Bonds, NCDs & Corporate Fixed Deposits for fixed returns
In times of economic turbulence and market volatility, having a Safe Haven for your investments can be a game-changer.
Let us see how investing in Safe Haven can stabilize your portfolio with steady cash flow.
introducing Safe Haven
for your wealth preservation
Investing in the financial markets can be a rollercoaster ride, with unpredictable ups and downs that often leave investors feeling anxious and uncertain about their hard-earned money.
Safe haven is an investment strategy designed to help stabilize your portfolio, generate extra cash flow, and preserve capital during turbulent market conditions. By allocating a portion of your portfolio to assets that are considered low-risk and more insulated from market fluctuations, you can weather storms with greater confidence.
the Safe Haven promise
Safe Haven & capital preservation
During times of market volatility and economic uncertainty, traditional investment portfolios can suffer significant losses. Safe Haven, on the other hand, plays a crucial role in preserving your capital. By allocating a portion of your portfolio to low-risk assets like high-yield bonds, FDs, and NCDs, you create a safety net that helps shield your investments from severe downturns.
To illustrate the effectiveness of safe haven stacks, let's examine the historical data of various assets included in such portfolios.
The above graphs depict how safe haven assets have demonstrated stability and provided steady income even during periods of market turbulence, acting as a buffer against market downturns.
the Safe Haven advantage
Safe Haven v/s Stock Market
A conservative flagship portfolio typically involves a high allocation to low-risk debt funds coupled with a small exposure to equity and precious metals. While this offers better returns than a Safe Haven during bullish market conditions, it can also be more susceptible to a certain degree of losses during severe market downturns.
On the other hand, Safe Haven focuses on capital preservation and a regular income stream, making it more suitable for conservative investors who typically require a highly predictable and fixed income stream.
the Safe Haven process
the different assets of
Your Safe Haven utilizes the right mix of assets that can provide stability and predictable income. Here are three key components often found in Safe Haven.
These are bonds issued by companies or governments that offer higher interest rates, making them attractive to investors seeking steady income.
FDs are a type of savings account provided by banks where you deposit a fixed sum of money for a specific period at a fixed interest rate. FDs are considered to be low-risk assets.
NCDs are long-term debt instruments issued by companies to raise capital. They have a fixed interest rate and tenure, making them a stable option for generating regular income.
Safe Haven offers investors a secure and predictable income stream while preserving capital during times of market turbulence. By diversifying between high-yield bonds, FDs, and NCDs, investors can create a sturdy foundation for their portfolios while enjoying stable and regular cash flows in the form of interest income.
While Safe Haven may not provide the highest returns during bullish markets, their ability to weather storms and shield investments from significant losses makes them a valuable component of any well-rounded investment strategy. Remember, prudent risk management and periodic review are key to the success of your safe haven stack in the long run.