Seeking advice for Siva's portfolio

I think you already have all the answers and its only matter of time you will move towards lesser basket size and eventually higher allocation to your high conviction ideas. Tracking XIRR regularly is also the way I assess my performance against other options.

I found the below post very useful and hope it also helps you. Even though, it is about PMS funds, we can also use it to our portfolio building.At the end of the day, we need to fight the inherent market volatility and so have to understand risk adjusted returns during bull and bear phases.

Lastly, regarding pharma mutual fund, I have recency bias here. I am invested in DSP Healthcare MF. Why did I chose the fund?

  • I don’t know or have pharma background/understanding but I anticipated sector tailwind is due
  • Indian pharma companies have good export market in US. The person who is tracking closely the US market can be at an advantage here as he needs to understand the business of pharma companies & regulations there. DSP Healthcare invests 25% in US pharma companies. No other pharma fund in India does this. For me, I don’t have exposure to US markets directly. This fund invests in Apple, Google, Amazon etc of pharma for me. Say, if Abbott Laboratories in US gets a vaccine for Covid-19, this fund will jump the trigger as it can be a huge opportunity.
  • The fund manager(Aditya Khemka) seems to have reasonable overseas experience and also good understanding of pharma sector - generic & domestic. I saw this video of him, way after investing in this fund.
  • The fund was having very less expense ratio and low AUM. Recently, they increased the expense ratio.

https://www.valueresearchonline.com/funds/38201/dsp-healthcare-fund-direct-plan/

I invested only in Laurus Labs and Dr. Lal Path Labs in pharma from March. The returns are better in the case of direct investing but if I compare risk adjusted returns, I feel I am lucky.

Having said all these things, I completely agree that each investor’s style and journey is different. Also, it is better to go with your strengths. Happy investing journey!!

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