< All Topics
Print
  • The Marathon Plan is a high-exposure strategy within the Index Long-Term Strategy, designed for investors willing to take moderate and calculated risks for potentially higher returns.
  • Investment Structure:
    • Requires 100% of the investment amount upfront, similar to the Relax Plan.
    • The entire investment is used to purchase NiftyBees, which are then pledged for margin in the F&O segment.
    • Exposure is doubled, as Nifty Futures equivalent to the investment amount are taken in addition to the NiftyBees holdings.
  • Hedging & Cost Management:
    • Put options are used for hedging, incurring a cost of 5% of the total exposure.
    • Futuresโ€™ forwarding cost is 5% of the Futuresโ€™ exposure.
    • Unlike the Comfort Plan, there is no allocation to debt funds, meaning there is no interest income to offset costs.
  • Cost Management Approach:
    • Since there is no debt fund income, the investor must bear the entire cost directly.
    • Net cost amounts to 15% of the investment annually, which includes hedging and futures forwarding costs.
    • Investors must ensure adequate liquidity to cover these costs over the long term.
  • Investor Suitability:
    • Ideal for investors who prefer a fully invested strategy without the need for SIPs.
    • Best suited for those comfortable with higher exposure and direct cost management.

Leave a Reply

Your email address will not be published. Required fields are marked *

Table of Contents
Scroll to Top