Well, as of today and more importantly going forward, it will become even more difficult for active investors ( and fund managers ) to beat a basket of indexes. In the past, index investing meant investing in our primary broad based index ( Nifty ) but we now have a wider range of indexes that has now a better Ranking mechanism and scans through a bigger universe.
In my view, anyone actively deploying money in a basket of stocks will need to do something significantly out of the ordinary and at the same time will need some luck on his/her side. I honestly dont see a lot of fund managers outperforming a basket of indexes going forward.
A Sample basket of indexes that I think will be very difficult to beat →
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Nifty Large MidCap Index
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Nifty 200 Momentum 30 index
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Nifty Midcap Momentum 50 index
Having said this, the edge that investors like us have i think has narrowed down to either of the following 2 approaches
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Having an even better Ranking mechanism alongwith optimum exit criteria ( for those who want to have a basket of stocks ).
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Find the most lucrative steals in the market and go all out on those. Large allocations to a small group of hidden gems.
I will be keen to know if anyone can list out any other edge that individual investors might have in the current/future regime.
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