Beating the Markets the IIM Indore Way
‘Gentlemen prefer bonds' and ‘Castles in the sky' – phrases that may not make too much sense to the common man not involved in the stock markets. However, to the students who are members of Voyage Capital, IIM-Indore's student run mutual fund, these phrases are part of everyday use. A dedicated group of students who are truly passionate about the stock market have taken it upon themselves to not only beat the market whenever possible, but to also educate others about the market.
Voyage Capital single-handedly manages the mutual fund of both current and former IIM-Indore participants. With a sum total of Rs 4.2 lakhs from the current PGP batch, the mutual fund has been doing extraordinarily well with positive returns of 6.1% in 2011-2012 when the market was down by 24%. The mutual fund has also consistently outperformed the broader market indices like CNX500 in terms of returns. One cannot point a finger at luck after understanding the levels of fundamental, technical and financial analysis that go on behind closed doors. From regularly following industry trends and news to studying stock price charts and indicators and detailed perusal of company financial statements – Voyage Capital leaves no stone unturned in ensuring the best returns for its fund.
The volatility of the stock markets is no new feature and especially in these trying times for India with the Eurozone crisis and widening fiscal deficit, it is imperative to always have a plan B. Hence, Voyage Capital has ensured exposure to alternate asset classes like Gold so as to diversify the risk further. Additionally, derivatives are utilised to manage the systematic risk of the portfolio. Each member of the Voyage Capital team masters a specific domain, such as IPOs, Indian Politics, Global Events and Crude Oil. This ensures the latest information is always factored in before making a decision.
A second point of focus for the Voyage Capital team is to educate others about the stock market and all its intricacies. The team accomplishes this through various events, guest lectures and workshops planned for the same. As part of Ahvan, IIM Indore's annual management festival, Voyage Capital conducts ‘Beat the Market' which is a 5 day event that allows participants to trade with virtual money while following actual market activities. This exciting event is open for all colleges. Additionally, ‘Stock Mania' creates a virtual trading floor and hones the skills of all future trading enthusiasts. The team was able to get attractive trading account bulk deals for the entire PGP batch recently. An even more exciting year ahead is promised with plenty of guest lectures and workshops planned.
Aptly summed up by a Voyage Capital member- ‘We many a time skip a meal, sometimes a class, and sometimes a free day with no worries just to track the markets. To put our expectations on steroids. To debate and lash out on each other. To rationalize. To earn money. To lose money. To smile at the green. To frown at the red. We care about NIFTY levels more than our grades. Profits give us a high, but we are never trippy enough to forget our duty of prudent investing'