My perspective is that, with value investing approach, an Investor can generate better returns than SENSEX.
During 2003-04 to 2014, based on Large cap – Mid Cap, my journey shows that returns were close to 18%+ though I was not tracking the returns accurately. This is based on my gut feel as my portfolio was small and I was unable to track due to heavy workload.
After that, My returns have dropped to about 15%-16% CAGR from 2014 to 2024 (we are almost there).
From my journey, it is evident that, since GDP growth is muted in the past 10 years, my returns have also dropped. My portfolio was tilted towards Mid Cap-Small Cap more but still returns are less.
My portfolio till 2013 was purely large cap but still returns were high. You can see TCS, L&T, TechM, HDFC Bank share journey in that period which I was holding.
As per my view, an Investor is better placed to generate better Risk adjusted returns.
I may be wrong because Mirae Asset Large Cap fund has generated better returns in the past 10 years as well.
Mostly an Investor who wants to understand various businesses can continue investing in stocks directly else MF route is better. SENSEX might generate even lesser returns (May be below 11%) since it is heavily tilted towards only few stocks. (Again, I may be proved wrong here. Also, I do not invest in many companies which are part of SENSEX as their corporate governance is nothing to speak about!!).
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