Names such as Bombay Dyeing, Dilip Buildcon, Adani Enterprises, Radico Khaitan, Edelweiss, Jindal Steel and Power, and Godrej Properties have risen at least 100 percent.
Holi, the festival of colours, which celebrates the victory of good over evil, is being celebrated all across India on March 2, 2018.
And what a good time to take a look at your investments and take some calls too. The financial year is about to come to an end. As an investor, this is the time take a good look at the portfolio, look for the wealth creators and take some tough calls on the wealth destroyers.
While the nature of investments may differ from person to person based on risk profile, investment avenues, the apt action would be to weed out what has dragged your money down and probably stack up what has multiplied it.
Additionally, one can also choose to look at a few more options. For instance, one could look at fresh stocks, which seem to have good potential based on their track record and the business environment, among others.
The year of 2017 was a fantastic year for investors. The index rose to fresh record highs with Sensex and Nifty both hitting fresh milestones.
While the Nifty managed to hit the five-figure mark of 10,000 and consequently 11,000, the Sensex too managed to trade around over 36,000 levels. Collectively, the market returned around 29 percent for the calendar year of 2018.
However, the return percentage falls a bit when you compare the time between two Holi festivals. Between Holi of 2017 and 2018, the Sensex gave a return of 18 percent.
A further look at the data on wealth creators and destroyers among BSE 500 names dug out by Moneycontrol reveals that some of them have given up to 572 percent return in the past one year.
Names such as Indiabulls Ventures, Bombay Dyeing, Dilip Buildcon, Adani Enterprises, Radico Khaitan, Edelweiss, Jindal Steel and Power, and Godrej Properties have risen at least 100 percent. Indiabulls Ventures stands out with 572.35 percent gain, followed by Rain Industries and Avanti Feeds, among others. They returned at least 200 percent in each case.
Meanwhile, there have been some stocks which have managed to make investors unhappy too. In some cases, they have eroded almost all of the wealth that has been invested.
With losses up to 86 percent in the past one year, stocks such as Videocon, Religare Enterprises, Lupin, Indo Count and Dena Bank are a part of this list. Interestingly, there are quite a few pharma names in that figure in the list.
This chart is also an indication of the kind of bull-run that the market underwent. Gains of over 550 percent, while losses at a little over 80 percent show that the market was on a one-way street.For efficient wealth creation in the long term, investors should look at stocks from different sectors. A well-diversified portfolio will be more stable at the time of market correction compared to a skewed portfolio which focuses on just two or three sectors.