My Portfolio: Himanshu

Hi All,

I am sharing my portfolio below and the rationale behind my investing strategy. My portfolio is inclined towards the financial sector, now I want to add options where I can diversify it properly. Also, going forward I want to generate around 17-18% returns, so I would like your suggestions on how to change my portfolio and investment strategy.

Thanks in advance.

Hey, This is good diversified and large cap dominant portfolio, looks very similar to NIFTY 50, so a good exercise might be here to do here is see how much you overlap with NIFTY 50 index (stocks and weights). If you want to generate 17-18% returns (which is tough but not impossible task), you need to start looking towards small/mid cap allocations more which can give you higher alpha, while large cap give you lesser than 17-18% return, but gives stability.

I’ve been investing for about two years, primarily learning from YouTube. My portfolio is largely dominated by large-cap stocks, and I feel like I might have too many stocks in my portfolio.
Should I reduce the number of stocks and focus more on mid and small-cap stocks to generate around 17-18% returns? Also, is it a good idea to keep increasing the amount invested in the major stocks I already hold?

Stocks list looks good. Although the price at which you enter do matter.

E.g. HDFC Bank has been & probably will remain good stock for years to come but what matters is whether you enter at 1700, 1600, 1300 etc. to get better returns.

Number of stocks doesn’t seem that long but allocation % do matter. If it was intentional to give bluechip larger allocations then it is understandable but try to do some relevant allocations for mid & small caps as well.

Research them well , this way you will have confidence to invest in non-bluechip as well & would be able to digest the volatility.

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Your portfolio is inclined towards large caps and will give returns similar to large cap mutual fund.

You can have some stocks from capital goods, pharma, IT & energy sector as well to better the returns and diversification.

But only when you feel comfortable and can digest the volatility.

Regards.