We are the end of the calendar year 2015 and third quarter in financial year 2015-16 and we are happy to share the results of IndusWealth portfolio.
2015 has been a very volatile year and market has fallen from 8284 (01-Jan-2015) to a 7946 (31-Dec-2015), a fall of 4.1% this year.
Model portfolio of IndusWealth over the same period has risen by 5.3% (10.1% annualized). Beating the market by 9.9%. This year IndusWealth portfolio is beating bank fixed deposits by 1.4 times.
Q4 2015 (Oct-15 to Dec-15) Nifty lost 0.5%. In this quarter, IndusWealth portfolio has gained 1.2%, beating the market by 1.7%.
Since Jan 2014 – IndusWealth portfolio generated 38.4% returns (38.9% annualized) as opposed to 2.9% by Nifty. This is 13.1 times the market. Beating NIFTY by 35.5%. IndusWealth return is 5.4 times the bank FD returns. Beating Bank FD by 31.3%.
This means, someone who is investing a 1 lakh a month since Jan 2014 in the IndusWealth portfolio would have gain of 9,22,057. The same funds in invested in NIFTY would have a gain of 70,345 or an opportunity loss of 8,51,712. If this money was invested in a Bank FD it would have a gain (interest) of 1,71,441 or an opportunity loss of 7,50,616.
IndusWealth tracks and reports each month’s investments independently. Over the last 24 months, IndusWealth has beaten the market in 21 months. In the last 24 months investments were made in 80 stocks of which 57 are beating Nifty.
Results for IndusWealth can be downloaded from the links below:
- Summary of the returns
- Transactions in the model portfolio
- Stock wise returns for the model portfolio
- Performance against the benchmark for the model portfolio
In our year end note of 2014, we advised cautious optimism as the markets were richly valued. As we say good bye to 2015, our outlook for 2016 continues to be that of cautious optimism. Balance sheets and business prospects are looking better but the political environment continues to be a challenge.
India is a country with 120 crore population of which 1% i.e., 1.2 crore people are coming into the job market every year. This translates to 10 lakh youngsters seeking jobs every month. This creates a unique opportunity/ challenge for the country.
As a democracy we are maturing into a country with a lot of aspiration for growth and prosperity. Common theme for all governments both at the centre and states has now become working towards good governance and creating opportunities. Key for all the governments lies in execution of the promises and moving on a progressive path. Effective execution and delivery by governments and business in not optional any more.
India’s demography, aspirations of the people will be factors that will try and drive the nation towards development. There are going to be hurdles and setbacks but we believe that the direction will be north bound.
As India marches toward becoming a 10 trillion dollar economy from a 2 trillion dollar economy over the next decade or so, we expect the markets to reflect this growth through an increase in market capitalization.
We believe that Indian market continues to be attractive for disciplined investors with a long term horizon. Our endeavour will be to continue with a “boring” investment approach, that generates “interesting” results and avoid any “excitement” what so ever.
Wish you a very happy new year!!!