We continue to remain invested in high quality small and mid cap companies with strong fundamentals and recently increased allocation in these companies considering significant fall in stock prices since Jan 2018. We believe severe correction in broader markets with significant fall in stock prices of small and mid caps in last 18 months is giving a wonderful opportunity to long term investors to build a diversified portfolio by investing in good small and mid size companies backed by strong fundamentals at much lower prices. We expect small and mid caps stocks with strong fundamentals will outperform going forward considering reasonable valuations, favourable macros, revival in growth in coming quarters and higher spending of middle class with rising disposable income.
Below are some of the major reasons of severe fall in stocks prices of small & mid cap stocks since beginning of 2018:
High quality companies reporting 20-30% + annualized growth can deliver exceptional returns for the shareholders in long term. In case you have not yet started building a portfolio of high quality and high growth stocks for long term wealth creation, you can initiate your investments now. Below is the Wealth-Builder portfolio allocation and performance update for your reference.
We believe, investing in Wealth-Builder portfolio with regular portfolio review from our end can help you achieve market beating and very good returns over a longer term and help you take care of yourself and your family needs, which ultimately lead to a healthy and wealthy life after retirement.
Since inception, our Wealth-Builder portfolio has outperformed Nifty and Sensex by wide margin delivering CAGR of 21.1% where as Sensex and Nifty have delivered CAGR of 11.5% and 11.3% respectively during the same period. Since 1st Jan 2013, Nifty has given returns of 100.2%, Sensex returns is 103.5% where as our Wealth-Builder portfolio has given returns of 241.4% to our members.
We continue to hold high growth companies with robust fundamentals as we believe these companies are available at reasonable valuations, registering good growth every quarter and doing all the right things to continue delivering robust top line and bottom line with strong operating margins.
There were few laggards also which have not performed up to our expectations and we exited these stocks and allocated the available funds to other good investment opportunities as a continuous process to ensure that Wealth-Builder portfolio continue to outperforms major indices by wide margin.
Note: Wealth-Builder portfolio update - July 2019 will be released by this weekend and we will share the same with our Wealth-Builder members.
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Grab discount upto 30% and valuable freebies on our subscription services under Saral Gyan 9th Anniversary Offer. We suggest our members to consider current situation (post severe correction in small & mid caps over last 18 months) as a buying opportunity and invest in high quality small and mid cap stocks.