Do unique stocks that are the only ones listed from the industry deliver exceptional returns over the long term? Yogesh Supekar and Karan Bhojwani find that there is something unique about the returns given by such unique stocks. Read on...
When it comes to equity markets, portfolio management and wealth creation go hand-in-hand. Sound portfolio management is the real mantra for creating wealth in equity market consistently. While portfolio management is a sophisticated process, it can be simplified into two core concepts; first, how are assets allocated among different asset classes, and second, how individual securities are selected. In this cover story, we will touch upon the second part of portfolio management, i.e., how one can generate market beating returns by adopting a unique way of selecting stocks .
Indeed, how individual securities are selected matters ultimately to the overall portfolio performance. Security selection dictates how individual portfolio returns match to what the market offers. HNI investors and asset manager deploy various techniques to exploit inefficiencies in the markets in order to maximise the returns. At any given point of time, millions of investors are attempting to beat markets and adopt myriad techniques to do so.
We thought it will be interesting to test if an investor who adopts a unique portfolio strategy of concentration that involves including only those stocks in portfolio that do not have any listed peers would beat the markets.
Superficially, the idea of investing in those stocks that are the only listed entities sounds interesting, but does it really deliver superior returns? We think so.
The market beating returns of the unique portfolio is seen if one holds on to the bunch of stocks for the long term. The short-term performance is not disappointing either.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
