📚 Educational Tool  ·  Data from EODHD (Dec 2006–Dec 2025)  ·  Not Investment Advice  ·  By entering, you accept our Terms & Privacy Policy
✨ 18+ Years of Historical Market Data

Factor Investing Backtesting Platform for
Indian Stocks (NSE 2006-2025)

Factor investing is a systematic approach that selects stocks based on proven attributes — value, quality, momentum, or low volatility — historically shown to outperform the broader market. Backtesting applies these factors to historical NSE data to simulate how a strategy would have performed across real market cycles, before risking any capital.

Educational backtesting tool to test value, quality & momentum factor strategies on 18+ years of NSE data. Learn systematic investing with accurate Indian tax calculations (LTCG/STCG). Start with 10 free backtests per month, upgrade for unlimited access.

18+Years of Data
500+NSE Stocks
14+Custom Parameters
100%Tax Accurate

✅ See results in 2 seconds • ✅ 3 pre-built strategies ready • ✅ No signup to try demo

💡 What you'll see in the demo:

3 pre-built strategies ready to run (Low Vol, Momentum, Multi-Factor)
Click "Run Backtest" → See results in 2 seconds
Full metrics: CAGR, drawdowns, tax impact, holdings
Want to customize? Sign up for 10 free/month
Educational Backtesting Platform
📊18+ Years Data (NSE-Listed Stocks)
🇮🇳India-Specific Tax Modeling
🔒Transparent Methodology

See How It Works: Complete Tutorial

Watch this 10-minute walkthrough covering: How to use the platform • Low Volatility strategy explained • How to interpret backtest results • Live demo with real data

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Platform Tutorial
Step-by-step walkthrough
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Strategy Deep-Dive
Low volatility explained
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Results Analysis
Interpret metrics correctly
Live Demo
Real data, real results
Try It Yourself - Start Free →

No signup required for demo • See results in 2 seconds

Common Challenges in Factor Investing & Backtesting

Difficulty Backtesting Factor Investing Strategies

Many investors implement strategies without understanding how they would have performed historically across different market cycles.

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Limited Access to NSE Backtesting Tools

Professional-grade backtesting tools are often expensive or require institutional access, limiting retail investor education.

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Understanding Tax Impact on Returns

Many backtesting platforms don't account for Indian tax regulations (LTCG/STCG), leading to unrealistic return expectations.

What Makes BacktestIndia Different?

FeatureBacktestIndiaTypical Options ToolsTypical Algo PlatformsDesktop Software
FocusLong-term equity investingOptions strategiesDay/swing tradingTechnical analysis
India tax calculations (LTCG/STCG)
Sequential factor filteringN/ABasic onlyManual setup
Delisted companies dataExtra cost
18+ years NSE dataVariesLimitedPurchased separately
Setup requiredNone - Web-basedWeb-basedAccount linkingInstallation + data feeds
Typical pricing₹399/mo₹500-1,500/moFree to ₹1,000/mo₹10,000-20,000 one-time

Based on publicly available information about competing tools as of December 2024

Featured Factor Investing Research

Evidence-based backtesting analysis using 18+ years of NSE data with tax-aware methodology

Defensive Strategy

Low Volatility Factor in India: 18-Year Backtest

12.38%
Net CAGR
-44%
Max Drawdown
20%
Less Volatile
7 Months
Recovery Time

18.5-year backtest shows low volatility stocks delivered 12.38% CAGR with 20% lower risk than Nifty 50. Includes automatic LTCG/STCG tax calculations.

Balanced Strategy

Multi-Factor Investing India: 18-Year Backtest

14.61%
Net CAGR
-55%
Max Drawdown
0.48
Sharpe Ratio
₹6.21 Cr
Terminal Wealth

Sequential factor filtering delivered 14.61% CAGR—beating pure strategies with superior risk-adjusted returns. Highest Sharpe ratio of all approaches tested.

🔥 Viral Research

Lost Decade Rolling Returns: 100% Win Rate Analysis

100%
Win Rate
102/102
Periods Tested
93k
Reddit Views
+₹9.86L
SIP Wealth Gap

Reddit users said we cherry-picked 2007-2017. We tested 102 different 10-year entry points. Low Volatility beat Nifty in every single period.

Aggressive Strategy

Momentum Investing India: 18-Year Backtest

14.01%
Net CAGR
-70%
Max Drawdown
22.83%
Volatility
65 Months
Recovery Time

Momentum stocks delivered 14.01% CAGR but required surviving -70% drawdowns. Semi-annual rebalancing triggers STCG tax (20%) vs LTCG (12.5%).

🔬 Want to Test Your Own Factor Strategies?

All backtests include automatic LTCG/STCG tax calculations, transaction costs, and slippage modeling for realistic Indian market conditions.

Start Free Backtesting →

How Factor Backtesting Works

Four simple steps to start learning factor investing

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Step 1: Choose Factor Strategy Template

Start with pre-built templates or create custom strategies with 14+ parameters

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Step 2: Set Market Cap & Factor Filters

Set market cap ranges, factors (value, quality, momentum), and rebalancing periods

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Step 3: Run Historical Backtest

Simulate your strategy on 18+ years of data with realistic costs and taxes

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Step 4: Analyze Performance Metrics

Study CAGR, volatility, drawdowns, and compare against Nifty 50 benchmark

Educational Backtesting Features for Indian Markets

Everything you need to understand systematic investing through hands-on backtesting

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Backtest Factor Strategies on 18+ Years of Data

Test strategies across major market cycles: 2008 financial crisis, 2020 COVID crash, bull markets, and everything in between. Data covering NSE-listed stocks from 2006-2025 via EODHD.

