Analytical & Information Tools
A. Market Mood Index (MMI)
- MMI is a sentiment tool that describes the current mood in the market as emotions. It considers various factors, calculates a score and buckets the score into the appropriate emotion category (extreme fear/fear/greed/extreme greed). More details on the uses of MMI and methodology can be found here
- The input values for the various factors taken into consideration for calculating the value of MMI are obtained from authorized exchange-approved data vendors
B. Investment Checklist/ Scorecard
- An investment checklist or scorecard is a tool to represent a particular investment product’s (particular stock/ETF/MF etc.) key characteristics from an investability point of view. A user can use the information provided as part of their research to analyse and decide on investing in a particular investment product.
- Examples
- Profitability score as part of stocks scorecard:
- Profitability score conveys how profitable the company is. It is calculated taking the stock’s sub-sector as the universe and a higher profitable score represents a firm having higher profit & cash flow margins. Higher the score, better the profitability of the company amongst its peers.
- Metrics used for calculation:
- ROE: Return on equity is defined as net profit divided by the average common equity. Higher the ROE better the utilisation of shareholders money
- Net Profit Margin: Net Profit Margin is defined as net profit divided by the revenue of the company for the most recent financial year. Higher the margin, better the score
- Cash Flow margin: Cash Flow Margin is the Cash from operations divided by total revenue for the most recent financial year. Higher the margin, better the score
- How scores & ranks are calculated:
- Actual values of the metrics mentioned above are taken and normalised to create a score on the scale of 0 to 10
- A weight is assigned to all 3 metrics to calculate a weighted average score
- The weighted average score is then again normalised to get a final score on the scale of 0 to 10
- Rank is assigned based on the score
- The universe considered for this calculation is the tradeable universe of all stocks. The scores in each category for a stock are compared to other stocks in the same sub-sector to determine the peer-rank
- Returns as part of Mutual Fund Investment checklist/scorecard - Compares the performance of a given fund to the performance of other funds that belong to the same category to show if the fund has outperformed its peers.
- Profitability score as part of stocks scorecard:
- The raw data for providing/computing the required information is obtained through authorized exchange-approved data vendors
C. Forecasts
- Forecasts (on stocks) are estimates aggregated across various brokerage houses and/or analysts for price, revenue and earnings per share (EPS) on a particular stock
- Forecast values are not calculated by Tickertape but are estimates aggregated across various brokerage houses and/or analysts. This data is then merely presented by Tickertape on its platform
- A single stock can have multiple brokerage houses and/or analysts tracking it with each analyst having their own rationale behind the forecast values, these values are collected from those parties and 3 values are selected from the data:
- The highest forecast estimate
- The lowest forecast estimate
- The median forecast estimate
- Forecast data may not be available for every stock. We show collated forecast data only for the stocks which are covered by brokerage houses/research analysts.
- All Forecast and Estimate data(“S&P Services”) are provided by S&P Global Market Intelligence
- The S&P Services (or any derivative thereof) are not investment advice and a reference to a particular investment or security, a credit rating or any observation concerning a security or investment provided in the S&P Services is not a recommendation to buy, sell or hold such investment or security or make any other investment decisions.
- No user shall utilize any S&P services for the purpose of training, developing, or implementing any artificial intelligence (AI) use cases or any other purposes related thereto.
- Copyright © 2024, S&P Global Market Intelligence (and its affiliates as applicable) . Reproduction of any information, opinions, views, data or material, including ratings (“Content”) in any form is prohibited except with the prior written permission of the relevant party. Such party, its affiliates and suppliers (“Content Providers”) do not guarantee the accuracy, adequacy, completeness, timeliness or availability of any Content and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such Content. In no event shall Content Providers be liable for any damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with any use of the Content. A reference to a particular investment or security, a rating or any observation concerning an investment that is part of the Content is not a recommendation to buy, sell or hold such investment or security, does not address the suitability of an investment or security and should not be relied on as investment advice. Credit ratings are statements of opinions and are not statements of fact.
