Is Market Cap the Best Way to Build an Index?
Nifty 50 is a free-float weighted index – a slight variation of market cap weighted wherein we exclude promoter or government ownership. It is the most popular index in India and over the last 5 years it has delivered close to 22% returns. Nifty 50 equally weighted index is another form of index which distributes…
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Vivek Sharma
3 Books That Changed How I Think About Risk and Markets
Over the past two decades, I’ve built a quiet but consistent habit — reading. Not as much as I would’ve liked, and certainly not as widely. But across the years, the books I did manage to read have shaped the way I think, work, and make decisions — especially in markets. Some books left behind…
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Vivek Sharma
All Nifty Bees Are Equal — But Some Are More Equal Than Others
The title, inspired by George Orwell’s classic Animal Farm, perfectly captures the essence of this blog’s topic – Index Funds. Nifty bees are index funds that track the Nifty 50 index. I say that all Nifty bees are equal because they all track the same underlying benchmark, i.e., Nifty 50. However, I say that some…
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Vivek Sharma
Investing with Confidence by Prioritizing Fundamentals in Volatile Markets
Investing in the stock market is a roller-coaster ride. Recent global trade tensions, heavy outflows from foreign institutional investors (FIIs), and weak corporate earnings have all contributed to an environment of heightened volatility. Weak inflow data from AMFI further indicates that investors are increasingly hesitant to commit capital. However, volatility is not something to fear.…
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Vivek Sharma
How Has Gulaq Gear 6 Performed?
FY25 is now officially in the rearview mirror, and with that, our flagship portfolio — Gulaq Gear 6 — has built almost five years of a live track record. The markets are navigating through turbulent waters right now, with sharp falls followed by swift recoveries. Amidst this chaos, it becomes even more important to zoom…
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Vivek Sharma
Myopia
Myopia is an illness that prevents people from seeing distant objects clearly. It’s a very common condition—over ten million people suffer from it every year in India. While there are no official statistics, I am certain that this illness consumes far more people in the investment community than in medicine. Short-sightedness has plagued all parties…
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Vivek Sharma
Problem of Investing with Star Fund Managers
Investors have long elevated certain fund managers to celebrity status, creating a cult-like following around them. These star managers wield immense influence over the investing community, often making headlines, and the stocks they buy can skyrocket overnight. Over time, their identity becomes so intertwined with the fund itself that the fund and its manager become…
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Vivek Sharma
SEBI Mandates Disclosure of Information Ratio for Mutual Funds
The Securities and Exchange Board of India (SEBI), in its latest circular, has mandated that all Asset Management Companies (AMCs) disclose a risk-adjusted return measure called the Information Ratio (IR) from April. This article explores how the ratio is calculated, its usefulness in analyzing mutual fund performance, and the challenges associated with its use. Why…
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Vivek Sharma
The Sachet Revolution of The Mutual Fund Industry
The Securities and Exchange Board of India (SEBI) has released a consultation paper seeking public opinion on introducing sachetized mutual fund products—small-ticket SIPs of ₹250. This initiative aims to promote financial inclusion and instill a habit of systematic savings among the low- and middle-income segments of society, who largely remain divorced from equity markets. Much…
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Vivek Sharma
Long Alpha Performance Deep Dive: 2024
The year 2024 proved to be eventful for both the financial markets and Estee’s PMS – Long Alpha. We started the year with a bang, delivering approximately 10% return in January, significantly outperforming the BSE 500’s 2% return. Retail investor participation was remarkable, and the year seemed promising until challenges arose in October due to…
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