Follow FIIs, and mint money
Getting fabulous returns from the equity markets has never been this easy.
It does not matter if you don't know head-or-tail of the markets, and you surely don't need any advice from equity research firms.
ONE SIMPLE RULE DOES IT ALL - follow the investment patterns of foreign institutional investors (FIIs). And that's IT!
All you have to do is look for changes in FIIs' holdings at the end of every quarter when stock exchanges put out shareholding patterns of companies on their websites.
Now, Chew this - Out of 76 companies in which FIIs hold over 10% each, one-year returns is a fabulous 100-1,300%! Another 46 companies in which they holds between 5-10%, yearly returns vary between 100-3,400%. If this is not enough, yearly returns varies between 100-900% in 78 companies in which the FIIs holds between 1-5% each.
Overall, FIIs hold stakes of over 1% each in as many as 590 companies. Of these, 200 companies have posted returns of over 100-3,400%, and 150 firms' stocks have appreciated between 50-100% each. At a time when 66% of listed companies are trading almost 25-100% below their 52-week highs, FIIs' stocks have posted healthy returns.
So, does this mean that they never incur losses? No, but the margin of error is very small. In 26 companies in which FIIs hold over 1% each, they have lost between 25-75% each. However, out of these 25 companies, FIIs have reduced their stakes in 10 and are holding on to another 10 companies.
Isn't the data telling you all? Now, go make some big bucks...
