Investing in digital assets like Bitcoin has become increasingly popular globally, including rising interest in Bitcoin ETFs in India.

What is Bitcoin ETF?

A Bitcoin ETF (Exchange-Traded Fund) allows you to invest in Bitcoin without having to buy and hold the cryptocurrency yourself. You don’t buy Bitcoin directly; instead, you buy a fund that trades on stock exchanges and follows the price of Bitcoin. This is great for people who want to invest in digital assets without having to deal with digital wallets or exchanges directly. It is safe, easy to use and convenient.

Bitcoin ETF in India

The interest in Bitcoin ETFs in India is growing due to the country’s increasing awareness and acceptance of digital assets. Indian investors see Bitcoin ETFs as a safe and regulated way, aligning perfectly with their traditional long-term investment strategies.

What is Tactical Asset Allocation?

Tactical asset allocation is a powerful investment strategy that changes the types of assets (stocks, bonds, Bitcoin ETFs, etc.) in your portfolio based on the market conditions. Tactical asset allocation lets you change your allocation in the short term to take advantage of market opportunities or manage risks. This is different from strategic asset allocation, which keeps a fixed allocation based on your long-term investment goals and risk tolerance.

Strategic vs. Tactical Asset Allocation

Strategic asset allocation involves setting fixed target percentages for your investments (stocks, bonds, Bitcoin ETFs) and regularly rebalancing to maintain this mix. Tactical asset allocation is more flexible, changing allocations based on market signals and trends to maintain risk-adjusted outperformance for the benchmark.

Tactical Allocation for Bitcoin ETFs in India

Using tactical allocation for Bitcoin ETFs means adjusting your investment based on market trends or volatility. 

Simple Example of Tactical Allocation

Imagine your initial investment is:

• Stocks: 60%
  
• Bonds: 30%
  
• Bitcoin ETFs: 10%
  

If Bitcoin prices start rising sharply, you might adjust your portfolio:

• Stocks: 60%
  
• Bonds: 25%
  
• Bitcoin ETFs: 15%
  

If Bitcoin becomes volatile or risky, you might shift again to protect your money:

• Stocks: 60%
  
• Bonds: 35%
  
• Bitcoin ETFs: 5%
  

Quantitative Approach for Tactical Allocation

Let’s make this slightly technical, but still friendly.

Say you have a simple signal that tells you when Bitcoin is trending (like moving averages or volatility bands). When the signal is positive, you allocate more to Bitcoin ETFs. When it’s negative or flat, you reduce exposure.

For example:

• If BTC’s 30-day return > 10% and volatility < 50% → Increase ETF weight by +5%
  
• If BTC’s volatility > 70% and return < 0% → Reduce ETF weight by -5%
  

This system helps you stay objective and not overreact. It’s like using weather radar before sailing: you’re still going to the same destination, but you’re making smart changes to your sails.

Benefits of Long-term Investment

• Balance Growth & Safety: While Bitcoin is a high-growth asset, ETFs add a safety cushion. Tactical allocation lets you enjoy profit while managing risks.
  
• Stay Calm During Volatility: By adjusting only small portions of your portfolio, you stay invested but not overexposed.
  
• Better Risk-Adjusted Returns: You don’t chase returns blindly. You let the data guide you. This often leads to better Sharpe ratios and lower drawdowns over time.

In Summary

Tactical allocation isn’t about predicting the future, it’s about planning for it. For Indian investors eyeing Bitcoin but hesitant to go all in, Bitcoin ETFs + a tactical approach would be the perfect match. At the end of the day, it’s about staying invested, staying flexible and using logic over emotion.

If you’re interested in knowing how to invest in US stocks from India but aren’t sure how to get started, this comprehensive guide covers everything you need to know, from investment basics and brokerage fees to taxation, plus recommendations for some of the best US stocks to buy.

Why Invest in U.S. Stocks from India?

• Global Diversification: Spread your risk across markets beyond India.
  
• High Growth Potential: Invest in global leaders like Apple, Amazon and Google.
  
• Currency Advantage: Benefit from the long-term depreciation of INR vs USD, historically translating to 3–5% extra returns.

How to Invest in US Stocks from India

Follow these steps to start investing in US stocks online:

Step 1: Choose a Broker

Select a brokerage platform offering international trading to invest in US stocks from India. Ensure the platform:

• Ensure the platform is regulated for investor protection
  
• Look for the availability of expert guidance
  
• Verify competitive brokerage charges
  
• Prefer platforms with easy account opening procedures
  
• Confirm robust security and regulatory compliance

A trusted platform like 9Point Capital provides all of these features, ensuring a smooth and secure investing experience for Indian investors.

