📊 Educational Tool · Data from EODHD (Dec 2006–Dec 2025) · Not Investment Advice · 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 for value, quality & momentum factor strategies on 18+ years of NSE data. Use our chatbot to set your own criteria, build your strategy, and see results with accurate Indian tax calculations (LTCG/STCG).

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

✅ You set the criteria • ✅ Chatbot guides you step by step • ✅ You interpret the results

💡 How the chatbot helps you:

You describe your criteria — factors, market cap, timeline, risk level
Chatbot walks you through configuring your strategy step by step
Your strategy runs on 18+ years of NSE data — chatbot explains the results
You stay in control throughout — chatbot only guides the process
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 the Strategy Chatbot →

You set the criteria • Chatbot guides you through it • You interpret the results

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 Building Your Strategy →

How Factor Backtesting Works

Four simple steps to start learning factor investing

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Step 1: Tell the Chatbot Your Criteria

Tell the chatbot your goals — the chatbot explains each option, but all criteria are set entirely by you

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Step 2: Set Market Cap & Factor Filters

You set market cap ranges, factors (value, quality, momentum), and rebalancing periods — the chatbot explains what each means

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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

Build, Test & Analyse Your Own Factor Strategies

You define the strategy, the chatbot guides you through it, the platform runs the backtest on 18+ years of NSE data

💡 Educational Value: Understanding how a strategy behaves historically — its drawdowns, tax impact, and risk-adjusted returns — takes time and expertise. This platform puts that analysis directly in your hands.

Factor Investing Backtesting FAQs

How does the chatbot-guided backtesting work?

You set your own criteria using the chatbot — it walks you through each parameter one by one. Once configured, the platform runs your strategy against 18+ years of NSE data and shows results including CAGR, drawdowns, and post-tax returns. All decisions are entirely yours — the chatbot only helps you understand what each setting does.

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

Yes. You input your own criteria — which factors to use (value, quality, momentum, low volatility), market cap range, rebalancing frequency, and stock count. The chatbot helps you understand what each parameter means. The platform then simulates how your chosen strategy would have performed on NSE data from Dec 2006–Dec 2025, including realistic costs and Indian tax calculations. All decisions remain yours — the chatbot never recommends what to pick.

Does past performance guarantee future returns?

No. Backtesting only shows how a strategy would have performed historically — markets change and past results do not predict future returns. This is a purely educational tool. You define the strategy, run the test, and interpret the results yourself. The chatbot helps you navigate the platform but does not make predictions or recommendations of any kind. Always do your own research and consult a SEBI-registered Investment Adviser before making any real investment decisions.

How accurate are the tax calculations?

The platform automatically applies 2024 Indian tax rules to your backtest results: 12.5% LTCG for holdings over 1 year, 20% STCG for holdings under 1 year, with a ₹1.25 lakh annual exemption. Transaction costs (0.11% per trade) and slippage (0.05%) are also modeled. Both gross and net-of-tax returns are shown so you can see the real impact of your chosen rebalancing frequency on tax liability. These are estimates for educational purposes — consult a tax adviser for your personal situation.

How do I backtest custom factor combinations on NSE data?

You can fully customize your strategy — set your own market cap ranges, choose which factors to filter by (PE, PB, ROE, momentum, low volatility), set rebalancing frequency, and pick stock count. The chatbot walks you through each option and explains what it does, but every choice is yours to make. Pre-built templates are also available as a starting point if you prefer.

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

We are NOT SEBI-registered and do NOT provide investment advice of any kind. This is a self-directed educational tool — you input all your own criteria, you run the backtest, and you interpret the results. The chatbot only helps you understand the platform's features and what each parameter means. It does not suggest strategies, recommend stocks, or tell you what to invest in. For personalized investment advice, please consult a SEBI-registered Investment Adviser.

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 includes delisted companies to reduce survivorship bias. All data is used purely for your own educational backtesting — the platform does not use this data to make any recommendations.

How does BacktestIndia calculate LTCG and STCG tax on backtests?

The platform applies 2024 Indian tax rules to the strategy you configure: 12.5% LTCG for holdings over 1 year, 20% STCG for holdings under 1 year, with a ₹1.25 lakh annual exemption. Every rebalancing event in your chosen strategy is tracked, holding periods are calculated per stock, and both gross and net-of-tax CAGR are shown. This helps you see how your own rebalancing frequency choice affects real post-tax returns. These are educational estimates only — your actual tax liability depends on your personal situation and you should consult a qualified tax adviser.

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? Use the chatbot to configure and run your own strategy.

Build & Test Your Own Strategy →
⚠️ 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.
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