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SERVICES:        HIDDEN GEMS    |    VALUE PICKS    |    15% @ 90 DAYS    |    WEALTH-BUILDER


Monday, July 15, 2019

Wealth-Builder - CAGR of 21.1% Vs Sensex CAGR of 11.5%

Dear Reader,

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:

Reasons for fall in stock prices of Small & Mid Caps

With fall in stock prices in broader market during last 18 months, small and mid caps valuations turned attractive giving investment opportunity to long term investors. In fact, many good companies are available at dirt cheap valuations considering the earning growth these companies are expected to deliver over next 2 years. This is not the time to sell but to accumulate good companies available at discounted valuations. As mentioned earlier, bad sentiments do not last for ever, its time for long term investors (2-3 years) to start accumulating good quality stocks which after a long time are becoming available at attractive valuations.

High quality companies reporting 20-30% + annualized growth can deliver exceptional returns for the shareholders in long termIn 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.
Wealth-Builder Portfolio Performance Update
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.

Wealth-Builder is our offline portfolio management service. Using Wealth-Builder, you can manage your portfolio like a professional.

1. You Plant – You will manage your money at your own. Using your own Dmat account, you will purchase and sell shares at right point of time.

2. We Nurture – We will guide you with detailed report suggesting which stock to buy, at what price to buy and of course how much to buy, when to sell and how much to sell. Based on our recommendations, you will create and modify your portfolio to maximize your returns on your investments over a period of time.

3. You Harvest – It’s a fact that equities can give you maximum returns compared to any other asset class if invested with a long term horizon (3 to 5 years and above). Investing in fundamentally strong small and mid cap companies ensures that you keep harvesting your money in form of regular and higher dividends year after year along with capital appreciation.

Below are the unique advantage and benefits of Wealth-Builder over conventional PMS and Mutual Fund:

1. You manage your money at your own without giving it to mutual fund or PMS with benefit of any time access to your portfolio.

2. You will not be charged any asset management fee, exit / entry load, administration charges. Only one time nominal annual subscription cost will be charged.

3. Wealth Builder ensures capital protection; your portfolio will not be over churned to earn higher brokerage like many brokerage houses.

4. Exposure to our well researched stocks - Hidden Gems and Value Picks.

5. Limited transactions – once or twice in a month, you can manage your portfolio giving only 30 – 60 minutes in a month without affecting your busy schedule.

Wealth-Builder ensures giving better returns compared to major indices like Sensex or Nifty in long run. We firmly believe that 2019 is offering one of the best opportunity to long term investors to invest in good quality small and mid caps at rock bottom valuations.

Wealth-Builder subscribers need to replicate our recommended portfolio in exact proportion. For ex: If we recommend to invest Rs 50,000 in “x” company with portfolio allocation of 5% in Rs. 10 lakh portfolio, subscriber starting his portfolio with Rs. 2 lakh need to invest Rs. 10,000 in “x” company with similar portfolio allocation i.e. 5%. On monthly basis, we review Wealth-Builder portfolio and update our members in terms of any changes in allocation or exit / entries in stocks based on fundamental analysis and recent developments in these companies.

Start managing your equity portfolio like a professional, subscribe to Wealth-Builder by paying nominal annual fee of Rs.20,000 18,000 for entire year availing 10% discount under ongoing 9th Anniversary offer. Click here to subscribe to Wealth-Builder online.

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.

Discounts & valuable freebies which make our 9th Anniversary special for all our readers are as under:

1. Maximum discount up to 30% on combo pack subscriptions
2. Hidden Gems Flash Back Report - Released on 30th April 19
3. Value Picks Flash Back Report - To be released in Aug'19
4. 5 Stocks - Potential 5-Baggers in 5 Years Report Update - To be released in Jul'19
5. Existing Portfolio Health Check Up under Wealth-Builder subscription 
6. Saral Gyan eBook - "How to Grow your Savings?" worth Rs. 599 for Free.

Below table indicates subscription services and discounted prices valid up to 31st July'19.
Saral Gyan 9th Anniversary Offer 
Hidden GemsRs. 10,000 9,000
Value PicksRs. 6,000 5,400
Wealth-BuilderRs. 20,000 18,000
Combo 1: HG + VP + WB + 15%Rs. 40,000 28,000
Combo 2: HG + VP + 15%Rs. 20,000 15,000
Combo 3: HG + VPRs. 16,000 13,000
Combo 4: HG + 15%Rs. 14,000 11,500
Combo 5: VP + 15%Rs. 10,000 8,500

Click here to know more about Saral Gyan 9th Anniversary Offer.

Simply choose the subscription service / combo pack you would like to opt and click on SUBSCRIBE! link in above table to make online payment using your debit / credit card or net banking facility. In case if you are not comfortable in subscribing online, you can make the payment through cheque / cash deposit / NEFT transfer in any of our bank and writing back to us sharing transaction details. Click here for bank details.
Wish you happy & safe Investing.

Team - Saral Gyan