When Nehru directed Sheikh Abdullah to
consult Ambedkar (then Law Minister) to prepare the
draft of a suitable article to be included in the
Constitution, Ambedkar refused to oblige.His words on the occasion are worth their weight in gold:
“You want India to defend Kashmir, feed its people, undertake its all-round development and give Kashmiris equal rights all over the country. But you do not want the
rest of India and Indians (to have) equal rights in
Kashmir. I am (the) Law Minister of India, I cannot
betray my country.”Given Ambedkar’s principled stand,Article 370 was drafted by Gopalaswami Iyengar, a State Minister.-from IMC India
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Passive investing in India
The Nifty index is the most popular index used to track the Indian equity markets.
The index was launched on November 3, 1995 with a base value of 1000.
Today Nifty closed at 7300 levels.
If one held the Nifty tenaciously for all these years,one would have got a return of around 12% p.a.
The average dividend yield on Nifty stocks has been around 1%-2% but the gain would have been negated by the impact cost.
The impact cost of holding the Nifty would have been very high.In all these years, there have been 151 changes to the Nifty-that’s an average of 8 changes every year !!
So passive investing in India is actually active investing-a momentum play on the biggest market cap stocks.Here the “active” role is played by the index maintenance folks.
On a different note, is 12% pa that great a return in the Indian inflation environment of 10% to justify the time,energy,money spent by investors to get the next multi bagger?
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What moves a stock
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Advice from a broker
