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Bonanza Nimble Strategy

A System-Driven Algorithmic Investment Strategy for Consistent Risk-Managed Returns

Strategy Type
Index Options (Algo)
Benchmark
Nifty 50 TRI
Horizon
1+ Year
Risk Profile
Medium Risk
Min Investment
₹1 Crore
Inception Date
10 Jun 2024

About the Strategy

The Bonanza Nimble Strategy is an algorithm-driven investment solution designed for Corporates and Ultra High Net Worth Individuals (UHNIs). Built on quantitative models and disciplined risk management, the strategy aims to generate consistent returns while maintaining controlled portfolio drawdowns through systematic trading in index derivatives.

Unlike traditional discretionary investing, the Nimble Strategy uses proprietary algorithms to identify market opportunities based on technical conditions and market volatility. The strategy primarily trades Index Options using a combination of intraday and positional approaches, helping reduce emotional decision-making while maintaining strict risk controls.

Investment Philosophy & Approach

Hedged derivative execution using predefined systematic rules to eliminate human emotional bias.

The strategy combines multiple quantitative models that primarily trade Index Options, utilizing option-selling strategies supported by automated hedging techniques to manage portfolio risk. Position sizing is dynamically adjusted based on market volatility to maintain a strict stop-loss framework.

Why Choose Nimble Strategy?

Algorithmic Execution

Fully system-driven investment process based on proprietary algorithm models.

Hedged Risk Control

Clearly defined stop-loss framework and active risk management via hedged options.

Maximum ~5% Drawdown

Historical maximum drawdown capped at ~5% for strict wealth preservation.

Zero Emotional Bias

Predefined trading rules that completely eliminate emotional decision-making.

Performance Since Inception

Strategy growth (Weekly NAV) vs Benchmark index

SI CAGR
28.59%
Benchmark
Nifty 50 TRI

Average Weekly Return: 0.33% | Since Inception CAGR: 28.59%

Hedged Margin Basis

Returns Summary

AVERAGE WEEKLY RETURN0.33%
AVERAGE MONTHLY RETURN1.59%
1-YEAR RETURN (MARGIN)33.34%

Margin Allocation Snapshot

MarginFramework
Cash Margin / Liquid Assets (Treasury / Mutual Funds)
80%
Option Selling Margin (Hedged Positions)
20%

Algorithmic Model Allocation

Primary: Positional Hedged
Positional Option Selling40%
Intraday Option Selling30%
Directional Momentum20%
Cash Margin / Reserves10%

Risk & Drawdown Metrics

Standard Deviation (Weekly)
Lower asset volatility relative to standard equities.
8.5%
Beta
Extremely low correlation with directional markets.
0.15
Sharpe Ratio
Excellent risk-adjusted returns.
2.12
Maximum Historical Drawdown
Strict stop-loss protection metrics.
5.0%

Primary Instruments Traded

1
Nifty 50 Options
Hedged Derivative
2
Nifty Bank Options
Hedged Derivative
3
Nifty Financial Options
Hedged Derivative
4
Liquid Funds / T-Bills
Hedged Derivative

Ideal Investor Profile

Ultra High Net Worth Individuals (UHNIs) and Corporate treasuries.

Investors seeking portfolio diversification beyond traditional equities.

Investors looking for systematic, rule-based investment strategies.

Those comfortable with derivative-based hedged options investments.

Investors with a minimum investment horizon of one year.

Disclaimer: The Bonanza Nimble Strategy involves investments in securities and derivatives, which are subject to market risks, including volatility and potential loss of capital. Historical performance, expected returns, and risk parameters are indicative and should not be considered assured or guaranteed. Investors should carefully read all scheme-related documents before investing.