Saturday, September 23, 2017

Experimenting with Indexes - JUNIORBEES

Between May & August of 2016, I sold 28 different scrips from my portfolio and exchanged all of them for 1 ETF - JUNIORBEES that tracks the Junior Nifty index.

The 28 scrips contained all kind of shares from penny stocks like GTLINFRA, STERLINBIO, LITL, UNITECH to pretty good blue chips like RELIANCE, BALMERLAWRIE & HDFCBANK and precious metals like AXISGOLD & KOTAKGOLD. At the time of selling, the booked profit ranged from losses of 60% to profit of 194%. i.e the range of what I sold was actually quite diverse. Amounts held in portfolio ranged from a few hundred rupees per scrip to one scrip being more than a lakh rupees in holding,

Last week, I sold all my JUNIORBEES position. One reason was that it was hitting an all time high. The second was that my holding period exceeded one year, switching me to long term capital gains bracket.

Of course, it is no surprise that I made a profit, the markets in India were on a bull run. But what is interesting is to compare what would have happened if I kept my original portfolio and not switched to JUNIORBEES. So here is the comparison of the original holdings vs JUNIORBEES:


Potential Profit %
if kept in in Underlying
Actual Profit %
after switch to JUNIORBEES
BOM:500256-21.91%48.41%
NSE:3IINFOTECH-27.00%32.31%
NSE:ALBK14.37%47.50%
NSE:AMBUJACEM12.54%47.50%
NSE:AXISGOLD-9.80%39.40%
NSE:BAJAJHIND-22.53%52.22%
NSE:BALMLAWRIE-66.70%28.62%
NSE:CPSEETF26.42%39.40%
NSE:CROMPGREAV162.76%31.34%
NSE:CROMPTON30.32%33.06%
NSE:EDUCOMP-44.33%36.91%
NSE:GTLINFRA241.43%48.41%
NSE:HDFCBANK52.59%36.91%
NSE:HOTELEELA15.97%33.06%
NSE:IOB-19.68%39.40%
NSE:ITC8.05%35.66%
NSE:JAYSREETEA12.03%48.41%
NSE:KOTAKGOLD-4.95%39.50%
NSE:LITL-83.88%48.41%
NSE:MCLEODRUSS-14.73%48.41%
NSE:MONSANTO2.26%32.31%
NSE:NIITTECH4.62%47.38%
NSE:ONGC-21.71%52.22%
NSE:RELIANCE-16.29%47.42%
NSE:SBIN47.41%50.61%
NSE:SBT45.39%50.61%
NSE:STERLINBIO-12.29%48.41%
NSE:UNITECH74.99%48.41%
NSE:VIPIND107.46%48.41%
Grand Total12.30%38.63%

The table lists the differences strictly on price, any fees and brokerage paid for the switch has not been deducted. Intra-day changes might also place a minor variation in the comparisons as the the actual sale price of the LHS is based on the price I actually sold at while the potential is based on closing price on the day I sold JUNIORBEES. The RHS is strictly based on the actual prices I traded on. The variations and brokerage put together should not factor for more than 2%, IMHO, hence not being material for this calculation.

Clearly JUNIORBEES has trumped.

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