tag:blogger.com,1999:blog-19649274.post8221924389314990875..comments2024-03-27T17:16:12.789+05:30Comments on The Leap Blog: Alternative stock market indexesAjay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-19649274.post-66751704308598066952010-12-13T22:31:19.243+05:302010-12-13T22:31:19.243+05:301) Isn't COSPI too close to the Korean Index?
...1) Isn't COSPI too close to the Korean Index?<br /><br />{{- NOPE. It stands for CMIE Overall Share Price Index. It is India's own wilshire total market index, but unfortunately not yet investable, but am sure some day it will be & till then s&p 500 is a good option.-}}<br /><br />2) Is COSPI market cap weighted? Then it will be skewed towards the top anyhow.<br /><br />{{- It comes in both the forms, market cap weighted as well as equal weight. The market cap weighted does get skewed towards the top, but it still delivers a better risk-adjusted return. Think of it this way, by the time NTPC was included in the NIFTY, it already had a market cap of close to Rs.160,000 crore, as compared to Rs.58,000 crore some time after its listing. Broader market indices capture evolutionary returns, for a long term passive investor, they offer the best risk-adjusted returns.-}}Ravi Purohithttps://www.blogger.com/profile/17616076999283569192noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-91226021882529848622010-12-09T11:59:25.538+05:302010-12-09T11:59:25.538+05:301) Isn't COSPI too close to the Korean Index?
...1) Isn't COSPI too close to the Korean Index?<br /><br />2) Is COSPI market cap weighted? Then it will be skewed towards the top anyhow. <br /><br />Btw, just equal weighting the companies in teh Nifty will dramatically change returns and volatility. Gotta test....Deepak Shenoyhttp://www.capitalmind.innoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-35980115396587400882010-12-08T11:02:55.647+05:302010-12-08T11:02:55.647+05:30correction to my earlier comment - benchmark alrea...correction to my earlier comment - benchmark already has an ETF on s&p cnx 500 for more than a year now!Ravi Purohithttps://www.blogger.com/profile/17616076999283569192noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-84975662631080929702010-12-06T13:21:27.157+05:302010-12-06T13:21:27.157+05:30It is nothing but popular size effects. If you inv...It is nothing but popular size effects. If you invest in mid cap and small cap, you will get higher return for higher risk you are taking. In long run mid cap and small cap beats large cap. It is an another Beta strategy. It is not ALPHA strategy.Santoshnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-63310536884255433212010-12-05T10:56:51.243+05:302010-12-05T10:56:51.243+05:30COSPI to my mind offers the best option for passiv...COSPI to my mind offers the best option for passive investing. But, unfortunately as of now it is not an investable index. But, I am hoping that the benchmark guys soon launch the ETF on the s&p cnx 500. I think that index offers the next best passive investment opportunity, after COSPI. For about the same std deviation (~27% p.a.), the index offers much better returns than the nifty. This index allows one to capture evolutionary returns from emerging companies (say for a eg a Thermax going from a 1000 cr mcap to 10,000 cr mcap or a coromandel intl going from 800 cr mcap to 9000 cr mcap...etc).Ravi Purohithttps://www.blogger.com/profile/17616076999283569192noreply@blogger.com