D. Portfolio Returns & Insights
- Portfolio net worth represents the current value of the portfolio. Portfolio profit & loss represents the difference between the current value and the invested value of the portfolio. User’s portfolio holdings are fetched based on user consent from the relevant intermediary and/or manually updated by the user. The portfolio is refreshed for holdings and prices at a defined frequency.
- Portfolio insights show various information points to the user for the purpose of analysing their portfolio. Such analysis can be across various metrics (Say, portfolio PE vs Benchmark PE) or analytical information on underlying securities, or highlight composition in which the various securities are held by the user etc.
- The raw data for providing/computing the required information is obtained through authorized exchange-approved data vendors.
- The forecast values in the stock portfolio show the median price estimates for each stock until the end of the next three calendar quarters. However such forecast values in the stock portfolio is only calculated for the stocks in the portfolio where median price estimates are available.
- Forecast values in the stock portfolio are purely based on the estimates aggregated across various brokerage houses and/or analysts using median price estimates of individual stocks (for further details on individual stocks forecasts, please refer to the Forecasts Section above). It is calculated as the weighted average of individual stock investments in the user portfolio and each stock’s price estimate till the end of next three calendar quarters.
E. Screen Library
- Screener is one of the tools available for users on Tickertape to filter and/or identify an investment product (say, a particular stock/ETF/MF) across multiple fundamental and/or technical parameters. It also allows users to define their own parameters.
- Pre-built screens are intended to be a starting point for the users to understand the capabilities of the screener tool & filter and/or identify the investment product based on fundamental and/or technical parameters
F. Ideas under the market movers section
- Market movers represent bulk buying/selling activity. “Ideas” under the market movers section are a way to show users how a combination of filters can be used to track market movers in the capital markets.. This is a way to get the users to learn and easily understand how to use the feature
G. Social
- Social/Tickertape communities is the go-to place for users of all types to connect, learn and share financial news, information and ideas with each other
- It allows an investor to create a profile, create/join a space, and create/follow posts.
- The users of social are expected to comply with the community guidelines mentioned here. Also, by using Tickertape, the users agree to adhere to all the terms and conditions of Social contained here
H. Disclaimer
- All the above tools are designed to be informational/educational/analytical tools to enable the users to learn, analyze and decide better. They do not constitute investment research or advice in any manner
- The tools/services do not consider individual needs or circumstances. The information/details displayed/computed are for informational/analytical/learning purposes only and are not intended as, and cannot be used as, a substitute for professional financial advice
- All information present on TT is for education and analysis purposes and shall not be considered as a recommendation or solicitation of an investment or investment strategy. Users are responsible for their investment decisions and are responsible to validate all the information used to make the investment decision. Investor should understand that his/her investment decision is based on personal investment needs and risk tolerance, and information available on TT is one amongst many other things that should be considered while making an investment decision. We strongly recommend that you seek the advice of an authorized financial services professional while making any investment decisions
- While every effort has been made to take due care in building the above tools to avoid errors or omissions, all the tools are published with a condition and understanding that ATPL shall not be responsible for any damages, compensation or loss or action taken or abstained to be taken on the basis of this information.
- Investing in Stocks, ETFs (Exchange Traded Funds) & Mutual funds are subject to market risk. Please read all the related documents carefully before investing. Past performance and representations are not indicative of future results and do not guarantee any future performance.
- Anchorage Technologies Private Limited accepts no liability whatsoever for any losses or liabilities allegedly arising from the use of the tools/services by any person.
I. Return Calculation Methodology
Each smallcase's return is calculated from its Index value. To understand how index values are calculated and used to derive smallcase returns, please refer to following sections
What is an index value?
