Diversified Portfolio with growth target of 18-20% CAGR

(GSApte) #22

Thanks Amit for your views.

The portfolio was 60% in Large Caps + 40% in Small Cap + Mid Caps, probably till 2016.
Mainly due to surge in prices of Mid Caps and Small caps now it is tilted towards Small + Mid Caps.
I have recently exited Vinati Organics and have increased my cash component to 7% which is definitely on lower side as per my thought process.

I have been contrarian investor or value investor for long time, so will like to increase cash component.
I am working towards it. My cash component could have been 15% or more at these NIFTY PE levels, it is only due to recent change in my policy to hold stocks for longer time, it has not happened this time which is my worry as well.

(Amit Jain) #23

All I can say is I am worried. Your cash component is 15% in a completely vulnerable portfolio. Whereas, some wise folks in VP have a cash component of over 60% in a much sturdier portfolio.

Your company selection is good. They will give good returns, but in a longer run. In other words, your portfolio is likely to go 40% down, before it goes 80% up…

(GSApte) #25


I thought of sharing lessons learnt from my Equity Investing for some time.
Now, I am sharing it in this forum for the first time.

Conservative Diversified Investing Approach V1.0.pdf (840.4 KB)

This approach is always evolving as I become more mature as Investor, and this is as per the current form.

Since I am more a Value Investor rather than a Growth Investor, my portfolio some times underperforms the rising markets, but I am now used to it and comfortable with it over last 6-8 years. Mainly my journey started in early 2011 and market corrected by 25% during that year. That was the time when I was able to pick up names like HDFC Bank, M&M, Yes Bank and portfolio has changed a lot over a period of these 6 years.

Kindly note that, these are just my personal observations and strategies and this is not general strategy for all Equity Investors. Due to limited bandwidth to understand all business(s) in detail, I do use some paid services. After that, I do my own analysis which can take any where from weeks to months. Once I build my own conviction then BUY transaction happens. I have my own personalized SELL strategy which has worked some times, and may not have worked in some cases.

Reason for sharing this here, is that, others readers can also share their lessons learnt if they feel so.

Disclaimer : This is not a generic Equity Investment Strategy and not a BUY/SELL recommendation. This is personal approach.

(GSApte) #26

Hi All,

I have started my blog on Personal Finance recently.

I just thought of sharing the link in my topic: