First of all, we must note that the financial year 2015-16 has been a difficult one for the stock market.
We saw from the grim report posted by Alpha Invesco, a leading stock advisory, that it has barely managed to eke out a living with a return of 10.2%. The broader markets have fared worse with the Sensex giving a return of (-) 10.32, the BSE 500 giving a return of (-) 8.8% and the BSE Mid-Cap giving a return of 0.25%.
Things have been much better in the period from December 2015 to May 2016 because the Nifty has given an annualized return of 13.8%.
In these circumstances, the annualized return of 31.7% posted by HDFC Sec’s DIYSIP Model Portfolio in respect of the period from December 2015 to May 2016 for the so-called “Better Known Stocks” is commendable.
A peek at the portfolio reveals that four stocks, Biocon, Tata Motors, L&T and Axis Bank have given stunning returns ranging from 40% to 81%.
It is notable that these are blue-chip stocks and so the hefty gains have flowed in with no risk to the capital.
The portfolio of the so-called “Lesser Known Stocks” also put in a spirited performance with an annualized return of 20.9%.
Crompton Greaves was the star of this portfolio with a splendid return of 69.3% followed by a return of 49% from India Cements.
Now, we have to eagerly wait for the update to the DIYSIP Model Portfolio to decide which stocks to buy