Elever, a SEBI-registered portfolio manager, has launched FactorCapro PMS, India's first Portfolio Management Services (PMS) strategy specifically designed to provide consistent monthly income with capital protection for retirees, conservative investors, and family offices. This innovative PMS strategy combines income generation with a capital-preserving investment approach, utilizing a proprietary glide-path model and tactical asset allocation framework.

FactorCapro aims to address the critical gap in India's investment landscape, where investors often face a difficult choice between low-yielding traditional instruments and high-risk equity exposure. The strategy offers a transparent and professionally managed solution that balances income needs with robust risk management.

The FactorCapro PMS is built on a unique glide-path methodology. In its first year, the strategy allocates 100% to fixed-income assets, ensuring full capital protection. From the second year onwards, it gradually transitions into a diversified multi-asset portfolio that includes equities, debt, gold, and international ETFs. This dynamic allocation adapts to market cycles through a "tactical risk rotation" framework, designed to protect capital during downturns and enhance returns during bullish phases.

Karan Aggarwal, Co-Founder and CIO of Elever, stated that FactorCapro aims to deliver higher tax-efficient monthly income compared to traditional instruments like annuities and fixed deposits. He also emphasized that, unlike other high-income investment options such as Systematic Withdrawal Plans (SWPs) into Balanced Advantage or Equity Funds, FactorCapro is designed to maintain capital even during periods of significant market stress.

The launch of FactorCapro comes at a time when India's retirement income gap is widening. The Mercer CFA Institute Global Pension Index 2024 ranked India last among 48 countries for pension adequacy, with a score of 44, down from 45.9 in 2023. This underscores the urgent need for reliable retirement income solutions, which FactorCapro seeks to provide.

Elever's investment philosophy centers on rule-based investing, factor-alpha, and tactical allocation. The company's quantitative models analyze over 500 factors across 17 years of data. Elever's multi-factor model analyzes over 500 factors across 17 years. Its proprietary risk-rotation models use machine learning to predict market signals, which it claims are 90% accurate for the next 6-12 months, enabling dynamic portfolio adjustments based on evolving market conditions.

Elever's PMS offerings utilize quantitative investment strategies that blend rule-based models and machine learning algorithms to forecast market signals. The company's approach aims to deliver consistent long-term returns exceeding broader market returns.