Stock Market is performing but My Stocks are not – An Insight

How many of you have been in a situation whereby all major benchmark indices (both local & global), be it NASDAQ, S&P 500, NIFTY, DJI, etc. are going all guns but still your portfolio looks red?

Well, in all probability, each one has been there at some point in stock trading/investing. Let’s try to understand why exactly we find ourselves in such a catch 22 situation before eventually glancing over the possible solution for the same.

Being retail investors, we all came to the stock market to earn money but we have seen that NIFTY 50 is performing but our stocks are not. Even if we had selected the best stocks having the best fundamentals, the best management, all fundamental ratios are in favor to buy. We bought such stocks in our portfolio and keep accumulating such stocks in our portfolio, but after keeping them for a couple of weeks, months, years we found that NIFTY 50 has given good performance and the market is making new lifetime highs day by day but the stocks in my portfolio are not giving me such a return.  Everywhere on TV, social media, newspapers, people are talking about market new highs. In this Race, retail investors feel betrayed and think to leave the market saying “it’s not my cup of tea, Share Market is a gambling, etc”. RD, FD, EPF, VPF, SSY, etc other small saving schemes are best for me.

Every retail investor’s problem is that their portfolio stocks are not performing as we are expecting. Everywhere we have seen that our portfolio must beat the benchmark indices. But this is very rare for retail investors.  Why?

  I am sharing my experience in this regard, I came to market in the end of the year 2015 and heard about the portfolio of Indian Big Bull Mr. Rakesh Jhunjhunwala. That few of his stocks had given him tremendous returns and he is still holding them. Aurobindo Pharma, Lupin, Titan, Sun Pharma, etc. These are the best companies in their areas and brokerage houses are giving the buy call for higher targets in the future. I also started to accumulate them and in fact, I accumulated most, which are falling most,a common tendency of retailers to average the falling stocks. While accumulating, I was feeling very happy that I am getting the stocks that are trading at higher prices and part of some big investors’ portfolios. After holding these stocks for a period of 6 to 7 years they came to my cost. Even though a few of them are still giving me negative returns.

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