Tata Investment among 8 holding companies that have over 50% upside potential in 2-3 years
Holding companies have consistently outperformed broader market indices as the returns across different investment periods have consistently surpassed those of benchmark indices, presenting better risk-reward prospects for passive investors over longer time frames, says a study by Ways2Wealth.
JSW Holdings, Kalyani Investment, Summit Securities, Pilani Investment and Industries, Ramco Industries, Bengal & Assam Co, Bajaj Holdings & Investment and Tata Investment Corp are the top picks by the research firm with a growth potential of over 50% keeping a period of 2-3 years in sight.
Holding companies’ index significantly outperformed the benchmark indices over a longer investment horizon. Specifically, it was observed that the outperformance accelerates during the market boom, as was evidenced during the periods of 2017-18 and 2023-24 when the index nearly doubled in a span of a year.
Holding company investment acts as a great passive financial instrument, as a company's financial performance is derived from the performance of several portfolio companies, thus diluting the company specific risk.
Here are the top picks by Ways2Wealth for a horizon of 2-3 years:
JSW Holdings
JSW Holdings is the NBFC arm of the JSW Group. It has holdings primarily in JSW Group’s steel companies. Owing to a surge in dividend income during FY23, return on net-worth increased from 0.84 in FY22 to 1.55 in FY23.
JSW Holdings is currently trading at Rs 6,887.60 on the BSE.
Kalyani Investment
Kalyani Investment is a part of Kalyani
Read on economictimes.indiatimes.com