Asked on 31 Oct 2019
I have been planning to invest through a Robo-advisory platform and stumbled upon Kristal.AI. But before I went any further, I wanted to know how they rebalance their portfolio. Any answers?
Glad to have you on our platform. The rebalancing of portfolios is a subjective question and will depend upon the Kristals that you choose to invest in. Some Kristals (actively managed) will be rebalanced more frequently than others (passively managed). However, the Investment Committee is constantly on the lookout for changes in the market scenario and will initiate a rebalancing should the need arise.
I work at Kristal.AI, and it's my passion to evaluate various upcoming investment opportunities.
Our rebalances are model driven or rule based with a forward looking view. So an All Weather Kristal shall rebalance when the weightages are outside of the bounds that the rules state. Additionally since we monitor Kristal performance regularly, there could be a trigger based rebalance, where the asset allocation goes conservative or aggressive as the case maybe. We use different approaches including Risk Parity, Target Vol, Glide path etc. Would love to walk anyone through in more detail if there is interest. You can write to [email protected] for more detals.
27 Feb 2020
On a technical sense - "how" they rebalance would be selling existing things and buying new different things :) :) :)
More seriously tho, as part of Kristal offering, you can choose investment choices "Kristals" which are actively managed. For those choices, like any other actively managed fund, there is a certain mandate/appraoch and the company will be periodically changing holdings based on market conditions.
The nice thing about the platform is that you can choose whether to have a more fixed portfolio (off the shelf ETF that passively track index) or those which are more active - so really up to what is your investment objective.