The S&P CNX 500 ten strategy is an adaptation of Jeremy Siegel’s S&P 10 strategy.
The strategy is as follows:
Invest in the 10 highest yielding stocks among the largest 100 in the S&P CNX 500. Hold them for a year. Repeat this each year.
This is shown in this spreadsheet, with prices as on 19/12/2012 close.
The S&P 10 Strategy based on investing in the 10 highest yielding stocks among the largest 100 in the S&P CNX 500 showed 15.43% annualised return between 1958 and 2003, which outperformed the market by 3% each year.
We shall track the returns of this strategy in India over the coming years as well.