Navneet's Portfolio

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)


  • 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.

  • If there is no value buy available, the remaining 25K goes into liquid fund/FD as gunpowder.

  • 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.

  • 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

  1. Reliance

  2. SunPharma

  3. Marico

  4. Bajaj Finance

  5. Thomas Cook

  6. LnT

  7. Adani Ports

  8. HDFC Bank

Queries -

  1. 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.

  2. Would you rather have Piramal instead of Sunpharma? Or any other better candidates for this sector?

  3. To play the electric vehicle space, do I look at automakers directly or battery companies etc.

  4. 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!

I understand a lot of people have done well during this time frame so just out of curiosity I wanted to compare this 70% CAGR returns over 2014-16 (till Oct 2016) with the mid-cap and small-cap index returns.

The BSE Small-Cap index is up around 105% which is a ~28% CAGR
The Nifty 100 Mid-Cap index is up around 101% which is ~27% CAGR

Now you’ve smashed both the Mid and Small cap indices with a 70% CAGR over a 3 year period - which is not a small time frame in my opinion. And even during this time frame I can name hundreds of small and mid caps which have not made the investors great money.

Given your stupendous outperformance and reasonably decent stock picking skills - I’m really surprised why you want to re-enter the markets with a proposed 50% allocation towards the large caps.

1 Like

Very true gurjota,

The high allocation currently is due to 3 things :

  1. At that point of time, I had a lot more time and a lot more conviction behind my bets and a lot lower budget. As I moved into a much much busier job, It lately became a lot difficult to even track the topics on vp and my portfolio/watchlist stocks. I personally feel rusty with such a job.

  2. The fact of the matter is that I am pretty comfortable allocating a part of my overall portfolio knowing that I can do without missing a few of their quarterly earnings reports. 50% felt like a good place to start.

  3. I still feel the markets have some way to go till I find the kind of valuations Im comfortable investing but im not averse to trimming the SIPs and having more in cash in case that happens. After all it still is my first ever bull run and Im still figuring out what works and what doesnt for me.

One last thing, back of the mind, I still feel the stocks I picked during the outperformance phase tapered out in the next two years, so maybe I was lucky to exit at those numbers. I feel there is a lot to learn for me wrt the investment thesis behind a stock and the mental strength it takes to hold them through thick and thin.

This time around with the index still at 24 odd p/e, marks another round of learning for me and how to invest at these valuations. I just wanted to be safe than sorry.

Views invited

1 Like

Thanks for the detailed response.

I surely missed the agro tech foods and loved your inputs on the EV space.

Will have to look into 3M in more details

i think you shouldnt invest in 3M India, they dont pay dividends. I would recommend you to look at Wendt India or Carborundum universal,part of the great Murugappa conglomerate

I am not commenting on whether to buy 3M or not. However, one should not decide your stocks (i would call as business as we are shareholders of the underlying assets / operations) based on dividend yield.

Once the Company has paid the dividends, the price of the stocks would reflect the amount of dividend paid. That is why in certain business literature, you can see the phrase ex-dividend price or X company will trade ex-dividend today. So can’t find any reason to select stocks / business based on dividend payout. Hope it helps

So here’s an update,

During the past year, luckily again, my move into large/large mid-caps caps paid off for me as I did decent returns with the comfort of low volatility. I still plan to hold these largecaps and liquidating them is not on my mind. Following are my returns from the stocks on an absolute basis


I got out of Care rating, where I got a dent of 50% in a short time and wasn’t fast enough.
Took some small trades on dhfl and yes bank, the gains and losses cancelled each other out but they were a sweet reminder to me why I should go that route in the first place.

Recently, I can see some runway emerging towards mid caps and small caps and initiated entry into ION Exchange, Delta Corp and Sonata Software.

Im also keeping an eye on - IOLCP, Suven,Coastal Corp, JK Paper, West Coast Paper, Caplin Point Labs

I am looking to add one stock from the chemicals space and one from pharma, the search is still on and any pointers towards these sectors or overall portfolio would be very welcome.

So im currently adding into small and midcaps as im not mentally strong enough to liquidate largecaps and move headfirst into mid/smallcaps. Instead, I am more comfortable followings a core and satellite portfolio approach where I utilize any major gains from small and midcaps to add onto my core portfolio.

Currently where my portfolio size is at, Im 80% largecaps and 20% small/midcaps. Im happy to take this to 60:40 in a few months time.

