Why does sequence risk matter more than average returns?

Sequence risk matters because market crashes often coincide with investor panic, leading to poor timing and significant losses. The article highlights that 18.5% CAGR vs 8.5% CAGR gap isn't due to luck but behavioral mistakes like exiting at the wrong time. Anchor's strategy focuses on mitigating this by using rule-based hybrid funds.

What makes Anchor different from traditional stock strategies?

Anchor isn't a stock strategy or alpha-chasing product. Instead, it's a rule-based basket of hybrid mutual funds designed to keep investors committed during market downturns. The CALM framework guides fund selection, emphasizing stability over aggressive growth, which contrasts with typical equity-heavy approaches.

How does Capitalmind PMS handle fees for Anchor?

The article warns about 'fees on top of fees' but clarifies Anchor's structure avoids this by using hybrid funds with transparent fee models. Unlike some products, Anchor's fees are integrated into its hybrid strategy, ensuring no additional layers for investors.

[Podcast] The Strategy that Helps You Stay Invested: Capitalmind Anchor

Your investment strategy did 18.5% CAGR. You got 8.5%. Same strategy. Same period. The gap isn’t bad luck—it’s behaviour.

Most portfolio damage doesn’t happen during the crash, it happens when investors panic and exit at the wrong time.

In this episode, we break down why sequence risk and drawdown timing matter more than average returns, and introduces Anchor, Capitalmind PMS’s new strategy built to keep you invested through the worst market conditions.

Shray sits down with Akanksha Maulik (who runs Capitalmind’s PMS business) and Krishna Appala (the fund manager behind Anchor) to talk about a product that’s been quietly in the works for a while. It’s not a stock strategy. It’s not chasing alpha. It’s a rule-based basket of hybrid mutual funds designed to keep you invested when everything around you is telling you to run.

If you’re 100% in equities and have never thought about what happens to your goals when a bad market shows up at exactly the wrong time, this one’s worth your hour.

Chapters:

00:00 – Intro

01:02 – Why we built Anchor

01:37 – The one problem every investor faces but never talks about

02:34 – How your own behaviour is costing you

06:37 – Sequence risk: when a bad market hits at the worst possible time

10:28 – The building block: why hybrid mutual funds?

12:49 – Breaking down the four subcategories inside Anchor

18:18 – “You’re charging fees on top of fees” — and here’s the answer

22:43 – The CALM framework: how we pick every fund

26:00 – How often we rebalance (and why we don’t do tactical calls)

29:28 – Choosing the right benchmark for a hybrid strategy

31:05 – What can actually go wrong with Anchor

33:44 – Point of joy and a point of regret

37:08 – The numbers: returns, volatility, and drawdowns vs Nifty

39:26 – How we set expectations — and why it’s never a one-time conversation

42:18 – Exactly who this product is for (and who should stay away)

46:53 – Where Anchor sits inside the full Capitalmind PMS suite

48:25 – How to allocate to Anchor

51:01 – Does holding Anchor make you calmer about your riskier bets?

53:31 – One line each: Krishna and Akanksha sum up Anchor

55:03 – Closing thoughts

Disclaimer:

Investing in securities markets involves risk, and no specific returns or performance are guaranteed.

This communication is for informational purposes only and does not constitute investment advice, a research report, or an offer/solicitation to buy or sell any securities or portfolio management services. It is not directed at residents of the United States of America, UAE, Singapore, or any jurisdiction where access without proper registration is restricted. While the information is believed to be reliable, Capitalmind and its affiliates doesn’t guarantee its accuracy or completeness, and shall not be liable for any loss arising from reliance on this material. Performance data, where mentioned, is based on past results, shown net of fees unless stated otherwise, annualized for periods exceeding one year, is not verified by SEBI, and should not be considered indicative of future performance. Any back-tested performance is simulated and does not represent actual client returns, which may vary due to timing of contributions, market conditions, and other factors. Please exercise independent judgment and seek professional advice before investing. This material is confidential and may not be reproduced or redistributed without prior written consent.

For further details, please refer to our Disclosure Document at https://www.capitalmind.in/disclosure#disc-pms.

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