IskraIndex: Idea is a model portfolio that combines one of several investment ideas with the Deposit+ portfolio. The optimization condition is the constant presence of the corresponding idea in the portfolio with a weight of at least 10%. The basic investment ideas and corresponding portfolios are:
The Idea line portfolios are more suited to risk seeking investors, although first two of them have drawdown levels more specific to balanced (moderate) portfolios. This is because including an individual idea with a fixed (even if minimal) weight in the portfolio introduces a specific risk associated with a non-index instrument, generally increasing the portfolio's overall risk.
Why Iskra Index: Idea Portfolio could be interesting to an investor?
Every investment idea, even an index-based one, carries certain systematic and specific risks in the long term. Market crises, technological shifts, corporate governance issues, and even fraud can wipe out an investment's value or break a long-standing upward trend. Lost time is the most significant loss in the investment process, as it can never be recovered.
This is precisely why limiting the risk of individual investment ideas and combining them with a broadly diversified portfolio like Deposit+ is the optimal long-term strategy. If an investor's idea fails, their losses will be limited and offset by the remainder of the portfolio. This allows the investor to calmly shift their investment focus or fully transition into the complementary diversified portfolio.
A Case Study: ARKK
Consider this example. In early 2021, financial media widely discussed the crash of the technology fund ARKK, managed by "star" investor Cathie Wood. For the four years prior, the fund had grown by an average of 65% annually. However, by the end of March 2023, ARKK's average return since late 2017 had fallen to zero, reflecting a colossal drop during 2021-2022 (a 77% decline, or a 4.5x fall from its peak).
More on the story of Cathie Wood and ARKK
Over the same period of 2021–2022, the conservative Deposit+ portfolio declined by 9.5%. If, at the end of 2020 - at the peak of ARKK - an investor had combined (even without optimization) an investment in ARKK, limiting it to 20%, with the Deposit+ portfolio, their overall portfolio would have lost 24% over this period, remaining within reasonable losses and preserving the potential for a swift recovery:
The conservative Deposit+ portfolio grew by 36% from the end of 2022 to mid-June 2025, and together with the recovery in ARKK, the losses of the overall portfolio from 2021–2022 would have been fully recouped;
At the same time, ARKK's price is still 39% below its peak at the beginning of 2021.
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