is etmoney genius worth it?

Have you ever felt that you lack knowledge about investment and personal finance? Well, concepts such as Investment and Personal Finance do sound complex, right? So, how do we deal with this?

Should we approach a Chartered Accountant? a Certified Financial Planner or a Mutual Fund Distributor if we intend to invest in a mutual fund?

However, you will require assistance not only with tax planning and advisory services but also with selecting a mutual fund. What you actually need is a full-fledged, end-to-end service. Someone you can rely on, someone with a successful track record, right?

So here comes the ET Money Genius.

ET Money Genius uses artificial intelligence to create an investment plan for you that will help you reach your financial goals. It spreads your money out over many different types of assets in the hopes of getting better returns for the risk you take. ET Money monitors the volatility of the market and adjusts your holdings as necessary.

So, it constantly monitors and adjusts your portfolio’s exposure to risk. And this routine check is made in order to outperform the market in terms of return. and to safeguard your investments from losses.

Hence, ET Money Genius takes care of all those portfolio-related tasks for you. It takes care of all the grunt work for you, and it does it in an orderly, dependable, and automatic fashion.

In this article, I’ll explain all you need to know about ET Money Genius. To paint a complete picture, we’ll discuss the investing problem Genius addresses, the service’s architecture, the investment approaches it takes, and its results.

First and foremost, ET Money Genius is a customised investment platform. As a result, let’s start with an explanation of how ET Money Genius tailors its services to each individual investor by looking at their unique traits and preferences.

ET Money Genius is a Personalized Investment Service.

With ET Money Genius, you get a customized investment plan that strikes a healthy balance between risk and return by inputting information about your risk tolerance, investor personality, and investment horizon.

ET Money Genius uses a dynamic allocation strategy that takes into account the value of stocks, interest rates, price trends, and inflation to get consistent monthly returns while reducing risk. With Genius’s help, you can stop stressing about making the right investment decisions at the right time. Basically, timing the market—the most difficult part of investing—is done on your behalf.

The most important aspect of investing is how you handle the risk component. Today’s market is extremely dynamic, and an investor must be extra cautious. As the market shifts, ET Money keeps an eye on your portfolio to make sure it never exceeds your maximum risk tolerance.

One of the most prominent ways to minimize risk is through optimal asset allocation. With ET Money’s dynamic asset allocation algorithm, you will get alerts when there are chances to either take more risks or keep profits steady, depending on how the market is doing at the time.

ET Money Genius gives a lot of consideration to the user experience. You won’t get the most out of Genius unless you take advantage of its alerts and suggestions as soon as they become available. As a result, you now just need to use one tap on the app to complete the procedure.

Although the fees charged by ET Money Genius membership are very nominal at just Rs. 249 per month, Nonetheless, consumers may be concerned about spending close to Rs. 3,000 on an advisory service.

ET Money Genius has been active for a little over a year. Although the backtested reports suggest that the portfolio returns are over 15%, Back-tested reports, however, can only be relied on to a certain extent when many factors are at play.

Each type of investment instrument, whether it be an actively managed Mutual Fund, an Index Fund, or an ETF, adheres to a certain approach, focus, or style of investing. ET Money Genius offers a variety of alternatives in that regard. And to help you appreciate those distinctions, here’s a quick review of those distinctions.

The ET Money Genius’s unique ability is to analyze an investor’s characteristics and design tailored investment strategies. In addition, ET Money Genius provides you with access to 6 distinct methods that can assist you in accomplishing a wide variety of objectives, from anything that’s short term to the long term.

When allocating and rebalancing assets, its algorithm takes into account a wide range of factors, such as value, inflation, interest rates, price patterns, your level of comfort with risk, the amount of money you can invest, etc.

Moreover, Genius is unlike any other investment intelligence service since it prioritizes three distinct goals: outstanding performance, reliable returns, and robust drawdown protection. Also, portfolio risk is constantly monitored to make timely adjustments based on market conditions.

