Tijori Finance provides retail investors with advanced tools to systematically outperform market indices through data-driven investment strategies. With features like the Tijori Finance market monitor and stock screener, investors can easily create a diversified multi-cap portfolio that consistently beats the Nifty 50.

Why Do Most Retail Investors Lose to Nifty 50?

Most individual investors fail to beat the Nifty 50 because they rely on emotions, tips, and incomplete market analysis rather than structured approaches. The Tijori Finance stock screener and portfolio building tools address these gaps by offering institutional-grade fundamental analysis capabilities. While 80% of retail investors underperform major indices, those using comprehensive market monitor systems and step-by-step stock-picking strategies consistently achieve better returns. While most people think that small investors should just buy index funds, this approach goes against the grain. It shows that with the right tools and strategy, you can create a multi-cap portfolio strategy that really beats the stock market.

What Edge Does Using Tijori Finance Bring to Your Fundamental Analysis?

Tijori Finance converts fundamental analysis from a time-consuming manual process to a streamlined, data-driven strategy that provides retail investors with institutional-level insights.

Simplified Financial Ratio Analysis

Traditional basic analysis entails manually calculating complex ratios from financial documents. Tijori Finance calculates and provides key measures such as ROE, debt-to-equity, and price-to-earnings ratios in an understandable fashion. This eliminates mathematical errors while saving hours of manual labour.

Natural Language Stock Screening

Instead of wrestling with complex financial filters, you can search using simple English queries, like “Companies getting revenue from the USA.” The platform translates your natural language into sophisticated screening criteria, making fundamental analysis accessible to investors without accounting backgrounds.

Alternative Data Integration

Tijori Finance offers unique insights beyond typical financial reporting. The app tracks supply chain data, raw material costs, and operational parameters that most retail investors cannot obtain on their own. This alternative data reveals firm performance trends prior to their publication in quarterly results.

Sector-Wise Comparative Analysis

Understanding how a company compares to its industry counterparts is critical for basic analysis. Tijori Finance automatically compares companies to sector averages, indicating whether good performance is company-specific or industry-wide.

Historical Trend Visualisation

Rather than gazing at spreadsheets of numbers, the platform displays financial patterns via interactive graphics. You can swiftly identify improving or deteriorating fundamentals across multiple quarters, detecting patterns that might take hours to uncover manually.

Real-Time Updates and Alerts

In the past, fundamental analysis depended on quarterly reports, which frequently experienced significant delays. Tijori Finance provides real-time updates on significant fundamental developments, ensuring that your research represents the most recent corporate performance.

Integrated Research Workflow with Portfolio Tracking

The platform brings together screening, analysis, and portfolio tracking in one place and can connect with your Zerodha Kite and Zerodha Coin accounts, so you don’t have to use different tools and risk overlooking important information while researching your investments.

Using Tijori Finance and Market Monitor to Optimise Investment Timing

It’s less about guessing when the market will peak and fall and more about making sure your choices are in line with current market trends. The Tijori Finance Market Monitor is a powerful tool that can help you do that by giving you a clear, data-driven picture of the whole market.

Identify and Invest in Leading Sectors

The Market Monitor tells you which areas are doing better than the market as a whole (like the Nifty 50) and which are not. Investing in areas with strong momentum can increase your stocks’ chances of success. The Market Monitor helps you answer the very important question, “Where is the smart money flowing right now?”

Avoid Value Traps with Sectoral Context

Even if a stock seems cheap based on its basics, it’s probably a “value trap” if its whole industry is going down. The Market Monitor gives you this important background information, which keeps your money safe by keeping you from investing in companies that are in an industry that is going downhill.

Confirm Your Entry and Exit Points

The Market Monitor is like a final ‘yes’ sign after you’ve done your fundamental research on a stock. If you’re ready to buy, you can see if the area also looks strong. This double confirmation—strong fundamentals for the company plus positive sector momentum—makes your timing much better and lowers the risk of entering too soon.

Align with Macroeconomic Trends

The monitor often includes key macroeconomic measures. This lets you see how different areas respond to changes in GDP growth, interest rates, or inflation. This helps you prepare your portfolio ahead of time for changes in the economy, rather than responding after the fact.

Best Fundamental Analysis Strategy to Create a Multi-Cap Portfolio

To build a strong multi-cap portfolio, you need a specific fundamental analysis approach. For example, you can’t use the same criteria for a stable large-cap stock as you would for a high-growth small-cap stock. A “core-satellite” model is the best way to go about things. In this model, you use different basic filters for each market-cap segment.

Establish Your Allocation and Foundation

First, decide on your portfolio’s structure. A typical allocation is 50% to large caps for stability, 30% to mid caps for growth, and 20% to small caps with significant growth potential. This framework will help you through the stock selection process.

