- It should have at least a 20 year holding period
- The businesses should survive at least for 5 years
- The businesses should have a huge TAM (Total Addressable Market)
- Avoid Cyclical stocks
- Ideally should consist of 10-20 stocks
- No more than 5% in each stock
- Should compose of 4-5 sectors. Some of the sectors are:
- FMCG
- Bank
- IT
- The stock grows in a regular interval of 3 years
- Tracks Nifty - which is designed to grow