@Mudit.Kushalvardhan What you raise is an interesting question. How can we reliably compare our portfolio returns with a benchmark?
This is what I’m currently thinking of: Once we chose a benchmark we prefer, say Nifty 50, whenever we add a stock to the portfolio, we shall have a parallel entry as if we purchsed Nifty 50 approximately for the same value. Same goes for selling. These double entries, one actual and another fictitious benchmark transaction, will help us arrive at two comparable returns.
We could extend this by more parallel entries for other benchmarks, say Nifty 100, or even mix of them, like 70% sensex + 30% Nasdaq.
Apologies if this is very basic or already discussed.
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