Investment strategy 4: Dogs of the S&P CNX Nifty

We have already described this strategy in another post.

In this post, we shall see what the returns of this strategy was this year and how it has performed since 2008.

The returns of this strategy for the year 2012 are shown below:

Dogs of the S&P CNX Nifty 2012The returns from 2008 are as follows:

2008: -36.13%
2009: 140%
2010: 20.4%
2011: -11.19%
2012: 15.55%

The average annualised return for the strategy from 2008 is: +13.63%

The Nifty on 01/01/2008 was 6144.35
The Nifty on 31/12/2012 was 5905.12

The average annualised return for the Nifty from 2008 has been: – 0.79%

The above returns exclude trading commissions, dividends, slippage and assume no taxes as there is no capital gains taxes to pay if you hold the stock for atleast a year.

My view is that this is a very good strategy for the individual investor who wants to build wealth