HNI Portfolio Filter

A portfolio is not chosen. It is filtered — then constructed. Design begins with the role each constituent must play, and a discipline that decides what is allowed in.

Step 1 · Fund Selection

Two gates before a rupee moves

Every fund in the universe runs a two-stage filter. First it must clear five non-negotiable knockout gates. Only then is it scored on merit. Position size is set by portfolio role — not by recent returns.

Universe

All eligible funds

The full opportunity set

Stage 1

Knockout gates

Pass all 5 — or out

Stage 2

Merit score

Need ≥ 3 of 5

Result

Position-sized

Sized by role in the portfolio

Evaluating a fund? Tap each card to set its status — the verdict updates live.

Stage 1Knockout gates — pass all five, or rejected outright5 / 5 cleared

Manager Continuity

Pass

Lead manager tenure on this fund ≥ 3 years, with no announced or recent exit. A great record under a manager who has left is not a record you own.

Mandate Integrity

Pass

True-to-label against its SEBI category, with no style drift over the last four quarters. What it says it is, is what it holds.

AMC Stewardship

Pass

No active regulatory action, stable ownership, and clean governance at the fund house. Process quality starts above the fund.

Capacity

Pass

AUM appropriate to the mandate's liquidity — a small-cap too large to deploy fails here, however good its past looks.

Cost Discipline

Pass

Regular-plan expense ratio at or below the category median — competitive within its peer set, so advice is delivered without cost drag.

Stage 2Merit score — 0 or 1 on each, qualify at ≥ 3 of 55 / 5 scored

Valuemetrics Alignment

Met

The fund's valuation posture aligns with the house view — you are buying value, not chasing price.

Rolling Consistency

Met

Beats its benchmark across ≥ 60% of rolling 3-year windows — replacing start-date-sensitive point-to-point returns with honest consistency.

Risk-Adjusted Return

Met

Sharpe / Sortino at or above the category median — return earned per unit of risk, not raw return.

Downside Capture

Met

Falls less than the market — a downside-capture ratio under 100%, ideally below category. Protection is a scored trait, not an afterthought.

Portfolio Fit

Met

Holdings overlap with the existing book under 30% — every fund adds something the portfolio does not already own.

Qualifies

5/5

Gates passed

5/5

Merit met

Qualification: pass all five gates and score ≥ 3 of 5 on merit. Among equal scorers within the same role, the tie-break is lowest downside capture, then highest rolling consistency — so position size is never arbitrary.

The filter at work

Six funds in — four out the other side

Illustrative sample funds. Under a blunt score-of-7 model, all six would have passed. The two-stage filter rejects two — for reasons a client respects, not a number.

Fund (illustrative)	Gates (G1–G5)	Merit	Verdict
ABC Midcap	✔ all	5 / 5	Qualifies — anchor
ABC Flexicap	✔ all	4 / 5	Qualifies
MNO Multi Asset	✔ all	4 / 5	Qualifies
XYZ Largecap	✔ all	3 / 5	Qualifies — borderline
XYZ Smallcap	✗ G4 Capacity	4 / 5	Rejected — AUM can't deploy
MNO Thematic	✗ G2 Mandate	2 / 5	Rejected — narrow bet, weak merit

The construction lens

The Valuemetrics framework

Four disciplines shape how the qualified funds are assembled into a portfolio.

Risk-Appetite Alignment

Portfolios are built around the client's risk profile — suitability of funds is settled before return expectations are set.

Efficient-Frontier Optimisation

The equity–debt split is guided by the efficient frontier, seeking the best return payoff for the level of risk taken.

Evidence-Based Selection

Funds are chosen through the disciplined, data-driven filter above — long-term consistency over short-term performance.

Forward-Looking Sectors

Sector exposures are adjusted using forward-looking analysis, aligning the portfolio with themes expected to perform across cycles.

Step 2 · The shape

Four concentric layers

Qualified funds are grouped by volatility and composition into four rings — calm at the core, risk on the rim.

Volatility rises from the calm core outward to the high-risk rim — risk and return climb together.

Step 3 · The mix

Allocation by risk profile

The same four layers, weighted to the client. Bands widen toward equity as risk appetite rises.

Conservative

Conservative Hybrid 30–50%
Aggressive Hybrid 30–50%
Large / Flexicap 0–20%
Midcap / Smallcap 0%

Moderate

Conservative Hybrid 10–20%
Aggressive Hybrid 25–50%
Large / Flexicap 25–50%
Midcap / Smallcap 10–20%

Aggressive

Conservative Hybrid 0–10%
Aggressive Hybrid 20–40%
Large / Flexicap 30–50%
Midcap / Smallcap 20–30%

Step 4 · The number

Portfolio-level expected return

A sample long-term return profile for a moderate portfolio — each fund's contribution is its allocation times its expected return.

Edit any allocation or expected return — contributions and the portfolio total recompute live. Allocations should sum to 100%.

Fund Type	Allocation	Expected LT Return	Contribution
Flexicap / Multicap	%	%	2.80%
Largecap	%	%	2.40%
Midcap	%	%	2.25%
Balanced Advantage	%	%	2.20%
Multi Asset	%	%	3.00%
Total Portfolio Expected Return	100%	—	12.65%

Step 5 · Stress test

Portfolio Stress Testing

For education and discussion only — a framework, not personalised investment advice. All figures are illustrative; fund names are placeholders. Actual selection, allocation and switching depend on your own goals, risk capacity, tax position and circumstances. Please consult your BIRD advisor and a registered investment adviser (RIA). Mutual fund investments are subject to market risks; read all scheme-related documents carefully.