Beta exposure: Is direct investment better than index funds?

B. Venkatesh Readers may be aware of the core-satellite approach to portfolio management. This involves constructing a core portfolio for the beta (market) exposure and a satellite portfolio for the alpha (excess) returns. There were couple of interesting questions that we recently addressed for an investor who wanted to structure such a portfolio. The investor’s questions were two-fold. One, can the core... [read full story]