I have recently started building up my portfolio. Most of them are mid, small caps as I am invested in large caps through mutual funds.
The markets have gone in corrective mode just after building my portfolio. I am adding in dips, but do not have enough cash left.
Does this portfolio look good for long term and can give me 10% profits annually. I am not an expert, and am looking for your views. Kindly help.
any reason why you are creating multiple Threads on your portfolio. ?
i see 4 threads created.
3 Likes
I have periodically rebalanced my portfolio. This time I rebuilded it from almost scratch. So created a new thread. I am not very sure of the technicalities here. Apologies.
My genuine advice to you will be (and please dont take this the wrong way)
to sell off your portfolio and invest passively into index funds (Nifty 50 and Nifty Next 50 or even Nasdaq ETF if you want some US Tech Exposure)
My reasons for this advice to you are
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In the last four posts about your portfolio (please stick to one post, don’t create so many) you have almost sold off every name and bought it again and re jigged it so many times. This tells me that you don’t research into companies you invest in, you do not have a clear understanding about fees and expenses associated with portfolio turnovers that are eating away your capital, you do not have the patience required to understand a business, position size it accordingly and follow the business’s journey.
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Most of your portfolio is filled with high beta, low quality speculative names with barely any research put into their fundamentals
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what you have built and are doing is a recipe for losing your money and permanent erosion of your capital
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Index funds and SIP was invented for people like you, not everyone has the talent or even the time required to invest into single stocks and build their own portfolio. Just like I am not a doctor and wont perform surgery on myself and will seek professional help in medical situations, you should too invest into low cost index funds and compound your money peacefully without any negatives that are currently facing your portfolio
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If you really want to invest and create your own portfolio, start with passive index funds and then slowly study about investing etc. learn and develop your skills, then slowly dabble into your own portfolio if you really want to do it. I do not see any reasons why just investing via index wouldn’t help you achieve your goal of 10% annual profits.
If you just invest into low cost passive index funds like
- Nifty 50 Index
- Nifty Next 50 Index
- Nasdaq ETF
you will be easily able to achieve 10% returns annually for the next 20 years.
Why take so much risks with highly speculative names and turnover costs in your portfolio when you can achieve your target return with bare minimum effort and few clicks on your mobile and a monthly SIP?
Here a video that explains benefits of index investing.
Disclosure: I do index investing for areas I don’t understand or have time to invest select companies from and also hold a portfolio of about ~12 to 15 companies just cause I understand them and their business.
8 Likes
- You have bunch of good chemical businesses (atul, DMCC, Sudarshan, BASF) and market leaders (CDSL, Astra Poly) they should do well. But your entry price seems to be high (in near term perspective) so accumulate slowly and don’t rush to buy. Take advantage of corrections when they happen.
- You need to be careful with cyclicals (HEG, Papers, Poly Flims), momentum stocks (Adani cos), and PSU (Indian Bank). Plz watch them closely.
Depends upon your expectations,
- if you are long term player then leave the way it is, build your career and let time play its magic on your portfolio.
- If short term player, then do as other momentum players do.
There is no right answer, it all depends on your temperament.