ORMI India Senzex 30 ©

Orpheus Risk Management Indices

We are pleased to launch ORMI India Senzex 30. This is our fourth Index for India after ORMI India 30, ORMI India 10, ORMI India Worst 20.

Is ORMI India Senzex 30 like the Sensex 30? Unlike Sensex which is based on market capitalization weightage, Senzex is based on Orpheus proprietary allocations.

Why the need to create Senzex 30? The world identifies Indian markets with Sensex. It’s the most visible benchmark for Indian markets. Senzex is an Orpheus initiative to showcase that just by changing allocations of the top 30 components, investor could beat the market.

What are the differences between Sensex and Senzex? Senzex is more active than Sensex. Sensex is only rebalanced when some components are taken out and replaced by new components, while Senzex is rebalanced quarterly. This means that if you are investing in Orpheus Senzex, you need to look at your portfolio component allocations every quarter.

What does it mean if Senzex beats the Sensex? It means the market capitalization methodology is not the best way to build indices. If building the same index differently is more efficient, then it makes sense for investors to look at the new Senzex.

Are the results of Sensex vs. Senzex comparable? Annual comparisons are normal for any indexing approach to the popular benchmark. The comparison of Senzex with Sensex would be perfect if the Senzex (Orpheus Indian benchmark) is rebalanced once in 12 months. But even with a quarterly rebalancing we can assume Senzex to be a derivative based on Sensex.

Why does the derivative i.e. Orpheus Senzex deserve attention? Senzex outperformed the Sensex by a multiple of 3 since July 2006. This is a large margin for any money manager, investor or trader to look up and notice. On an annualized basis Senzex delivered 24% compared to 8.5% annual gains on Sensex.

How can you invest in Orpheus Senzex? Currently Orpheus Senzex is available as a portfolio management service and on license fee. We are working on making it available as an ETF secondary market product.

Enjoy the latest Orpheus Senzex.

 

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