An index value allows the user to measure the change in the value of a portfolio relative to its value on a historical date. For example, let's assume that portfolio A was created on 1st Jan 2020. The index value of A on that day was 100. Suppose the index value of the portfolio on 31st March 2021 was 127. We can calculate the absolute return of A between the above-mentioned dates as (127/100)-1 * 100 = 27%.
How are smallcase index values calculated?
Lets understand this with an example. Portfolio FAME was created on 1st Jan 2014. The creator of the portfolio will rebalance FAME once in 3 months.
Let's call the first version of FAME as FAME 1.0. The stocks and weights in FAME 1.0 portfolio are as below:
Stocks Weights A 30% B 20% C 15% D 35% To calculate the index values, the portfolio creation date, constituents of the portfolio and their respective weights are required. On the date of creation of the smallcase, the index value is set to 100. This can also be understood as a hypothetical Rs.100 investment in FAME 1.0. The calculation on 1st Jan 2014 is as below:
Index value: 100
Date Weight Closing price No. of shares Index Value A B C D A B C D A B C D 1-Jan-14 30% 20% 15% 35% 176.5 101.4 105.9 52.1 0.17 0.20 0.14 0.67 100.00 2-Jan-14 30% 20% 15% 35% 174.3 105.8 103.3 51.5 0.17 0.20 0.14 0.67 99.67 3-Jan-14 30% 20% 15% 35% 172.0 104.2 100.9 50.9 0.17 0.20 0.14 0.67 98.22 4-Jan-14 30% 20% 15% 35% 172.0 104.2 100.9 50.9 0.17 0.20 0.14 0.67 98.22 5-Jan-14 30% 20% 15% 35% 172.0 104.2 100.9 50.9 0.17 0.20 0.14 0.67 98.22 6-Jan-14 30% 20% 15% 35% 168.8 103.9 101.2 51.1 0.17 0.20 0.14 0.67 97.86 On 1st Jan 2014, the portfolio contained 4 stocks A, B, C and D. The weights of these stocks were 30%, 20%, 15% and 35% respectively. The closing prices of the stocks on that day is used to calculate the hypothetical number of shares that can be bought, assuming Rs.100 is invested in the portfolio. “100 * weight of the stock” will give the amount of money that can be invested in a specific stock. This number is divided by the closing price of the stock to derive the number of shares of that stock. Finally, by multiplying the number of shares of each stock with the stock’s closing price and adding the output for all the stocks, the index value is derived. Of course on the first day, the index value is the same as the amount invested, i.e 100.
The number of shares of each stock will remain the same till the next rebalance date. Each trading day, the closing stock prices are multiplied by the number of shares. The sum of these data points will be the index value for that specific date.
How does rebalance affect the index value?
Rebalancing is the process of reviewing the stocks and their respective weights to ensure that it remains true to the theme or strategy of the smallcase.
Continuing with the same example, let's assume The FAME portfolio gets rebalanced on 31st March 2014. The index values leading upto the rebalance date were as below:
Date Weight Closing price No. of shares Index Value A B C D A B C D A B C D 26-Mar-14 30% 20% 15% 35% 176.8 100.7 88.0 65.8 0.17 0.20 0.14 0.67 106.54 27-Mar-14 30% 20% 15% 35% 183.7 100.1 89.5 67.5 0.17 0.20 0.14 0.67 108.97 28-Mar-14 30% 20% 15% 35% 190.2 100.3 92.7 68.8 0.17 0.20 0.14 0.67 111.39 29-Mar-14 30% 20% 15% 35% 190.2 100.3 92.7 68.8 0.17 0.20 0.14 0.67 111.39 30-Mar-14 30% 20% 15% 35% 190.2 100.3 92.7 68.8 0.17 0.20 0.14 0.67 111.39 31-Mar-14 30% 20% 15% 35% 191.8 100.3 91.8 70.4 0.17 0.20 0.14 0.67 112.65 In the rebalance, the weights of both A and D were reduced and a new stock E was added to the portfolio. Let's call this new portfolio FAME 2.0. Post rebalance, the stocks and their corresponding weights were as below:
Stocks Weights A 20% B 20% C 15% D 30% E 15% On 31st March, the Rs.100 that was initially invested in the portfolio had grown to Rs.112.65. The latter amount is the one that should be reinvested.
