The content discusses the unpredictability of individual stock performances, emphasizing the risks involved even with blue chip companies. It suggests a buy and hold strategy, particularly for indices and index funds, but acknowledges the existence of risks and the impact of investment sentiment, as seen during the Covid pandemic. The concept of hedge funds and PMS services is introduced as a means to generate higher returns, commanding a premium for their ability to outperform the market.
The content also touches upon the automatic balancing feature of investing in an index, ensuring companies with good fundamentals remain in the portfolio while those with poor performance are removed. The use of ETFs is suggested for automatic balancing. The possibility of a major company like Reliance being removed from the index is presented as an astonishing future prospect.
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