Super growth portfolio - a study of Indian stocks

Long-term investors aspire to earn extraordinary returns with a minimum risk exposure. This paper examines different strategies and carefully constructs a class of portfolios using constituent stocks of the NIFTY500 index to earn the best risk-adjusted returns for long-term investors. We identify a simple and profound strategy that generated extraordinary returns over more than two decades in the past. Further, we also show that this strategy produces superior performance in different market states and investment periods. Our result highlights the below par performance of value-investment style. This work has direct implications for portfolio managers and retail investors looking to invest in the Indian market.