Model Portfolio

How do we create an efficient portfolio. In my earlier post I had discussed on replication of mutual funds using ETF and also on replication of Index using options. Today I will combine all the features to create a portfolio . We take the following assumptions: Life insurance and Health insurance has been take care … Read more

Best Equity Derivative Trading Books

Equity Derivative Trading is  a vast subject and  with so much of information available these days on internet it can be overwhelming at times to pick up the right content.  I have tried to list down few books which I found very helpful.I am listing in the order they should be read in order to … Read more

Synthetic Replication of Portfolio

One major detractor for mutual fund is fees.Lets say somebody has been very disciplined in investing in mutual Funds for years .He made decent money and now his portfolio value is  50 Lakh INR.What would happen if the market does not move for the next 5 years. average Expense ratio = 1.5% Portfolio Value = … Read more

Real Estate vs SIP

The answer is .It depends!! Real ESTATE vs SIP is a question of CAGR vs XIRR .In real estate you put lumpsum ,so even at lower annual rate you make more money .In SIP you put in multiple periods so though higher rate but lower money lets say you want to buy a 1 Crore … Read more

Real Estate vs Stock Market

Its much debated battle and people on both sides of the argument  have their own rationales and logic.Real Estate being an illiquid asset makes it  difficult to compare in a transparent and a fair way. I will try to do  backtesting of real estate performance vis a vis stock market.  Real Estate data I  got … Read more

Dynamic Systematic Investment Plan

Everybody knows SIP are good.The rationale for SIP investing is not  based on any mathematical model but  psychology of consistency.It just to  average the cost of investment using disciplined periodic investment. The underlying idea is that its hard to time the market if not impossible. Various methods have been devised to predict market direction but … Read more

Peer to Peer Lending(P2P) Investing Strategy based on Kelly Criterian

Peer to Peer lending is a mechanism where  people can invest or borrow money from other people through an online platform. These companies provide a market place for loans  like Amazon and Flipkart provide for buyers and sellers. It has been very successful in US and UK.Basic Features of P2P lending are: Unsecured Lending  for … Read more

Systematic Investment Plan Stress Testing

We all know the  benefits of doing Systematic Investment Plan(SIP) .It helps to average our buying cost and negate some of the impact of volatility.Many website allow you to calculate return if you do SIP based on average mutual fund performance. The million dollar  question is how would a SIP performance look like in a … Read more

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