Last but not least, ET Money portfolios have a deadline that lines up with your time horizon. Hence, as you get closer and closer to your goal, Genius keeps lowering your portfolio risk.

It’s quite unlikely that you’ll discover a financial product that offers the same set of benefits. Hence, considering all the stated perks, we can state that the ET Money Genius Service is a comprehensive investing platform.

As each ET Money Genius user has unique needs, the platform was designed accordingly. In this way, Genius’ portfolios may change to suit your needs as they change over time. It is unlike any other financial tool on the market today (mutual funds, bonds, or stocks). for the simple reason that no single financial instrument can be tailored to your specific needs. Your portfolio should reflect how you intend to use these investing tools to achieve your goals.

ET Money Genius’ portfolio includes six (6) distinct strategies tailored to specific types of investors. ET Money’s portfolio is divided into three major objectives:

The aim of the fund is to create alpha with minimal risk. ET Money helps you achieve your goals via its six categories of investment. As a result, you can choose where to invest, considering your risk profile and capabilities.

ET Money Genius’ primary activity is to actively and dynamically distribute the investment among several asset classes (Indian equities, international equities, gold, and debt) to maximise long-term returns and minimise risk.

Without favouring any particular asset class over another, it calculates the optimal allocation based on a wide range of market parameters, such as valuations, price trends, interest rates, and inflation.

ET Money portfolio is monitored in real time, and it makes adjustments as necessary based on the latest market data. When building a client-specific portfolio, the user’s risk tolerance, the way they like to invest, and how much they expect their money to earn are all taken into account.

ET Money lets you choose from a total of 12 ways to invest, including 6 mutual fund portfolios and 6 stock/ETF portfolios. These diversified portfolios all employ the same dynamic asset allocation technique to determine the weights given to Indian equities, international equities, debt, and gold etc.

Equity exposure in mutual fund portfolios is often obtained through low-cost, low-activity index funds. Indian stocks are represented by an 8-stock portfolio in Stocks+ETFs portfolios, while exposure to overseas stocks, debt, and gold is provided through exchange-traded funds.

Mutual Fund Investing is a pooled investment. The fund management then invests the pooled funds in various asset classes, such as stocks, bonds, and even gold, in order to create returns for the investors. Each investor receives a portion of the profits or losses from these investments equal to their initial investment.

Mutual funds in India are sorted into many groups according to the kinds of assets they buy. The following are some of the most common, according to the ET Money Genius:

The Government of India created the National Pension System (NPS) as a pension and investment system to safeguard the retirements of Indian citizens. It’s an appealing feature with an opportunity to save for the future in a way that is both safe and regulated, making the market-based return a desirable part of retirement planning.

At the end of the term, the client receives a lump sum payment in addition to their regular income, allowing them to enjoy retirement without financial worries.

Via ET Money Genius, you can set up an NPS account with an automated SIP with EasyPay.

Investing in a fixed deposit, or FD, is a service provided by financial institutions, including banks and non-banking finance companies (NBFCs). Fixed-Deposit Accounts (FDs) allow investors to earn a consistent rate of return over the course of their investment. The interest rate and the total amount you will receive at maturity are both determined at the time of investment. You can also choose to receive interest payments on a periodic basis.

ET Money FD account with Bajaj Finserv, with an assured FD return of 7% to as high as over 8% p.a.,

Health insurance ensures that you are protected from the financial burden of unforeseen medical expenses. In the event that you or a covered family member requires hospitalisation, the health insurance company will pay for those costs up to the policy’s maximum coverage (the “sum insured”).

When you stay in the hospital for 24 hours or more, you pay a lot for things like room and board, doctor visits and procedures, nursing care, medications, diagnostic tests, imaging services, blood, oxygen, etc., which are among the various services offered via health insurance.

With ET Money Genius, you can access some of the top health insurance providers such as HDFC Ergo, Care, Star Health, etc.

When it comes to term life insurance, it’s all about security. With term insurance, the beneficiary receives the whole sum promised in the event of the insured’s untimely demise during the policy period.