A simple of way calculating the new number of shares is by multiplying 112.65 * weight of stocks in the rebalanced portfolio and dividing the output by closing price of the individual stocks. Continuing the earlier process, these new numbers of shares can be multiplied by the daily close price of respective stocks and their summation could be the new index value. The index values calculated using this method will be as below:
Index value: 112.65
Date Weight Closing price No. of shares Index Value A B C D E A B C D E A B C D E 31-Mar-14 20% 20% 15% 30% 15% 191.8 100.3 91.8 70.4 373.6 0.12 0.22 0.18 0.48 0.05 112.65 1-Apr-14 20% 20% 15% 30% 15% 189.4 105.7 93.4 68.5 368.2 0.12 0.22 0.18 0.48 0.05 112.72 2-Apr-14 20% 20% 15% 30% 15% 193.5 116.4 94.1 69.2 365.1 0.12 0.22 0.18 0.48 0.05 115.94 3-Apr-14 20% 20% 15% 30% 15% 189.6 114.1 94.2 68.4 363.6 0.12 0.22 0.18 0.48 0.05 114.51 4-Apr-14 20% 20% 15% 30% 15% 190.3 118.9 92.2 70.4 361.9 0.12 0.22 0.18 0.48 0.05 116.18 5-Apr-14 20% 20% 15% 30% 15% 190.3 118.9 92.2 70.4 361.9 0.12 0.22 0.18 0.48 0.05 116.18 However this methodology has limitations. Investors will be able to execute the trade only after the market opens the next day. It is unlikely that these trades will be executed at the previous day's close price. If the price of securities that the investor is buying goes up and the price of securities that the investor is selling goes down, then the investor's portfolio will underperform the manager's smallcase. If the scenario is reversed and the investor is able to buy at a lower price and sell at a higher price, then his/her portfolio will outperform the manager's portfolio. In order to lessen the impact of this issue and ensure that the investor's returns are in line with that of the manager's portfolio, we use the following methodology.
The legend mentioned below should help readers follow the methodology.
T0 : Rebalance date, 31st March 2014 in this instance
T1 : Calendar day after rebalance date, 1st April 2014
V0 : smallcase version before rebalance, FAME 1.0
V1 : smallcase version after rebalance, FAME 2.0
OHLC average : Average of Open, High, Low and Close price of the stock on a particular trading day
1. Calculating intermediate index value on T1
Intermediate index value = Sum of (No. of shares of each stock in V0 * OHLC average of the respective stock on T1)
Date Weight OHLC average price No. of shares Index Value A B C D A B C D A B C D 1-Apr-14 30% 20% 15% 35% 190.6 104.0 92.8 69.5 0.17 0.20 0.14 0.67 112.68 2. Calculating the new number of shares for stocks in V1
New no. of shares = (Intermediate index value * weight of the individual stock in V1) / OHLC average of the respective stock on T1
Index value: 112.68
Date Weight OHLC average price No. of shares A B C D E A B C D E A B C D E 1-Apr-14 20% 20% 15% 30% 15% 190.6 104.0 92.8 69.5 371.1 0.12 0.22 0.18 0.49 0.05 3. Calculating the final index value on T1
Final index value = Sum of (No. of shares of each stock in V1 * Closing price of the respective stock on T1)
Again, the number of shares of each stock will remain the same till the next rebalance date. As earlier, each trading day the closing stock prices are multiplied by the number of shares. The sum of these data points will be the index value for that specific date.
