It is a PHENOMENAL idea to create a Long Long Term Portfolio.
All young investors or new investors are buried into the disruption of the world and companies going ‘poof’.
This does not happen to LnT, Tata Motors, HUL, ABB, and others, and even if it happens, it will happen to one of them, and the ones who are traders will say ‘look I told you’.
Even since 1999 there has been many that has gone “poof” (gone away), but they are just a handful like Lehman, Enron, Global Crossing and a few others in the US. In India, we have Satyam, PNB, Vakrangee and a few others that have given trouble esp. in the mid-cap category, but the rest have been OK and survived. TWO huge bear markets in India and only a handful gone (don’t talk about SmallCaps).
In short, I would ONLY pick from Nifty 50 and invest in the stocks of Nifty that you understand well. So, if someone says Infosys is going down the drain due to USD, you would be able to tap into your conviction and buy more when it dipped to Rs850.
In addition, the Nifty 50 is going to give you dividends with some regularity which none of the mid-cap and small caps will be giving, and hence you want to have these companies and then reinvest the dividends into other companies.
Make sure you make the portfolio script selection large enough that it acts like a Nifty50 on steroids. That means you need your high conviction small and mid caps added to it also.
Hope this helps.