Step 2: Open an Account

Open an international trading account with your chosen broker. You will typically need:

• PAN Card
  
• Aadhaar Card
  
• Bank account details
  
• Proof of address
  
• A completed KYC form
  

Step 3: Fund Your Account

Transfer funds from your Indian bank account to your brokerage account. You can remit funds via the Liberalised Remittance Scheme (LRS), allowing individuals to remit up to $250,000 per financial year.

Step 4: Start Investing

Once your account is funded, you can start investing in US stocks. The process typically involves:

• Searching for the desired stock or exchange-traded funds (ETFs).
  
• Deciding on the investment amount or the number of shares.
  
• Confirming the purchase.
  

Brokerage Charges to Consider

When investing in US stocks from India, brokerage charges typically include:

• Account Maintenance Fees: Some brokers charge a monthly or annual fee.
  
• Transaction Fees: Charged per trade or as a percentage of the traded value.
  
• Currency Conversion Charges: Charged when converting INR to USD.
  

Always review the fee structure clearly before selecting your brokerage platform.

Taxation on US Stocks in India

Taxation is an important aspect to consider when investing in US stocks from India:

Dividends:

• Dividends earned from US stocks are subject to a withholding tax of 25% in the U.S.
  
• In India, dividends received from foreign companies are taxed at your applicable income tax slab rates. You can claim a credit for US withholding taxes paid under the Double Taxation Avoidance Agreement (DTAA).
  

Capital Gains:

• Short-term Capital Gains (holding period less than 24 months): Added to your taxable income in India and taxed according to your income tax slab.
  
• Long-term Capital Gains (holding period more than 24 months): Taxed at 12.5%

Ensure proper documentation and consult a tax advisor for specific guidance on your tax situation.

Best US Stocks to Buy

If you’re wondering which stocks to start with, consider blue-chip companies renowned for their stability and growth potential. Top choices include:

• IBIT (BlackRock iShares Bitcoin Trust): A recently launched spot Bitcoin ETF by BlackRock, IBIT offers exposure to Bitcoin through a traditional brokerage account. It’s ideal for investors seeking cryptocurrency exposure without directly holding digital assets. 
• Apple (AAPL): Known for consistent innovation and strong earnings.
  
• Tesla (TSLA): A leader in the electric vehicle industry.
  
• Amazon (AMZN): E-commerce and cloud computing giant.
  
• Alphabet (GOOGL): Google’s parent company with strong advertising and technology revenue streams.
  
• Microsoft (MSFT): Tech giant with consistent dividend payouts.
  

Invest through Exchange-Traded Funds (ETFs)

Exchange-Traded Funds (ETFs) offer a smart and accessible way to invest in the U.S. market without picking individual stocks. They provide built-in diversification by spreading your investment across a mix of companies, industries, or major market indices like the S&P 500 or NASDAQ.

Here are a few types of ETFs gaining popularity:

• Bitcoin ETFs: These offer a simpler path to invest in digital assets without directly buying cryptocurrency. Notable examples include the iShares Bitcoin Trust ETF (IBIT) and the Grayscale Bitcoin Trust ETF (GBTC).
  
• SPDR S&P 500 ETF Trust (SPY): Tracks the performance of the S&P 500, giving exposure to 500 of the largest U.S. companies.
  
• Invesco QQQ Trust (QQQ): Focuses on the NASDAQ-100 Index, which includes major tech-driven companies.
  
• Vanguard Total Stock Market ETF (VTI): This fund offers a broad investment in the entire U.S. stock market, including small-, mid, and large-cap stocks.
  

ETFs are a flexible and efficient tool to build a well-rounded portfolio with ease.

Things to Keep in Mind

Before investing in US stocks from India, consider:

• Taxation: Understand the tax implications in both the US and India.
  
• Currency Risks: Evaluate how currency fluctuations may affect returns.
  
• Regulatory Compliance: Stay updated with RBI guidelines regarding overseas investments.
  

Conclusion

Investing in US stocks from India can significantly boost your investment portfolio’s potential. You can efficiently diversify and enhance your investment strategy by carefully selecting a brokerage platform, understanding brokerage charges and taxation and identifying the best US stocks or ETFs. Always ensure you remain informed and compliant with regulatory requirements to maximise your returns.

