Jerry's portfolio (B)

Q&A: Questions & Answers Portfolio Q&A
1

I have two separate portfolios (A & B), A is mostly passive one with NIFTY 50 ETFs, small cap and mid cap mutual funds and few bluechip stocks. Portfolio B (15% of total net worth) is where I am trying to apply my knowledge and invest. Aim with Portfolio B is to generate 20%+ CAGR consistently, Horizon 10 years. I can tolerate drawdowns of 20% max.

Stock Symbol Company Name Percentage in portfolio B Rational
BHABO3 BHARAT BOND ETF APRIL 2025 52% Debt to be deployed when market crashes
MIRALP MIRAE ASSET NIFTY ALPHA 30 ETF 11% Indirect investment in high alpha stocks
MOTGSC MOTILAL OSWAL 5 YEAR G SEC ETF 11% Debt to be deployed when market crashes
NESIND NESTLE INDIA LIMITED 8% Safer stock to balance the portfolio volatility
PVRLIM PVR INOX LIMITED 5% Expected turnaround and correspondingly high return
PIIND P I INDUSTRIES LTD 5% This is a consistent compounder with good growth
CHOINV CHOLAMANDALAM INVESTMENT AND F 3% Safer stock to balance the portfolio volatility
OLAELE OLA ELECTRIC MOBILITY LIMITED 2% Bullish on 2W EV segment
ZAGPRE ZAGGLE PREPAID OCEAN SERVICES 2% Guidance of 40-45% sales growth over next 3 years, expecting high returns
KAYTEC KAYNES TECHNOLOGY IND LIMITED 2% PLI received for OSAT, expecting 40-50% growth over next 5-10 years

Question:

  • I have a lot of funds in debt instruments waiting for deployment, in anticipation of correction which has not happened since last 7-8 months, what should be strategy in current market situation? continue holding debt or deploy in equity?
  • Any feedback on the stocks/ETFs?
2

Really interesting to see how you have stocked up on Cash instruments (52%) and your only strategy to earn 20%+ return seems to be hoping for an impending crash when you can deploy your cash and there is a immediate V shaped recovery like covid. My only counter to this approach is #1 how can you guess when the crash will happen; #2. how long will the bull run continue before there is a steep correction, #3. how do you know how long the lull will last (can test ones patience) post the correction. Also, most of the stocks you have invested albeit in small percentage seems to be very high PE that can also steeply correct on a crash. Thanks.

3

All valid questions, but the reason for holding cash is again point 3, which is all stocks with growth potentials are expensive. Reason for small percentage is also the fact that you mentioned, they are high PE, while I have conviction in their growth story but I don’t have conviction in the valuation.

Sorry, I could not understand what you are suggesting… are you suggesting -

  1. Deploy more in equity?
  2. Also suggest where to deploy? Which sectors/companies in your opinion, you find undervalued and also growing fast?
4

Liquidated this experimental portfolio and just decided to focus on one