The IskraIndex: Idea portfolios are model portfolios that combine a long-term specific investment idea with the IskraIndex Deposit+ portfolio. The optimization condition is the constant presence of the corresponding idea in the portfolio with a weight of at least 10%. The Idea line includes levered Deposit+ portfolios as well. The underlying investment ideas and the corresponding Idea portfolios are as follows:
Portfolios in the Idea line are more suitable for risk seeking investors, although in terms of drawdown levels, all portfolios are consistent with traditional balanced (moderate) portfolios. This is because including an individual idea in a portfolio with any fixed weight (even a minimal one) introduces the specific risk of a non-index instrument and generally increases the portfolio's overall risk.
Why IskraIndex: 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.
This can be demonstrated with a number of specific examples.
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A Case Study: ARKK In early 2021, financial media were discussing the collapse of the technology fund ARKK, managed by "star" investor Cathie Wood. Over 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 the end of 2017 had fallen to zero, reflecting a massive decline during 2021–2022 (a 4.5 times drop, or 77%). More on the story of Cathie Wood and ARKK Over the same period (2021–2022), the conservative Iskra Index Deposit+ portfolio grew by 9.5%. If, at the end of 2020, at ARKK's peak, an investor had combined (even without optimization) investments in ARKK, capping them at 20%, with the Deposit+ Conservative portfolio making up the remaining 80%, then over this period the combined portfolio would have lost 8%, staying within reasonable loss limits and preserving the potential for a quick recovery:
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