Managing Real Capital in University: A Learning Curve with Real Consequences

Financial literacy in higher education, especially among MBA students, is advancing beyond simulated trading platforms and theoretical courses. Institutions across India are realising that managing real capital, as in contrast to hypothetical portfolios, could significantly improve students' comprehension of markets, risk, and accountability. Leading the charge on the same front, K.R. Mangalam University (KRMU) has launched a Student Investment Fund on 19th February 2026 with an initial capital of INR 10 lakhs via university endowment, alumni donations, or simulated/virtual funds at its School of Management & Commerce (SOMC). It seeks to offer the MBA students an opportunity to manage real capital in the live stock market via a DEMAT account owned by the university. It is a part of a larger initiative to close the persistent gap between classroom learning and real-world financial decision-making.

Limitations of Simulated Learning

To teach students about market behaviour, business and economics programmes have traditionally relied on case studies, simulated trading activities, and paper portfolios. Although these approaches provide students with foundational knowledge, educators and industry observers point out that simulations often fall short of capturing the ethical and psychological aspects of managing real money. Professional financial judgment is shaped by the tangible stakes, emotional control, and long-term responsibility that real capital entails.

Practical Training Initiatives by Government Colleges

Structured exposure to capital markets is still mostly theoretical at several governmental institutions. Students at government colleges receive a rigorous academic foundation in economics and finance. However, rather than direct, mandatory trading with real institutional capital, hands-on trading activities usually take place through simulated workshops and student-led cells.

Pathways Opted by Private Colleges in Delhi NCR

Private colleges in the Delhi NCR region offer enhanced experiential finance education through industry exposure and state-of-the-art facilities. These institutions prioritise exposure through internships, live market analysis, and applicable case studies. However, because of compliance constraints and fiduciary responsibilities, the use of institutional funds for direct student-managed market participation is still restricted.

The discourse changes when institutions experiment with structured real-money exposure under regulated oversight. K.R. Mangalam University (KRMU) is an example of this approach. Through a DEMAT account managed by the institution, launched at the School of Management & Commerce (SOMC), the MBA students will get the chance to handle real funds in the live stock market. Each cohort typically will have a team size of 8–15 members, with up to approximately 20 members in specialised teams. The KRMU students will engage in research, asset allocation, and portfolio tracking using real capital rather than simulations under the supervision of the SOMC Dean, Dr. Hima Gupta, and faculty, including Dr. Mohammed Nizamuddin, and operating under established compliance procedures. KRMU’s initiative to provide its students with exposure to live markets is supported by stringent safeguards. Firstly, a maximum 2% of portfolio value at risk per trade is allowed, with position size calibrated with stop-loss. Secondly, position size per asset cannot exceed 5% of the portfolio; sector exposure not to exceed 20% (where applicable). Thirdly, intraday trading (if permitted) is not allowed to exceed 10% of the portfolio. Fourthly, trades require at least two‑thirds team approval plus faculty advisor consent for live trades.

“True business acumen is not built in hypothetical boardrooms but in real markets. Through the Student Investment Fund at K.R. Mangalam University, MBA students don’t just study market dynamics—they experience them firsthand, learning that accountability, risk management, and strategic thinking deepen when real capital is on the line,” said Dr. Hima Gupta, SOMC Dean, K.R. Mangalam University.

Implications of KRMU's supervised real market model

Initiatives like the KRMU’s Supervised Real Market Model sharpen students’ trading skills and significantly increase their appeal to employers across finance, asset management, investment banking, and fintech. Direct exposure to live markets builds technical competence while strengthening ethical awareness and accountability. By integrating real-money programmes into the curriculum, the institution elevates pedagogical innovation and aligns management education with the practical demands of the financial world. To strengthen academic rigour, KRMU places a strong emphasis on reflective analysis sessions and rigorous review procedures.  

“Management education must move beyond case studies and simulations. With the launch of the Student Investment Fund at K.R. Mangalam University—where MBA students manage real capital in the live stock market—their analysis becomes sharper, their discipline stronger, and their decision-making truly accountable, because real money brings real responsibility,” said Rohit Gupta, Director, K.R. Mangalam University.

About K.R. Mangalam University

K.R. Mangalam University, located on Sohna Road, Gurugram, is a UGC-recognised, NAAC ‘A’ accredited university offering undergraduate, postgraduate, and doctoral programmes across 11 schools. Known for its academic excellence, industry-focused programmes, modern infrastructure, and robust research and innovation initiatives, the University is committed to preparing future-ready professionals and responsible global citizens.

For more information, please contact:

·         K.R. Mangalam University

·         Phone Number: 01148884888, 8800697010 – 15, 8192888444

·         Email Address:  [e-mail]

·         Website URL: https://www.krmangalam.edu.in/