Term insurance is inexpensive, straightforward, and consistent in cost over the life of the policy.

ET Money offers Limited Pay Term Plans with the best insurance providers such as HDFC Life, ICICI Prudential, Max Life, etc.

ET Money LoanPass gives you a dedicated line of credit and access to funds around the clock. The ET Money app allows you to make instantaneous wire transfers to your bank account with flexible repayment terms to fit your lifestyle.

Smart Deposit surpasses the capabilities of a traditional savings account in every way: it allows for greater returns, paperless investments, no commitments, the freedom to terminate at any time, and fast access to your money.

SmartDeposit can help you earn higher rates on your regular savings contributions, annual bonus, gift money, and any other spare cash you may have.

The money you deposit in a savings account is often invested in the money market (business loans, preference shares, Treasury bills, government securities, etc.), with the bank acting as a middleman, resulting in lower returns for you. But with SmartDeposit, you may invest directly in the money markets and earn higher profits!

Genius is a subscription service that’s charged every quarter. During your subscription, you may make as many trades as you like with no additional cost and access all Genius portfolios. Yet, you may be subject to costs depending on the stocks or mutual funds you trade out of and the brokerage you use.

ET Money Genius is a membership programme that’s automatically renewed, and the payment can be made via EasyPay, which will be linked to your Genius Membership account.

ET Money’s app is built with bank-grade security to keep users’ data safe at all times. Users don’t have to worry about their information being shared because data security is a top priority.

Also, for the safety of the users’ data, ET Money employs the most advanced encryption methods and stores it in secure, off-the-grid data centers. Independent auditors who work with the top banks and NBFCs check and evaluate the internal system of our financial services app on a regular basis.

As far as financial safety is concerned, ET Money is a well-recognized and widely-known platform used by millions of Indians. The goodwill of the service provider is at its own height. But, it is suggested that the investor do their own research before investing in any financial products, including “ET Money Genius.”

Everyone of us has several long-term monetary objectives. We have certain objectives that we want to accomplish in the immediate to medium term, and others that we hope to accomplish in the next ten to fifteen years. All of our objectives may be broken down into three time frames: immediate, intermediate, and distant.

Important investment decisions sometimes perplex investors. Where and when should we invest? We need advice on how to properly allocate our assets, suggestions on our spending habits, etc.

Also, we must get answers to questions such as, “In what ways might we re-establish equilibrium?” How to weather the market’s inevitable fluctuations? There are, of course, other questions that might be asked. But the correct responses to these inquiries have eluded the vast majority of us.

ET Money Genius is a bespoke investment service that provides comprehensive solutions to such issues. It’s a one-stop shop for achieving your objectives with above-average returns. Most significantly, Genius provides superior drawdown protection along with superior returns. For these reasons, the Genius Portfolio techniques are indispensable for any serious investor.

Disclaimer: All the information on this website is published in good faith and for general information purposes only.

ET Money Genius fills a significant gap that retail investors need help with when making decisions. It helps evaluate investment products, portfolio construction, review, and management when many people use online platforms to invest in stocks and mutual funds.

A personalised intelligent investment solution called ET Money Genius develops and suggests an investment strategy that is best for you. It distributes your funds among various asset classes so you can achieve higher risk-adjusted results.

It features a range of tools and features, including budgeting and expense tracking, bill payment reminders, and investment advice. ET Money Genius is available on Android and iOS platforms and is user-friendly and intuitive. It targets individuals and families looking to manage their finances better and make the most of their money.

It monitors market movements and adjusts your portfolio’s rebalancing as necessary. It thus continuously manages the risk of your portfolio. As a result, it consistently produces business returns. Additionally, it guards against portfolio losses.

Every user is unique, which is the foundation of ET Money Genius. As a result, the solutions Genius services meet your objectives, risk tolerance, and periods. There are no similarities with any current financial products (mutual funds, stocks or bonds). It is up to you to build a portfolio and align your objectives with these financial products.

