November 20, 2015

Forget the Nifty, make your own index, says Porinju Veliyath

You have tweeted that one should make his or her own Nifty or own index. How many stocks should you put into that?
I love a 10-stock portfolio. We have around 650 clients and the average number in a portfolio will be 10 stocks — you can say it is a concentrated portfolio. Following the Nifty is easy and anybody can do it. You don’t need any special skill or expertise or knowledge or wisdom. In the last one year, the Nifty is down 6-7 per cent, my clients on an average are making over 40 per cent return. I am not a Nifty fan. I am making my own index.
All serious investors who want to pursue value investing, should make their own portfolio — the development in those companies, the progress in those companies, how they are managed and how they are creating wealth for you — that’s the only thing important for you.

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