I think, some of the stocks sold could be surprises in future (positive).
TCS can do well from here as valuations are now lower and from here, there could be pain for only few quarters.
Kotak Mahindra Bank may have a long run way ahead, if it decides to list some its subsidiary businesses.
Other candidates sold may not give huge returns in future, so that looks sensible.
There could be some negatives in investing in NIFTY50 or NIFTY Next 50, as some times, they hold poor quality stocks (high debt, No or Low corporate governance, Cyclic stocks). Ideally an investor should stay away from such businesses, but since these businesses are part of the NIFTY50, all will invest in it, but I am not sure how that makes it a good investment. I am not against it but I do not personally like to invest in the poorly managed companies just because they are part of some Index. I still prefer actively managed funds and/or direct stock investment and so far I have not found any thing incorrect in this.
Some actively managed funds will not outperform Index, but as long as their investment approach looks suitable to me, I do not change the fund.
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