Ready to take your portfolio global?

What is the Calmar Ratio?

The Calmar ratio (short for California Managed Accounts Report) is a way to measure the performance of an investment by comparing its average annual return to its worst recent drop, also called maximum drawdown. 

In simple terms, it tells you: “How much reward am I getting for the risk I’m taking?”

• A higher Calmar ratio = better risk-adjusted performance.
  
• A lower Calmar ratio = more risk for less return.
  

This makes it an essential tool for comparing different investment strategies, especially if you’re investing in portfolio management services in India or globally.

How to Calculate Calmar Ratio?

Here is the formula:

What are Risk-Adjusted Returns?

It’s the return you get for each unit of risk you take. Tools like the Calmar measure help you see whether you’re being fairly compensated for the risk involved.

Why Risk-Adjusted Returns Matter?

Everyone loves high returns. But what if you had to endure a 50% drop just to get those gains? That’s not a good deal for most people. This is where risk-adjusted returns shine, they show whether an investment is truly worth it after accounting for the risk.

For example:

• Investment A returns 15% with a max drawdown of 5%.
  
• Investment B returns 20% with a max drawdown of 20%.

The Calmar ratio of A is 3.0 (15 ÷ 5), while B’s is 1.0 (20 ÷ 20). So even though B offers higher returns, A is much safer for each percent of return.

What is Maximum Drawdown?

Maximum drawdown represents the worst peak-to-trough decline in an investment’s value. It captures the potential losses an investor could have faced during difficult market conditions.

An investment with strong average returns but a deep drawdown may not be suitable for investors with low risk tolerance. The Calmar metric directly addresses this concern by including the maximum drawdown in its calculation.

Calmar Ratio vs Other Metrics

Other risk-adjusted return metrics include the Sharpe ratio, Sortino ratio, and RAROC (Risk-Adjusted Return on Capital). However, these often involve standard deviation or complex capital calculations.

What sets the Calmar ratio apart?

• Focuses solely on maximum drawdown, a realistic and intuitive measure of downside risk.
  
• Simple to compute and interpret.
  
• Especially useful for long-term performance evaluations.
  

While RAROC is more commonly used in banking and institutional finance, the Calmar metric is more relevant and accessible for individual investors and for evaluating portfolio management services in India.

Interpreting Calmar Ratio Values

Here is the overview of Calmar metrics:

Calmar Ratio	Interpretation
Above 3.0	Excellent risk-adjusted performance
2.0 – 3.0	Strong and balanced strategy
1.0 – 2.0	Moderate; review volatility
Below 1.0	Weak; returns may not justify risk

When evaluating an investment, especially if planning to invest in PMS, a Calmar ratio above 2.0 is generally considered a strong signal of a well-managed strategy.

Why Calmar Ratio Is Crucial for PMS Investors?

If you plan to invest in PMS, you’re likely looking for higher returns than traditional mutual funds. But these services can involve more aggressive strategies and higher risk. That’s why evaluating a PMS provider’s Calmar is key. It tells you whether their impressive returns come at the cost of stomach-churning volatility or whether they deliver true, stable value.

So before you sign up, ask:

• What’s the Calmar ratio of this PMS strategy?
  
• How did it perform in tough market years?
  

Summary: Smart Investing for Modern Investors

If you’re serious about growing your wealth without losing sleep, the Calmar indicator should be part of your investing toolkit. Whether you’re considering hedge funds, alternative assets, or portfolio management services in India, understanding risk-adjusted returns is non-negotiable.

It helps you:

• Compare investments wisely
  
• Avoid hidden risks
  
• Choose better-performing strategies over time
  

So next time you’re evaluating where to invest your money, don’t just ask “What’s the return?” — ask “What’s the Calmar ratio?”

Read more for expert investor guidance and actionable insights.

• CAGR vs. Volatility: The Two Sides of Every Investment Decision
• Invest in ETFs: Know the Expense Ratio and Hidden Costs
• Concentrated vs. Diversified PMS Strategies: Which Performs Better in Volatile Markets?

In today’s financial markets, many investors invest in ETFs for smart, low-cost wealth building. However, as their popularity increases, one question is typically left behind: What is the true cost of investing in an ETF?

What is an ETF?

An Exchange-Traded Fund (ETF) is an investment that you can purchase a combination of assets such as stocks, bonds or commodities all in one package. It is somewhat like a mutual fund but is traded on the stock market like a standard stock. This feature gives them flexibility and liquidity, which are major advantages for those who invest in ETFs.

