---
title: "Systematic Investing Fundamentals | Path 2 | RupeeCase Learn"
description: "Systematic investing fundamentals: why rules beat gut feeling, what factors are, how backtests work, and how a quantitative index is built from fixed rules."
source_url: "https://www.rupeecase.com/learn/path-2/"
---

[RupeeCase Learn](/learn/)/Path 02/Intermediate

# Systematic Investing Fundamentals

    Learn why rules beat gut feeling, explore factors, risk metrics, backtesting, and build your first strategy.

* **5**modules
* **44 min**of reading
* **31**question path test
* **Free**with a certificate

    [Start at 2.1](/learn/path-2/module-2-1-why-rules-beat-gut-feeling)See the stops

      01The line

## 5 stops, in order.

      The case for rules over gut, with the math. What a factor actually is, which risk metrics matter, and what a backtest can and cannot prove.

      **0**of 5 done on this device

1. [2.5Building Your First Systematic StrategyUniverse, signal, portfolio construction, rebalancing9 min, path test](/learn/path-2/module-2-5-building-your-first-strategy)

2. [2.5Building Your First Systematic StrategyUniverse, signal, portfolio construction, rebalancing9 min, path test](/learn/path-2/module-2-5-building-your-first-strategy)

3. [2.5Building Your First Systematic StrategyUniverse, signal, portfolio construction, rebalancing9 min, path test](/learn/path-2/module-2-5-building-your-first-strategy)

4. [2.5Building Your First Systematic StrategyUniverse, signal, portfolio construction, rebalancing9 min, path test](/learn/path-2/module-2-5-building-your-first-strategy)

5. [2.5Building Your First Systematic StrategyUniverse, signal, portfolio construction, rebalancing9 min, path test](/learn/path-2/module-2-5-building-your-first-strategy)

    02Outcomes

## What you will be able to do.

* *01*Understand how rules based investing differs from discretionary investing, and where each one fails
* *02*Identify the 5 classic factor premia: Value, Momentum, Quality, Size, Low-Vol
* *03*Calculate Sharpe, Sortino, max drawdown, alpha, and beta
* *04*Design and critically evaluate a backtest

    03Certificate

## Pass the path test.
Keep the proof.

    Complete the 5 module quizzes, then take the 31 question path test at the end of Module 2.5. Pass to earn your certificate as a PNG with your name on it.

1. **3**Get the certificateYour name, the path, the date, an ID and a QR code to verify it; PNG or PDF
2. **3**Get the certificateYour name, the path, the date, an ID and a QR code to verify it; PNG or PDF
3. **3**Get the certificateYour name, the path, the date, an ID and a QR code to verify it; PNG or PDF

    [Jump to the path test](/learn/path-2/module-2-5-building-your-first-strategy#pathTestSection)[About the certificates](/learn/certificates)

    04Questions

## About Path 02.

    What is a quantitative index and how is one built?A quantitative index picks and weights its stocks by fixed rules written in advance, such as momentum or quality, instead of by company size. An algorithm applies the rules and rebalances on a set schedule, so nobody decides by feel. Module 2.5 walks through the build: universe, signal, portfolio construction and rebalancing.

Which factors does Path 2 introduce?Module 2.2 introduces five factors: value, momentum, quality, size and low volatility. Path 3, Factor Investing Deep Dive, then takes each one in turn, with Indian evidence.

How does Path 2 teach backtesting?Module 2.4, How Backtesting Works, covers survivorship bias, look-ahead bias and costs. Module 2.3 covers the risk metrics used to judge a result: Sharpe, Sortino, max drawdown, alpha and beta.

    Explore next

## Where to go next.

* [CalculatorSIP calculatorFree, with the formula and a worked example](/learn/tools/sip-calculator)
* [CalculatorCAGR calculatorFree, with the formula and a worked example](/learn/tools/cagr-calculator)
* [Blog noteThe average year mythReturns and risk maths, a short note](/blog/2026-07-08-morning-average-year-myth/)
* [Blog noteSIP vs lump sum: time in the marketPersonal finance and tax, a short note](/blog/2026-06-10-evening-sip-vs-lump-sum/)
* [StrategyNifty 50 Equal Weight strategyNifty 50, 50 stocks, every 4 weeks](/strategies/nifty-50-equal-weight)
* [GlossaryInvesting glossary, 91 termsPlain word definitions](/learn/glossary)

      Community

## Join my WhatsApp group.

      Scan the code, fillFill one short form, and join my WhatsApp group. Slides, sources, factsheets and the rebalance logs live there, and members join a daily Google Meet with me.

        [Sign up for RupeeCase](https://invest.rupeecase.com/signup)
        [Join the WhatsApp group](https://forms.gle/C6HMtM1Z2GfeocQV7)

      [One form, one group](https://forms.gle/C6HMtM1Z2GfeocQV7)Scan with your phone camera

    [Next pathPath 03: Factor Investing Deep DiveIntermediate, 8 modules, 68 min](/learn/path-3/)
    [Pillar guideSystematic Investing18 modules across paths 2, 3, 5](/learn/systematic-investing)
    [Apply it on RupeeCaseAllcap Multi AssetMulti asset with debt and gold sleeves. Model, back tested.](/strategies/allcap-multi-asset)

  Education only, not investment advice. RupeeCase is a technology platform operated by QC Alpha Technologies Pvt Ltd; it is not a fund, a PMS or a SEBI registered investment adviser. Model returns are back tested and not a promise of future returns. Figures carry the date they were checked.