Is Smart Beta Strategy a Successful Guide for Creation of Superior Portfolios?

Authors

  •   P. A. Varghese Assistant Professor, Department of Commerce, Christ College, Irinjalakuda - 680121, Kerala
  •   Rintu Anthony Research Scholar, IIT Madras, Chennai - 600 036

Keywords:

Fundamentally Weighted Indexing

, Minimum Variance Approach, Maximum Diversification Strategy, Equally-Weighted Portfolio, Equal Risk Contribution Portfolio

G1

, G11, G12

Paper Submission Date

, August 23, 2016, Paper sent back for Revision, September 2, Paper Acceptance Date, September 28, 2016.

Abstract

Every investor wants to invest in a portfolio which gives him/her the maximum returns. Building such efficient portfolios has been discussed since time immemorial. This paper described a new strategy called as smart beta which reveals a new and smart set of rules to create efficient portfolios. The main objective of this smart beta is to design a portfolio which manages the risk more effectively than a Cap - Weighted index, and provides a better performance. This paper outlined the limitations of traditional indexing and focused on the prospect of smart beta as a successor to traditional indexing.

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Published

2016-09-01

How to Cite

Varghese, P. A., & Anthony, R. (2016). Is Smart Beta Strategy a Successful Guide for Creation of Superior Portfolios?. Indian Journal of Research in Capital Markets, 3(3), 42–48. Retrieved from https://www.indianjournalofmarketing.com/index.php/ijrcm/article/view/103701

Issue

Volume 3, Issue 3, July-September 2016

Section

Articles