#Fincabulary 34 – Smart Beta

smart-beta-etf

Source: https://www.sanlam.com/

Meaning – Smart beta defines a set of investment strategies that emphasize the use of alternative index construction rules to traditional market capitalization-based indices. Smart beta emphasizes capturing investment factors or market inefficiencies in a rules-based and transparent way. The increased popularity of smart beta is linked to a desire for portfolio risk management and diversification along factor dimensions, as well as seeking to enhance risk-adjusted returns above cap-weighted indices.

The goal of smart beta is to obtain alpha, lower risk or increase diversification at a cost lower than traditional active management and marginally higher than straight index investing. It seeks the best construction of an optimally diversified portfolio. In effect, smart beta is a combination of efficient-market hypothesis and value investing.

#Fincabulary16 – Keynesian Put

Meaning – It is the expectation that markets and the economy will be supported by fiscal policy stimulus measures.

Fiscal policy stimulus, including reductions in taxes and increased government spending, are generally aimed at giving a direct boost to the real economy, although financial markets should also expect the indirect benefits of strengthening economic growth. A renewed support for Keynesian-style fiscal stimulus measures have lead to expectations that governments around the world will use their spending power to boost the economy, and in turn, help support asset prices.

 

#Fincabulary 15 – Coiled Market

Meaning – A market that is believed to have the potential to make a strong move in one direction after being pushed in the opposite direction.

Coiled markets often arise when the market has been held down artificially. The idea is that if a market should be headed in one direction based on its fundamentals but is pushed in the other direction, it will eventually make a strong move in the original fundamental direction. This coiled move will often be more substantial than what might have been the case if it had gone in the expected direction, to begin with. This happens in commodities markets, such as gold and silver.

Finomenal 2016: Day 1

  1. Inauguration Ceremony ( http://tinyurl.com/hlsg6kf )
  1. “Potential of Asset Reconstruction Companies in India” – Mr. Sandeep Hasurkar, VP, IL&FS ( http://tinyurl.com/zv8e2qo
  1. “Investment in Stock Markets”– Mr. Sumit Kumar Jain, Senior VP, ASK Wealth Advisors Ltd. & Mr. Ashwani Agarwal, Equity Analyst, Baroda Pioneer Mutual Fund (http://tinyurl.com/hjgsbs4 )
  1. “Career in Financial Sector” – Mr. Gaurang Trivedi, Senior Investment & Management Consultant, Ministry of Corporate Affairs (GOI)( http://tinyurl.com/hk5c9sx )
  1. “Disruptions in Financial Industry” – Mr. Gajendra Kothari, MD & CEO, Etica Wealth Management Private Ltd. ( http://tinyurl.com/zyb3z7y )
  1. “CCAR Stress Testing” – Mr. Bharat Gupta, 2nd VP, Model Risk Management, Northern Trust Corporation ( http://tinyurl.com/guc9hcr )
  1. “Entrepreneurship Story of Bandhan Bank” – Mr. Tamal Bandyopadhyaya, Advisor, Bandhan Bank & Consulting Director, Mint ( http://tinyurl.com/jv9556g )
  1. “Fear of Automation in Financial Industry” – ECHO ( http://tinyurl.com/jm569o6 )
  1. Bloomberg Olympiad ( http://tinyurl.com/hr7nvuk )