A powerful formula for long term wealth creation

As we celebrated International Women’s Day two weeks ago, Hong Kong Stock Exchange was in the spotlight with their new rule that any company wanting to get listed, needs to have at least one female director, and existing listed companies must have gender-diverse boards by the end of 2024. Following the US markets, there have been many developments globally, including in India where DSP Mutual Fund had launched India’s first Index Fund in 2017 using equal weight strategy on the Nifty 50 Index. Historically, the S&P 500 and other equal weight indices have outperformed their market capitalization weighted equivalent indices over longer time periods with some interim periods of both, outperformance as well as underperformance. If you are an investor doing your annual portfolio review around Women’s Day, or you are a HNI investor looking to complete your investments before March year end, the attractiveness for you would be gain access to a portfolio which meets the two basic principles of investing in leaders and diversification across companies and sectors, a smart strategy which has potential to outperform market cap indices as seen in the past – while keeping the overall portfolio cost low. A very simple logic - let all Board Members work equally hard to make sustainable strategies for long term business growth - let all companies in the portfolio play equal role in the long term wealth creation for you.