After a brutal week in the broader markets, my portfolio has taken a substantial hit. I’m down about 13% (annualizaed at about 80%).
During this correction, I’ve replanned my portfolio allocation theme. Instead of focussing on the number of stocks, I have identified a sectoral mix for my portfolio. Here is how the desired mix would look like:
- Defence: 25%
- Hospitals: 25%
- Auto Ancillaries/EV Proxies: 15%
- Hotels: 8%-10%
- Media: 10%-12%
- Metals/Infra Proxy: 15%
FinTech is another sector that I would look to invest in, and would like it to occupy 10%-15% of my portfolio, contributed by 1%-2% of dilution from all the other sectors. However, I am yet to research on valuable growth stocks in this space. The idea is to have about 60% of my portfolio in non-cyclical sectors (Defence, Healthcare, FinTech, Music) from which I can expect a fairly stable growth, while cyclical sectors like Hotels, Auto Ancillary and Metals can give me some higher beta over the next couple of years.
So, coming back to my portfolio, I decided to take a tracking position in JTL Industries. While it’s facing some FUD regarding one of its shareholder’s shares being frozen by ED, I’m quite optimistic on its guidance for the next 2-3 financial years. This, along with probably Hariom Pipes, will be accumulated over the next 3 months. Also, I took a bit of a position in Minda Corp. The fact that the Indian government is looking to attract investments from EV manufacturers comes to me as a tailwind for auto-ancillary companies looking to cater to the EV OEMs. I already hold a substancial position in Pricol, and I will add more positions in Minda as it has looked strong in the recent past.
The following is a snapshot of my portfolio, both stock and sector wise.