Anchor with Large-Cap Stability

For your large-cap holdings, focus on fundamentals that signal stability and consistent performance. Look for:

1. Consistent Return on Equity (ROE): Prioritise companies with an ROE consistently above 15% for the last five years.
2. Low Debt-to-Equity Ratio: A ratio below 1 indicates a strong balance sheet that can withstand economic downturns.
3. Strong Dividend History: Companies that consistently pay and grow their dividends demonstrate financial health and shareholder-friendly management.

Target Mid-Cap Growth Engines

When analysing midcaps, shift your focus to growth potential. These are companies poised to become future leaders. Key fundamentals include:

1. High Revenue and Profit Growth: Look for annual revenue growth exceeding 15-20%.
2. Expanding Operating Margins: This shows the company is scaling efficiently and has pricing power.
3. Increasing Market Share: Analyse sector data to find companies that are capturing a larger piece of their industry.

Hunt for Small-Cap Innovators

For small caps, fundamental analysis is about identifying undiscovered potential and managing risk. Prioritise:

1. Positive Operating Cash Flow: This indicator is crucial. It proves the business model is viable, even if the company isn’t profitable yet.
2. A Unique Niche or Product: The company should have a strong competitive advantage in a specific market segment.
3. Low Debt and Strong Promoter Holding: This ensures financial discipline and management conviction in the business’s future.

When you look at each segment through these different fundamental lenses, you can create a well-balanced multi-cap portfolio that includes both the stability of well-established leaders and the high-growth potential of new companies.

Integrating Technical Analysis and Fundamental Analysis to Create a Multi-Cap Portfolio

Combining fundamental analysis (the “what” to buy) and technical analysis (the “when” to buy) provides a significant advantage in developing a robust multi-cap portfolio. This comprehensive approach ensures that you invest in financially strong firms at the right times in their pricing cycles.

Start with Fundamental Screening

Your investment journey should always begin with fundamentals. Use a platform like Tijori Finance to screen for companies across large-cap, mid-cap, and small-cap segments that meet strong financial criteria. Look for:

1. Consistent revenue and profit growth
2. High Return on Equity (ROE)
3. Manageable debt levels
4. Strong cash flows
   This process creates a watchlist of fundamentally robust companies, preventing you from investing in businesses with weak underlying health.

Use Technicals for Entry and Exit Timing

Once your watchlist is ready, layer on technical analysis to pinpoint the best entry points. Instead of buying a great company at any price, wait for technical confirmation.

Now I’ll share one of my strategies, which is very easy to follow. We’ll be using two indicators: 50 Triple EMA (TEMA) and Squeeze Momentum Indicator by LazyBear on a 1-day TradingView chart of the stock Ultratech Cement (ULTRACEMCO).

The strategy is very simple: when the price on the 1-day chart closes above the 50 TEMA and the squeeze momentum indicator is showing light green bars, then you can enter, and when the price closes below the 50 TEMA, you may exit the trade. The following illustration shows this strategy in action.

Apply Across Market Caps

A multi-cap portfolio can benefit greatly from this dual strategy. It helps you steer clear of purchasing steady companies at cyclical peaks if you own large caps. It helps you avoid catching “falling knives” and offers crucial confirmation of rising momentum for more erratic mid- and small-cap stocks.

Enhance Your Risk Management

Integrating both techniques creates an effective risk management tool. Fundamental analysis protects you from investing in struggling companies, whereas technical analysis keeps you from buying good companies at bad prices. To protect your capital, you can place stop-loss orders based on technical levels, such as a break below the moving average. This guarantees that your portfolio is constructed on a solid foundation of quality and timed for maximum performance.

Building a Portfolio Using Tijori Finance vs Index Investing

Active outperformance and passive market matching are two radically different strategies for creating wealth when comparing portfolio development with Tijori Finance to traditional index investing. Although each has a role, Tijori Finance offers resources for those looking to outperform the market.

Control and Customisation

Index investing is a passive strategy that involves purchasing a predetermined basket of stocks, such as the Nifty 50, which includes both top performers and laggards. With Tijori Finance, you have active control. You can create a custom portfolio by screening for companies that meet your specific criteria (such as high revenue growth, low debt, or consistent profitability), avoiding fundamentally weak businesses that an index fund is required to own.

Performance Objective: Alpha vs. Beta

The goal of an index fund is to provide beta, which is the market return minus a small fee. You are essentially signing up to track the market’s performance. Tijori Finance, on the other hand, is a tool that allows you to generate alpha, or returns that exceed the market benchmark. Identifying high-quality companies before they become market darlings provides an opportunity to outperform the Nifty 50.

