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| IIM-L students' fund outperforms Nifty |
| Virendra Singh Rawat / New Delhi/ Lucknow Feb 11, 2012, 00:01 IST |
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Indian Institute of Management, Lucknow (IIML) students’-run fund Credence Capital has outperformed Nifty even in the recent choppy waters of equity market. While benchmark Nifty witnessed fall of nearly 14 per cent, Credence generated a return of 5 per cent in its equity fund, while the derivative fund returned a whopping 35 per cent.
Credence Capital was set up in July 2005 with voluntary contribution from IIML students, who pooled their funds to be managed by Team Credence Capital. It is purely a student initiative in which the institution is not directly involved. “This is the seventh year of its functioning and the fund has gained immense popularity across financial circles,” IIML on Friday said.
The students of 2010-12 batch had pooled their funds at the beginning of their academic session in July 2010. The funds were managed through the tumultuous 2011 and by January 31, 2012, the fund had generated handsome returns to its investors. In October 2011, the Team had launched ‘Operation: Bottom Fishing’ for the new batch in spite of the falling markets.
The Institute says other premier B-schools were also in a race to setup similar funds in their institutes under mentorship and support from Team Credence Capital.
“The key is to remain informed, diligent and disciplined. The markets provide opportunities to make profits while keeping risks to a minimum,” a Credence fund manager said. “More than profit maximisation, risk management and preservation of capital were the key. Keeping 5-10 per cent stop-losses and stressing on supports and resistances based on technical analysis were crucial to our performance,” another manager said.
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