This is a list of what I would call long lasting moat with good runaway for growth.
- HDFC Bank
- ITC
- HUL
- Asian Paints
- Titan Company
- Pidilite
- Info Edge
- Havells
- United Breweries
- CRISIL
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Hey how to get that sanjay bakshi sir’s study on nestle? That link isn’t working now… if anyone have it in pdf pr doc or in any other formats please revert…
Hello All,
Though this thread is not much active, there is not much discussion on investing only in Large Caps any where else, hence mentioning this thought over here.
I am looking for some guidance on selecting only large caps for investment. I am looking for how to decide whether the company is large cap or not, since there are multiple choices available as below:
- AMFI list of large caps which is mainly used by mutual funds. This is revised every December and June i.e. after 6 months.
- Refer NIFTY 100 index which is revised every 6 months i.e. January end and July end as of now.
- Also I suppose there will be similar BSE 100 list.
- We can also maintain our own list every 6 months / 1 year based on Top 100 companies based on market cap.
My idea is that, if I do not want to spend much time & efforts in shortlisting stocks for investment after retirement which is just few years away for me, then which is the most suitable approach to have a low churn portfolio? Should one stick to proven large caps using one of the four criterias above or Top 250 stocks from NIFTY 100 + NIFTY Midcap 150?
As of now, my strategy is to invest in all market caps but that has not yielded much superior returns inspite of taking high risk and investing about 50% in small/midcaps due to low returns during 2018-2020. Eventually my own analysis proved that, large caps tend to generate almost similar returns as small/mid caps since during tough times, small/midcaps do not give higher risk adjusted returns. Across market cycles, returns of small/midcaps and large caps tend to converge. Hence shifting slowly to large caps or large cap+midcap portfolio.
Following is the snapshot to augment my points above:
If we select slightly longer period of 10-15 years, above results will vary to some extent, but still it looks like that, in the long term, across multiple market cycles, large caps tend to perform on par with mid caps & small caps, since we can not time the markets.
Looking for some suggestions to formulate a method to select large caps out of 4 options listed earlier by me. Obviously the list will change after every 6 months, but I am looking for best of the approaches.
I am not looking to invest in any ETF as of now, since I would like to continue investing in stocks directly as I am more comfortable in investing lump sum amounts (profits booked or any other amount available) in individual stocks rather than any index. Index buying is not possible for me as I have to wait to enter into index at valuations comfortable to me, and such opportunities are rare and they come after long gaps. I am maintaining a portfolio of about 15 to 20 stocks since 2010 on wards and would like to continue with it, as it has generated 3.5% to 8% more CAGR returns than NIFTY 50, so far. Only thing I am looking for is reducing my spectrum of stocks to few select names probably top 100 or top 250 (which is the best place to look for these Top 100 or Top 250 companies is the dilemma !!)
Thanks
Looking at your requirements, my suggestion would be stick to ETF. There are different ETF available based on market capitalization as well as strategical themes. You can have a look at available ETF in NSE at https://www.nseindia.com/market-data/exchange-traded-funds-etf
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