Hi guys,
I have recently started investing directly in equity and majority of the portfolio is built off the conviction from Valuepickr discussions. I have put up my portfolio for your review and suggestions:
| CERA | 21% |
| HDFC Bank | 21% |
| KSCL | 20% |
| Unichem | 15% |
| Gruh | 11% |
| GIC Housing | 6% |
| Monsanto | 4% |
| Symphony | 3% |
Being a newbie with a rather smallish portfolio, I havent really conquered my impatience just as yet. I am just starting off with investment intuition, and wanted to know from the seniors on their investing styles at the start of the building their portfolios.
* Buy and Hold vs. Rotation: Currently, as the portfolio size is small, the returns on the time/effort for even passive strategy (buy and hold, and then trying to time the buy) is quite small. At the same time, an active management (rotation between 6-7 stocks) will probably mean very high transaction costs.
* Rotation between stocks: how do we time the rotations between the selected list of stocks? Do folks here rely on technical signals to sell and buy a stock? The reasoning here is that not all stocks will rise/fall at the same time, is there a way to time the gains within an already concentrated stocklist?
* When to sell?: What are the typical thresholds that seniors rely on for making these decisions? What are the typical costs (or thresholds) associated with selling a stock and then rebuying it at a lower price?
* Target returns: For an SIP-driven (here SIP means monthly investments on salary, not pure SIP) portfolio, what are the typical returns one should expect from an equity portfolio? Is 10% excess return over the market a good target?
* Capital allocation for SIP-driven strategy: How should one allocate the monthly capital that one gets from a salary. Do we distribute it across stocks equally, or buy a few opportunistically based on target weights, or keep cash in hand for relatively larger bulk buys?