If Peter Lynch had a Demat account in India, he'd buy these.

Some investing strategies fade with time. Others become legendary. Peter Lynch's growth investing approach? It's in the Hall of Fame.

As the manager of the Fidelity Magellan Fund (1977-1990), Lynch didn't just outperform—he turned USD 1 million into USD 28 million. That's the kind of return that makes Wall Street legends.

At Value Research Stock Advisor, we've long championed a Long-term Growth Portfolio that shares striking similarities with Lynch's investment style. Today, we're excited to present our portfolio through the lens of his time-tested strategy—tailored for the Indian market.

The Lynch approach: Investing in what you understand

Peter Lynch had a simple but powerful rule: Invest in what you understand. If you see a company thriving around you—whether it's a brand you use daily, a store always packed with customers or a product everyone seems to be buying—it's worth looking at.

That's exactly how we pick stocks for our Long-term Growth Portfolio—10 strong businesses with clear models, strong brand recall and solid fundamentals anyone can grasp.

Key elements of Lynch's strategy in our portfolio

1. Fast growers and stalwarts

Lynch had a special love for two types of stocks:

• Fast growers - Companies growing rapidly, often becoming the next big thing.
  
• Stalwarts - Solid, established businesses that keep expanding steadily, year after year.

Our Long-term Growth Portfolio mirrors this balance—a mix of companies with explosive potential and those that deliver steady, compounding returns. For instance, our portfolio includes a banking powerhouse that dominates its space alongside a fast-growing pesticide company.

2. The PEG ratio

Lynch was a growth investor but never believed in overpaying for a stock. That's why the PEG ratio (Price-to-earnings divided by earnings growth) is important.

Think of it this way:

A stock with a high P/E might seem expensive—until you check its growth rate. If earnings are growing exponentially, it could still be a bargain.
On the flip side, a stock with a low P/E but sluggish growth is cheap for a reason.

Lynch used PEG under 1 as a quick way to find cheap and fast-growing stocks. We do the same in our Long-term Growth Portfolio, ensuring you're getting high growth without overpaying for the hype.

3. Strong fundamentals

Growth is great—but not if the business is shaky. That's why we focus on companies with:

• Consistent earnings growth
  
• Healthy balance sheets with low debt
  
• Strong free cash flow
  
• Sustainable competitive advantages

If a company doesn't tick these boxes, it's not making it into our portfolio.

4. Long-term perspective

Lynch wasn't about quick flips—he believed in the power of holding great stocks for years, even decades. He famously said, "If you're in the right stock, it's better to hold on for the long term."

This philosophy underscores our entire investment strategy. By focusing on fundamentally strong companies with clear growth prospects, we help investors build portfolios that can weather market fluctuations and deliver sustainable returns.

How to use our Lynch-inspired portfolio

Lynch loved the idea of consistently adding to investments over time. He often pointed out that regular investing—whether markets are up or down—can turn volatility into opportunity.

This is why the smartest way to invest in our Lynch-inspired Long-term Growth Portfolio is through a Stock SIP, which involves investing a fixed amount every month.

And we make it incredibly easy for you.

With our Investment Planner, all you have to do is:

1. Enter the amount you want to invest every month.

2. The Investment Planner instantly calculates the number of shares of each company you should buy to create an equal-weighted portfolio.

3. Want custom allocations? No problem. You can adjust weights based on your preference.

After this, all you have to do is execute the orders every month through your broker. No guesswork. No complicated math. It is just a disciplined, structured way to invest—exactly how Lynch would have done it.

Why subscribe now?

The recent market correction has created exactly the kind of opportunity Peter Lynch would love—high-quality stocks at attractive prices. We've accounted for this in our Long-term Growth Portfolio, ensuring you get Lynch-style stocks at the best price.

Our Long-term Growth Portfolio is exclusively available for Value Research Stock Advisor subscribers, and right now, you can access it at a massive 47 per cent discount.

Normally, Value Research Stock Advisor costs Rs 36,000 for three years. But for a limited time, you can subscribe for just Rs 18,990.

That's less than Rs 52 per day. And with our 30-day membership-fee-back policy, this is your risk-free trial!

Join Stock Advisor Now

What else you'll get

Our Long-term Growth Portfolio is just the beginning. Our entire ecosystem allows you to write your own Lynch-like wealth creation story.

Your Stock Advisor subscription gets you.

• Over 60 live stock recommendations
  
• A new recommendation every month
  
• Two more ready-to-invest portfolios: Aggressive Growth and Dividend Growth
  
• Timely updates on all our recommendations so that you can invest with confidence.
  
• Smart tools to optimise and track your investments.

Peter Lynch's investing approach isn't just history—it's a blueprint for success. His philosophy of investing in what you know, spotting growth early, and holding for the long term has created fortunes.

This is your chance to invest like one of the greatest stock pickers of all time—without spending decades researching stocks yourself.

Subscribe Now