This is my first post in the forum, so please pardon me for if I have put this in the wrong category or if it is already being discussed do route me on the right path, as I’m still exploring this platform.
I’m 31 and I have been Investing in stocks and mutual funds for almost 4-5 years. Recently, based on the too much overlap of funds that I had purchased being a novice years back then, redeemed few of the funds for the same and also due to non performance.
I’m now thinking to invest via Systematic Equity Plan in various stocks and looking for stocks who could be great candidate to be a part of the portfolio down the line. One of the stock I have identified is ITC, as it has been in index since inception and its great business and the moat it commands for its supply chain and backward Integration with top class management, however I’m still skeptical on what else to add , after researching to build Conviction with others per se. I would like you to throw open some of the stocks where if anyone is doing SIP in other stocks. My horizon is not short at all, I’m looking for atleast 9-10 years where dividend income is enough to manage my expenses apart from my regular salary. Hence asset allocation become one of the very important criteria and hence I’m focusing across sector max 5-10 stocks in my portfolio for this duration.
If anyone is already been doing this for a while say 4-5 years I would like to listen to your views, pros and cons. I’m also working on setting up my passive stream which will take say atleast 5-7 years to get traction too. I’m okay with it. The goal is to make my active income passive and passive more active and then eventually do what I am passionate about with ample time in hand. I may be too optimistic but I like it to be that way.
Pardon my ignorance and also typos for I’m writing it on my mobile. But I really would like to know about experience, ideas and suggestions to eventually build enough Conviction, which cannot be borrowed.
I think we should have two portfolio’s. If you see @mylu portfolio is risky and heavily concentrated. At times one success could pay of the rest but what if our experimentation fails !! What I would recommend is a concentrated portfolio of 10 consistent compounders for your coffee can. Next is a portfolio where you can try your risky bets. Allocation can be according to your risk appetite and cash inflow. One will give you learning while the coffee can will give you a decent return with less downside.
Do take a look at my coffee can I’m still building my midcap/smallcap risky portfolio
Motherson Sumi (Goal: Beaten down sector, transition phase, demerger of business and eventually listing in 2022.
Great fundamentals - Growth Stock, play out the trend when positive, near to consolidation zone on technicals)
CDSL ( Goal: May be for future dependents, Very low expenses, fixed charges, new products, IPO fees, Increase in Demat accounts eventually with largest account through discount brokers, May be a much better books than BSE and duopoly, and first mover advantage and listing synergies.)
Bandhan Bank ( Schedule Commercial bank - Fifth largest and currently beaten down. Hovering near support levels since quite a while)
Ujjivan Finance ( Beaten down Financial sector, want to ride the trend, asset quality is stable)
Contra bets for short term gain, favorable risk reward, still risky though:
Vi (Just hanging in there, consolidating near 7-9, I hope it stay there for next few qaurters; with ARPU set to increase, fund raising would be closely watched, AGR relaxation, Integration and capex complete, it’s time to actually reap the benefits of merger and all the hard work done and sustaining the turbulent times, Corona proved to be a blessing in disguise for telecom, policy shift, relief measures by Govt. Could be few triggers in days to come. Look to hold for short while until I see there is further downturn visible::: Yes Subscribers loss is a concern, however Postpaid subscribers are still sticking to the them, I myself had been a Vodafone subscriber for almost 10 years now and there services has started improving for the past 6-8 months. )
South India Bank (yes, the NPAs are exhorbitant but slowly they are transforming themselves to Technology savvy, with the former ICICI executive joining as MD ( I guess) it would be first non public sector person running the bank, so I’m hopeful if it could be a turn around story. Will watch out for asset quality, CASA, NIM, in next 7-8 quarters and eventually sell out if average. May be a acquisition candidate down the line if they improve their books. Hovering around support levels at technical in monthly time-frame)
Upcoming Stocks for SIP that I’m evaluating:
Probably will SIP in these two as well initially and then increase eventually.
I gave daily SIP ib few stocks and weekly in few and so on and so forth.
I know I have some critical risky stocks, but again the capital allocation is less in those contra stocks.