  In this work, we present an alternative passive investment strategy. The
passive investment philosophy comes from the Efficient Market Hypothesis (EMH),
and its adoption is widespread. If EMH is true, one cannot outperform market by
actively managing their portfolio for a long time. Also, it requires little to
no intervention. People can buy an exchange-traded fund (ETF) with a long-term
perspective. As the economy grows over time, one expects the ETF to grow. For
example, in India, one can invest in NETF, which suppose to mimic the Nifty50
return. However, the weights of the Nifty 50 index are based on market
capitalisation. These weights are not necessarily optimal for the investor. In
this work, we present that volatility risk and extreme risk measures of the
Nifty50 portfolio are uniformly larger than Markowitz's optimal portfolio.
However, common people can't create an optimised portfolio. So we proposed an
alternative passive investment strategy of an equal-weight portfolio. We show
that if one pushes the maximum weight of the portfolio towards equal weight,
the idiosyncratic risk of the portfolio would be minimal. The empirical
evidence indicates that the risk profile of an equal-weight portfolio is
similar to that of Markowitz's optimal portfolio. Hence instead of buying
Nifty50 ETFs, one should equally invest in the stocks of Nifty50 to achieve a
uniformly better risk profile than the Nifty 50 ETF portfolio. We also present
an analysis of how portfolios perform to idiosyncratic events like the Russian
invasion of Ukraine. We found that the equal weight portfolio has a uniformly
lower risk than the Nifty 50 portfolio before and during the Russia-Ukraine
war. All codes are available on GitHub
(\url{https://github.com/sourish-cmi/quant/tree/main/Chap_Risk_Anal_of_Passive_Portfolio}).
