Planning to have some kind of my own large cap portfolio allocation based on Nifty 50 Stocks.
I have thought of the following allocation and stocks. Would like members to comment on sector allocation or stock selection. Please restrict yourself to stocks only part of Nifty 50. This is not a buy or sell suggestion just general discussion on broad indices.
Any particular reason for a portfolio of this nature? How would it be different from a mutual fund focussed on blue chips, except of course, retaining control over the buy and sell decisions? Is is that you have a strategy of having a particular allocation to large, mid and small caps, and this is just a part of your total PF? Valuepickr is a great forum for researching small / mid cap stocks which are relatively undiscovered, and therefore have potential for higher returns. BTW, this is a no-brainer PF with excellent selections.
Small and Mid Cap PF is under construction. It will be shared shortly. The reason for having a Nifty 50 PF is sometimes a lot of people get sense of security in Large Caps. So Large Caps that can grow at a decent 15 to 20% CAGR offer growth with a bit of safety in terms of Corporate Governance.
Difference Between this and MF?
Well MF can have more than 30 to 40 Stocks this one plans to just have a little of 10. So ideally 10 -12.
Sector Selection and Allocation is what is different from either an ETF or Mutual Fund.
2 years back I had slimier portfolio when I started investment. But the problem with nifty stock is, depends on nifty mood, this stock keep fluctuating and returns are very much predicted between 10-15% or some time 5-10%
Never invest in few sectors like Oil&Gas, Cement and Media. The business model is very tough to understand and you always get less return or -ve returns.
Select only 10-12 stocks in portfolio so it’s easy to manage and you can get better returns.