On the SIP Front - Ive consolidated all SIP into 1 arbitrage fund, 2 corporate debt funds and PPFAS. This is the only MF strategy I intend to follow for now.


1 Like

Portfolio Update :

As per referencing other threads, Im going to remove the returns but start mentioning the weights accurately. I think that this will lead to much better feedback from the forum.


Entered :

  1. Rites - On my watchlist for some time. Valuepickr posts helped me form my investment thesis and I believe this business is a decent enough proxy for governments Infra push until I find something better.
  2. Delta Corp - Had a small tracking position since long and finally pulled the trigger few trading sessions ago, my sin stock exposure, the business is attractive on valuations and if the long term story of dominating internet gambling pans out(although it has been pretty okayish till now) earnings growth can be non linear.
  3. Ion Exchange - Finally found an entry but didn’t enter fully, would have picked up more, I don’t know if its inexperience or the volatility just kept me on my toes a bit
  4. Sonata Software - Attractive mid sized IT business, play on INR weakening a bit and business maintaining its margins.

Exits :
ITC, Thomas Cook, Adani Ent

Current Allocation :


As I said previously, I’m bringing down my allocation in large caps down to 60%, I think that will happen with last remaining capital allocation.

Need Advise on

  1. Pharma Sector - I am confused between the potential of Crams business vs biosimilars play vs pure play drug mfg
    How do I create a thesis in my mind if I have to understand where will these businesses be in next 3-5-10 years? In comparison to tech companies, to me, Crams business is like TCS (services outsourcing), Biosimilars is like Facebook,(a better trap) and Cadila is like a good ol IBM

Also what makes Syngene better than a Suven what value diffrentiator should I be looking at?

  1. Cyclical Plays - Read a bit about investing in cyclical stocks and recent video by @jitenp at PPFAS also gave a lot of starting points on what to keep in mind. Any sectors that the boarders can advise that I look into actively.

Thanks for reading.

1 Like

PL mention your holding period approximately. Then only returns make sense.
In your holding Delta Corp being in casino business is subject to change in rules and regulation.
Most of your large caps are v good blue Chip companies and can be held for fairly long periods to take advantage of compounding.

The column is actually weights, Ive corrected it in the original post. Thanks for pointing it out.

any specific reasons for exiting ITC

The reason is that the portfolio felt diversified enough as it is and I needed to let go of 1 fmcg play. Also, given multiple revenue streams for ITC vs Marico, Marico and Nestle make easier businesses to analyze and track for the long term given that im holding 15 biz in my folio now. I believe accumulating Nestle and Marico over time would be more rewarding from an earnings growth perspective.

TLDR - Exited everything last week. 100 Cash now and will start accumulating from nifty range of 17PE. Nifty is looking bearish for now.

Wow, what last 2 weeks…

With the Covid scare propagating through the first world countries I was ready to deploy more into my portfolios stocks as of last week.

As the nifty has breached 9500 successfully, the market has moved into bear territory and forced my hand. I have liquidated my total portfolio and am now sitting on cash. I have barely scraped break even on my portfolio during all the exit. So effectively, my last 1.5 yr XIRR is now 0.

I am 100% cash now, liquidated fds also to go into this market head first in the next quarter to two.

Its not to say that I want to be an investor who churns too often but as is the case, this here right now, is an exceptional scenario. Nifty is now around a PE of 20, which no one thought was happening soon and I will look to enter into stocks of my choice as nifty starts hitting 17 odd levels.

Bearish Argument

Death cross formation on 20 day 200 day daily moving average has been achieved.
200 Day moving average broken
Nifty 1400 day (5yr) moving average has been broken

My sense of the whole thing is that although we are mentally ready to deploy, the entry can be waited out. The market structure has been badly broken and news flow from the developed world and q4 results will help the markets go down further.

I have taken this aggressive call as I was sitting on handsome profits from my cryptocurrency portfolio but didn’t exit fully even when the market structure broke. Apart from partial profit booking, which was still handsome. Rest of the portfolio pretty much drowned.

If some of you reading this are also confused as to what to do in times like these. Read The Zurich Axioms, a wonderful book and not too long of a read.

Since everything is on sale pretty much. A lot of stocks are now catching my fancy and selecting a few from a bunch will again become a problem of plenty. I will work to cutdown my watchlist now publish it here so I can ask for feedback on the same.

