Newsletter February, 2022

It is well known that investment returns from equity have outperformed other asset classes across time frames when compared over a longer duration. The return which is often cited is that of the benchmark – Sensex – which is a large cap index and constitutes <1% of all listed companies. In the mid/small cap universe, fortunes across companies has been contrasting. Let alone make it big, many of those are barely able to survive, thus leading to sharp wealth erosion. But the ones that are able to execute successfully have led to outsized returns – far greater than the benchmark.