Mars SWP: Portfolio

MARS SWP PORTFOLIO
Large number of investors look forward to Systematic Withdrawal Plan (SWP) in Mutual
having stable monthly income from sources Funds is a much better option which takes
apart from their primary income source. care of regular income. SWP's offer regular
Retired people are solely dependent on cash flows automatically credited to investors
monthly income from a stable source for their bank account plus capital appreciation in the
livelihood. Such investors primarily invest in investment over and above the withdrawals.
Bank FD’s/Debt oriented products or in Real But many a times investors are perplexed,
Estate to generate regular income through which funds to chose for SWP? What will
interest or rent. Off late, interest rates have happen if market falls drastically? Will my
dropped significantly to levels around 5%, if monthly income continue? Will my capital
we consider taxation impact, the yields fall remain intact?
further down to the 4% range. The Real Estate To answer all these issues, we are launching
Market has also remained sluggish and rental the MARS SWP Portfolio.
yields are only in the lowly range of 2-3%,
along with high maintenance costs.
WHAT IS
MARS SWP PORTFOLIO?
MARS SWP portfolio is specially designed to invest money in a mix of good performing
Aggressive Hybrid funds along with a Debt fund. The Hybrid Fund ensures you get a better
return with lower risk, while all your withdrawals happen from the Debt fund on a monthly
basis thereby not impacting your Hybrid Fund Units. The portfolio gets rebalanced annually,
wherein non performing schemes are replaced with good performing ones, thus ensuring you
always stay invested in better performing schemes. Also, the Debt fund gets replenished
annually, so that your monthly withdrawals continue unabated.
HOW DOES MARS SWP

PORTFOLIO WORK ?
Investors can get regular SWP by investing in MARS SWP Portfolio
The Min. Portfolio Value to Start SWP is Rs. 3 Lakh
The SWP amount will be limited to 7% per annum based on the Portfolio Value.
Ex - For a Portfolio of Rs. 12 Lac, the max SWP amount can be Rs. 7,000 per month
90% of the Portfolio will be invested in Aggressive Hybrid Funds
10% of the Portfolio will be invested in Debt Fund
Monthly SWP will happen through redemption of investment in Debt Fund only. No
redemption will be done from other Funds
Debt Fund will be replenished annually during the rebalancing cycle
The SWP will stop automatically if the balance in Debt Fund goes down to Nil or less than
the Installment Amount.
WHAT ARE THE
BACK TESTING RESULTS?
We have done extensive backtesting on this format and the results have been fantastic.
MARS SWP 5 YEAR ROLLING 10 YEAR ROLLING

NO OF OBSERVATIONS 41 21
INVESTMENT AMOUNT (Rs.) 3,00,000 3,00,000
TOTAL WITHDRAWAL (Rs.) 1,05,000 2,10,000
AVERAGE RETURN (%) 11.3 11.0
AVERAGE VALUE (Rs.) (Excl Withdrawals) 3,78,163 4,92,613
MAXIMUM RETURN (%) 17.2 15.7
MAXIMUM VALUE (Rs.) 5,03,284 8,18,659
MINIMUM RETURN (%) 1.8 7.1
MINIMUM VALUE (Rs.) 2,18,924 2,96,329
NO OF OBS WITH RETURN < 7% 7 0
NO OF OBS WITH VALUE < 3 LAKH 7 1
Period - Mar 06 to Mar 21 (15 Yrs) Rolling Frequency - Quarterly

Monthly SWP @7% From Debt Fund, Annual Rebalancing. As on 31 Mar 21
As can be seen from the table above, the average returns to the investors on rolling 5 years
and 10 years basis have been above 11% (including withdrawals). Not only have the investors
enjoyed regular monthly income, their capital has also appreciated reasonably. On the
minimum side, over a 5 year period, there have been 7 instances, where the capital has
dipped below the investment threshold, however with increase in tenure to 10 years, that
number too has dwindled to 1. Simply put the probability of loss of capital goes down from
17% to less than 5% with the longer term duration.
If we compare the performance of this portfolio with a portfolio having only balanced funds
and monthly withdrawal from Balanced Funds. The difference in average returns is almost
negligible at 0.1%, however in the downside, the portfolio value is lower by 7% and 10% on a
5 and 10 year basis than the portfolio having debt allocation. So, the backtesting data proves
that the 10% Debt allocation model adopted by MARS SWP portfolio saves the downside risk
significantly while not compromising on the returns on the upside.
100% Balance Fund Portfolio with Monthly SWP from Balanced Funds
MARS SWP 5 YEAR ROLLING 10 YEAR ROLLING

AVERAGE RETURN (%) 11.4 11.1
AVERAGE VALUE (Rs.) (Excl Withdrawals) 3,81,698 5,00,061
MINIMUM RETURN (%) 0.7 6.4
MINIMUM VALUE (Rs.) 2,03,674 2,67,282
NO OF OBS WITH VALUE < 3 LAKH 7 1
The investors should ideally invest for a longer term horizon and refrain from checking their
portfolio values at a regular basis. Their monthly income is assured through the SWP route. In
the short term, the portfolio value may go up and down depending on market movements but
that does not affect their monthly withdrawals in the first place, also the superior selection
process of MARS ensures better returns over the long term. The only discipline required from
investors for best results is to complete the annual rebalancing process, which just takes few
clicks to complete once a year. Also, no redemptions whatsover, should be made from the
debt scheme in the portfolio otherwise than the SWP as it might impact the overall portfolio
performance. A simple, disciplined approach from the investor is the simple requirement for
getting best results from the investments in MARS SWP Portfolio.
CURRENT PORTFOLIO
Sr No Scheme Name Allocation (%)
1 Canara Robeco Equity Hybrid Fund - Gr 22.5
2 DSP Equity & Bond Fund - Gr 22.5
3 Kotak Equity Hybrid Fund - Gr 22.5
4 SBI Equity Hybrid Fund - Gr 22.5
5 Aditya Birla SL Money Manager Fund - Gr 10
HOW TO INVEST?
Step 1: Investor makes purchase in MARS SWP portfolio through fresh purchase or Switch
Step 2: Once the purchase transaction is completed, investor initiates SWP registration using
SWP registration module on the E Wealth Account (Path: MARS > Transaction > SWP
Registration)
Please note that SWP will be registered separately only and not at the time of purchase in the
portfolio.
CAN I TRANSFER MY EXISTING INVESTMENTS TO

MARS SWP PORTFOLIO?
Yes, You can. While making a purchase in MARS SWP portfolio, you can chose to add fresh
money or switch existing schemes or do both together. You can also contact your NJ Partner
to guide you in this process in a better way.
CAN I TRANSFER MY EXISTING MARS PORTFOLIO TO

MARS SWP PORTFOLIO?
Yes, you can. Your NJ Partner will guide you through the process of shifting from existing
MARS portfolio to MARS SWP Portfolio.
Disclaimer: The figures/projections are for illustrative purpose only. The situations/results may or may not materialise in future.
Mutual Fund investments are subject to market risk, Read all scheme related documents carefully. Past performance may or may
not be repeated in future. Please read the offer document carefully before investing in any scheme.

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MARS SWP PORTFOLIO

HOW DOES MARS SWP

MARS SWP 5 YEAR ROLLING 10 YEAR ROLLING

Period - Mar 06 to Mar 21 (15 Yrs) Rolling Frequency - Quarterly

MARS SWP 5 YEAR ROLLING 10 YEAR ROLLING

CAN I TRANSFER MY EXISTING INVESTMENTS TO

CAN I TRANSFER MY EXISTING MARS PORTFOLIO TO

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