A debt buffer is a shock absorber. It is not a shield.
It softens the ride week to week and keeps the cost line low. Where the year ends is set by the 80 percent that is equity.
01
A buffer softens the worst weeks, not the worst years. A fifth of the book in cash like debt is why this card's worst week of 6.03 beat the Nifty's own 6.33. It still cannot undo a long grind. 2025 closed near minus 7 percent.
02
What sits in the equity sleeve decides the year. 20 percent in debt cannot rescue a bad run in the other 80. Read the holdings and the rebalance cadence, not just the size of the cushion.
03
The cushion has a quieter payoff. Cost. A 4 week rebalance runs about half the trades of a 2 week card, which makes it the cheapest card to run on the shelf. A calmer book is also a cheaper one.
A buffer changes how the ride feels, not where the road goes. Read the cushion and what sits behind it before you call a card conservative.
See the sleeves, the holdings and the cost line for yourself.
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