Sample Portfolio Performance – Outperformance of 14.3% compared to Sensex in 2 months!!

In this post we are re-visiting my last post titled ‘Decoding the Indian markets – Bull or Bear?’ dated 23 September 2013 to see if the expectations expressed then have turned out to be correct. If you re-call, in my last post, I had voiced my views that the markets are likely to remain volatile in the near term. I also expected investments in ‘Defensives’, particularly ‘Export-oriented’, and ‘Monsoon Plays’ as prospective investment themes to do well in the near term and outperform the broader markets. 

So lets see how things have unfolded.....

The markets have seen a lot of volatility in the last 2 -3 months on the back of volatile FII investments.  The Sensex rose from  19,900 (18,619 on 30 August 2013) on 23 September 2013 to peak at 21,239 on 03 November 2013 before correcting to 20,217 levels by 22 November 2013. Disregarding the interim highs and lows for the market and our sample set, let us just look at how a sample portfolio of the above mentioned investment ideas has performed  visavis the Sensex from:

(a) 30 August 2013 to 22 Nov 2013 and 
(b) from the date of my post (23 Sept 2013) till 22 Nov 2013.

For Monsoon Plays we have considered 2 Wheeler and Tractor stocks* and for Defensives/Export-oriented we have considered BSE-IT and BSE -Healthcare Indices.

We have included returns from 30 August 2013 to show how resilient our Selected Portfolio has been versus the highly volatile the stock market (highlighted by pink box).

As can be seen from the table, if someone had invested Rs. 10,000 in the Sensex on the date of the post, that amount today would be Rs. 9,977 (-0.2% returns) whereas the same amount if invested in the sample portfolio would have yielded Rs. 11,407 (14.1% returns). An outperformance of 14.3% over the same period!  Moral of the story, stay invested but in the right place!!

Till we meet again…. Happy and safe investing!

Please note that the tactical ideas such as ‘Monsoon Plays’ will change with change in strategy and stock performance & hence we may not continue to be positive on them now. 

 * 2-Wheeler and Tractor stocks were mentioned as ‘Monsoon Plays’ in the comment section of the same post on my blog.