This text compares my inventory portfolio with an equal funding in a Nifty index fund and the Nifty 100 Low Volatility 30 TR index. We publish this comparability every month. Earlier than we start, it’s important for brand new readers to know the context of those investments.
Replace: We not too long ago added a brand new software to the freefincal investor circle – Determine shares with earnings energy with this new software. See outcomes: Earnings energy valuation of my portfolio shares.
I began direct fairness investing solely after attaining a snug degree of monetary independence and making certain my son’s future portfolio in all fairness safe. On the time of writing, its worth accounts for roughly 9.47% of my fairness MF retirement portfolio and 5.67% of my whole retirement portfolio.
Subsequently, I invested with out the worry of efficiency. There isn’t a experimentation or analysis within the inventory choice technique. That’s usually a waste of time and, subsequently, a waste of true wealth = time. I proceed to put money into the identical approach.
Warning: No a part of this text needs to be handled as funding recommendation. I began investing in shares after establishing my goal-based investing technique. Readers ought to recognize that I started investing in shares after attaining monetary independence. Subsequently, there isn’t any stress for me after I choose shares, as talked about right here. Please conduct your analysis and buy accordingly based mostly in your circumstances.
My aim is to purchase shares with virtually zero analysis. I additionally proceed to put money into mutual funds as standard.
I’ve bought mutual funds each month, no matter market ranges, and I’ll attempt to copy this strategy with direct fairness if I’ve the cash. Moreover, see ‘16 Years of Mutual Fund Investing: My Journey and Classes Realized.’
Time is not only cash; Time is unquantifiable cash. Time wasted in inventory or mutual fund evaluation, the precise time to take a position, and so on., is an unquantifiable loss. So, I purpose to purchase a fund or inventory inside a minute.
Zero ability is concerned in any side of my portfolio. I compensate for the lack of information with self-discipline. Randomness (often known as luck) performs a major function within the return numbers (or lack thereof) under.
After evaluating the efficiency of low-volatility indices, I gained confidence in my means to put money into shares. I advised myself I’d not do any inventory evaluation or analysis. I’d conduct a fast test of the corporate’s well being, a quick volatility evaluate, after which purchase. If I can’t purchase a inventory inside a couple of minutes, I’m losing money and time (in that order).
The inventory portfolio is a part of my retirement portfolio basket as a dividend supply. It may function an emergency fund as a final resort. Perhaps I’ll discover one other use for it sooner or later.
In FY 2020-21, the full annual dividend earnings from this portfolio (pre-tax) was roughly 30% of my present month-to-month bills. In FY 2021-2022, it elevated to about 56%. In FY 2022-23, the share elevated to roughly 70%. In FY 2023-2024, the speed was roughly 88%. In FY 2024-2025, the speed was roughly 100%.
The subsequent aim is to obtain one month’s bills as a complete quarterly dividend (post-tax!). I don’t consciously reinvest dividends. Youthful individuals ought to. It issues little so long as the general funding made every month continues to develop healthily: How ten years of monitoring investments modified my life.
This inventory portfolio is a part of my general retirement portfolio. I’m striving to construct the superb retirement portfolio. Additionally, see Learn how to construct a second earnings supply that may final a lifetime.
Inventory choosing technique
- Select shares with little or no analysis or evaluation.
- Select low-volatility shares with sound monetary well being (low debt is a minimal requirement)
- Select shares that commerce near their all-time highs (approx momentum indicator). See, for instance, An inventory of shares which have traded near their “all-time excessive:
- Don’t be afraid to select costly shares at an absolute worth and valuation. Word: Worth investing might sound clever and attractive, however it’s riskier. I neither have the age to take such a danger nor the qualitative insights to select shares that the market has shunned, however they are going to be found sooner slightly than later. To understand the danger related to worth investing and why it’s extra qualitative than quantitative, see this evaluation: Is it time to exit ICICI Worth Discovery & Quantum Lengthy Time period Fairness?
- When unsure, ask your spouse when she is about to go to sleep within the afternoon.
- Don’t worry dividends (or dividend taxation).
- What issues primarily is corporate well being. Whether or not it’s a dividend payer or not is incidental. It is mindless to say no to an organization as a result of it pays large dividends! It is mindless to promote a inventory as a result of it has an elevated dividend payout.
- All inventory traders over ten years will obtain dividends, no matter whether or not they like them. In contrast to mutual funds, there isn’t any alternative.
- Dividends will not be “further” concerning returns/efficiency however symbolize actual revenue. It may well function a supply of earnings for an older investor, Constructing the best retirement portfolio. Youthful traders won’t ever perceive this, and that’s effective.
