2025 tested every conviction-driven investor. While global markets surged, India faced $17bn+ in FII outflows, tariff uncertainties and one of its worst years of underperformance. Small and mid-caps bore the brunt and the median stock declined far more sharply than headline indices suggested.
This year demanded radical honesty. Underperformance is painful and it requires reflection, not rationalization.
But here’s what matters: this phase has been a necessary reset. Expectations, valuations and positioning have normalized to sustainable levels. With pro-growth policies, GST rationalization, income tax cuts and easing monetary conditions, the setup for 2026 looks materially better.
As Robert Arnott reminds us: “In investing, what is comfortable is rarely profitable.”
Concentration isn’t about avoiding drawdowns, it’s about ensuring they’re intentional, sized deliberately and monitored relentlessly. It’s the cost of admission for building wealth, not just preserving it.
In our latest annual newsletter, we dive deep into:
• Why divergence is a feature of concentration, not a flaw
• The psychological discipline required to stay the course
• Our refined thematic positioning across Technology, Energy Transition, Pharma, Consumer and Financials
• Why 2026’s conditions favour earnings re-acceleration and multiple expansion
The road less travelled is rarely comfortable. But years from now, we believe this moment will have made all the difference.
Click here to read the full article to understand our investment philosophy and market outlook.