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PN Gadgil Jewellers has seen a remarkable rise in its share value since its initial public offering (IPO) this September. The IPO came just ahead of India’s festive and wedding season, a peak period for jewelry sales. This surge in market performance has propelled Saurabh Gadgil, the company’s MD and CEO, to a net worth of nearly $1 billion, according to Bloomberg. Founded in 1832, PNG Jewellers started as a small jewelry shop in Sangli, Maharashtra, and has grown into a renowned brand recognized for its traditional designs and fine craftsmanship. The business has been built and sustained by six generations of the Gadgil family, becoming a household name in the jewelry industry. About Saurabh GadgilSaurabh Gadgil, who took over the reins of PNG Jewellers in 1998, has been instrumental in the brand’s transformation. A former national-level chess player, Gadgil, 47, credits his success to strategic thinking, much like anticipating moves on a chessboard. His leadership has guided the company through collaborations with top Bollywood stars and unique jewelry collections that capture popular trends. 114382889Among the brand’s many achievements, the launch of the “Timeless” collection with Bollywood icon Madhuri Dixit stands out. Another significant milestone was the partnership with Salman Khan’s “Being Human” foundation. PNG Jewellers designed jewelry for hit movies like Prem Ratan Dhan Payo and Bajrangi Bhaijaan, with the Bajrangi pendant becoming a best-seller across its stores. Under Gadgil’s leadership, the company also ventured into silver jewelry with the creation of the "Silvostyle" brand, featuring collaborations with fashion designer Tarun Tahiliani. These innovative moves have cemented PNG’s position as both a market leader and trendsetter in the jewelry industry. 114382895Gadgil’s business acumen extends beyond jewelry. During his MBA program, he interned at the Reserve Bank of India (RBI) to study the gold market, gaining insights into global trade. His long-term strategy involves expanding PNG’s footprint both domestically and internationally, ensuring the legacy of PNG Jewellers continues to thrive in an evolving global environment.He has done his MBA from Symbiosis International University after graduating from Brihan Maharashtra College Of Commerce.PNG Jewellers Q1 performanceThe company’s revenue for in Q1 FY25 grew by 33% compared to the same period in the previous fiscal year, reaching Rs 1668 crore, up from Rs 1256 crore. Profit after tax (PAT) rose to Rs 35 crore.

The current market scenario is characterised by heightened volatility due to geopolitical tensions, US election cycles, and recessionary fears. To handle the market-wide fluctuations, the investors must strategically position themselves to generate optimal returns with a lesser risk. While expecting higher returns is important, it is crucial to consider the risks involved. During periods of market corrections, many investors succumb to panic selling, ultimately crystallizing losses that could have been mitigated. Portfolio diversification can serve as an effective strategy to buffer against systemic risks and enhance risk-adjusted returns in these uncertain times.What many fail to realize is that even during downturns, a portfolio can still perform well if its drawdown is smaller than the broader market’s drawdown. In today’s unpredictable financial environment, understanding and managing different types of risk is crucial to building a resilient, all-weather portfolio. In this article, we will explore certain ways how to construct an all-weather portfolio.Risk in financial markets is generally categorized as systematic and unsystematic. Systematic risk affects the entire market and is influenced by factors such as interest rate changes, or global events like the 2008 financial crisis and the COVID-19 pandemic. Unsystematic risk, however, is specific to individual companies or industries. For instance, a regulatory change affecting the telecom sector would impact only those companies but not others. While systematic risk cannot be fully eliminated, unsystematic risk can be mitigated through effective risk management.Diversification is one of the fundamental principles of investing that helps investors manage risk while maximizing potential returns. For Indian investors, a well-diversified portfolio is crucial to navigating the inherent volatility of the stock market. A key element in understanding diversification is the risk-return tradeoff, which lies at the heart of portfolio management. By spreading investments across non-correlated asset classes such as equities, commodities, and bonds investors can reduce their exposure to unsystematic risks. For Indian investors, one of the strategies to manage systematic risk is by building an optimal portfolio which means combining asset classes with different risk profiles such as equities, commodities, and bonds. The key is to include assets that are not correlated, meaning they do not move in the same direction at the same time. For example, while equities might rise during a bullish phase, commodities like gold often perform well in times of uncertainty, offering a hedge against stock market volatility.A diversified portfolio in non-correlated assets tends to experience smaller drawdowns during market downturns. When one type of investment goes down, others might stay stable or even go up, balancing out the overall impact. This way, the portfolio experiences smaller losses compared to investing in just one or similar types of assets that may all drop at the same time during a downturn.One of the lesser-discussed yet highly valuable metrics in portfolio management is the Calmar Ratio. This ratio measures the annualized return on investment relative to the portfolio’s maximum drawdown, thus evaluating portfolio performance in terms of risk. A higher Calmar Ratio indicates a better risk-adjusted return, as it reflects the portfolio’s ability to generate returns while minimizing large declines.Diversification plays a key role in improving the Calmar Ratio. This, in turn, lowers the portfolio’s volatility and enhances its Calmar Ratio, making it more resilient in the face of market fluctuations.Consider the below example: The first chart shows that the S&P BSE Midcap Index delivered a 17.2% CAGR over 10 years but suffered a significant -40.79% drawdown during COVID. In contrast, the second chart, with a diversified portfolio of 60% MidCap and 40% Gold, achieved a 14.9% CAGR with a much smaller -14.06% drawdown. By allocating 40% of the portfolio to gold, we successfully reduced the drawdown from -41% to -14%, while maintaining a CAGR of 14%. 114376418 114376389Further, the Calmar Ratio is higher for the diversified portfolio (1.00) compared to the pure MidCap portfolio (0.42), highlighting the reduced risk and better stability. This demonstrates how diversification can reduce volatility and provide more stable returns, particularly in times of market stress like COVID.An investor can select an optimal portfolio and allocate funds according to their risk tolerance. The table below illustrates how changes in the allocation between a risky asset (Midcaps) and a safe asset (Gold) impacts the CAGR, drawdown, and Calmar ratio. 114376382A balanced portfolio must include high-growth equities for capital appreciation, along with other non-correlated asset classes to stabilize returns during periods of market volatility. Hence, diversification is crucial for Indian investors looking to balance risk and return in a volatile market environment. Furthermore, investors can achieve better risk-adjusted returns by focusing on the Calmar Ratio and reducing portfolio drawdowns.

Goods and services tax (GST) on term life insurance premiums, and premium paid by senior citizens for health cover is likely to be exempted from tax, an official said on Saturday. The GoM to decide on the GST rate on life and health insurance met on Saturday and decided to exempt GST on premiums paid for health insurance with coverage of Rs 5 lakh for individuals other than senior citizens. The final decision in this regard will be taken by the GST Council Officials premiums paid for health insurance coverage of above Rs 5 lakh will continue to attract 18 per cent GST. Currently, 18 per cent GST is levied on life insurance premiums paid for term policies and family floater policies. "GoM members are broadly on board for cutting my rates on insurance premiums. A final decision will be taken by the GST Council," an official said. Bihar Deputy Chief Minister Samrat Chaudhary said, "Every GoM member wants to give relief to people. Special focus be on senior citizens. We will submit a report to the council. A final decision will be taken by the council". However, there might be no GST on insurance premium paid for senior citizens, irrespective of the coverage amount. The GST Council in its meeting last month had decided to set up a 13-member GoM to decide on tax on health and life insurance premiums. Choudhary is the convenor of the GoM. The panel includes ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu, and Telangana. The GoM has been mandated to submit its report to the Council by October-end.