Risk Management

While index funds provide broad diversification, they also expose you to all of the market’s risks, including overvalued sectors and struggling companies. Tijori Finance enables a more focused approach to risk. You can gradually eliminate businesses with weak balance sheets or declining sales, focusing your capital on companies with stronger defensive characteristics and greater growth potential.

Effort and Skill Development

Index investing is a low-effort, “set-it-and-forget-it” strategy that works well for those with limited time. Building a portfolio with Tijori Finance requires more effort, usually a few hours per month for research and monitoring. However, this process is also a valuable learning opportunity, as it actively sharpens your analytical skills and transforms you into a more knowledgeable investor.

Index Investing vs Active Tijori Finance Strategy

Investment Approach	Index Fund/ETF	Active Strategy with Tijori Finance
Expected Annual Returns	10-12% (market returns)	15-18% (with systematic approach)
Time Investment Required	1-2 hours annually	5-6 hours monthly
Skill Level Needed	Beginner-friendly	Intermediate (platform guides users)
Expense Ratio/Costs	0.1% to 2% annually	Platform subscription + transaction costs
Downside Protection	Full market exposure	Selective stock picking reduces risk
Customization	None (follows index)	High (tailored to goals and risk appetite)
Learning Opportunity	Minimal	Significant (develops investment skills)
Performance Consistency	Matches market exactly	Potential for sustained outperformance
Best Suited For	Passive investors, beginners	Active investors seeking market-beating returns

Retail Investor Mistakes Checklist Free Download

The research reveals alarming trends in retail investor behaviour in India:

1. 91% of F&O traders lose money consistently, with losses growing from ₹40,824 crores (FY22) to ₹1.05 lakh crores (FY25).
2. Demat accounts grew 552% from 2.3 crores (2014) to 15+ crores (2024), with retail investors now accounting for 52% of daily market turnover.
3. Behavioural biases dominate, as loss aversion shows the highest correlation (0.51) with poor investment decisions, followed by herding behaviour (0.47) and overconfidence (0.42).

We at WealthWise Guide have compiled a checklist which retail investors can benefit from by avoiding common mistakes and improving their investment strategies. It is a valuable resource for those looking to enhance their understanding of the market and make more informed decisions.

[Free Download PDF]

Retail Investor Mistakes: Prevalence vs Financial Impact Analysis

This bubble chart analyses the relationship between mistake prevalence and financial impact, helping investors like you identify which biases to address first.

The following Tijori Finance features are mapped to each and every mistake:

1. Overconfidence → Portfolio Analytics to compare actual vs benchmark returns
2. Loss Aversion → Alert systems for stop-loss levels and risk monitoring
3. Emotional Decisions → Timeline feature for fact-based company updates
4. Herding Behaviour → Independent research tools vs social media hype
5. Poor Diversification → Sector analysis and portfolio concentration tracking
6. Market Timing → Long-term fundamental analysis and systematic planning

Final Word

Tjori Finance changes the way people invest by giving them tools that are as beneficial as those used by institutions. These tools let people consistently do better than the market through disciplined analysis and portfolio construction. When you combine stock screening, fundamental analysis, and market monitoring on the platform, you get a long-term advantage over passive index investing. This approach regularly helps retail investors beat the Nifty 50 by focusing on undervalued opportunities and maintaining disciplined risk management. The step-by-step stock-picking strategy removes emotional decision-making, while integrating technical analysis ensures optimal entry and exit timing for sustained outperformance.

FAQs

Why do most retail investors underperform the Nifty 50?

Most retail investors lose to the Nifty 50 because they chase short-term trends, rely on tips, and often panic during market corrections. They lack a structured, data-driven approach, which makes it difficult to beat the index consistently.

How can I actually beat the Nifty 50 as a retail investor?

To outperform the Nifty 50, you need disciplined stock selection backed by research. Instead of guessing, using a platform like Tijori Finance helps you find quality companies through data insights, which reduces emotional decisions.

Is investing in index funds better than picking individual stocks?

For most beginners, index funds are safer because they track the Nifty 50 automatically. But if you want higher returns, stock picking with the right tools—like Tijori Finance—can help you identify businesses that can outperform the index.

What makes Tijori Finance different from regular stock screeners?

Tijori Finance goes beyond basic stock filters. It gives you deep insights into a company’s fundamentals, financial health, and sector performance, so you can make smarter decisions instead of just following market noise.

Can Tijori Finance really help me avoid losses in the stock market?

No tool can completely eliminate losses, but Tijori Finance helps you minimise mistakes by providing reliable data and insights. This means you invest with more clarity and reduce the chances of emotional, poor-quality bets.