ValuePickr Forum

Akshat's Portfolio

What is the 33% debt part of your portfolio? Also you mentioned that REIT is tax free 6-7% yield…how? Dividends are taxed now and also are dividends from REIT a sureity? What are the risks of dividends going down or skipping for an year or two? Thanks

I meant I have reached my allocation level. Otherwise, you need to keep a fair amount of portfolio in liquid cash to be able to invest in real estate.

REITs fall under a different bracket of a trust that gives dividends. As long as the trust does not move to the new tax regime, dividends are tax-free. There are 2 REITs in the country today - and both have stuck to the old regime where dividends in the hands of unit holders is tax free.
My debt part of the portfolio is PF (about half of it) and then a fair amount parked in FMPs and dynamic bonds.

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Hi Akshat
What is your opinion to investing into Nasdaq etf and soverign gold fund ?
FAANG stocks are growing at much higher rate than indian co . They have still large market share to grab and avaialble at decent valuation.
Hold has its own place in all long term portfolio. Sovereign gold bond long term gain is taz free plus 1.5% after tax annuity. Net net it can give double digit return over long time and is much less riskier than a lot of high dividend paying stocks.

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I do have some sovereign fold fund lying from last few years (Entry price: 2990). However, I am not a big fan of gold - given it is purely speculative in nature. I had bought just to track and see how gold does as an asset.
On diversification outside indian stocks, it clearly has merit. My mutual fund allocation has some coverage - understanding individual stocks in a different market is very time consuming. So, I have gone for Motilal Oswal S&P 500 and Parag Parekh fund (which has 25% exposure to mostly tech). In US, most active investments struggle to beat index funds - so, did not see a reason to really get into individual stock picking or active funds.

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Hi Akshat
Are you sticking with your asset allocation ? I am 90% equity 5% debt and 5% gold(sovereign bond). Planning to move 90-5-5 to 60-20-20 for short term since expecting. a correction in equity market in short rally in gold.

First principles : My allocation is not only for my disposable income but also includes compulsory investments like PPF. In this framework, equity and debt were roughly equal (including compulsory things like PF etc).
If I take out compulsory stuff, even then my target allocation was 70:30. I am keeping it almost the same - by booking profits. So, the allocation will stay at 70:30 but I am roughly liquidating 20% of my portfolio (more than half of that is done). My gold investment was fairly low (at 5%) - and I am not increasing it. Instead, I am mostly moving the equity surplus into REITs (which are lower than my target allocation and I find this a good opportunity to bring it up).

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Portfolio Update:
I have been increasing my cash position for some time now. This keeps my equity allocation almost the same or slightly less - but I am taking out the profit. So, my cash position is now close to 15%.

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Thank you Akshat. I did 50% profit (bought during covid times) booking on 50k index . will redeploy once value emerge. around 10% in cash, 20% debt , 5% gold and 65% equity.
.I am looking at pharma , pharma inputs ,agro chem and chem to deploy cash. feel that this could be decade of this and leaders will grow exponentially like IT in 2000-2020. Syngene, sequent scientific ,alembic etc
2. stocks which are building moat and will generate huge free cash in future like eg Wonderla, Mcx +iex,cdsl,cams platform business.
3. Insurance business.
only concerns are valuation and hopefully would get opportunity in next 3 month or 3 years, till then bare minimum sip will continue.
have taken short term position in sugar and metals stock on cycle turning positive

A lot of market experts generally give the opinion to stay invested in the market all the time. If one is not chasing exceptional returns but risk reduction, one approach would be to exit the market when you have already made returns that you wanted for the next 3 years. Then, one can stay on the sidelines for upto 3 years and not worry about the excess returns you may get. There are still some returns one will get during this time

  1. there will be strong secular growth stories that you will continue to hold (primarily large caps like HDFC Bank, Reliance etc).
  2. Put the surplus cash in bull market chasing IPOs. I have seen that you can make about 0.5% of our investment and you can repeat this 12 times in a year (in a bull run). So, this gives you a 6% return + whatever you make in the savings. So, roughly 9%.
    Once the bull market subsides, (2) will no longer be available and you can then get back to over indexing on equity.
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Current Portfolio Status (Discretionary - does not include PF and real estate etc).
Cash: 17%
Equity: 51%
Debt: 24%
REIT: 8%