Scribd
Upload
815 views4 pages

SpringPad's Nifty50 Rebalance Strategy

The Nifty50 Rebalance Strategy outlines the replacement of several stocks in the index over various dates, highlighting significant new constituents. The strategy boasts an average annual return of 42.89% with an 81.82% win rate, outperforming the Nifty50 by 20.86%. It emphasizes the importance of monitoring semi-annual rebalancing updates and investing in newly added stocks for a one-year holding period to maximize returns.

Uploaded by

kunal199697
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
815 views4 pages

SpringPad's Nifty50 Rebalance Strategy

The Nifty50 Rebalance Strategy outlines the replacement of several stocks in the index over various dates, highlighting significant new constituents. The strategy boasts an average annual return of 42.89% with an 81.82% win rate, outperforming the Nifty50 by 20.86%. It emphasizes the importance of monitoring semi-annual rebalancing updates and investing in newly added stocks for a one-year holding period to maximize returns.

Uploaded by

kunal199697
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Nifty50 Rebalance Strategy Results

Date of Replacement Former Constituent New Constituent


19-Mar-20 Yes Bank Shree Cement
31-Jul-20 Vedanta HDFC Life
25-Sep-20 Zee Entertainment SBI Life Insurance Company
31-Mar-21 GAIL Tata Consumer Products
31-Mar-22 Indian Oil Corp Apollo Hospitals
30-Sep-22 Shree Cement Adani Enterprises
30-Mar-23 LTI MINDTR Shriram
30-Mar-23 UPL HDFC AMC
30-Sep-23 Tata Motors Tata Consumer Products
30-Sep-23 Coal India Adani Ports and Special Economic
30-Sep-23 Grasim Industries Hindalco Industries

Strategy Summary
Average Annual Retur 42.89%
No of Trades 11
No of Winners 9
No of Losers 2
Win Rate 81.82%
Outperformance over Nif 20.86%
Price on Replacement Date
Price After 1 Yr% Return
17,731.45 26,936.70 51.90%
627.10 664.05 5.90%
797.05 1,222.80 53.40%
638.90 777.40 21.70%
4,516.20 4,310.00 -4.60%
3,455.70 2,387.90 -30.90%
1,259.40 2,359.80 87.37%
1,707.85 3,754.10 119.81%
866.30 1,196.95 38.17%
825.15 1,448.20 75.51%
492.65 756.20 53.50%

Oct-2020 Sep-2024
Nifty50 11,642 25,810
Avg Nifty50 Annual Return 22.02%
Strategy Logic & Steps
1 The Nifty50 Index rebalances semi-annually. Once in March, and once in September.
2 New stocks are added to the Index of 50 stocks, and replace exiting stocks.
3 The new stocks entering the index have stong demand, and give better price appreciations as a result.
4 You need to monitor the rebalancing updates twice a year, and know which stocks are making it into the index.
5 On the day of the effective inclusion of the stock in the index, your goal is to invest in that stock and hold it for 1
6 After 1 year, you are to sell off the stock and realize your position.
ce appreciations as a result.
stocks are making it into the index.
o invest in that stock and hold it for 1 year.

You might also like