Maximize your mutual fund investments with Tortuga’s Turtle method of investing

For new investors, getting started and then developing an appreciation to invest with purpose – there is no better roadmap towards long term prosperity.

Many experienced investors, however, recognize that Investing is an emotional journey, and they value support from advisors to help them be more disciplined, thus successful.

Meant primarily for DIY and discerning investors, Moneycontrol and Tortuga Wealth Managers hosted a webinar-‘Diving Deep with Turtle’- meant to provide investors with a different philosophy to manage this risk. Kushal Bhagi, Co-Founder of Tortuga Wealth Managers, talks about how investors can now avail quant techniques to seek enhancement risk adjusted performance of their long term investments.

The Turtle Method

During the engaging webinar, Bhagi in conversation with Sumaira Abidi, CNBC-TV18, spoke about two main problems affecting investors - inefficient investing strategies and portfolios with expensive funds. He also stressed on the ‘buy-and-hold’ approach to investing, and that remaining invested for the long-term did not necessarily equate to being fully invested all the time! As per Bhagi, the HNI data taken from AMFI suggests that more than 50% of the folios do not even last for two years. This is mostly because investments are driven by emotions which leads to inefficient decision-making.

Hence, investors need to manage their risks better which can be done with the help of strategies such as the Turtle, which is a quant-based, dynamic asset allocation strategy that switches between equity and debt funds of the same AMC, seeking to enhance risk-adjusted performance of mutual funds. Stressing on the need to leverage data, he said, “It's important to look at patterns, create a rule-book around it and have the ability to execute the rule-book. Your decision-making framework should be absolutely free from human bias and emotions.”

Bhagi further explained the Turtle methodology protects capital during the risky valuations by moving out of equity (to liquid funds) and moving back in when probabilities for success are higher. This offers a diversified option to Buy-and-hold, which on the other hand, is a passive approach that bears all the ups and downs on the market. By an interaction between the mean reverting valuations and market momentum (tendency of a pattern to move towards the trend), Tortuga leverages the use of data to help ensure that the decision to stay in the market for a longer duration is rewarded with returns that are commensurate to the efforts taken by the investor.

Meanwhile, he also explored the topic of active vs passive funds, while elaborating on ETFs and index funds as the underlying for their strategy.

 Watch the full webinar here

Moneycontrol journalists were not involved in the creation of the article