Hi VP Board,
I have been investing in small amounts since 2014 and had reasonable success during the bull period.
I made avg 70%CAGR for 2014-2016 on a very small 2lc portfolio (all small and midcaps) which was basically a pure value play on small and midcap stocks and offloaded my holdings completely around demonetization since I needed money for my wedding.
After squaring off my holdings, I had a hard time pulling the trigger again due to absence of the same type of valuations and limited time for research.( It was easier back then to find undervalued stocks and end up with smart returns and I do not have enough knowledge to analyze growth stocks and identify multibaggers)
I consider myself as a high risk investor, but I feel that the strategy I am presenting is a very conservative one. I need your guidance to identify If we can do the portfolio in a better way.
I am targeting 1L/m of investment towards Equities.
I have made the following strategy to re-enter the market with the view to have some core holdings in which we do SIP and save the remaining money as gunpowder for when the market throws us a sweet deal.
Following is my strategy in detail :
- Monthly 50K towards direct equity.
- Monthly 60K Sip ongoing (Axis Focus 25, Reliance Hybrid,Mirae Emerging Bluechip, PPFAS)
DIRECT EQUITY
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I am thinking to allocate 50% of the direct equity allocation(25K/m) towards the following stocks in the ratio below with a long term view of atleast 5-10 years.
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If there is no value buy available, the remaining 25K goes into liquid fund/FD as gunpowder.
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I am trying to have 1 steady compounder each from the sectors which I think will remain favorable and in line with the Indian growth story and without drastically downgrading their ROE objectives.
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I have not cared much for Intrinsic value calculations in these stocks since the SIP in these stocks will be for a minimum period of 5 years.
Allocation - equal % in all
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Reliance
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SunPharma
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Marico
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Bajaj Finance
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Thomas Cook
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LnT
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Adani Ports
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HDFC Bank
Queries -
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I am looking to add one stock from IT sector but am having a hard time coming up with shortlist. Any help and suggestions would be great.
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Would you rather have Piramal instead of Sunpharma? Or any other better candidates for this sector?
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To play the electric vehicle space, do I look at automakers directly or battery companies etc.
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Comments on overall selection of companies?
Mutual Funds
We have ongoing SIPs of 15k each in Axis Focus 25, Reliance Hybrid,Mirae Emerging Bluechip, PPFAS.
I am willing to trim these SIPs and have more in cash
Thanks in advance!