How does Sqrrl select the Best SIP recommendations for you?

How does Sqrrl select the Best SIP Recommendations for you?

One of the primary principles of our team is to be guided by YOU and YOUR NEEDS. Everything should be the way you want it. Every action we take, it’s keeping in mind your personalised circumstances, needs and preferences. One of our main offerings – SIP or Systematic Investment Planning follows the same process. With SIP, we motivate our users to invest gradually at a regular interval, and reach their goals  step by step. Moving forward, we will shed some light on how we select the best SIP plans for you.

Handpicking the Best Fund Recommendations for your SIP

Handpicking Best SIP Plan Recommendations

Our team works day in and out, to give you the best investment options based on your risk preference and time horizon. We employ an elaborate research framework and go through a list of over 1,000 schemes to offer you the absolutely finest recommendations. Our process is divided into mainly 3 parts. 

Your Risk profile - SIP recommendation

Your Risk Profile – Best SIP Plan Recommendation

While choosing the perfect scheme for you, the first factor that we take into consideration is your risk profile. An investor with a higher risk tolerance will be willing to invest in small cap, and mid cap funds while someone who hates taking risks in the market will be better off if he/she invests in large cap and multi cap funds.

We understand that and try to allocate funds based on personalized preference of every investor. Every investor is unique and is driven by different ideas and goals. We celebrate that uniqueness and take it into account while making every SIP recommendation. 

Qualitative factors - SIP recommendation

Qualitative Factors – Best SIP Plan Recommendation

After we see your risk profile, we go hunting for the best SIP plan schemes in our database. Initially, there are thousands of schemes to pick from but after a round of risk profiling, we are left with a few hundreds. This is when we check the quality of these schemes. Here’s how:

Fund House

It is important to know the reputation of the fund house – when was it established, how has it evolved and performance history. Credibility is the first factor that we need to take care of here. We know that sensible investors won’t trust any Tom, Dick and Harry with their money. Only after we make sure that the fund house has a good relationship history with it’s investors, that we push the scheme selection further in it’s direction. It should be consistent in keeping its promises to the investors.

Fund Manager

Fund manager is the person in charge of managing the investments of the fund scheme. He/She decides where the money of the investors is invested. That means, the fund manager will decide if the money goes into the technical, mining, educational, petroleum, healthcare or any other sector. He allocates the money in such a way that the returns received by the investors are maximised.  

Being the “brains” behind all the fund operations, it is wise to say that it is the responsibility of the fund investor to keep the investor’s money rising and floating. If the fund under-performs, he/she is the person who can make the changes and refuel the whole fund management operation. An experienced, reliable and consistent fund manager is hence, an important consideration before picking a fund scheme for you.

Quantitative factors - SIP Recommendations

Quantitative factors – Best SIP Plans Recommendation

After checking the quality of the fund house, the experience and the performance record of the manager, we take a peek into the numbers. Yes, the reputation of the fund house should be backed by hard core facts, and statistics, based on returns and fund performance. Here’s what we do:

Performance- Point to Point and Rolling Returns

What is the whole point of investing? Obvious, isn’t it? It is to generate returns – as high returns as possible. This is the point where we see how much returns a fund is capable of generating over a particular time period. Again, we keep in mind that you have a certain risk preference, and take care to invest the money in accordance with that. High risk funds generate high returns while lower the risk, lower the return on investment. We check the historical performance of the fund to gauge if we should recommend it to you or not.

Risk Return Ratios 

Other than the returns generated by a particular fund, we investigate the other technical factors involved. It includes the expense ratio, the standard deviation, the AUM (Asset Under Management), beta, the sharpe ratio, the sortino ratio, treynor ratio  etc.

After putting over a hundred schemes through these technical funnels, we are left with the 20-25 premier funds, suitable for a particular investor. This is the final step of our SIP selection process.

This 3 step journey is our whole method of the “Best SIP Plan Recommendation for your SIP”. Trust us, to guide you to your dreams and goals in the fastest way possible. Be it saving for your dream car/bike, or for your kid’s education/marriage, or even your own retirement – you can start a SIP today and steadily achieve all your big life goals. You can start investing in a SIP right here.

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Written by

Priyanshi Bhardwaj