tag:blogger.com,1999:blog-2040933152058239775.post1775627040272380549..comments2023-10-14T21:03:58.225+05:30Comments on Karmayog Knowledge Academy: PPF investment can beat Sensex returns over 20-year period - it can, but it did not this time ...Mahesh C Trivedi - The Karmayogihttp://www.blogger.com/profile/01456216853817828756noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-2040933152058239775.post-5077019728147225922014-09-04T16:35:31.812+05:302014-09-04T16:35:31.812+05:30Hi Nooresh,
I think I need to clarify what I have...Hi Nooresh,<br /><br />I think I need to clarify what I have done. There is no cherry-picking and there is no attempt to prove that Sensex would always be a better choice even compared to PPF or any of the active portfolios. The idea was only to highlight the mistakes the writer of the article had made in his analysis. I am reproducing one line of my blogpost for your ready reference: "Equity is a risky asset class and hence one should not expect 100% guarantee of positive returns, whatever the period"<br /><br />While stocks have come in and gone out of Sensex, your example of ITC's weightage going up or down is simply a function of changes in M-Cap of ITC with respect to the other shares in the Sensex. You need not worry about buying or selling a stock on account of this change in weight. <br /><br />I take your point that the brokerage costs must be added. <br /><br />Cheers<br /><br />AmitMahesh C Trivedi - The Karmayogihttps://www.blogger.com/profile/01456216853817828756noreply@blogger.comtag:blogger.com,1999:blog-2040933152058239775.post-16027782207375949962014-09-01T11:10:32.803+05:302014-09-01T11:10:32.803+05:30Hi
As ET uses the convenience of not taking divi...Hi <br /><br />As ET uses the convenience of not taking dividends you have taken the liberty of not taking brokerage costs given that composition of Sensex is dynamic and changes very quickly. Example RCOM was 3-4% in 2007 and is no more part of it. ITC from 2 to 10% and now 8 <br /><br />The brokerage cost back then was 2.5% and the traded rates would be high of the day ;) ( ask an old timer how much slippage) <br /><br />What i would suggest is find the best returns :) on a CAGR basis taking your cherry picking between 1992-2014. It comes to less than 11-14% only <br /><br />You will notice that stocks out of the Sensex actually give you the equity returns ! <br /><br />Cheers, <br /><br />Nooresh <br /><br /><br />Nooresh Meranihttps://www.blogger.com/profile/01765154714653863816noreply@blogger.comtag:blogger.com,1999:blog-2040933152058239775.post-39515725109753783112014-08-28T12:57:59.726+05:302014-08-28T12:57:59.726+05:30Thank youThank youMahesh C Trivedi - The Karmayogihttps://www.blogger.com/profile/01456216853817828756noreply@blogger.comtag:blogger.com,1999:blog-2040933152058239775.post-86270374181945253282014-08-28T12:57:48.450+05:302014-08-28T12:57:48.450+05:30I agree.I agree.Mahesh C Trivedi - The Karmayogihttps://www.blogger.com/profile/01456216853817828756noreply@blogger.comtag:blogger.com,1999:blog-2040933152058239775.post-30624764366709791672014-08-28T12:07:32.448+05:302014-08-28T12:07:32.448+05:30Moreover, the figures shown in the calculation wer...Moreover, the figures shown in the calculation were absolutely wrong. I have that calculation. Moreover, PPF was yielding 12% at the starting period of the sample which I thing is never going to be the case now. And of course I agree to other points that you have made sir.Anonymoushttps://www.blogger.com/profile/08390945669878291878noreply@blogger.comtag:blogger.com,1999:blog-2040933152058239775.post-1543019558808905782014-08-28T11:52:31.156+05:302014-08-28T11:52:31.156+05:30Thanks sir.
I feel even MF should use total return...Thanks sir.<br />I feel even MF should use total return index as benchmark for large & diversified fundsAnonymoushttps://www.blogger.com/profile/13174061603132179720noreply@blogger.comtag:blogger.com,1999:blog-2040933152058239775.post-49714173701197827832014-08-27T22:56:13.905+05:302014-08-27T22:56:13.905+05:30Thanks SureshThanks SureshMahesh C Trivedi - The Karmayogihttps://www.blogger.com/profile/01456216853817828756noreply@blogger.comtag:blogger.com,1999:blog-2040933152058239775.post-19578750473991470872014-08-27T20:45:26.105+05:302014-08-27T20:45:26.105+05:30Very good analysis and very valid points Amit!Very good analysis and very valid points Amit!Suresh Sadagopanhttps://www.blogger.com/profile/14753215389135053112noreply@blogger.com