Objective of “Wealth Creator” portfolio:
– To build a balanced and actively managed portfolio of quality companies that will help create meaningful wealth for investors in the multi-year rally expected in the Indian equity market.
In addition to some bottom-up picks, the portfolio contains stocks identified based on three key themes:
- Policy push: Stocks from sectors benefiting from improvement in the policy environment
– Early gainers: Beneficiaries of an economic recovery (stocks from auto, banking & financial, logistic sectors)
- Evergreen: Steady performers that provide stable and consistent returns
Portfolio performance review:
In the initial three months (the portfolio was rolled out on August 21, 2014), the Wealth Creator portfolio has comprehensively outperformed the benchmark indices by giving weighted average returns of 15% compared with the returns of 6.3% in the Sensex, of 6.1% in the Nifty and of 9.3% in the CNX Mid-cap Index.
- Eight large-cap stocks in the portfolio have appreciated by 13%, doubling the gains as compared with the 6% odd upmove in the benchmark indices (Sensex and Nifty) in the same period.
– Similarly, our basket of mid-cap stocks has moved up by 18.7% as compared with a 9.3% upmove in the CNX Mid-cap Index (which does not include Nifty companies).