- Peaceable sleep is one of the best type of realised features, therefore the significance of low volatility and cheap momentum to enterprise well being (not all shares in my portfolio will test all these bins).
- That is the archive of earlier portfolio updates.
Inventory Portfolio Evaluation
Replace: We not too long ago added a brand new software to the freefincal investor circle – Determine shares with earnings energy with this new software.
See outcomes: Earnings energy valuation of my portfolio shares
That is the portfolio evolution.
As of July 14th 2025, all outcomes are computed utilizing our Google Sheets-based inventory and MF portfolio trackers.
Please be aware: (1) Though investments began in 2014, many of the cash invested is from July 2020.
(2) On account of different priorities, I didn’t make investments between November 2021 and April 2022. On the time of writing, the final funding was made in October 2022. The portfolio weights have drifted naturally. After I can make investments, I attempt to chase momentum throughout the portfolio and put money into shares which have gained essentially the most since I began investing in them.
- Dividend Return = Whole Dividends divided by Whole Funding
- Capital Achieve (CG) Returns = Whole CG divided by Whole Funding
- Whole Return = Dividend Return + CG Return.
- CAGR = ( 1 + Whole Return ) ^ ( 1 / Avg. Years) – 1
- The typical funding length = 4.67 years for your entire portfolio. That is the common of all buy funding tenures weighted by the investments.
- CAGR is computed provided that the common years = > 1. XIRR needs to be taken severely provided that the common variety of years is => 1.
- All returns are earlier than tax.
- The portfolio is in contrast with an identical investments into UTI Nifty 50 Index Fund (direct plan!)
Many individuals and portals mistakenly deal with dividends as money payouts whereas calculating XIRR. This isn’t the universally accepted tutorial and regulatory conference. Solely purchases and redemptions by the investor needs to be used within the XIRR calculation. Dividends needs to be handled appropriately as reinvested (a rule additionally mandated by SEBI), and different company actions needs to be handled appropriately. The freefincal inventory tracker aligns with SEBI rules for all company actions (dividends, splits, buybacks, and so on.)
Comparability with benchmark
The Nifty 100 low vol 30 is a greater benchmark for this portfolio. Nevertheless, we are able to solely evaluate it with the index, not the ETF (from ICIC), which was launched solely in 2017.
- Inventory portfolio (absolute return)* 37.23%
- Out of this, the achieve from dividends is 8.15%
- UTI Nifty index fund (absolute return)* 85.57%
- Nifty Low Vol 30 TRI (absolute return)* 97.23%
- Inventory portfolio CAGR 7.02%
- UTI Nifty Index fund CAGR 14.17%
- Nifty Low Vol 30 TRI CAGR 15.67%
- Inventory Portfolio XIRR (incl all company actions like dividends and splits) 7.53%
- UTI Nifty Index fund XIRR 15.57%
- Nifty Low Vol 30 TRI XIRR 17.03%
* Whole return and CGAR embrace liquidated holdings (see month-to-month replace archives for particulars).
The underperformance doesn’t trouble me a lot as a result of the inventory portfolio is a small portion of my retirement corpus, and I deal with it as a future earnings supply. I’ve had enjoyable constructing this with no effort and can proceed. Please do your analysis and make investments.
Do share this text with your mates utilizing the buttons under.
🔥Take pleasure in huge reductions on our programs, robo-advisory software and unique investor circle! 🔥& be a part of our neighborhood of 7000+ customers!
Use our Robo-advisory Device for a start-to-finish monetary plan! ⇐ Greater than 2,500 traders and advisors use this!
Observe your mutual funds and inventory investments with this Google Sheet!
We additionally publish month-to-month fairness mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility inventory screeners.
Podcast: Let’s Get RICH With PATTU! Each single Indian CAN develop their wealth!
You may watch podcast episodes on the OfSpin Media Pals YouTube Channel.
🔥Now Watch Let’s Get Wealthy With Pattu தமிழில் (in Tamil)! 🔥
- Do you might have a remark concerning the above article? Attain out to us on Twitter: @freefincal or @pattufreefincal
- Have a query? Subscribe to our e-newsletter utilizing the shape under.
- Hit ‘reply’ to any e mail from us! We don’t supply personalised funding recommendation. We are able to write an in depth article with out mentioning your title if in case you have a generic query.
