There are millions of people doing billions of transaction on stock market daily with the hope of earning a profit. Most of them are not comfortable with doing a fundamental and technical analysis to find out growth stocks. They rely on their stockbroker or so-called “TIPs” to transact on the stock market.
In this post, I will teach you a technique by which you can find out the best stocks without even doing any fundamental or technical analysis of the stock. Here what we will do is the SMART work. Yes! we will rely on experts analysis and follow their strategy for picking stocks. We will pick the best one from any sector, let’s say small and medium cap companies. So what we will do here is we will find the best performing mutual fund scheme in the small and medium cap category. I will select the mutual fund scheme for the same horizon for which I want to invest into to that particular stock. I have already done the research on the best mutual fund SIPs so I am not going to repeat it here.
Here I will choose IDFC Focused Equity Fund for our example since The scheme is ranked 1 in Large Cap category by Crisil (for the quarter ended Dec 2017 and remains unchanged for the last quarter as well.
I will go to Moneycontrol mutual fund section and search for the scheme. I will get the below details on my screen.
Here is the basic information on how the fund is performing over the various time frame. I am planning to invest for 1 year, so I have chosen the period of one year on the chart.
Now move the down on the page and you will find the different tabs. Click on the Portfolio tab as highlighted in the image above. You will see the stocks in which investment is done by this scheme by the fund manager.
Here you can see that the fund has invested in stocks like Kotak Mahindra Bank, IOC, IndusInd bank etc. These are the stocks which have given highest returns in last 1 year. The returns from these stocks are best hence fund manager has invested its maximum stake into these stocks.
So based on this strategy I can also invest in these stocks directly. It becomes very easy for me to find a stock without doing any analysis by myself. Rather riding on the strategy of the experts who have done enough research before investing in stocks.
Many of us are following ace investors portfolio strategy for the best stocks. We just follow them blindly as we rely on them thinking that they have done enough research before investing in these stocks.
This way one can easily shortlist the best stocks with minimum risk and maximum returns. Its called “Going with the flow” strategy.
Here you don’t have to do any research or analysis for finding the best stocks.