Most wanted stocks: How mutual fund managers’ stock picks of previous 7 years have performed – The Economic Times

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SynopsisMany of the Most Wanted Stocks identified in the past seven years have given good returns till now. Interestingly, some of the stocks have been in the most wanted list for more than one year. Here’s a performance analysis for investors.

Our copycat portfolios have delivered amazing results during the past seven years. Except for one bad year (2017), all have given double-digit returns and some have beaten benchmark indices, funds and broader markets by handsome margins. The returns have been calculated assuming equal investments in each of the most wanted stocks. Stocks cannot be owned in fractions so the investment in each stock is approximately Rs 10,000.

The most notable portfolio is from 2014, where two stocks (Vinati Organics and Atul) generated compounded returns of 39% and 34% respectively. Even though one stock (McLeod Russel) from that year has been decimated, the Rs 79,820 invested in the eight stocks in October 2014 is now worth more than Rs 2.7 lakh, a compounded return of over 20%.

Similarly, two stocks (Bajaj Finserv and Coromandel International) did all the heavy lifting for the 2015 portfolio, generating 47% and 29% compounded returns. These two stocks alone account for 66% of the total portfolio value. This has helped the portfolio tide over 90% loss in Yes Bank and still deliver 21% CAGR.

Admittedly, 2017 was a bad year. Two NBFC stocks (DHFL and Repco Home Finance) destroyed wealth, while two others (Aurobindo Pharma and Petronet LNG) remained flat. Petronet share has fallen since 2017 but the stock also paid dividends in the past four years. Tata Chemicals provided some relief with 37% returns, helping the portfolio generate 5.4% CAGR.

Interestingly, some of the stocks have been in the most wanted list for more than one year. Finolex Industries was listed in 2014 and again in 2016. Coromandel International (2016, 2018 and 2019), Supreme Industries (2018 and 2020), PI Industries (2016 and 2020), Exide Industries (2014 and 2016) and Gujarat Gas (2020 and 2021) are other such stocks. A repeat mention indicates that funds are still bullish on the stock. PI Industries has grown at a CAGR of 28% for the past five years. But at the same time, Exide Industries has given 2.4% CAGR since 2014.


Also read:7 stocks mutual funds have been betting on in 2021


All returns excluding for 2020 list are annualised; Total returns include dividends; Data as on 26 Oct 2021
(Originally published on Nov 01, 2021, 06:30 AM IST)

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