Only 6 Stocks From 1990 Sensex Remain in Benchmark Index
· Business · Economic Times
Only six companies from the 1990 Sensex index remain part of the benchmark today, according to S Naren, Chief Investment Officer of ICICI Prudential Mutual Fund. Speaking at the ET Wealth Expo in Mumbai, Naren noted that the list of survivors includes Tata Steel, Hindustan Unilever, Reliance Industries, Larsen & Toubro, Wipro, and ITC. He used this historical shift to illustrate the difficulty of identifying long-term winners in the equity market. Naren cautioned investors against the strategy of buying beaten-down stocks in hopes of a recovery, as many companies that once held prominent positions in the index have since lost relevance or disappeared. He urged investors to prioritize asset allocation over individual stock selection to mitigate the risks associated with long-term equity holdings.
Why it matters
This highlights the significant risk of long-term individual stock selection and underscores the importance of diversified asset allocation for Indian retail investors aiming for wealth preservation.
Read the original report — Economic Times
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