Today we completed 20 months of our flagship advisory long term equity portfolio, titled JEWEL (Maxiomwealth Equity advisory for WEalth over Long term).
To paraphrase Charles Dickens from the Tale of Two Cities, these 600 days have seen the best and worst of times. We saw our basket of stocks grow by 36% by 19 Feb pre Covid (in comparison Nifty50 Total Returns Index grew 11%). This growth was powered by a good combination of stocks across Pharma, Technology and Chemical sectors.
Then came the Covid19 crash and the portfolio corrected steeply. From launch JEWEL corrected by -17% whereas Nifty50 TRI fell -30%. From their respective February 2020 peaks, the corrections were -39% and -37% respectively. We took some tough calls to stick to our allocation to Financials despite the reigning chaos. We also did not exit in panic. The clients who agreed with our advice and added to the portfolio benefited handsomely.
The interesting story is in the recovery. As on 9 April 2021, the JEWEL portfolio touched its next peak by rising 118% from the bottom (ie, 2.18 times) whereas Nifty50 TRI rose by 97% b the same day (1.97 times).
The cumulative performance also speaks for itself. Since launch the gross returns (before advisory fees and taxes, excluding cash % specific to investor) is 75% whereas Nifty50 TRI is about half. The strategy of Roots & Wings held the fort.
Roots aim to preserve wealth by selecting companies with low debt, consistent ROE/ROCE & promoter integrity. Wings identify growing companies (sales/profit/cash flows) with pricing power in their markets. We re-balance the portfolio quarterly (no ‘Buy & Forget’) which has helped avoid stocks that imploded quickly. This induces ‘creative churn’.
The same algorithm since 2004 has seen similar results, with a a long term CAGR of 30.3% vs NiftyTRI 14.6%. These numbers neither predict nor promise any future performance. Investors may experience different returns based on when they enter and execute their transactions. An audited portfolio of the actual returns recorded since launch is available.
As a corporate SEBI Registered Investment Advisor, we offer pure investment advisory with no hidden fees and no brokerages. Your money and stocks remain in your account; we do not hold or touch them.
In these 20 months MaxiomWealth.com grew from one client investment to about 350+. The asset base has grown into a three digit crore number. We thank all our clients who reposed faith in our unique model, and remain grateful to them for being part of this journey.