India Market Chronicle

Posted by Partha Iyengar on July 6, 2009

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.

Category Market Chronicle;3 Comments.

3 Comments

  1. Manish Chauhan July 20th, 2009 at 11:01 am

    Very well .. I saw the pdf article and the results are quite consitent with reality :) . It was worth linking to your article, I have added a link back to your blog at the end of my article : http://www.jagoinvestor.com/2009/07/power-of-asset-allocation-and-portfolio.html . I am sure I can learn some things at your blog :) . Would be great if you can share detailed study with me .

    Another thing is , why dont you provide feeds through Email . I was subscribing to your feeds , but i links it with my reader which I dont read :) .

    Manish
    http://www.jagoinvestor.com

  2. Jonaskaram January 2nd, 2010 at 4:53 pm

    You made some good points there. I did a search on the topic and found most people will agree with your blog.

    Jonaskaram

  3. Power of Asset Allocation and Portfolio Rebalancing May 1st, 2010 at 1:29 pm

    [...] shares a link for a study done on Similar subject at Accretus Solutions , Looks great link to me .** What do you think about This article , please leave you comment and [...]

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