What is the meaning of my Index?

Your index is a measure of your stock market performance. You can consider it as your personal rate of return. It helps you track your own performance real time and over different time periods. You can compare your trading performance represented by the Index with other traders and investors on SAMCO.

Why is it important to track your stock market performance?

When we asked many stock market participants whether they knew their portfolio performance over different time frames, we were surprised that most of them did not know. Participants don’t realise that there is an opportunity cost involved in trading and hence do not monitor it. As an active investor and trader, your stock market performance is your report card in this business and determines your success or failure. To succeed, knowing where you stand and how your performance is progressing is imperative to.

Why is it important to beat your benchmark?

If you are actively trading & investing, you are devoting your valuable time & energy to do so. If you use the same time to run your business or do a job, you are rewarded with profits or salary. So in this stock market business, you should earn for the time devoted in the form of profits at par or above those generated by passive investing i.e. your benchmark. The entire goal of you being an active investor and trader is to beat the benchmark and earn superior returns. If you are not going to beat or be at par with the index (your benchmark), better to just invest in index funds or ETFs and earn higher returns without any effort.

How is my Index calculated?

Your index calculation takes into consideration the performance of your stock holdings (including StockBasket), derivative positions in equity and currency segments, demat mutual fund holdings with RankMF, and your cash balances. Please note that your trades in the commodity segment are not included in the index calculation.

What is the starting point of my index?

Your Index value shall start from a base of 100 on the day you set up your Index. All your gains / losses then get reflected in your Index value. You can see historical data of your Index from July 2022 or date of your first capital introduction (funds addition), whichever is later. However, if your index would have become 0 at any point due to you losing your entire net worth, then you will be able to see historical index data only after you add funds again.

What do ups and downs of my Index mean?

The changes in your index are based upon the performance of your stock holdings (including StockBasket), derivative positions in equity and currency segments and demat mutual fund holdings with RankMF. The index moves in accordance with your performance in the stock market business on a real-time basis.

How is my outperformance or underperformance calculated?

Your outperformance or underperformance is calculated by comparing the change in your index v/s the change in your benchmark market index over the same time period. To outperform, the % change in your index had to be greater than that of the benchmark index and vice versa for underperformance. So, if your index is up by 1% and the benchmark index is down by 0.5% would mean that you are outperforming your benchmark index by 1.5%.

Why is my Index 0?

If your net worth is negative, your index will be 0. In order to restart your index calculations, you will need to add capital.

How can I know which is an ideal benchmark index for comparing my performance?

Based on analysis of your trading and investing style, we will recommend to you an ideal benchmark index. This is because The comparison with a benchmark index is useful only if you are able to track your performance against indices depicting your investment / trading style. For eg: Nifty 50 is not an ideal benchmark for derivatives traders who use high leverage.

What is the accuracy of my Index calculations?

Please note that certain exceptional items such as listing of private ESOPS received, inactivation of account due to mandatory 6 KYC attributes not updated have not been considered as a part of your Index calculation. Barring such exceptional cases, index calculations are quite precise

What is your net worth?

Your net worth is a measure of your wealth. It is the grand total of the market value of all your assets with Samco (i.e. it includes stocks, derivative positions in equity and currency segment, mutual fund investments, and cash balance) less any borrowings with Samco. Please note that your balances and positions in the commodity segment are not included in the net worth calculation in this widget.

Why is net worth important?

One key component of your net worth is your capital. In this stock market business, your capital is your raw material. Similar to a manufacturing business, the ultimate profit that you make in the stock market depends on the raw material, i.e. your capital. If you have INR 1000/- to invest, even if you generate a 100% return, your absolute profit will be INR 1000/-. So your capital and ultimately your net worth are important factors to determine the absolute returns that you can earn.