What are the successful investing themes?

for example,

  • Value Stocks
  • Growth Stocks
  • Dividend Yield Stocks

Which other ones do you know?


Depends on what you want, N.

Value plays take a long time to pay off hence you need lot of patience. Growth on the other hand can be a bit risky.

Dividend will be a great if you just want to park you money in well established company paying decent dividend - example Infosys. There may not be a great capital appreciation, but the company will more or less will surely pay a decent annual dividend.


multi baggers - may be this comes under your mentioned growth stocks category…

sectoral stocks - like infra, energy etc.

How about -

Risk On-Risk Off

Defensives - Cyclicals/Rate Sensitives

Developed Market - Emerging Markets


any other themes one can play?

Risk Arbitrage is another popular theme - revolves around buying shares when corporate deals (M&A) are announced. Trades are based on deep fundamentals, and evaluation of enterprise value, market cap,dividend distribution, deferred tax rates etc.

Thanks Ajay.
Could you explain a bit more on Risk On-Risk Off.
Also, how / when we can play the other two themes in India.

Risk off happens when investors consider investing in equities riskier which could be due to any reason like unstable government, global tensions etc. Money moves to safer heaven like USD. Similarly during Risk on investors consider it to be safe to invest in equities.

In India Pharma, IT and Consumer are considered Defensive sectors. While any thing that is impacted by Interest Rates is considered rate sensitives or cyclical. e.g. of cyclical are Banking and Financial Sector, Autos etc. During in Interest Rate Cut cycles, these sectors out perform compared to defensives and during when interest rates are rising these sectors under perform.

For Developed Market-Emerging Market theme you can either invest in global equities directly or through International Mutual Funds. US/Europe etc are consider developed while countries like India are considered emerging markets