Nidhi Dangi PGPBL0214| Samuel K Matthew PGPBL0248

2021 | Investment Strategies

DSIJ Simulation
Stock Market Challenge
Strategies
We decided that we would maintain discipline in our investments by investing not more than 10% of our
base portfolio value of Rs. 10 lakhs in a particular stock. We made changes to our portfolio over time, in 3
rounds of buying/ selling. Refer to the excel sheet below to view the changes in our portfolio over time.

We strategized to use a combination of Growth investing and Value investing. Few stocks like MCX and IEX
are growing at a high rate while other stocks like HDFC and L&T provided a conservative choice and added
balance to our portfolio, which hedged our risks.

IS%20SImulation.xls
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Our latest portfolio is as follows:

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Top Performers
1. Dixon Technologies (30.93% Return on Portfolio as on 14 th October 2021):

 Dixon Technologies is the only listed company in the ODM space (Original Design
Manufacturing) and enjoys significant competitive position in the industry.
 With the Make in India campaign, as well it being the preference for many companies for
their outsourcing design solution, Dixon was bound to be a high performing stock.
2. Avenue Supermarts (27.58% Return on Portfolio as on 14th October 2021):

 Avenue Supermarts is the largest retail chain in the country with a presence in over 200
locations in the country.
 Avenue Supermarts also enjoyed a good quarter, post the lockdown open as people flocked
the stores to enjoy the in-person experience.

3. Indian Energy Exchange (34.03% Return on Portfolio as on 14 th October 2021):

 Enjoys a monopoly space as it construes for 95% of the short-term electricity contracts in
India and is thus a virtual monopoly.
 As announced by NSE, IEX is one of the ten stocks that would enter in the trading space for
the Futures and Options segment.

4. Zee Entertainment (34.03% Return on Portfolio as on 14 th October 2021):

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  With Zee- Sony merger being announced, company was bound to realize synergies and we
knew this was going to be a good pick in the long run.
 Zee is a well-diversified conglomerate having its business across publishing, music,
broadcast rights etc

Challenges & Learnings

 We decided to sell underperforming stocks like Havells, HDFC Life Insurance, Tata Consumer Products etc
because they were giving subpar returns in comparison to our other stocks. For example: Due to the
increase in claims post covid, HDFC life insurance had an expectation of an upcoming bad quarter, so we
thought it would be better to sell it before the value of the share further plummets.
 We learned to diversify into small-cap, mid-cap and large-cap stocks.
 We learned how to handle market volatility. We resisted the temptation to sell stocks that we perceived as
experiencing very short-term market losses.
 We only sold stocks if we felt that that particular stock was not performing well.
 We learnt that the horizon of investment has to be decided prior to investment, which in turn influences the
strategy deployed and stock selection.
 Overall, it was a great value addition and we were glad that because of the knowledge gained through out
the course we performed well consistently and were Rank 1
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