I have been involved in the stock markets since 2007. But I have not made any money as I have not consistently invested in the markets. I have been reading through valuepickr posts for all few months.
I also do short term trading depending upon the market conditions. I also try Options. I would like to have a long-term investment portfolio and would like to start with a fixed amount & do SIP. In this thread, I would like to discuss only the long-term investment & get the feedback from the esteemed fellow members.
I am 36 years old with 2 kids. With this portfolio, I would like to invest long term & generate Alpha returns and would like to use this for kids’ education/future.
My Objective is to have CAGR of 15 to 20 percent. Also, I would like to invest mostly in large caps since capital preservation is equally important.
INVESTMENT PHILISOPHY: -
Invest around 15 to 20 stocks. Have a watchlist of 10 stocks and shuffle during periodic evaluation.
Invest in sectors that are appreciating and invest in leaders (Example: - Private Sector Banks, Consumer Durables, Insurance. Etc.).
Avoid Cyclicals as much as possible.
Invest trend changers. (It is very rare to find in Indian Markets. But would like to find that can do).
Avoid PSU’s. (Although most of the companies are good & have value. With government policies, it is very tough to make any value for Investors. Who makes money here?)
Avoid Sectors that might lose value. (Automobiles – with the sharing model, this is definitely a disruption).
Do periodic evaluation of portfolio every 3 months. (I don’t think the idea of coffee can period with so many disruptions happening in the last 2 decades).
|Stock||Percentage of Allocation||Investment Rationale|
|HDFC Bank||8||Leader in Retail Banking. I strongly believe HDFC Bank will be the next HDFC Bank itself.|
|HDFC||8||Market Leader in Housing – with push for housing and all the problems with housing companies. It is better to stick to it.|
|TCS||7||IT – Market Leader. With the growth it has shown in the last few years, it is a must have. Infosys & HCL Tech are also slowly losing the competition to TCS.|
|HDFC LIFE||5||Insurance. With western culture being replicated, I am pretty sure we will be buying insurance for everything in the next decade. This is one sector that I am very optimistic about.|
|Asian Paints||8||Paints / Consumer Play. With the middle class growing & the growth shown by the company, it will continue for future.|
|Marico||7||Consumer Durable play.|
|Pidilite||5||Market Leader in Adhesives.|
|Kotak Bank||7||Private Sector Retail Banking.|
|Bandhan Bank||5||My Bet. If it can be successful in EAST India, it can be definitely do in any other parts in India. Also, with the merger with GRUH Finance|
|Bajaj Finance||7||Market Leader in Consumer Finance. The leadership & the process that they have to approve consumer loans, it will continue to grow. It might be challengeable but with the scale they are doing across PAN India, it has the extra edge.|
|ITC||6||Diversified presence in Cigarettes, FMCG, Hotels. Price of the stock does not seem to reflect it.|
|Reliance||6||With the money that they get from refinery, they are ready to invest into other sectors like Retail, Telecommunications. Will closely watch how it performs in the next few quarters.|
|LTTS||5||Leading global ER&D services company.|
|Godrej Consumer||5||FMCG Play. Bet in African markets for Godrej Consumer seems to be challenging.|
Since we are in a bear market phase, I would like to stick to the proven leaders. Once the market condition changes, would like to consider other options.
Please provide your valuable suggestions and help succeed to part of the investment journey.