest in Tokenized Assets?

• Fractional ownership lowers capital barriers.
• Blockchain ensures transparency and efficiency.
• Diversification across multiple asset classes.

3. Stablecoins: A Smart Protection Against Volatility

Stablecoins, attached to traditional fiat currencies like the USD, offer Indian investors a low-volatility digital asset alternative. They can be used for cross-border transactions, yield generation and as a hedge against INR depreciation.

Investment Strategies:

• Earn yield through regulated platforms offering stablecoin staking.
• Utilise stablecoins for cost-effective global transactions.
• Park funds in stablecoins to hedge against currency fluctuations.

4. GIFT City: India’s Tax-Efficient Digital Asset Hub

GIFT City (Gujarat International Finance Tec-City) is developing as India’s premier gateway for offshore digital asset investments. 9Point Capital provides structured solutions to help investors leverage GIFT City’s tax benefits and regulatory advantages for wealth creation.

Benefits of GIFT City for Digital Asset Investors:

• Tax advantages: No capital gains tax on offshore investments.
• Seamless access to international markets.
• Effective regulatory framework ensures investor protection.

5. Building a Profitable Digital Asset Portfolio

A well-structured investment strategy can maximise returns while managing risks. Here’s a recommended allocation for 2025:

• 40% Bitcoin ETFs – Core long-term investment.
• 30% Tokenized Assets – Exposure to high-growth alternative investments.
• 20% Stablecoins – Liquidity and yield opportunities.
• 10% Emerging Digital Assets – Select exposure to innovative digital instruments.

6. Navigating Regulatory Compliance

Indian investors must adhere to compliance norms under RBI and SEBI regulations. Using the LRS route and regulated offshore accounts ensures smooth and legally compliant investments.

Checklist for Compliance:

• Register investments under LRS.
• Choose regulated investment platforms.
• Maintain transparency in tax filings.

Final Thoughts

2025 will be a defining year for digital asset investments in India. With structured access to Bitcoin ETFs, tokenized assets and stablecoins, Indian investors can unlock new wealth-creation avenues. 9Point Capital provides expert guidance and institutional-grade investment solutions, ensuring a secure and tax-efficient gateway to digital asset investments for HNIs and UHNIs.

Are you ready to diversify your portfolio with digital assets? 9Point Capital is here to help you navigate with strategic investment solutions designed for long-term growth. Contact to explore the best investment opportunities for 2025.

Invest with Us

This guide explores the different types of Portfolio Management Services, their unique characteristics and helps you determine the best PMS provider for your investment journey.

What is Portfolio Management Services (PMS)?

Portfolio Management Services (PMS) is a professionally managed investment service designed specifically to discerning investors. Unlike mutual funds, PMS provides direct ownership of securities and customised investment strategies tailored to your individual financial goals, risk appetite and market outlook.
Broadly, there are three types of PMS services:

• Discretionary PMS
• Non-Discretionary PMS
• Advisory PMS

Let’s explore each type in detail.

1. Discretionary PMS

In Discretionary PMS, the professional portfolio manager has complete control over investment decisions. The investor delegates full responsibility for buying and selling securities based on market research, the investor’s risk profile and financial goals.

Who Should Opt for Discretionary PMS?

• Investors seeking a fully hands-off, professionally managed portfolio.
• HNIs and UHNIs aiming for long-term wealth creation without frequent personal intervention.
• Investors who prefer swift, expert decision-making to capitalise quickly on market opportunities.

Pros:

• Expert professional management with minimal investor involvement.
• Strategies based on deep market analysis and comprehensive research.
• Ideal for investors targeting sustainable, long-term alpha returns.

Cons:

• Investors have less control over individual investment choices.
• Performance relies entirely on the portfolio manager’s expertise.

2. Non-Discretionary PMS

In Non-Discretionary PMS, the portfolio manager provides investment strategies and expert recommendations, but the final investment decision rests entirely with the investor. Execution occurs only after investor approval.

Who Should Opt for Non-Discretionary PMS?

• Investors who prefer active participation in investment decisions while leveraging professional insights.
• HNIs and UHNIs with significant market knowledge who prefer advisory guidance along with personal decision-making power.
• Those looking for a balanced approach between professional analysis and personal investment philosophy.

Pros:

• Investor maintains control over final investment decisions.
• Access to professional market research, analysis and insights.
• Flexibility to align investment strategies closely with personal objectives.

Cons:

• Requires investors’ time commitment and solid market expertise.
• Potential delays in decision-making may lead to missed market opportunities.

3. Advisory PMS

Advisory PMS provides purely advisory services. The portfolio manager offers customised, research-backed investment recommendations, but all execution responsibilities lie solely with the investor.

Who Should Opt for Advisory PMS?

• Highly experienced investors preferring complete autonomy over investment execution but requiring expert input.
• HNIs and UHNIs who already have an in-house financial team but seek specialised recommendations for strategic investment decisions.
• Investors seeking a cost-effective portfolio management solution without sacrificing decision-making authority.