Be a part of 32,000+ readers and get free cash administration options delivered to your inbox! Subscribe to get posts by way of e mail! (Hyperlink takes you to our e mail sign-up type)
About The Creator
Dr M. Pattabiraman(PhD) is the founder, managing editor and first creator of freefincal. He’s an affiliate professor on the Indian Institute of Know-how, Madras. He has over ten years of expertise publishing information evaluation, analysis and monetary product growth. Join with him by way of Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You could be wealthy too with goal-based investing (CNBC TV18) for DIY traders. (2) Gamechanger for younger earners. (3) Chinchu Will get a Superpower! for teenagers. He has additionally written seven different free e-books on varied cash administration matters. He’s a patron and co-founder of “Charge-only India,” an organisation selling unbiased, commission-free funding recommendation.
Our flagship course! Study to handle your portfolio like a professional to realize your objectives no matter market situations! ⇐ Greater than 3,000 traders and advisors are a part of our unique neighborhood! Get readability on how you can plan to your objectives and obtain the required corpus irrespective of the market situation is!! Watch the primary lecture without spending a dime! One-time cost! No recurring charges! Life-long entry to movies! Cut back worry, uncertainty and doubt whereas investing! Learn to plan to your objectives earlier than and after retirement with confidence.
Our new course! Enhance your earnings by getting individuals to pay to your abilities! ⇐ Greater than 700 salaried workers, entrepreneurs and monetary advisors are a part of our unique neighborhood! Learn to get individuals to pay to your abilities! Whether or not you’re a skilled or small enterprise proprietor who needs extra shoppers by way of on-line visibility or a salaried particular person wanting a aspect earnings or passive earnings, we are going to present you how you can obtain this by showcasing your abilities and constructing a neighborhood that trusts and pays you! (watch 1st lecture without spending a dime). One-time cost! No recurring charges! Life-long entry to movies!
Our new e book for teenagers: “Chinchu Will get a Superpower!” is now out there!
Most investor issues could be traced to an absence of knowledgeable decision-making. We made unhealthy selections and cash errors once we began incomes and spent years undoing these errors. Why ought to our kids undergo the identical ache? What is that this e book about? As mother and father, what wouldn’t it be if we needed to groom one means in our kids that’s key not solely to cash administration and investing however to any side of life? My reply: Sound Determination Making. So, on this e book, we meet Chinchu, who’s about to show 10. What he needs for his birthday and the way his mother and father plan for it, in addition to instructing him a number of key concepts of decision-making and cash administration, is the narrative. What readers say!
Should-read e book even for adults! That is one thing that each guardian ought to educate their children proper from their younger age. The significance of cash administration and choice making based mostly on their needs and wishes. Very properly written in easy phrases. – Arun.
Purchase the e book: Chinchu will get a superpower to your youngster!
Learn how to revenue from content material writing: Our new book is for these thinking about getting aspect earnings by way of content material writing. It’s out there at a 50% low cost for Rs. 500 solely!
Do you need to test if the market is overvalued or undervalued? Use our market valuation software (it’s going to work with any index!), or get the Tactical Purchase/Promote timing software!
We publish month-to-month mutual fund screeners and momentum, low-volatility inventory screeners.
About freefincal & its content material coverage. Freefincal is a Information Media Group devoted to offering authentic evaluation, stories, critiques and insights on mutual funds, shares, investing, retirement and private finance developments. We achieve this with out battle of curiosity and bias. Observe us on Google Information. Freefincal serves greater than three million readers a yr (5 million web page views) with articles based mostly solely on factual info and detailed evaluation by its authors. All statements made will probably be verified with credible and educated sources earlier than publication. Freefincal doesn’t publish paid articles, promotions, PR, satire or opinions with out knowledge. All opinions will probably be inferences backed by verifiable, reproducible proof/knowledge. Contact info: To get in contact, use this contact type. (Sponsored posts or paid collaborations won’t be entertained.)
Join with us on social media
Our publications
You Can Be Wealthy Too with Aim-Primarily based Investing
Revealed by CNBC TV18, this e book is supposed that will help you ask the precise questions and search the right solutions, and because it comes with 9 on-line calculators, you may as well create customized options to your life-style! Get it now.
Gamechanger: Neglect Startups, Be a part of Company & Nonetheless Dwell the Wealthy Life You Need
This e book is supposed for younger earners to get their fundamentals proper from day one! It should additionally enable you to journey to unique locations at a low price! Get it or reward it to a younger earner.
Your Final Information to Journey
That is an in-depth dive into trip planning, discovering low cost flights, funds lodging, what to do when travelling, and the way travelling slowly is healthier financially and psychologically, with hyperlinks to the online pages and hand-holding at each step. Get the pdf for Rs 300 (prompt obtain)
