Accretus Solutions Blog » Market Chronicle http://blog.accretus.in Managing Wealth in the New Normal Wed, 05 Jan 2011 17:45:23 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 India Market Chronicle http://blog.accretus.in/market-chronicle/india-market-chronicle/ http://blog.accretus.in/market-chronicle/india-market-chronicle/#comments Mon, 06 Jul 2009 12:56:21 +0000 Partha Iyengar http://blog.accretus.in/?p=64 At the end of last year,while I was in Sharekhan,our team embarked on an unique project called ‘India Market Chronicle’.

The project had twin objectives :
1. Will stocks deliver positive returns in the long run?
2. Will Portfolio Diversification along with Portfolio Re-balancing or Dynamic Asset Allocation deliver consistent returns as well as minimize the downside risks to the Portfolio.

India Market Chronicle chart [based on back testing data of 26 years] threw up some surprising and interesting results.

Two clear conclusions emerged out of the project :

1. In the long run, equities could still deliver negative real returns.
2. Portfolio Diversification and Dynamic Asset Allocation could indeed minimize downside risks and provide consistent returns.

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