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Commentary | Portfolio Yoga - Part 12

Category: Commentary

The Ultimate Strategy 3

The Ultimate Strategy

The holy grail of returns would be if you could get equity like returns while having bond like volatility. While in theory such possibilities do exist, the question that arises is whether its feasible / practicable in execution where reality meets fantasy. Motilal Oswal Mutual Fund has indeed launched one such fund aptly named – Motilal Oswal MOSt Focused Dynamic Equity...

Travails of a Trend Follower 1

Travails of a Trend Follower

Over the last few decades, Trend following has really taken off with a lot of believers flooding the streets so as to say. After all, if I were to sell you with charts like the one below, why would you not be convinced about its benefit But then again, I choose that particular chart out of the 1000’s available because...

Should Retail Investors / Traders indulge in Derivatives 3

Should Retail Investors / Traders indulge in Derivatives

Twitter is a place for discussions, collaborations, fights and what not. Today’s post has much to do with one such discussion which more or started when while replying to a friend, I put it out that I was long in Nifty (as we dwelled on how markets may behave on Monday following the carnage (if one could say that) one...

Airtel and the case of Authority Bias 1

Airtel and the case of Authority Bias

Last Saturday, I received a phone call on my land line (Airtel) with the caller having confirmed he was speaking to the right number, informed me about a change in a scheme I had subscribed to. To give you a background, Airtel offers for its Landline users 2 schemes where in you can make unlimited outgoing calls for paying a...

Look Ahead Bias and its Impact on Trading Results 0

Look Ahead Bias and its Impact on Trading Results

As most system traders, my mind is constantly thinking of ideas that I think can help me beat the markets comprehensively without too much of a effort (no day trading types for example). So, today as I was doing what people do in bathrooms (having a bath), I suddenly had this idea for a new test – it wasn’t really...

The future is Passive 0

The future is Passive

The big news this week was about the inflow into Vanguard, the world’s largest mutual fund company which attracted $198.4 billion in the first eight months of this year drawing money from Active Mutual Funds and even Exchange Traded Funds as investors poured money into its low cost Index funds. On the other hand, we in India recently had a SIP...

Cost of huge Returns 0

Cost of huge Returns

Michael Batnick who is Director, Research at Ritholtz Wealth Management tweeted out the following chart of Amazon Implicit in the message (my presumption since nothing was blogged / tweeted) was that its not enough to buy a great stock, you need to have the stomach to take big draw downs like Amazon say (90%+ after the IT bubble crashed in 2000). But what...