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Index Investing

Index Investing
A Low Cost, Low Risk Strategy to Investment Success

  • Abhishek Kumar - Complex Securities Analyst, Duff and Phelps, San Francisco

March 2020 | 284 pages | SAGE Response

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.

PART I: The Theory of Investing
Do Your Homework!
The Act of Faith
No Pain No Gain
Measuring the Beast
The Drunkard’s Tale
Floored by the Factors
PART II: The Psychology of Investing
Do You Blink or Think?
Oozing with Overconfidence
Loss and Gain: Not the Same
Trampled by the Herd
The Folly of Forecasting
PART III: The Business of Investing
Welcome to the Jungle
The Parrot’s Prophecy
The Curious Case of Chimpanzees
Death by a Thousand Cuts
The Mirage in the Desert
The Grand Illusion
The Wolf in the Sheep’s Skin
Smitten by the Hype and the Beauty
PART IV: The Solution
The Triumph of Indexing
Words of Wisdom

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

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