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Customize Value, Quality & Momentum Factors

Customize market cap ranges, rebalancing frequency, factor filters (PE, PB, ROE, momentum), and weighting schemes. Your strategy, your parameters, your learning.

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Accurate Indian Tax & Cost Calculations

Includes transaction costs, brokerage, STCG/LTCG tax calculations per 2024 Indian tax laws, and slippage estimation. See real-world impact on returns.

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Comprehensive Metrics

CAGR, volatility, Sharpe ratio, Sortino ratio, maximum drawdown, recovery time, and benchmark comparisons. Professional-grade analytics for education.

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Test Academic Factor Investing Principles

Learn academic investing principles: value (PE, PB), quality (ROE, profitability), momentum, low volatility. Test factor combinations historically.

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User-Friendly Interface

Works on desktop, tablet, mobile. Intuitive design with educational tooltips, comprehensive manual, and responsive support.

📚 Educational Platform Notice

  • Educational backtesting tool for learning about systematic investing strategies
  • All strategies are user-defined simulations based on historical data
  • Past performance does not indicate future results
  • Not SEBI-registered investment advisory services
  • For personalized advice, consult a SEBI-registered Investment Adviser

Try Free, Upgrade for Unlimited Backtests

10 free backtests/month with pre-built templates • Upgrade for unlimited custom backtests

💡 Investment Perspective: Premium pays for itself with just ONE better-informed decision. Avoid a single poor investment or optimize your tax strategy, and you've saved multiples of the subscription cost.

Factor Investing Backtesting FAQs

How does the free factor investing backtesting work?

Yes! Free users get 10 backtests per month using our pre-built strategy templates with full access to 18+ years of data. Premium users (₹399/month or ₹3,999/year) get unlimited backtests and can customize all 14+ parameters for full control.

Can I backtest value and quality factor strategies on Indian stocks?

You can simulate how different factor-based investment strategies would have performed historically using 19 years of data covering NSE-listed stocks (Dec 2006-Dec 2025). The tool includes realistic cost modeling, Indian tax calculations (LTCG/STCG), and allows you to customize market cap ranges, rebalancing frequency, and factor combinations for educational learning.

Does past performance guarantee future returns?

Absolutely not. Backtesting shows what worked historically, but markets change. This is an educational tool to help you understand strategy behavior, drawdowns, and trade-offs. Always do your own research and consult a SEBI-registered adviser before investing real money.

How accurate are the tax calculations?

We use 2024 Indian tax rules: 12.5% LTCG (>1 year), 20% STCG (<1 year), with ₹1.25L exemption. We also model transaction costs (0.11% per trade) and slippage (0.05%). Results show both gross and net-of-tax returns for realistic comparison.

How do I backtest custom factor combinations on NSE data?

Yes, with Premium! You can set market cap ranges, filter by PE/PB/ROE/momentum, combine multiple factors with custom weights, set rebalancing frequency (monthly/quarterly/annual), and much more. Free users can use our pre-built templates (value, quality, momentum strategies).

Is this SEBI-compliant? Are you giving investment advice?

We are NOT SEBI-registered and do NOT provide investment advice. This is a DIY educational tool exempt under Regulation 3(1)(d) - we provide statistical/historical data only. YOU control all parameters. We make NO recommendations. Consult a SEBI-registered adviser for personalized investment advice.

What NSE stock data does BacktestIndia use?

BacktestIndia uses historical data sourced from EODHD Financial APIs covering NSE-listed stocks from December 2006 to December 2025 — over 18 years of price history. The dataset includes 500+ NSE-listed companies and importantly includes delisted companies to minimize survivorship bias, which inflates backtest results in platforms that only include stocks currently trading.

How does BacktestIndia calculate LTCG and STCG tax on backtests?

BacktestIndia automatically applies Indian tax rules per the 2024 Finance Act: Long-Term Capital Gains (LTCG) tax of 12.5% applies to equity gains from holdings held over 1 year, with a ₹1.25 lakh annual exemption. Short-Term Capital Gains (STCG) tax of 20% applies to gains from holdings sold within 1 year. Every rebalancing event is tracked, holding periods are calculated per stock, and both gross and net-of-tax CAGR are shown — making returns directly comparable to your real post-tax experience as an Indian investor.

Sample Factor Backtest: Low Volatility Strategy

Strategy: Top 20 Low Volatility Stocks (Annual Rebalancing)

14.2%
CAGR (2006-2024)
15.8%
Volatility
0.90
Sharpe Ratio
-32%
Max Drawdown

This sample backtest shows how a low volatility factor strategy performed historically. Results include realistic transaction costs and Indian tax calculations. Want to test your own factor combinations? Start free today.

Run Your Own Backtest →
⚠️ Educational Disclaimer
Past performance shown above is for educational purposes only and does not guarantee future results. This backtest assumes perfect execution and may not reflect real-world constraints.