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Index Investing: A Low Cost, Low Risk Strategy to Investment Success Kindle Edition
Welcome to the mysterious world of equity market, which is not so mysterious after all!
Most investors get it wrong when it comes to understanding the nuances of the equity market. It is not because they are ignorant or lack the requisite skills to understand the factors affecting this market, but mainly because they get misleading information from market players and financial intermediaries. Consequently, these entities thrive and flourish, leaving the investor wringing his hands, wondering where all the money has gone.
No more lies! This book is your window to the equity market from a completely different perspective and earn your fair share of stock market return.
If you want to learn the lessons of Nobel Prize winning economists such as Markowitz, Fama, Kahneman, Thaler and Shiller on investing in the stock market, then Abhishek’s book is your best bet. The book will not only teach you the scientific and behavioural theories which are essential to creating a robust portfolio, but it will also take you to a real-world tour of Dalal Street and show how you can bypass most of the financial predators to come out as a real winner.
(Ram Kumar Kakani Professor of Finance, IIM Kozhikode)
With Index Investing, Abhishek has made a bold attempt to bring out the ugly truth of the Dalal Street. A truth that has been gloriously guarded by the financial intermediaries such as stockbrokers, fund managers and marketers. Like Yin and Yang, Abhishek has meticulously balanced his book to be simple and straightforward for common investors as well as thorough enough to be featured in the bookshelves of the academicians.
(Pulkit Srivastava, Co-founder, GeekyWorks)
Index Investing is an eye-opener for both the common and self-proclaimed sophisticated investors on why investing in the equity market is not what they have been made to believe and why their money doesn’t grow as advertised by the industry. The book takes a scientific approach with references from academia including the works of Nobel laureates and clearly shows how the financial system works and who is the end beneficiary. If you want to avoid the investment traps and work towards your own financial wellbeing, you must read this book.
(Ankit Singh, Senior Associate, Morgan Stanley)
If you are an investor and didn’t know about the inherent conflict of interest between those who invest their hard-earned monies and the people who manage those investments, then you will do a great benefit to yourself by reading this book. Index Investing which is a low-cost, low-risk and tax-efficient approach to stock market investing is one solution for which your kids and grandkids will ever be thankful to you.
(Suman Saurabh, Assistant Professor of Finance, IIT Kanpur)
Be it the unguided common investors or misguided experts, walking through the labyrinth of the equity market is always full of conceptual and emotional challenges. Abhishek takes readers on an eye-opening journey of this mysterious world busting many myths with lucid concepts, sound reasoning and practical analogies. Readers will love the intellect of the book and will thank him for its easy practical solution.
(Somesh Srivastava, M&A Consultant, PricewaterhouseCoopers)
Indian mutual fund industry has been up and running for over 30 years and it is for the first time that a book has been written which brings out its real picture. No sales pitch, no promotion and no false promise. Only the reality which has been kept hidden till now by the gatekeepers of the fund industry.
(Abhinav Anand, Associate Vice President, Mortgage Industry Advisory Corporation)
As with every business, the investment management business is not a story of golds and glories. At the bottom of this industry, there is a truth that is ugly and brutal. The genius of Abhishek is that he has brought out this truth in a spectacular fashion and great detail. More importantly, he has backed all his inferences with empirical evidence and researches done by noted academicians. If you want to avoid the snares that lurk in money management, and save yourself lots of money, you must read this book.
(Jugal Rasilay, Associate Vice President, ICICI Lombard) --This text refers to the paperback edition.
About the Author
Abhishek Kumar is a financial consultant with one of the world’s leading valuation firm at its San Francisco office where he looks after the valuation of derivatives and other complex securities. Earlier he worked as a corporate banker for nearly six years where he helped clients raise debt to fund their business operations and capital investments.
A proponent of MPT and a believer of passive investing school of thought, Abhishek is a critic of conventional ways of managing money which he says have been designed not to help the investors but the financial institutions and the intermediaries which reap benefits by exploiting the ignorance of people. His earlier books Master Your Money, Master Your Life and The Richest Engineer have been well received.
Abhishek has earned a Master of Financial Engineering from the University of California, Los Angeles, an MBA from Indian Institute of Management Kozhikode and a BTech in Electronics Engineering from Indian Institute of Technology (BHU) Varanasi.
--This text refers to the paperback edition.
- ASIN : B08661S9MZ
- Publisher : Sage Publications Pvt. Ltd; 1st edition (27 March 2020)
- Language : English
- File size : 2628 KB
- Text-to-Speech : Enabled
- Screen Reader : Supported
- Enhanced typesetting : Enabled
- X-Ray : Not Enabled
- Word Wise : Enabled
- Print length : 286 pages
- Best Sellers Rank: #74,518 in Kindle Store (See Top 100 in Kindle Store)
- Customer Reviews:
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The book is divided into four parts covering the four essential parts of the investment process: The Theory of Investing, The Psychology of Investing, The Business of Investing and The Solution for the investors.
The author has also managed to keep it as simple as possible, with apt charts and diagrams where required. There is clear detailing and explanation of the charts with historical stories about the events that occurred.
Not only that the book has plenty of examples and references, just in case if you wish to have further reading on a particular topic. The book might ask for patience if you are new to the world of Investing, nevertheless, the domain of wealth creation demands patience in most of the cases.
The book elaborately explains the purpose of investment should be to get a return on your money which is fairly over and above the inflation rate. It gives insights on how this holds true as a general rule over some exceptional cases.
I also liked the way the book has its perspective on explaining risks, for beginners, this gives the advantage of not committing the same mistakes again. Overall, it is a great value book for readers. Definitely a read for someone who is looking for an overview of Investing in a technical and systematic way.
The book also tells the limitations and catches of investing, and how index investing is beneficial over others for small investors.
In a Nutshell:
Brilliant Read, Detailed Research and Completely Worth a Read
Book Type: Non-Fiction
Overall book verdict: 4.7/5
Story & Concept: 4.3/5
Detailing & Information: 4.8/5
Overall Edit: 4/5
However, few things could have been included. The direct mode of investing has drastically reduced the cost in active mutual funds and some renowned funds have outperformed their respective benchmarks by fairly a wide margin in the long term. The outperformance was higher than expense ratio recovered by active mutual funds. Therefore, some evidence with historical data to establish that passive investment strategies have outperformed majority of active strategies in the Indian context would be useful for retail investors. Additionally, the coverage of passive investments avenues could have included Exchange Traded Funds.
It would clarify all your doubts and misconceptions about stock market and investments in its subsidiaries.
Trust me when I say this, I avoided huge traps just by reading the book.
(Ofcourse I had burnt myself a little in this world of investing already )
Nonetheless had I read this book an year back it would have made all the positive differences.
Which you can also make by patiently reading through it (yes you would require patience cause it's a book on stock market, not 50 Shades of Grey)
P.S: Waiting for the next installment.
A great know how of the financial trains which just run through Dallal Street. A must read for knowing Index funds and the downfalls of actively sought 'active' funds.