RMI India Banks

Introducing ORMI India Bank IFTY ©
We are pleased to launch ORMI India Bank IFTY. This is our seventh Index for India after ORMI India 30, ORMI India 10, ORMI India Worst 20, ORMI India Senzex 30, ORMI India TECH 20 and ORMI Bank IFTY.
Is ORMI India Bank IFTY like the Bank NIFTY? Unlike Bank NIFTY which is based on market capitalization weightage, Bank IFTY is based on Orpheus proprietary allocations.
Why the need to create Bank IFTY? The world identifies Indian banking markets with Bank NIFTY. It’s the most visible benchmark for Indian markets. Bank IFTY is an Orpheus initiative to showcase that just by changing allocations of the sector components, investors could beat the market.
What are the differences between Bank NIFTY and Bank IFTY? Bank IFTY is more active than Bank NIFTY. BANK NIFTY is only rebalanced when some components are taken out and replaced by new components, while IFTY is rebalanced every three months. This means that if you are investing in Bank IFTY, you need to look at your portfolio component allocations every quarter.
What does it mean if Bank IFTY beats the Bank 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 Bank IFTY.
Are the results of Bank IFTY vs. Bank NIFTY comparable? Annual comparisons are normal for any indexing approach to the popular benchmark. The comparison of Bank IFTY with Bank NIFTY would be perfect if the Bank IFTY (Orpheus Indian benchmark) is rarely rebalanced. But even with quarterly rebalancing we can assume Bank IFTY to be a derivative based on Bank NIFTY.
Why does the derivative i.e. Orpheus Bank IFTY deserve attention? Bank IFTY outperformed Bank NIFTY by a large margin since July 2006. This is a large margin for any money manager, investor or trader to look up and notice. On an annualized basis Bank IFTY delivered 24% compared to 14% annual gains on Bank NIFTY.
How can you invest in Orpheus Bank IFTY? Currently Orpheus Bank 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 Bank IFTY.
The latest ORMI India Bank IFTY © Index update carries the equity curve from July, 2006 till date. The Orpheus Risk Management Index (ORMI) is up 320% since July, 2006.