Benchmark Selection: Why Choosing the Right Benchmark Matters More Than Beating One in Investing
Benchmark Selection: Why Choosing the Right Benchmark Matters More Than Beating One in Investing Quick answer: A benchmark is the yardstick you use to judge an investment. If you pick the wrong one, every comparison after that is wrong too, whether your fund looks like a winner or a loser. In India, the right benchmark […]
Factor Investing in India: Value, Quality, Momentum, Size and Low Volatility Explained
Factor Investing in India: Value, Quality, Momentum, Size and Low Volatility Explained Factor investing is a rules-based way of picking stocks using traits that have historically earned higher returns or lower risk than the broad market. In India, the five factors most investors hear about are Value, Quality, Momentum, Size and Low Volatility. You can […]
Core-Satellite Portfolio Construction: Combining Passive and Active Strategies
Core-Satellite Portfolio Construction: Combining Passive and Active Strategies Quick answer: A core-satellite portfolio keeps most of your money in low-cost, passive investments such as Nifty 50 index funds, and uses a smaller slice for active bets such as mid-cap funds, sector funds, international funds, or direct stocks. In India, the core usually holds 60 to […]