A Quick Guide to the Information Ratio

Learn how to assess active funds . . . .


6 May 2025 · Tuesday

Forwarded this email? Subscribe here for more

Good evening, WeekendInvestor

Today’s Daily Byte

It finally seems like the market is showing signs of forming a short-term top. The market didn’t go anywhere today. Over the last 7–8 sessions, we’ve remained in a narrow range between 24,200 and 24,400. At this point, it seems the market is getting tired and may even give up some gains.

In today’s video, we’re discussing an analytics-based case. We’ll study historical FII (Foreign Institutional Investor) flows and evaluate whether they can predict market movements. Can FII flows cause the markets to skyrocket, or not? Let’s explore that.

Reading Time : 6 Minutes

Mi India Top 10

This 10 stock portfolio is a Low Churn strategy that invests in Top 10 trending stocks from the robust Nifty 50 Universe. It is rebalanced monthly.

Mi MT AllCap

This portfolio selects upto 20 stocks portfolio that follows momentum trends among all listed highly liquid stocks(> 1000 cr mktcap). It is rebalanced weekly.

A Quick Guide to the Information Ratio

The information ratio is a financial metric used to evaluate fund performance. It is calculated by subtracting the benchmark return from the portfolio return and then dividing the result by the tracking error.

This ratio is particularly useful for assessing slightly active funds. A higher information ratio indicates that a fund manager is consistently generating returns above the benchmark.. . . . .

Reading Time : 3 Minutes

The Momentum Podcast

In this episode of the Momentum Podcast by Weekend Investing, we sit down with Sudheer , a software engineer from Infosys who shares his honest and inspiring investing journey—from early losses in derivatives and scams to his turnaround using Weekend Investing’s smallcases.

💡 Hear how Sudheer allocates ₹30,000/month, balances risk with gold, navigates market dips confidently, and the crucial mindset shift he learned through momentum investing.

👉 Don’t miss Sudheer’s powerful advice for new investors and the importance of discipline and long-term thinking.

Fill in the form below to be part of this exciting series : https://forms.gle/HDbEk9xrTjVecW2c9

Respect Opportunity cost

A striking chart from Bar Chart highlights the performance of the Euro Stoxx 50 Index. This index, which tracks 50 leading European companies, is now at the same level it was in the year 2000.

That means for 25 years, it has essentially gone nowhere. This kind of long-term stagnation is rare, but not impossible. It reminds investors that just because an asset is part of a big economy or index, it doesn’t mean it will always grow.. . . . .

Reading Time : 3 Minutes

Portfolio Momentum Report

Your deep dive into two critical metrics to assess your portfolio’s potential:

1️⃣ Momentum Score: See what percentage of your portfolio is in high vs. low momentum stocks, giving you a snapshot of its performance and health

2️⃣ Weightage Skew: Discover if certain stocks are dominating your portfolio, affecting its performance and risk balance.

💡 Why it matters:

Weak momentum stocks can limit your gains, while high momentum stocks improve capital allocation, enhancing your chances of superior performance.

🎥 Watch this video to learn more :

Get your Portfolio Momentum Report today and ensure your investments are positioned for success!

Do you know what happened to GOLD in 1971 ?
Gold target in few years !

k this is blank this is blank

Follow for Daily Market Updates and Insights

Share this daily insightful newsletter with your market savvy friends and family or sign them up for this newsletter !

For detailed blogs, reports and strategies, check WeekendInvesting.com

Disclaimers and disclosures : https://tinyurl.com/2763eyaz

Disclaimer : This newsletter is for informational and educational purposes only and does not constitute financial advice or an advertisement

Reply

or to participate.