Pros:

• Complete autonomy over the investment execution process.
• Access to expert, research-based customised recommendations.
• Lower management fees compared to Discretionary or Non-Discretionary PMS.

Cons:

• Investors bear complete responsibility for execution, requiring time and considerable expertise.
• Not ideal for investors seeking a hands-off investment approach.

How to Choose the Best PMS for Your Investment Goals?

Selecting the best Portfolio Management Service provider depends on several crucial factors:

1. Investment Knowledge & Experience

• Beginners or passive investors might prefer Discretionary PMS for professional management.
• Experienced investors often choose Non-Discretionary or Advisory PMS to retain more control.

2. Risk Appetite & Financial Goals

• For long-term, hands-off wealth creation, choose Discretionary PMS.
• If balancing risk management and control is a priority, Non-Discretionary PMS is suitable.
• For active decision-makers who are risk-conscious, Advisory PMS is best.

3. Time Commitment

• Busy professionals and business owners with limited time often prefer Discretionary PMS.
• Investors enjoying personal research and direct involvement should consider Non-Discretionary or Advisory PMS.

4. Trust in Fund Manager vs. Personal Control

• Trust professional fund managers completely? Choose Discretionary PMS.
• Prefer hands-on investment management? Non-Discretionary or Advisory PMS will suit you better.

Final Thoughts: Finding the Right PMS Provider

Selecting the ideal type of Portfolio Management Services is vital for aligning investment strategies with your personal goals, investment philosophy and lifestyle. At 9Point Capital, we offer digital asset Portfolio Management Services designed explicitly for HNIs and UHNIs investors. Our offerings include secure, transparent and tax-efficient solutions with global access and alpha-driven strategies that optimise your portfolio performance.

Ready to choose the best PMS for your financial goals?

For digital assets, think of DAIS as your own wealth concierge, including professional Portfolio Management Services (PMS), institutional-grade investing techniques and tax optimisation for regulated securities. HNIs, UHNIs and professional investors may invest in digital assets and Bitcoin ETFs using DAIS just as easily as they might with traditional asset management. 

Why DAIS? A New Era of Digital Asset Investing

Most platforms simply provide access to digital assets. DAIS does more. It delivers structured, institutional-grade investment solutions for discerning investors.

1. Smart Onboarding & Personalised Strategy

• Start with an in-depth consultation to align investments with your wealth goals.
• Gain seamless exposure to Bitcoin ETFs, Stablecoins and Tokenized Assets.

2. Regulated & Secure Investments

• SIPC-insured ETF holdings protect investments up to $500,000.
• Advanced risk management mitigates volatility and optimises returns.

3. Tax Efficiency Through GIFT City

• Structured for tax efficiency under India’s GIFT City framework.
• Maximise post-tax returns without regulatory uncertainty.

4. Alpha Performance & Continuous Optimisation

• Portfolios are dynamically rebalanced to seize new opportunities.
• Expert-driven strategies target superior, risk-adjusted returns.

A Smarter Approach: The DAIS 4-Step Investment Strategy

DAIS follows a simple, structured approach to help you invest with certainty.

Step 1: Smart Onboarding
Start with a tailored consultation to understand your goals and risk profile.
Step 2: Intelligent Portfolio Design
Gain diversified exposure to Bitcoin ETFs, Stablecoins and Tokenized Assets.
Step 3: Secure Execution
Invest through a fully regulated, SIPC-insured framework, ensuring compliance and security.
Step 4: Alpha Optimisation
Continuous monitoring and strategic rebalancing maximise long-term growth.

Myth vs. Reality: The Truth About Digital Asset Investing

Myth: Bitcoin investing is too volatile.
Reality: DAIS invests in regulated Bitcoin ETFs, reducing risk while ensuring market exposure.

Myth: Digital assets lack institutional security.
Reality: DAIS portfolios are SIPC-insured up to $500,000 and managed with institutional-grade risk controls.

Myth: Digital asset taxation is unclear.
Reality: DAIS operates within India’s GIFT City framework, optimising tax efficiency.

Understanding DAIS’s Transparent Fee Structure

DAIS by 9Point Capital believes in a performance-driven model that aligns with investor success:

• Upfront Management Fee → Covers dedicated portfolio strategy & management.
• Performance-Based Incentive → 20% performance fee applies only to profits exceeding a 12% hurdle rate.
• Exit Load for Early Redemptions → Withdrawals within 1-3 years incur an exit load of 1-3%, ensuring long-term portfolio stability.

The Future of Investing Starts with DAIS

DAIS by 9Point Capital is redefining Bitcoin ETFs and digital asset investing, seamlessly combining security, regulatory clarity, tax efficiency through GIFT City. With institutional-grade risk management, SIPC-insured holdings, dynamic investment strategies, DAIS is designed to optimise portfolios for long-term growth and alpha performance.

If you’re an investor looking to optimise your digital asset strategy, connect with DAIS today and step into the future of financial growth.

Click here to know more.