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Ashutosh Gupta's avatar

Couple of points:

1. Chosing 65:35 ratio as benchmark while knowing that 35 was their upper ceiling in foreign stocks and they were always lower than this is an issue. Because nasdaq100 has done better it shows benchmark in better light. On real benchmark (like 75:25) they have generated alpha. This is like bending the data to show what you want to say

2. Only Indian stocks have been compared to nifty500. But foreign stocks return has not been compared to nasdaq 100, why because it has created alpha over nasdaq 100. Omitting data to show the narrative one wants to

3. Regular fund have been chosen, which has an expense ratio of ~2% so even the optimal chosen benchmark has been beaten by 2% before fees. So fund manager has done some work.

4. Indexing also comes at a cost so indexing by oneself will not have the same return as the optimal benchmark but lower than that

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index investor's avatar

I dont think a retail investor can rebalance everymonth. and can you explain how they able to reproduce average of two indices with 40 only stocks. i think this is bad article which is based on your biases

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