- Where does alpha come from?
- How much should you pay for alpha?
- If a fund manager claims that his portfolio is a “long-term” bet, then does it make sense to just buy all the stocks in his portfolio rather than pay him an asset management fee for the privilege?
- How much do “other” investments add to returns?
- Will an equally weighted portfolio out-perform a hand-crafted weighting?
To answer these questions, we have started an experiment. We have created an equally weighted portfolio of NSE listed stocks in the PPFAS Long Term Value Fund (Factsheet.) The Theme will be re-balanced once a month, as soon as the PPFAS portfolio disclosure becomes public. As of the latest information available, 72% of the fund’s portfolio was invested in Indian equities & 21% is invested in foreign equities with the balance amount in Cash Equivalents.
Over a period of time, we hope to answer the questions we have raised above.
You can follow the Theme here: Refract: PPFAS Long Term Value Fund
Refract: (of water, air, or glass) make (a ray of light) change direction when it enters at an angle. From Latin refract- ‘broken up’, from the verb refringere, from re- ‘back’ + frangere ‘to break’.