I cannot get around that no matter what I do, beating the market consistently is very hard, and even if I manage it, it is more due to luck than skill. I am no longer excited whenever I see a new tweet, article, or video about a new product.
The idea of passive or index investing has killed my passion for investing.
How index investing killed my “passion” for investing
After two years of underperforming the Nifty 50, the above statement rings true for me. And if it happens with a company as solid as TCS, then I think I am also better off with investing in Nifty 50 index.
Investment through the years
Four years is a less of a timeframe for equity investments and when 65% of those investments have come in last two years, I need to be patient. Maybe in next four years things will be different.
Returns
TCS has been good with dividends. 2%+ dividend yield at cost is something that would consider good.
The dividend yield at cost mentioned in the chart above, is yield at the date at which I received the dividends. Another way to look at dividend yield is to calculate it for the fiscal year.
| Fiscal year | Dividend yield at cost |
| 2019-20 | 0.61% |
| 2020-21 | 0.93% |
| 2021-22 | 1.07% |
| 2022-23 | 2.91% |
| 2023-24 | 2.11% |
To calculate the dividend yield at cost in the above table I use the below formula.
(Total amount of dividends received in a fiscal year ÷ Total amount invested at the end of fiscal year) × 100
Profit
XIRR
14% XIRR should sound good, right? But when you see 20% XIRR on the Nifty 50 index it… pinches!
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