The index values calculated using the improved method will be as below:
Date Weight Closing price No. of shares Index Value A B C D E A B C D E A B C D E 31-Mar-14 30% 20% 15% 35% - 191.8 100.3 91.8 70.4 373.6 0.17 0.20 0.14 0.67 - 112.65 1-Apr-14 20% 20% 15% 30% 15% 189.4 105.7 93.4 68.5 368.2 0.12 0.22 0.18 0.49 0.05 112.41 2-Apr-14 20% 20% 15% 30% 15% 193.5 116.4 94.1 69.2 365.1 0.12 0.22 0.18 0.49 0.05 115.56 3-Apr-14 20% 20% 15% 30% 15% 189.6 114.1 94.2 68.4 363.6 0.12 0.22 0.18 0.49 0.05 114.13 4-Apr-14 20% 20% 15% 30% 15% 190.3 118.9 92.2 70.4 361.9 0.12 0.22 0.18 0.49 0.05 115.79 5-Apr-14 20% 20% 15% 30% 15% 190.3 118.9 92.2 70.4 361.9 0.12 0.22 0.18 0.49 0.05 115.79 Please note that smallcase returns were impacted when the above updated methodology wrt to calculating impact of rebalance on index values was implemented on 25th Apr’22. Returns were adjusted to reflect the impact of updated methodology on all the historical rebalances of the smallcase since launch.
Calculating returns using index values
As clarified earlier, index values are used to calculate smallcase returns. Index values of the smallcase and the corresponding category performance are available on the platform.
The “Download” button on the rebalance timeline feature in the stocks and weights section of the smallcase page can be used to download the index value of the smallcase and historical components.
To calculate the 1-month return of a smallcase, first decide on the base date and historical date. Suppose the base date is 1st Jan 2015, the historical date is 1st Dec 2014. Let's suppose the index values on these dates are 470.2 and 482.6 respectively. Then the 1 month return is (470.2/482.6)-1 = 2.58%. The absolute returns between any 2 dates can be calculated similarly..
Calculating returns when manager has not prescribed any weights
Equal weights are used to calculate the returns, for smallcases where manager has just prescribed a list of stocks/ETFs, but has not prescribed any weights. So if there are 5 stocks/ETFs in the smallcase, each would be considered to have 20% weight while using the above-mentioned methodology for returns calculation. Similarly, if there are 10 stocks/ETFs in the smallcase, each would be considered to have 10% weight while using the above-mentioned methodology for returns calculation.
Does smallcase performance include the impact of transaction fees?
No, transaction fees and other related costs are not included to calculate the index value and performance of the smallcases. No actual money was invested or trades were executed while calculating smallcase performances. Returns are based on end of day prices of stocks in a smallcase.
Use this link to read more about the Cost Calculator tool available on smallcase app.
Does smallcase performance include historical rebalances?
Yes, smallcase performance accounts for all the rebalances. smallcases are reviewed and rebalanced as per a schedule depending on the smallcase. As a result of this review process, some stocks may be added, some may be removed and some may undergo weight changes. smallcase returns reflect all these changes.
Does smallcase returns include any backtested data?
No, smallcase returns do not include any backtested data. Interested users can separately checkout the backtest performance through the factsheet of a smallcase.
Does smallcase performance include the adjustment for stocks which users are not able to buy/sell in rebalances due to stocks hitting the upper/lower circuits?
Yes, at the end of every month, we identify all the smallcases which experienced following events :
- Manager added or removed the stocks which were in the upper/lower circuit on the day when users received the rebalance update for execution (next market open day after the Manager added the rebalance)
- Manager reduced or increased the weights of the stocks which were in the upper/lower circuit on the day users received the rebalance update for execution
For such smallcases, we recalculate the index value for the last month in a manner that ensures
- Circuit stocks are not removed/added from the Manager’s smallcase for the period in which they remained in the circuit. This will ensure that Manager smallcase returns are in line with the user smallcase returns, as users would also not be able to buy/sell these stocks for the same period.
