Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/317206 
Year of Publication: 
2022
Citation: 
[Journal:] Organizations and Markets in Emerging Economies [ISSN:] 2345-0037 [Volume:] 13 [Issue:] 1 [Year:] 2022 [Pages:] 209-237
Publisher: 
Vilnius University Press, Vilnius
Abstract: 
This paper fundamentally looks at the novel concept of Smart Beta investing in constructing a more efficient and well-diversified alternative investment. Smart beta has been a popular investment philosophy, although emerging countries have been slower to adopt and execute it. In this way, the study investigates the existence, performance, and robustness of smart beta strategies in a divergent financial market. Moreover, it is an initial attempt to integrate the framework of stock selection and stock weighting to construct and test smart beta strategies against the traditional Indian market benchmark (S&P BSE 500). The findings show that smart beta investing results in a better risk-return profile on an absolute and risk-adjusted basis. Furthermore, the results demonstrate the consistency and robustness of smart beta strategies in different market conditions and display their outperformance even in bearish market conditions.
Subjects: 
active and passive investment
factor exposure
idiosyncratic risk
Indian equity market
innovative investment
risk parity
smart beta investing
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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