ICICI Securities expects high SEP return on its Golden Stocks Portfolio: Should you invest?

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Updated: January 24, 2019 1:28:40 PM

The company assured that the stocks in the Golden Stocks Portfolio have been handpicked by the research experts of ICICI Securities on the basis of their excellent and reliable performance over the years.

ICICI Securities, ICICIDirect, Golden Stocks Portfolio, systematic equity plans, SEP, equity investments, systematic investment plan, SIP, Asian Paints, Titan Company Ltd, Nestle India, HDFC Bank, Hindustan UnileverIt gives retail investors an opportunity to enter the equity market with small and regular monthly investments through the systematic equity plan (SEP).

ICICI Securities Limited, one of the largest stock brokers of the country, has introduced Golden Stocks Portfolio, a portfolio of selective stocks with proven track record of generating high returns, giving retail investors an opportunity to enter the equity market with small and regular monthly investments through the systematic equity plan (SEP).

The company, which was one of the pioneer brokers to introduce online stocks broking platform in the country, named ICICI Direct, has invited its customers to avail the benefits of the portfolio, saying, “At ICICIdirect, we believe that the key to successful equity investments is right portfolio along with right investment strategy. Which is why, we are delighted to present you our Golden Stocks Portfolio.”

Assuring that the stocks in the Golden Stocks Portfolio have been handpicked by the research experts of ICICI Securities on the basis of their excellent and reliable performance over the years, based on the established business models, strong balance sheets, and quality management, the company, describing the benefit illustration, said, “If you had invested 10,000 in these stocks in last 5 years every month, it would have resulted in a corpus of 11.3 lakh.”

The benefit illustration on the basis of historic figures of last 5 years through backtesting technique shows an amazing compound annual growth rate (CAGR) of 25.61 per cent on the portfolio consists of stocks of companies like Asian Paints, Titan Company Ltd, Nestle India, HDFC Bank and Hindustan Lever (now Hindustan Unilever).

“Each stock in this basket of winners has consistently given high returns. Also, we believe that you should hold these stocks as they are fundamental to our country’s changing consumption demand,” said the company.

With high-quality stocks of the companies having proven track records of reliable performance consisting the basket, you may give Golden Stocks Portfolio a try as you don’t have to risk a large amount and take advantage of investing small amounts through the SEP. Like systematic investment plans (SIP), the SEP is also one of the best ways to start investing in equity, so that you may build a sizeable corpus in a disciplined manner.

Moreover, the company claims that it will not charge any portfolio management fee, which would restrict the cost to brokerage only (excluding taxes and/or statutory charges, if any).

Although backtesting is not a very reliable technique as past performances don’t guarantee similar returns in the future, but as per the historic figures (as provided by ICICI Securities in the table below), the average SEP returns of the 5 companies for 1 year, 3 years and 5 years were 23.3 per cent, 30.66 per cent and 25.58 per cent, respectively, which is too attractive to ignore.

Historic SEP returns.

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