What is the Expense Ratio: The Silent Cost

The expense ratio of ETF is one of the most important cost metrics for anyone looking to invest in an ETF. It represents the annual fee that all ETFs charge their shareholders for managing the fund. Expressed as a percentage of assets under management (AUM), this cost typically covers services such as portfolio management, administrative functions, custodial support, legal compliance and audit-related expenses.

What Expense Ratio Means for Investors

The expense ratio is not directly charged to the investors but is taken from the fund’s assets on a daily basis. The deduction leads to a small, incremental decrease in the net asset value (NAV) of the ETF that eats into investment returns over time silently and therefore is referred to as a “silent cost.”

Typical Range and Factors Influencing It

Expense ratios vary widely depending on the type and complexity of the fund:

• Passive ETFs, which simply track a broad market index, usually have very low expense ratios, often between 0.03% and 0.20%.
  
• Actively managed ETFs tend to have higher fees, often in the range of 0.50% to 1.00% or more, due to the increased cost of research, analysis and trading activity.
  
• Sector-specific, thematic, or international ETFs may also have elevated expense ratios due to higher administrative and operational burdens.
  

Example of Cost Impact

If you put INR 1,00,000 into an ETF with an expense ratio of 0.50%, you pay INR 500 a year as fees. While that might seem small for one year, throughout a long investment timeline, the effect snowballs:

• In 10 years, that INR 500 a year can become INR 5,000 in costs alone, excluding the opportunity cost due to less compounding.
  
• An increased expense ratio of 0.75% would cost INR 7,500 over the same interval in the absence of any growth as well as contributions.
  

Why Expense Ratio Matters?

Expense ratios apply no matter how the ETF does, so they represent a certain cost that quietly eats into the returns. Even minute fee differences make a difference with long-term growth, particularly when they accrue over time. Lower expense ratios spare more of your investment profits.

Beyond the Expense Ratio: The True Cost of ETFs

Though popular for being cost-efficient, it is vital that one is aware that the expense ratio is not the only fee that is involved. A more comprehensive grasp of all the fees involved ensures more realistic calculations of expected outcomes.

1. Bid-Ask Spread: The Unseen Transaction Cost: The bid-ask spread is the discrepancy between the price you get when you buy an ETF (ask price) and the price you receive when you sell it (bid price). It is a latent transactional cost, particularly for low-liquidity or specialized ETFs.
   
2. Brokerage Fees: Fees range from zero up to substantial amounts per trade with some brokers. While most platforms now have commission-free ETFs, active traders should continue to monitor these possible costs.
   
3. Tracking Error: Deviation from the Benchmark: Tracking error is the divergence of the fund’s performance from the performance of the underlying index that the fund is tracking. Tracking error arises due to fund structure and fees among other factors.
   
4. Tax Implications: ETFs tend to be more tax-effective because of how they are structured. Nonetheless, investors can still face capital gain taxes in specific situations with actively managed ETFs.

These fees, though less obvious, can add up and influence the effectiveness of your investment plan.

Why Investors are Choosing ETFs

Investors go into ETFs for many reasons:

• Transparency: Holdings are disclosed daily.
  
• Liquidity: Is bought and sold within market hours.
  
• Cost-Effectiveness: Lower expense ratios than actively managed mutual funds.
  
• Diversification: One type of ETF provides access to dozens or even scores of stocks or bonds.

These aspects make it appealing for individuals wanting to invest in an ETF as part of their overall financial strategy.

ETFs and the Best Investment Plan

In the process of selecting the ideal investment scheme, ETFs become the go-to option for both new investors and veterans alike. They are favourable for straightforward inclusion in long-term growth-oriented portfolios as well as balanced portfolios.

For investors looking towards safe investments with superior returns in India, ETFs find a perfect balance between reward and risk when combined with market movements and personal objectives.

Leveraging 9Point Capital for ETF Investments

9Point Capital is changing the way of investing in ETFs using technology and deep financial intelligence. Leveraging smart investment backed by algorithms as well as portfolio intelligence, it is a lean and inexpensive investment strategy.

Perhaps most importantly, it presents clients with direct access into such key factors as expense ratios and the performance of the ETFs.

In Summary

As the financial environment changes, the growth of ETFs represents a turning point towards open and accessible investing. Investors are able to make sounder judgments and get the most out of their investments by monitoring the expense ratio, the charges on an ETF and other fees.

