A conservative portfolio

Q&A: Questions & Answers
1

Hi guys

I am 32 years old and giving a complete breakdown of my current portfolio and networth.

1). Indian private equity fund : 22%

2). International mutual fund+corporate bonds: 21% (locked in)

3). Mutual funds (debt, liquid,bond, hybrid debt oriented): 11%

4). Mutual funds equity (HDFC-prudence, hdfc-balanced, HDFC equity, DSPRB top100, franklin templeton bluechip,ICICI discovery, IDFC premier equity, HDFC midcap opportunities): 8%

5). International privately managed portfolio: 8%

6). Bank Fixed deposits (all at 9.5): 5%

7). Bank Recurring deposit (at 9.5): 5%

8). cash: 20%

additional details: 60% paid off in house,

24carat investment grade gold coins, gold biscuits**
**

As you can see that i have highlighted (3) and (8) above and I am looking to reduce these positions substantially and bring individual stock positions up to 10% and also plan to have equity mutual funds upto 15% (MF increase would be by new money injection).

To be frank I do not have the aptitude or the time to pick stocks on my own, but what I have been doing over the past 4 months is reading everything at dalal-street (ayush mittal), here at valuepickr and also rohit chauhan’s rcfunds website and would likely be initiating buys in high conviction ideas of the experts here.

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Heres recent buys:

ajanta pharma @395

On the list: lumax technology, poddar pigments (dalal street), unichem (hitesh gupta), supreme industries (rohit chauhan), banks (yet to be identified).

Please chime in here with suggestions/ideas for a novice.

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I am a bit concerned while trying to increase stock positions by upto 10% of the portfolio as that would mean that I will have a substantial position in terms of actual rupees in individual stocks.

I am open to suggestions as to how to rebalance my portfolio with a goal of wealth management as well as appreciation. I am also open to hearing ideas about portfolio management services that experts here might know of.

Thanks

-sunny

2

should be hitesh patel and not gupta above in unichem

3

Hi Sunny

Since u mentioned that u would like to add a banking stock to ur portfolio…i would suggest u to take a look at Karur Vysya Bank.

Reeasons-1. Valuation wise it is still at comfortable levels which most private sector banks are not at the moment.

2). Asset quality wise, it is right up there in the top league( just behind HDFC, Yes and Indusind bank.

3). Growth wise-no issues at all, growing at above 20% CAGR for last many yrs.

Just have a look if u like it

4

Hi Sunny

Since u mentioned that u would like to add a banking stock to ur portfolio…i would suggest u to take a look at Karur Vysya Bank.

Reeasons-1. Valuation wise it is still at comfortable levels which most private sector banks are not at the moment.

2). Asset quality wise, it is right up there in the top league( just behind HDFC, Yes and Indusind bank.

3). Growth wise-no issues at all, growing at above 20% CAGR for last many yrs.

Just have a look if u like it

5

4).

**Looks too conservative portfolio for the one aged 32 yrs. Since there are more experienced experts to comment on your equity investment, I would only comment on the mutual fund - equity. **

Too much investment on HDFC funds where you will find a common portfolio stocks in HDFC Prudence, HDFC Balanced and HDFC Equity funds. I would suggest to invest into different fund houses funds as that will diversify your portfolio. I would suggest to reduce HDFC balanced and get into ICICI focused equity fund. Rest funds you can hold on.

6

for mutual funds, you can have a portfolio like

reliance eq opportunities

icici discovery

sbi magnum emerging biz

uti opportunities

idfc premier equity

7

Bala,

That will make it too aggressive mutual fund portfolio. Here he is going for conservative portfolio so large cap oriented funds need to be there alongwith the small/midcap funds. For me the balanced portfolio would consist of :

1). HDFC Equity Fund

2). ICICI Focused Bluechip Fund

3). UTI Opportunities Fund

4). IDFC Premier Equity Fund

5). ICICI Discovery or HDFC Midcap Opp Fund

8

added on 1/28:

caplin, poddar pigments (ideas from dalal-street) … looking to add unichem but need to read some more to increase conviction

@manish, bala: thanks for the MF advise

@ all: can someone suggest the best/most-sensible way of going about investing a lumpsum thats sitting in a liquid fund at the moment (in the range of 11-13L), part of my stock purchases have been from this with no positions exceeding 5%.

I am also looking to add some steady compounders as well, but valuations look pretty steep at the moment. Can someone suggest some ideas or whether I should wait for a correction/consolidation before initiating buys.

Thanks

9

added between 3/10 and 3/28

titan (cmp: 235), granules (cmp: 97),

hdfcbank(cmp:610) karurvysa(cmp:455),

gruh(cmp: 204)

Watchlist: MPS,GRP,Canfin, Atul Auto

I am in the process of building up a stock portfolio and still have a large cash position to deploy (55% cash). If some experts would comment on adding stocks to my watchlist would be much appreciated

10

Hi.

I am not an expert, but here are my suggestions - Kaveri Seed, Unichem Lab, Mayur Uni, Astral Poly and Caplin Point. The last one needs more research. Others are widely discussed here, so you can go through the threads and take a call.

Cheers

Vinod

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