Kunal Jain - Portfolio Journal

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

I am starting this thread as a long-term investment journal to document my thinking, research process, portfolio decisions, and learnings over time.

I was introduced to equity investing at a young age through my father, a long-term market participant for over two decades. Over the years, I have been investing my own capital with a strong focus on fundamental analysis, valuation, and portfolio construction.

The purpose of this thread is not to share stock tips, but to create a time-stamped record of my investment theses, portfolio actions, successes, mistakes, and evolution as an investor.

For every investment I make, I plan to document:

  • Business understanding and thesis

  • Valuation reasoning

  • Key risks

  • Expected holding period

  • Conditions under which I would exit

  • Periodic updates on how the thesis is playing out

I believe that disciplined documentation and review are essential for improving as an investor, and I hope this thread will help me stay accountable to my process while also learning from the ValuePickr community.

2 Likes
2

Post 2# - Portfolio Construction Framework – Direct Equity Allocation

Hello everyone,

In this post, I would like to outline how I think about portfolio construction before discussing individual stock ideas. I would genuinely appreciate feedback from members on how this framework can be improved.

Disclaimer: My overall allocation will also include- 10% in Gold/Silver, 10% in FDs for liquidity, index funds (Nifty 50/Next 50/Midcap), and some international exposure. This post focuses only on the direct equity portion.

Background

I have been investing for the past 5 years through direct stock picking. However, I did not consciously diversify across sectors or market caps, which led to certain stocks becoming disproportionately large.

This made me realize the importance of a structured allocation framework.

Time Horizon, Risk, and Objective

  • Long-term horizon, no urgent liquidity need

  • Moderate risk appetite

  • Objective: Diversified and disciplined portfolio construction

Sector Framework

I broadly diversify across:

Financials, IT, Consumer (FMCG & Discretionary), Industrials & Capital Goods, Healthcare, Materials, Energy & Utilities.

Within these sectors, I also try to avoid clustering in the same sub-segment. For example:

  • In Financials: mix of banks, NBFCs, insurance, and other financial services

  • In Healthcare: exposure across hospitals, pharma, etc.

  • In Consumer: mix of FMCG, discretionary, and related areas such as real estate where relevant

This helps reduce concentration within a sector itself.

Market Cap & Position Approach

Within sectors, I aim to hold a mix of:

  • Large cap

  • Mid cap

  • Small cap

with equal initial allocation. I target ~20–21 stocks in total.

I also try to keep 10% cash within the direct equity portion for tactical opportunities or special situations, though most of the times i am not divested because of FOMO and not liking money idle, but have faced and also learnt it that money not invested is also an investment which tests patience but gives good return as you have money to invest when eveyone is already invested and cannot buy at low :)

Flexibility Based on Opportunity and Conviction

This framework is a guide, not a rulebook as i belive investment is more of an/a art/craft rather science :)

  • In some sectors, I was not able find suitable stocks across all market caps and am comfortable holding fewer positions.

  • In sectors where my conviction is higher, I may hold more than three stocks.

Stock quality and conviction will always take precedence over maintaining symmetry.

Rebalancing

I plan to review and rebalance the portfolio once every six months, as I believe a quarter is often too short for theses to play out, but still will keep a look on overall portfolio on month on month basis as well but for each specifc stock it will be 6 months.

I would appreciate suggestions from the community on how this framework can be made more robust, thank you !! :)

1 Like
3

Hello Kya meri apase bat ho sakati he ?

1 Like
4

Sure we can DM :slight_smile: if it is not topic related, otherwise we can discuss here as well.