ARQ by Angel Broking is an automated investment engine that runs on:-
Insights from Angel Broking Research Experts
Machine Learning language
Deep Industry Trends
Amiable Processing power
ARQ is available exclusively for Angel Broking customers through Angel Eye (or trade) and Angel Broking mobile app. At the same time, it is not a PMS (Portfolio Management Service) – thus, it is up to the client to accept or reject the recommendation. ARQ provides in-app and web notifications along with the SMS services providing recommendations at the right time.
How ARQ works?
In this Angel Broking ARQ Review, our team tried to have a walk-through of the technology and following were our observations. It basically takes in few inputs from the user around:
It uses the current trends, user inputs and develops a future predictive analysis to calculates the best possible asset allocation strategy for that particular client both in Equity and Mutual Funds (Large, small, mid, multi-cap and ELSS funds) segments. Based on the inputs given by the team, the ARQ system within Angel Eye provided us with the following allocations.
The way it basically works is that if you are looking to invest ₹1,50,000 in Equity, ARQ recommends you buy “Top 3 Stocks” for that particular day. You have to invest ₹50,000 equally in these “Top 3 stocks” for a period of 1 month and then wait for next month’s “Top 3 stocks”.
If for your portfolio, these “Top 3 stocks” stay the same then you don’t have to take any action, however, in case there is a difference then you are supposed to sell off the stocks that do not appear in next month’s recommendation and buy new recommendations.
Some of the aspects how ARQ is different from traditional advisory services:
Takes away any sort of human emotion bias
Recommendations based on future prediction of stock performance instead of the stock’s past behaviour
Free of cost for Angel Broking clients
Provides notifications based on the trading behaviour automatically in the system without any human intervention or dependency
Clients receive recommendations to buy 3 stocks through SMS from the “universe” of fundamental stocks. As per the broker, these 3 stock recommendations change every single day.
Powered by deep industry insights and machine level learning
When you start using ARQ, you just need to follow the recommendations provided by the engine and place your investments accordingly. In that way, you are being your own fund manager.
We think that ARQ is suitable for the following set of users:
Users who are digital savvy and prefer online modes of trading
Anybody who is looking to enter into trading or investing in mutual funds but does not have the know-how of how the market works and want to work with lower risk
Anybody who is looking for recommendations but does not really prefer or have the time to go on calls on each to understand the best possible
Some of the concerns with ARQ:
Since the concept is technology driven, it is very hard to prove anything if something goes wrong.
Although it is a first such step towards digitization in trading recommendation it will still take some time to prove its value.
The engine does not give or promises any range of return percentage. That is simply strange for the reason that at one place the broker claims that the engine has been run over millions and billions of data points and on the other hand, they don’t have any clarity on the kind of returns a client can expect by following the exact same stocks and holding those for the recommended duration.
“The biggest flaw is that the broker claims the recommended stocks change every day while it is not the case. In fact, we tested the engine on a daily basis for a 7 day period and NOT EVEN A SINGLE recommendation for any profile changed.”
Investment duration for ARQ recommendations is at least 12 months, so users can not ripe quick benefits with this concept.
ARQ engine’s capability is limited to Equity and Mutual funds. There is no set up for Commodities, Currency or any other investment segments.