India is one of the fastest growing economies in the world. There is a higher probability of finding multi-baggers across different market capitalisation in India than an MBA aspirant getting a seat in IIM-A, feels Anoop Bhaskar, Head of Equities, IDFC Mutual Fund.
He was speaking at the CIFA 2018.
Anoop believes that India is a stock pickers delight and has the highest probability for investors to identify a three or five bagger stocks across various sectors.
The large-cap stocks have also given attractive returns. Out of the top 100 stocks, 19% have given returns of three times or higher.
“Nearly 425 stocks have a market capitalisation above $500 million making India the fifth largest country. Out of these 425 stocks, 86 stocks have increased more than five times in the last 10 years. This means that the probability of finding a multi bagger is higher than getting a seat in IIM-A. Hence, despite being just a $2 trillion economy, it provides a better opportunity to investors than countries like France which are a much larger economy,” said Anoop.
He adds that the probability of finding a five-bagger over 10 years stands at 20%. “So, even if you did not get into IIM-A, you would still end up with a lot of money by selecting the right stock,” he said in a lighter note.
Anoop focuses on the key three things, which the investor should keep in mind before selecting a stock: earnings, earnings, and earnings.
