How many stocks are required to reduce unsystematic risk significantly is an important question for investors. While there is a large body of research on the subject in the United States, there is little formal work on this question in India. We show that a 15-20 stock portfolio, the traditional...

We ask whether a portfolio of large-cap mutual funds in India generates any diversification benefits as compared to holding a single large-cap index tracking exchange-traded fund. Using a mix of traditional measures like correlation and covariance of excess returns, and measures like tracking...

Systematic Investment Plans (SIP) play a vital role in accumulating investments over long time horizons in India. We compare returns and volatilities of SIP and Lump Sum Investment (LSI) strategies for selected categories of Indian mutual funds and the S\&P BSE 100 TR Index over different...

We show that monthly rebalanced, equal-weighted, long-only winner portfolios, drawn from the top 200 stocks in India, built using systematic rules that underpin popular factors of momentum, low volatility and quality deliver alpha for the period under study. The market exposure is significant...

We look at the trend of alpha generation among 18 large-cap equity mutual funds in India betweenSeptember 2010 and August 2021. Between September 2013 and December 2017, these schemes, on average, outperformed a NIFTY 50 index tracker fund (average annualised 3-year alpha of 3.22%), but since...

We examine the performance of 36 smallcases between December 2019 and December 2022, comparing their performance against market-based and strategy indices, and four- and six-factor models. The results show evidence of targeted factor exposures for a few smallcases, but for most smallcases, the...