I am in about 75% cash and am creating my portfolio for the next 3 years (2018-2020).
My objectives are the following:
a) 12-15% compounding for 3 years from the current levels
b) Defensive:Enterprising - in favor of defensive, or 50/50. (below classification is at 57.5% defensive and 42.5% enterprising)
c) Only well known stocks with great managements
d) good diversification based on GICS classification
e) I am not the one to actively monitor, so would want a 3 year buy and forget (as much as is possible) portfolio
a) Is my defensive/enterprising categorization ok, or would you differ?
b) Total number of stocks is 13 - would you suggest pruning it down to 10?
c) I am still confused on IT and Pharma, but am including them to diversify my portfolio and the inherent assumption is for the next 2/3 year IT and Pharma may outperform the market considering how badly they have been hit
d) In IT and Pharma I have intentionally kept 2 stocks each - is that sensible or would you think having one is better.
e) If I had to choose one from a 3 year perspective - what would you advise for IT: Infosys/TCS and what would you advise for Pharma: Sun/Ajanta (or any other)
- Please share your comments
Stock % of portfolio Defensive/Enterprising? Which GICS sector? Rationale
HDFC Bank 25% Defensive Financials a) Strong Anchor, b) predictable growth blue chip
HDFC 7.5% Defensive Financials predictable growth blue chip
HDFC Life 5% Enterprising Financials Insurance will grow, great pedigree
Eicher Motors 10% Enterprising Consumer Discretionary Earnings visibility and current market leader in its segment
Maruti Suzuki 10% Enterprising Consumer Discretionary Earnings visibility and current market leader in its segment
Marico 7.5% Defensive Consumer Staples has been a 10 bagger for me, implicitly trustable management
Kaya 2.5% Enterprising Healthcare?/Consumer Discretionary? low mrket capital with Marico’s management - great combination
Page Industries 10.0% Enterprising Consumer Staples predictable compounder
Avanti Feeds 5% Enterprising Farm ? good runway, market leader, capable management which has demontrated great performance
Infosys 7.5% Defensive IT IT to rebound. Clean Management. Market Leader
TCS 2.5% Defensive IT IT to rebound. Clean Management. Market Leader
Sun 5.0% Defensive Healthcare Pharma to rebound. Great Management. Market Leader
Ajanta 2.50% Defensive Healthcare Pharma to rebound. Mid-size Pharma with proven record