Genius, on the other hand, puts investors first. It implies two factors. One gets to know the investor by learning about their personality, risk tolerance, etc. Second, develop an investor-specific investment solution.

A risk score isn’t the conventional single for an aversion to a loss for genius. Instead, it is a finding about the expertise, resistance, and confidence of the particular investor.

If the individual’s risk level is around 50 and 72, they will obtain scores of 84 for overconfidence, 25 for a propensity to prevent losses, and 100 on a scale of 100 for financial knowledge. With such information and supporting explanations, you can better understand your investment behaviour and style.

ET Money is India’s quickest financial advisory and investing platform, with approximately USD 3 billion in assets under management. ET Money has amassed a sizable user base of over 10 million members throughout 1,400 cities in less than five years. The individual investment solution, ET Money Genius, addresses all financial queries. It is the all-inclusive answer to achieving your objectives with market profits.

How do you define an investing genius? An investing genius is anyone who can create a personalized investment plan and follow it in a disciplined manner. An Investing Genius is not married to any particular asset class and prefers to invest in the right opportunity at the right time. An investing genius also avoids any unnecessary risk and invests in instruments with a favorable risk-reward ratio. Finally, a genius is a pragmatic person who will book profits when required and not let emotions come in the way of good investing decisions.

To act as an investing genius with your money, you will need to gain a lot of knowledge and devote a lot of time every day. And it is not possible for every one of us. But what if we tell you there is an easy and convenient solution. That is where ET Money Genius comes into the picture.

ET Money Genius is a personalized intelligent investment service that creates and recommends an investing plan that is most suitable for you. It allocates your money in different asset classes that help you achieve high risk-adjusted returns. It keeps track of the market dynamics and rebalances your portfolio accordingly. As a result, it continuously manages your portfolio risk. It delivers market-beating returns consistently. And it also protects your portfolio downside.

Therefore, ET Money Genius removes the need for you to evaluate, review, allocate and rebalance your portfolio. And it does all this heavy-lifting on your behalf in an automated, disciplined, and accurate manner.

In this blog, we will understand ET Money Genius in detail. To give you a clear picture, we will explain the investing problem Genius solves, how the service is built, its investing strategies, and its performance.

Now, the first pillar of ET Money Genius is that it is a personalized investing service. Thus, to begin with, let’s understand how ET Money Genius personalizes your investing experience by analyzing your personality as an investor.

ET Money Genius is built around the premise that every user is different. So the portfolios offered by Genius adapt to your goals, risk profile, and time horizons. It is nothing like any of the existing financial instruments (mutual funds, bonds, or stocks). That is because no financial product is custom-made for your goals. It is up to you to wrap your goals around these investment instruments and create a portfolio.

However, Genius takes an investor-first approach. In essence, it means two things. One is understanding the investor by figuring out the investors’ personality, risk profile, etc. And two, building a custom investing solution for the investor.

Genius solves the first part (understanding the investor) by administering a personality assessment questionnaire. This questionnaire is designed to understand your personality and calculate your risk score based on factors like risk-taking abilities, financial mastery, and tendency to avoid losses.

After answering these questions, you better understand your biases, behaviors, and blind spots. You also get a risk score, which is one of the primary outputs from this process.

A risk-score range is quite a departure from traditional risk scores that are always static. The conventional static scores usually label investors as conservative, aggressive, moderately aggressive, etc. These labels tend to paint a permanent profile of the investor, which is not always correct and accurate.

That is why Genius defines a range for your risk score. It helps Genius better understand how you are likely to behave in evolving situations. For instance, an investor may become slightly more aggressive when someone’s income improves significantly. Similarly, an investor may tilt towards a somewhat more conservative approach following a pay cut or no hike.

So for Genius, a risk score is not the traditional aversion to loss signal. Instead, it is a discovery into the individual investor’s confidence, aversion, and mastery.

Here the risk score of the investor is in the range of 50-72. Besides, the investor receives 84 for overconfidence, 25 for the tendency to avoid losses, and a 100 on 100 for financial awareness. Such information and the complementing explanations can help you discover more insights into your investing style and behavior.

