FY 2016-17 Results

As we end the quarter January -March 2017, we are happy to share the results of IndusWealth model portfolio.


Results for IndusWealth can be downloaded from the links below:

Market Analysis

There was 10% run up in the market last quarter, thus making most investments look good. This run up means there will clamor from various investment firms to say that this is the “best time to invest”.

We are sure that you will hear a lot of this noise, we will try to give you some insights into evaluating various investment options.

One of the key points of evaluating any returns is to have a specific reference. We believe all investments in the equity market should be evaluated against an Index.  For a long term buy hold strategy that does not involve leverage – broad market index will be most suitable reference.

The probability of any stock beating the Index is 45%, hence beating the market is not easy. Investing in a low-cost index fund is a reasonable strategy for most investors. The average return for a long-term investor in the index has been about 14% over the last 26 years. This is a very good return.

However, investors interested in generating returns better than the index should understand the odds they are facing. We would like to share an analysis we were conducting. Objectives of the analysis were to

  1. Identify the magnitude of best possible returns one can generate with a buy and hold strategy
  2. Identify probability of getting those returns.


Key inferences form the analysis

In the light of this research let’s look at the returns generated by IndusWealth.

Monthly investments are being independently tracked vis a vis the market.

On the other hand, the small cap portfolio started by IndusWealth in Jan 2017, has been trailing the market for the last 3 months.  Although, while launching the portfolio we stated that 24 months is the right time frame to evaluate a small cap portfolio; this example is being presented to make a statement that investing has a lot of uncertainty. A process that works for one portfolio does not necessarily translate into others.

In conclusion, the things to remember when evaluating investment options

I hope this gives you some tools to evaluate investment options you are considering.

Happy Investing….

   CY 2016 results                                                        Jul-Sep 2016 results                                             Apr-Jun 2016 results