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Is investing in all recommendations by Stock Advisor different from a multi-cap fund investment?

I hope that we can beat or match at least the top quartile multi-cap manager, says Dhirendra Kumar

I have been a subscriber of Value Research Stock Advisor since its inception in 2017 and I have invested in almost all the recommended stocks. Currently, my portfolio holds 49 stocks. So, I'm wondering how services of Value Research Stock Advisor are different from multi-cap mutual funds. In the longer term, how will the return be different from a mutual fund?
- Supriyo Majumdar

I hope that we are able to beat or match at least the top quartile multi-cap manager. We have had our series of successes and failure and we are not very disappointing. Since our services have not even been three years old, it may be a little early for me to proclaim any success. But I would say that one thing you should do is follow the sell recommendations that we have made. If you have 49 stocks, then maybe you have not followed a few sell recommendations. We regret making a sell recommendation, but we only do so if things become unfavourable for a company or if we find that the company has lost the charm based on which we recommended it in the first place.

You can also exercise some selectivity. The whole premise of devising Value Research Stock Advisor was to help you learn. By reading our thesis on companies, you will agree with many of them and you may disagree with many. For the ones that you do not feel very convinced of, have smaller allocation or do not invest in them at all. So that way, our stock advisor services will be a useful tool to help you invest better.

We will do all the hard work in terms of keeping an eye on the company, keeping you updated on each result or warning you of anything dramatic happening to a company both favourably and unfavourably. In this context, the big moves update that you get on Value Research Stock Advisor is a particularly useful thing because most of the time, we miss big opportunities. If the stock price collapses, many investors run but it may be for a temporary reason and that is when we think that we play a good role. Also, on the reverse, the stock price of a company goes up dramatically.

A few of stocks in our recommendations have gone up so dramatically even in this pandemic period that sometimes we discuss among ourselves that is it over for this stock or is it too pricey now? We take measured decisions that rising stock prices may not be a good enough reason to get rid of a great company in your portfolio which may have miles to go. Some of the best performing stock in the last 15-20 years in India have been expensive. Now, once in a while, even if they come down, investors who sold them never really get an opportunity to get in again.

So, these are the critical roles that we want to play for you through our stock advisory services. So, invest with confidence, reduce some of the holdings, read a little more and get little selective. I am confident that we will beat or match a multi-cap fund manager but allow us some more time. In the sense that, two and a half years or little less than three years is not good enough for us to proclaim victory or be boastful or be disappointed about it. I am thinking of a 5-10-year time frame when we can proudly claim or be disappointed and cut a sorry figure. But before that I am apprehensive, I don't really want to take the credit or take the flack.

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