Note: The above results has been arrived on the basis of past data testing. We took the data from the website of NSE. We assumed the interest rate at 9%, annual Put options cost at 5% per annum, Future forwarding cost at 5% per annum and Advisory fees at 1.25% per annum.

Observations:

• Investment Growth:
  • Investment of Rs. 1 Crore in the Index Long Term Strategy in 2002 has grown to Rs. 33.62 Crore by 2024.
• Profit/Loss:
  • The investor realized a profit of Rs. 32.62 Crore in the Index Long Term Strategy over the period.
• Market Downturns:
  • In 2008, during a market downturn with a 52% loss in the Nifty50 Index, the Index Long Term Strategy experienced only a 3% loss.
  • In 2011, during another downturn with a 25% loss in the Nifty50 Index, the Index Long Term Strategy had only a 3% loss.
• Risk Mitigation:
  • The Index Long Term Strategy demonstrates the ability to provide equity-like returns during market upswings while limiting losses during significant market downturns.
• Beauty of Index Long Term Strategy:
  • Investors in the Index Long Term Strategy enjoy equity-like returns during market upswings.
  • The strategy proves effective in minimizing losses, with only a 3% loss during significant market downturns in 2008 and 2011.

Important Note:

• The results are based on past data testing, utilizing information from the NSE website.
• Assumptions include an interest rate of 9%, annual Put options cost at 5% per annum, future forwarding cost at 5% per annum, and advisory fees at 1.25% per annum.

This detailed comparison provides a comprehensive overview of the performance of the Nifty50 Index and the Index Long Term Strategy over the years, highlighting the strategy’s effectiveness in delivering strong returns and mitigating risks during market downturns. The important note emphasizes the assumptions made in arriving at these results, ensuring transparency in the evaluation process.