Hello everyone, I am new at VP forum and forgive me for any mistake if it’s there while I am posting my first ever post on this forum.
I started investment around 2017 (when I had no idea about stocks and so got help from broker who managed it exclusively) when market was at premium valuation so all my buying price is on highest level which you can see very well in portfolio.
Apparently all my investment done in midcap and small cap fund so recovery will be very much delayed that I am aware right now…
I am a long term investor (can wait for 7-10yrs easily).
My portfolio : buy price
Ashok Leyland 6.47%. @ 100
Castrol India 4.69%. @ 140
Firstsource Solutions (fsl) 4.34%. @ 65
Future consumer 2.01% @ 60
Gabriel India. 1.1% @ 160
Grauer and Weil 0.96% @ 57.3
Greaves Cotton 2.33% @ 140
Gujarat pipavav port (gppl) 5.43% @ 81
Idfc first bank 3.04% @ 45.5
Kolte patil 7.59% @ 250
Munjal Auto 5.33% @ 80
Nocil ltd 10.45%. @ 105
Orient paper 1.96% @ 29.5
PTC India Finance 5.41% @ 20
Swaraj engine 16.33% @ 1225
Tata motors 4.19% @ 130
timken India 5.86% @ 874
Trident 4.26% @ 8.5
Virat industries 6.1% @ 182
Zydus wellness 2.1% @ 1275
All your suggestions or criticism are welcome so I can make my portfolio better…
actually these are not my choices in first place. I had portfolio management service type of thing so decision of buying and selling was taken by my broker only…
now I have stopped that service so need help to rebalance my portfolio…
when I tried to get information on my own than I feel apart from few stocks like future consumer, Virat industries, PTC India finance, other stocks are good to have… but my major concern is buying price which is way higher.
As I am not having much experience at al so can’t say much…
thanks for a reply.
Yeah, I have started investing in mutual fund also which was doing good till Corona effect.
Does this companies are good to recover after because I can wait little long rather than booking a loss…
but as you said to trim my investment so which company you suggest to sell out??
I would trim Future Consumer, IDFC First Bank, Kolte Patil, Trident, Virat Industries, Orient Paper, PTC India, Gujarat Pipavav Port, Greaves Cotton, Munjal Auto. You will have to book sufficient amount of losses if you sell all of these companies. But, I think buying quality companies from recovered amount will grow faster than waiting around to recover money in these companies. You can buy good large cap companies or companies with solid fundamentals with long growth runway.
If you have cash and can stabilize portfolio with large caps, you can keep invested in these companies. I thought you had total percentage of equity portfolio invested in these companies. That’s why I suggested you to sell them to get cash which you can invest in large caps.
Gujarat Pipavav has muted growth even in good years. I don’t know how long you can stay invested and wait for it to turn the page around.
I don’t think Real Estate sector will see any growth in short and medium term investments. So, you can’t expect Kolte Patil to recover in any near future.
Trident has same opportunity cost problem. Where you can earn more in better companies than waiting to recover in this company.
What I gather from the information you have given is, this is just the part of your portfolio that was managed by PMS and allocation is also the same rather than these companies having that much exposure in your whole portfolio.
List of companies I mentioned makes 100% of portfolio managed by PMS…I am not putting any new money in this portfolio…
Large caps which I started buying recently makes another portfolio of mine only…
I am having cash (atleast 30-35% total value of all mentioned companies investment value) and I am in mind to invest that in good large blue chip companies for sure…
My reply is a little off-topic, but since you have mentioned that you are new to the markets, I would suggest reading the linked article that covers basics of investing in detail. I hope it will be useful in your investment journey going forward! Thanks!