I am planning to create a Portfolio in 2019 for next 5 years with 15-20 stocks and minimum 5% allocation to each business. I will diversify it across Large, Mid and Small cap. Also I want to diversify it among different sectors to minimize the risk. Max allocation to single stock will be 10% and to a particular sector will be 20%.
Criteria for selection of stocks :
- Management Quality is first
- Financials has to be good and improving
- Valuation will depend on the business and growth opportunities. So it will be a mix of under/fair/over valued stocks in Portfolio
Planning to buy on dips and not in one Go.
Below is my current Watchlist from whom I want to create my Portfolio of max 20 stocks.
My Watchlist filtered Sectorwise :
- Technology :
- LTTS/Tata Elxsi
- Abbott India/Merck/Caplin Point
- Yes Bank/Rbl Bank/DCB Bank
- Bajaj Finance/L&T Finance/Gruh Finance/PEL
- HDFC AMC/Edelweiss
- HDFC Life
- Maruti/Bajaj Auto/Ashok Leyland
- Minda Industries/Sundaram Fastener/Endurance Tech
- Balkrishna Ind
- Godrej CP/ITC
- Dmart/Zydus Wellness/Jubilant Foodworks
- Sterlite Tech
- Atul Ltd/Aarti Ind/Vinati Organics
- GNFC/Excel Ind/Nocil
- GMM Pfaulder/Salasar Techno
- Astral Poly/Supreme Ind
Awaiting inputs from fellow Investors and ValuePickers to provide their views on this strategy and Top 20 from the watchlist above. From the above I do hold few stocks currently. But am ready to modify the Portfolio accordingly. Looking forward to have a great discussion with you all in my Investment Journey.
Happy New Year in Advance!!!