We hope you have understood how Genius assesses your investor personality. After understanding your investor personality, Genius suggests some custom-made portfolios to help you meet your goals. Let’s know more about these portfolios and their investment strategies.

All of us have multiple financial goals to achieve in our lifetime. While we want to achieve some goals in the near-medium term, there are goals that we want to achieve in 10-15 years. Overall, we can put all our goals in three buckets: short-term, medium-term, and long-term goals.

Keeping this in mind, ET Money Genius offers six different multi-asset portfolios strategies:

All six strategies take different levels of risk, generate different levels of returns, and are suitable for different periods.

For instance, the Shield strategy is ideal for your saving goals. The Stable Strategy is built for your short-term goals. The Balanced strategy and the Balanced Plus strategy are typically used for medium-term goals. And for long-term investors who are seeking to accumulate money for retirement, wealth creation, their child’s education, etc., we have the Growth and High Growth strategy.

There are two options to buy Genius portfolios. One is a Mutual Fund option. Two, a stock plus ETF option. It means as an investor; you can access a total of 12 options: 6 mutual fund portfolio strategies and 6 strategies based on stocks plus ETFs.

You can check the construct of each of these 6 portfolios on the ET Money app. For now, let’s focus on how well these strategies can have performed over the years.

The Genius portfolios have not one, but three goals to achieve. Firstly, they aim for returns in excess of their benchmark. Secondly, they aim for consistency. And thirdly, Genius portfolios look at offering better drawdown protection.

Let’s start with returns. An excellent feature available on the ET Money app is how we show the portfolio performance and the benchmark performance from multiple points of view.

As you can see in the screenshot, you can examine performance on a trailing basis (point to point returns), rolling basis, and calendar year basis. Moreover, you can check performance for lumpsum investments and SIPs.

For example, here’s how our growth strategies for mutual funds and stocks have done against its benchmark on a trailing basis. These numbers are a result of us back-testing our strategy over different time periods in the last 15 years.

Over longer durations, the performance of the growth strategy has been stunning with an alpha of 4-8% above the benchmark. It substantiates and ratifies that high returns can be achieved with time-tested principles of working with multiple assets, asset allocation, periodic rebalancing, and of course, the patience that’s needed to see your wealth grow over time.

Genius helps you achieve this performance without having to make any of these decisions yourself and does all this with passively managed low-cost index funds and ETFs.

Another interesting trend is seen when you check rolling returns. Simply put, rolling returns are an average or a median of a series of returns, over a period of time. Since this assessment removes periodical cyclicity, rolling returns are often considered to be one of the better representations of returns.

Now, when we back-test the rolling returns of the Genius growth portfolio, three things become very evident. One, the historical returns offered by the growth portfolio are a lot higher than the benchmark. Two, the point-to-point returns are very consistent across different time frames. This has been possible due to the right asset allocation, and timely rebalancing does.

And thirdly, there is a high level of consistency in the numbers. It means an investor has no need to time the market. It brings peace of mind to an investor because all of us often face a dilemma. What is the right time to invest in the stock market? More importantly, when is the right time to exit the markets?

These are the question that you would have asked yourself many times and would never have received a convincing answer. Genius removes that confusion by recycling your entire portfolio from time to time with the ideal asset allocation. It ensures that your returns are not at the mercy of when you entered the market. Consequently, this factor allows Genius to keep your returns high and consistent.

Here’s some more data on this market-timing resistance factor. The table below shows the probability of the Genius growth portfolio delivering at least an 8% return irrespective of when you invest your money.

The back-tested data shows that an investment of 3 years or more in the mutual fund or the stocks & ETF’s Growth Portfolio gives investors a 98% chance of achieving at least 8% return.

Likewise, the data shows that the Mutual Fund growth strategy over 6 years and the stock portfolio strategy over 4 years would have always given a return of 8% or more, irrespective of which date you decided to invest your money with Genius.