The Process

The Process

The Process

The investment process at Deutsche Bank incorporates key aspects like understanding clients’ investment objectives, evaluating their risk profile and recommending an asset allocation. The in-house research inputs from our world-class research team and our unique product selection processes help us in selecting the right products we offer to you.
The client suitability parameters we have in place ensure that you opt for the right product suited for you.

Risk Profiling

Risk profiling is the very first step and an integral part of the investment process.
Our unique Risk profiler* is a simple online questionnaire used to assess your risk
appetite - critical in planning your asset allocation across asset classes such as equity, debt, cash etc. Your risk appetite depends on various parameters like your age to retirement, your portfolio size as well as your appetite to withstand negative returns in your portfolio in the short-term.

Deutsche Bank recommends an annual review of your risk profile, in the event of changing lifestyle and financial considerations.

Further, it also suggests a suitable asset allocation mix and products in accordance to your risk profile i.e. Very Conservative, Conservative, Moderate, Aggressive or Very Aggressive.

Login to db OnlineBanking to assess your Risk Profile.

Asset Allocation

The Asset Allocation model is at the heart of our approach to investment advisory.
Our investment process begins with identifying your overall risk profile and recommending a suitable Asset Allocation.

Asset allocation plus portfolio rebalancing play important roles in achieving and maintaining diversified / disciplined investment portfolios. These relatively straightforward investment strategies can provide you with a number of potential benefits like :

  • Reduced Investment Risk - The growth opportunity is not limited to the performance of one security, but is open to the opportunities presented by a collection of securities.
  • Diminished Portfolio Volatility - The performance of one or the other asset class can help offset the impact of poorly performing asset class/es thereby reducing the volatility.
  • Greater Investment Discipline - It is nearly impossible to time the performance cycles of different investment categories. Establishing an asset allocation strategy and rebalancing regularly to preserve that strategy can introduce more discipline into an investment plan thereby increasing chances of achieving long-term financial objectives.

Research

At Deutsche Bank, we believe that quality research is the starting point to make a sound investment decision. We therefore give you access to our world-class research team that provides regular and proprietary updates on movements in the global equity plus debt markets. Our research, apart from covering America, Europe and Asia-Pacific, provides a special focus on India. It also gives an in-depth insight into specific sectors and where necessary, covers event-specific aspects such as analyses of budgets, interest rate changes, special themes such as inflation or infrastructure.

We are pleased to offer our Private Banking Customers the following tools to help you with your investments decisions :

  • Deutsche Bank Outlook : Receive our professionally researched monthly outlook across the major asset classes on the global and Indian market. This highly informative report will give you our perspective on the variables that determine market performance.
  • Deutsche Bank Fund Tracker & Factsheet : Make use of a quarterly pack on latest investment strategies - the Deutsche Bank recommended asset allocation that conforms to your risk profile and mutual funds across each of the asset classes. This is further supported by an exclusive and detailed factsheet for each of the recommended mutual fund schemes. Our factsheets provide in-depth information on their portfolios, performance across returns or risk parameters and some of the other important attributes of the fund.
  • Special Research Reports & Road shows : You get access to special research reports on various investment categories from time to time. Our outlook on the various alternate asset classes such as the real estate market and the commodities market is provided to the discerning investor.

Product Selection Process

Our process of selecting a fund generally begins with quantitative screening, which involves considering all the relevant numbers and data. While past returns are important, we also give weightage to the risk parameters and relative performances against the benchmark as well as the peer group. Portfolio attributes like investment style, credit quality, market capitalization, fund size, sectoral and company concentration etc. are also taken into consideration.

Statistics on their own are not enough; we believe it is imperative to study the fund house, scheme outlook and the fund manager’s performance across other schemes in order to get a better picture of how the fund is poised to deliver better returns.

Finally, if a fund passes the above criteria and is in line with Deutsche Bank’s research outlook, it becomes eligible to be on our recommendation list.

The process of due diligence does not stop after the products have been vetted and selected. We continue monitoring the recommended list based on structured qualitative and quantitative analyses.