Most stock portfolios constructed using one style (or factor such as value, growth, momentum and volatility) typically underperform when the underlying premise does not fit prevailing market conditions. The Nifty Alpha Low Volatility 30 Index aims to address this problem by employing more than one factor to select stocks for the portfolio. According to the fund house, the back-test shows this index outperforming the Nifty 50, Nifty 100 as well as broad indices such as the S&P BSE 500 in eight out of ten calendar years. Of course, there is no certainty of such an outperformance in the future. … [Read more...] about ICICI Pru Alpha Low Vol 30 ETF NFO: Should you invest?
1. Type 1 – Capital redeployed only in core businesses historically: Firms such as Page Industries and Relaxo Footwears have reinvested on average, 50% and 90% respectively of their annual operating to expand manufacturing capacities in their core operations, enhance IT systems, etc. Moreover, every layer of geographical (within India) or product category expansion has been carried out organically in adjacencies which have a significant overlap with their existing core business. For instance, over two decades, Relaxo expanded pan-India into sports shoes and various sub-segments of casual footwear, from being just a north-India player manufacturing flip-flops. Page started off by offering just men’s innerwear in the 1990s and has subsequently expanded into leisurewear, sportswear and outerwear categories for men, women and kids. For such companies,we focus on building conviction on the runway of growth available to the firm’s core … [Read more...] about Saurabh Mukherjea’s investment mantra to navigate through a crisis: Part-2
Reports suggest that investment in ETFs has seen a sharp rise in the recent past. Investors are moving away from actively-managed equity funds. In June, ETFs saw inflows of Rs 4,092 crore, four times higher than the previous month. … [Read more...] about 3 Point Analysis | Why are investors opting for ETFs?