Capital Protection in Sharemarket is now possible.
Minance is a new concept to this world of startups. Pretty innovative concept. In short, Customers open their accounts with them and put money. Minance does the trade and make the money grow for you taking only 20% profit when you withdraw your profits. See this post for their detailed perfomance.
Minance have a very robust, but also very expensive risk management strategy that help us do it. Essentially, we find our real time net exposure to the markets and predict the implied volatility using GARCH models (we’ve added links to three great articles at the bottom of this answer to help you understand at the same at a high level).
Depending on our predictions, we buy deep out-of-money put options from our proprietary accounts that increase multiple times in value when the markets move substantially in any one direction.The profits from this helps us protect your capital.
This is a very easy strategy to implement, something even you can do after reading out blog post. However, this comes at a monumental cost which eats into our profits. Most other companies are unwilling to take on this cost. Our company’s management in conjunction with our advisors are yet to take a decision about how long to continue offering the capital protection for.
Needless to say, all existing investors will have their investment capital protected forever. Here are those articles mentioned earlier.
- Predicting Volatility by Dr. Ernest Chan – Quantopian Blog
While most hedge funds are set up only for the ultra-rich, Minance is for everyone. Drop your email and we'll get back to you with all our details.