ORMI India IFTY 50 ©

Introducing ORMI India IFTY 50 ©

(Orpheus Risk Management Indices)

We are pleased to launch ORMI India IFT 50. This is our sixth Index for India after ORMI India 30, ORMI India 10, ORMI India Worst 20, ORMI India Senzex 30, ORMI India TECH 20.

Is ORMI India IFTY 50 like the NIFTY 50? Unlike Nifty which is based on market capitalization weightage, IFTY 50 is based on Orpheus proprietary allocations.

Why the need to create IFTY 50? The world identifies Indian markets with NIFTY. It’s the most visible benchmark for Indian markets. IFTY is an Orpheus initiative to showcase that just by changing allocations of the top 50 components, investor could beat the market.

What are the differences between NIFTY and IFTY50? IFTY is more active than Sensex. Sensex is only rebalanced when some components are taken out and replaced by new components, while IFTY is rebalanced annually. This means that if you are investing in Orpheus IFTY, you need to look at your portfolio component allocations every quarter.

What does it mean if IFTY beats the NIFTY? 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 ORMI IFTY 50.

Are the results of IFTY vs. NIFTY comparable? Annual comparisons are normal for any indexing approach to the popular benchmark. The comparison of IFTY with NIFTY would be perfect if the IFTY (Orpheus Indian benchmark) is rarely rebalanced. But even with an annual rebalancing we can assume IFTY to be a derivative based on NIFTY.

Why does the derivative i.e. Orpheus IFTY deserve attention? IFTY 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 IFTY delivered 12% compared to 7% annual gains on NIFTY.

How can you invest in Orpheus IFTY? Currently Orpheus IFTY 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 India IFTY 50.


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