Category Archives: India

Promoting ETFs – The CPSE Story

The recent announcement by the Indian Finance Minister about the new Central Public Sector Enterprise (CPSE) ETF created waves of excitement and anticipation in the market and among market participants.  In order to understand and dig deeper into what this new ETF means for the Indian markets, it would be good to understand the background Read more […]

India Passive Story – The Government Catalyst

Passive investing in India has experienced a remarkable growth story, and the last few years have witnessed an exponential increase in both assets and products in the region.  India is among the leading countries in terms of the rate of growth of the exchange-traded fund (ETF) market, as assets have more than doubled in the Read more […]

ESG in India Today

Green infrastructure, especially clean and renewable energy, is at the heart of Indian ESG efforts today. Despite the U.S.’s withdrawal from the Paris Agreement, India stands with its commitments made at Paris. The Indian government’s commitment—in context of the recent ratification of the Paris Agreement—is to reduce emissions by 33% to 35% by 2030 and Read more […]

Capital Market Performance during Three Years of Narendra Modi Government

On May 16, 2014, Lok Sabha election results were announced and India gave a clear mandate to Narendra Modi’s Bharatiya Janata Party to form the government.  Narendra Modi was sworn in as the 14th Prime Minister of India on May 26, 2014, and his government recently completed three years of being in power.  In these Read more […]

The Growth of Small Caps in India

Over the past few decades, Indian capital markets have matured, and a large number of Indian market participants are now looking at capital markets as an investment avenue.  Investment in capital markets has grown substantially among all types of market participants—retail, institutional, and even government institutions, where recently the Employee Provident Fund Organization has started Read more […]

Know your Price Return versus Total Return Indices

Recently, the S&P BSE SENSEX closed above 30,000 (and 31,000 as of 26th May 2017) for the first time, recording a lifetime high in its 31 years of live history.  Immediately, print and online media were flooded with news articles discussing various milestones of the S&P BSE SENSEX. There were columns explaining how market participant Read more […]

Asian Fixed Income: An Update on the Indian Bond Market

As of June 5, 2017, the yield of Indian sovereign bonds, as tracked by the S&P BSE India Sovereign Bond Index, stood at 7.03%—the second-highest sovereign bond yield among the Pan Asian countries, following that of Indonesia, at 7.09%. The yield of the S&P BSE India Sovereign Bond Index climbed 19 bps YTD as of Read more […]

Sector Diversification through Index Linked Products

The proverb “do not put all your eggs in one basket” is what diversification achieves when it comes to investment.  A portfolio can be diversified by investing in multiple asset classes, such as stocks, bonds, real estate, commodities, etc.  A diversified portfolio helps improve the risk/return profile of the investments. In capital markets, diversification refers Read more […]

MidCap: A Sweet Spot in the Indian Equity Market

The mid-cap space has often been described as the “sweet spot” of equity investing—and with good reason.  Mid-cap companies tend to offer a balance between the high growth (and high risk) offered by small caps and the stability (but relatively slower growth) of large caps.  Additionally, Indian mid-caps have a more diverse sector representation than Read more […]

Managing Risk While Heading for Returns

Returns are definitely one of the key influencers of investment decisions.  However, poor governance can result in failures, as too much emphasis on returns may result in ignoring the need to understand and manage the potential risk.  It is important to understand the risks associated with an investment strategy.  Risk can have different interpretations depending Read more […]