Tuesday, 2 January 2018

Returns From Diversified Random Portfolio Beat Sensex, Nifty Yet Again

Posted by suhani varma on Tuesday, January 02, 2018 with No comments



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The calendar year started on a good base after a drop from 8950 to 8200 in the last 3-4 months of 2016 which was a flat year with Nifty barely managing a 5% return in CY2016We have been doing Random Portfolio exercises for the last few years. We started looking at this interesting topic almost 3 years back and could make a template with the help of my friend Prashant Krish and now my team mate Harsh Doshi does the iterations for the last 1 year or so.

Every time we have a fantastic year we do this exercise to tone down the emotions which come along with a great year.


The only filter was stock should be above 20 rs and listed on NSE. ( to remove unusual big movers or duds )

•25 stocks selected randomly ( rand function) with an equal weightage of 4%.

•Time Period – Last 6 months and Year to Date.

•No shuffling of stocks. Just buy and hold.

•No brokerage applied.

We created 5 random portfolios on the above selection criteria.

The calendar year started on a good base after a drop from 8950 to 8200 in the last 3-4 months of 2016 which was a flat year with Nifty barely managing a 5% return in CY 2016.

Apart from it being a great year there was not a single correction of more than 5% in the Nifty all through the year.Nifty up 28.5%
Sensex up 28%
BSE Small-Cap Index up 59.5%
BSE Midcap Index up 47%
S&P BSE 500 Index up 36%
S&P BSE 100 Index up 31%


Nifty Midcap 100 up 47%

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