Happy Hunting!


What a ride last 12 months has been. Truly life altering.

Ill try and document it for the benefit of my future memory.

Needless to say. I started to deploy capital again at a fast pace post writing my last post.

March 18-25

First 30% tranche went in at Nifty 8000.

70% of this tranche went into a long term basket I created. 30% into a midcap/smallcap basket.

Was just looking to add segment leaders and go from there.

 Long Term Basket

 Medium Term Basket

When there is a fire sale on, I don’t waste time position sizing. I went for equal weightage in my top 20 midcap ideas. I did not add any meaningful pharma as the research was still not complete.

10% diverted towards GOLD ETF

Portfolio March End
10% Gold, 30% Equity, 60% Cash

The markets rebounded after Fed intervention, second wave fears were making everyone jittery but US staged a very smart recovery.

Technically, Nifty breaking 8800 on the upside was end of the downtrend for me. It broke through 9000 and retested 8800. 8800 held up well. I entered next 40% tranche. Diverting half towards each portfolio.

Portfolio April End
10% Gold, 70% Equity, 20% Cash


Nifty was rangebound but my Equity holdings returned roughly 80% in 1 month. I booked 25%. Placed that profit into Bitcoin, which was now available at precovid prices again.

Nifty tested 8800 again and rebounded. I deployed the remaining cash position.
For the first time ever, I was 100% deployed with 0% cash.
May Portfolio
approx 7%Gold, 80% Equity, 13% Bitcoin

Markets continue the runup- I do nothing.

I book a big tranche of profit. Thinking was to start consolidating portfolio into my winners and having some cash on the side. The markets were so volatile that the Barbell approach seemed like the best option to protect my gains.

By this time, I had also completed my research into some pharma,api players and decided the best approach to play this market was to buy a pharma, api basket and sit tight.

I Exited my largecap basket leaving out Bajaj Fin, Kotak, Sonata and PI. Trimmed down some of my midcap bets which went sideways through may since I wanted to reallocate to pharma. but added into platform plays also.

After a massive rebalance. I reduced my holdings from 30 to 18. Booked 30% into cash out of which I again moved 15% into BTC and remaining into FD and Gilt Fund ( expecting rates to soften further- I closed out this Trade in cpl of months as I didnt think the risk was worth It)

July Portfolio
10% Gold, 50% Equity, 30%BTC, 10%FD

More runup - more profit Booking, By now, my principal investment was out and Im rebalancing my portfolio to reflect the coming bull run in pharma.

I added 7 names to the Pharma Basket at the expense of other midcaps, which have also done well if I look at their prices now.

  1. Neuland Labs
  2. Sequent Scientific
  3. Laurus Labs
  4. IOL CP - I was already holding - Replaced by Jubilant Pharma
  5. Granules
  6. Suven
  7. Solara
    Added part of cashout to Bitcoin again

Portfolio - 10% Gold, 50%, 25% BTC, 15% Cash

Sept - Oct- Nov
No further action apart from small cashouts in existing holdings to add into Neuland primarily and little of other pharma names. Continue building a position into bitcoin. Also start adding ethereum.

Dec - March
BTC and Ethereum holdings exploded.
All my attention these days is focussed on creating a cashout strategy for my crypto portfolio as it is now multiple X of my equity holdings. The numbers I thought my portfolio would reach in 10 years is now on paper but not yet realized in my account.

Current Equity Portfolio -

PIIND 4.41%
SOLARA 3.51%
NAUKRI 1.05%

Overall the year has turned out better than I expected. Lets see which way 2021 blows.


May -

Stocks portfolio remains unchanged. More sideways action gives more hope of longer legs to the bull market top. Though there is evidence of flag channel breakout…

Personally. I would have loved for nifty to consolidate longer but I think all the money printing has put the market on steroids.

I have drawn 2 channels in the chart which I’m currently tracking.
The chart may not play in the channel accurately but a major support level for nifty should be it bouncing off the top of first channel trendline. Until that is broken, I will be bullish on nifty and my portfolio.

Digital Assets
Liquidated close to 30% of portfolio during the market chop as I felt booking profit is something I need to learn after the last cycle. Moved a lot of Btc to Eth as I feel, the new eth narrative and upcoming network upgrades are major bullish signals for the ecosystem. Will eventually move a lot of my altcoin gains to BTC, but that should come a lot later in the system.