Weekly Research Seminar Series - Application of multi-criteria decision analysis for investment strategies in the Indian equity market

We are pleased to invite you to our Weekly Research Seminar Series on Thursday, 11th November at 3pm. In this week seminar, we are pleased to have our colleagues Dr. Sudipa Majumdar and Ms. Rashita Puthiya, presenting their research on “Application of multi-criteria decision analysis for investment strategies in the Indian equity market”. 

Weekly Research Seminar Series            

We are pleased to invite you to our Weekly Research Seminar. It will be held online on 11th November from 3pm via Microsoft team platform. Weekly Research Seminar Series was launched in 2008 and has featured 300 presentations to date. The seminars provide a forum for researchers to share their work. Presenters include faculty from Middlesex University Dubai and other universities in the United Arab Emirates, as well as researchers from other global institutions.      

“Application of multi-criteria decision analysis for investment strategies in the Indian equity market   

Sudipa Majumdar, Rashita Puthiya & Nandan Bendarkar 

Abstract          

In the Indian equity market, the Systematic Investment Plan (SIP) is the most popular strategy due to its convenience for disciplined investing regardless of market conditions. This study analyzes the excess returns of an extensive dataset of listed Indian companies from 2010 to 2019, along with a value-based version of the Multi-Criteria Decision Analysis (MCDA), to identify top performing stocks, based on their sectors and market capitalization. The findings of the study provide empirical evidence of Value Averaging (VA) as a viable alternative strategy over SIP (also known as Dollar Cost Averaging or Rupee Cost Averaging) as 352 out of 359 companies yielded higher returns under VA. The superiority of the VA strategy over the SIP was particularly marked in the consumer goods, financial services and industrial manufacturing sectors, with a clear dominance of small cap companies. The results also show that risk factors for VA strategy play an important role and should be taken into account, rather than base investment decisions on excess returns alone. The efficiency scores of individual stocks provide important insights for mutual funds, financial brokers and individual investors in India.

Presenter Bios    

Sudipa Majumdar completed her PhD in Economics in 1998 after completing her Graduation from Presidency College Calcutta and Masters in Economics from JNU New Delhi. She was the recipient of the British Academy Research Grant (2007-08); the Wharton Business School research collaboration (2010-12) and was recently completed the prestigious research award by Zayed University and Abu Dhabi Stock Exchange (in 2021). Further, Sudipa holds a PG Certificate in Advanced Statistical Learning from Stanford University USA. Before coming to Dubai, Sudipa had been Assistant Professor at Symbiosis Institute, Pune and at Solbridge Business School, South Korea. She has supervised almost 100 Masters Dissertations and 8 Doctoral Dissertations. Sudipa has several publications in peer-reviewed international journals; has been the recipient of Best Paper awards at international conferences and is the Reviewer of many international journals. 

Rashita Puthiya is a Chartered Accountant from the Institute of Chartered Accountants of India (ICAI). She joined Middlesex University, Dubai in 2015 as an adjunct faculty and then joined full time in 2019. She is now a full-time Lecturer in Accounting and Finance. Her areas of interest include Corporate Finance, Valuation, and Behavioural Finance. She undertakes IFRS training for Chartered Accountants at the Dubai Chapter of ICAI.