‘My unlisted portfolio has yielded higher returns than listed companies’

Jhunjunwala, who is reported to be the largest individual investor in the domestic markets, also said the level of taxation on the equity markets is “reasonable” given the socio-economic conditions in the country. 

“I am happy to inform you that my return on the unlisted portfolio is greater than the return on my listed portfolio. There also I have long investments of 10-12 years,” he said, speaking at an event recently. 

“In a so-called unequal society, it is the new aspirants who are making wealth. Please don’t say that... India is crony capitalism. First generation entrepreneurs who came from nowhere are creating wealth. That makes me proud as an Indian,” Jhunjunwala added. 

The ace investor disagreed with the notion that easy liquidity is the only source of growth for the Indian share market, arguing that stock prices have soared over the last one year because of earnings outlook. 

Jhunjunwala said corporate performance in the second and third quarters of the current fiscal year is a testament to the earnings potential of the Indian companies. 

He noted the easy liquidity conditions in the US and other advanced economies would have contributed 10 per cent to the rise of the domestic markets, but reiterated that the more important reason for growth is the earnings potential of Indian stocks.