If you’re considering investing in an ETF, don’t forget to account for not only the apparent but the not-so-apparent costs. With reliable platforms such as 9Point Capital, investment plans that target safe return in India, ETFs might just become your path to the ideal investment scheme.

For a more detailed exploration of ETF, you can refer to 9Point Capital’s guide here: How to Invest in ETF in India: A Beginner’s Guide

What is CAGR?

CAGR stands for Compound Annual Growth Rate. It tells you how much your investment has grown on average per year over a certain period.

Think of it like this: If your investment grew steadily each year and reached a certain amount at the end, CAGR is the rate it would need to grow every year to get there.

How to Calculate Compound Annual Growth Rate:

Practical Example:

Suppose you invested $1,000, and after 5 years, your investment grows to $1,500. Your CAGR would be:

What is Volatility?

Volatility shows how much an investment’s price goes up and down over time.

• High volatility = Big swings 
• Low volatility = Small changes 

It tells you how smooth or shaky your investment ride will be.

Importance of Understanding CAGR vs. Volatility

Clearly understanding CAGR vs. Volatility helps investors evaluate long-term growth prospects and the risks associated with achieving this growth. A careful balance between these two metrics is crucial for aligning your investments with your risk tolerance and financial objectives.

Balancing CAGR vs. Volatility for Optimal Investment

• CAGR provides a clear understanding of expected returns over the long term, essential for financial planning and goal-setting.
  
• Volatility highlights the stability or instability of your investment journey. High volatility can potentially deliver higher returns but also introduces significant risk and emotional stress.
  

Example Scenario:

• Investment A: 25% CAGR, High volatility.
  
• Investment B: 8% CAGR, Low volatility.
  

Investment A might attract aggressive investors willing to accept risk for higher returns, whereas Investment B could appeal to conservative investors seeking stable and predictable outcomes.

How Investors Can Apply This Knowledge

• Risk Assessment: Determine your comfort level with fluctuations associated with high-volatility investments.
  
• Strategic Planning: Choose investments whose CAGR aligns with your financial goals, such as retirement, education funding, or wealth accumulation.
  

CAGR vs Volatility: Why Bitcoin Might Just Be Worth It

Imagine you’re planning a road trip.

You have two choices:

• Route A is super smooth — no bumps, but slow.
  
• Route B is a rollercoaster — lots of bumps, sharp turns, but you get to your destination way faster.
  

Most people naturally prefer Route A because it feels safer. But what if I told you Route B, despite being bumpy, gets you to a much bigger, better destination?

In investing, CAGR and Volatility are exactly like these two roads.

• CAGR (Compound Annual Growth Rate) is how much your investment grows every year on average. It’s the final destination.
  
• Volatility is how bumpy the ride is — how much the price swings up and down along the way.
  

Understanding Volatility: Bitcoin vs. Traditional Assets

Here is the comparison:

• Bitcoin (BTC) has a CAGR of 73.71%, which is high.
• NIFTY, India’s top 50 stocks, grows around 10.74% annually.
• The S&P 500 (top US stocks) gives 10.05%.
• Gold grows at 10.38%.

Bitcoin’s volatility is 57.22%, which is significantly higher than NIFTY at 16.59% and Gold at 14.87%. This makes Bitcoin a much more unpredictable investment.

However, higher volatility does not always mean lower returns. Historically, Bitcoin has outperformed traditional assets for those who remained invested over time.

Key takeaway:
Volatility is part of the investment journey. It should be understood and managed, not feared. Long-term discipline often matters more than short-term market movements.

Lesson:
Do not let short-term fluctuations shake your confidence. Focus on the long-term goal. Staying invested can lead to better outcomes than reacting to every bump along the way.

Concluding thoughts

Investors typically favour a higher CAGR due to its indication of solid long-term growth. However, growth alone is insufficient. The journey may be challenging if volatility is significant.

This is why it is crucial to concentrate on risk-adjusted returns, which involve identifying investments that provide strong growth while simultaneously managing the fluctuations.

In summary, comprehending both CAGR and volatility is instrumental in ensuring that you make informed decisions and remain on the path to long-term compounding.

Explore more articles to learn how to invest in Bitcoin ETFs and gain a better understanding of digital assets.

• How to Invest in ETF in India: A Beginner’s Guide
• All You Need to Know About DAIS by 9Point Capital
• Bitcoin ETF in Investment Portfolio: Guide to Modern Investors