Following is the state of my current portfolio. In the recent market sell-off, some of my best performers have suddenly turned negative. Not that I’m worried as I’m focused on the long term and do not plan to sell-off any of my equity investments. However, the portfolio is highly skewed. Would appreciate if the valued forum members can provide their input on how to rebalance this portfolio.
PIDILITE 10% ASIAN PAINTS 10% NESTLE 9% LUPIN 6% SUPREME INDUSTRIES 5% KAJARIA 5% HAVELLS 5% INDIGO 4% BRITANNIA 4% S H KELKAR 4% SUZLON 4% HDFC 4% KOTAK MAHINDRA BANK 4% MT EDUCARE 4% GRUH FINANCE 3% TTK PRESTIGE 2% JUBILANT FOODWORKS 2% ITC 2% TCS 2% SYNGENE 2% AMARA RAJA 1%
How would you rate this portfolio from 1 (worst) to 10 (best)? As I said, my outlook is for the long term (>5 years atleast).
Would like to increase exposure to IT (Buy Infy) and Auto (Add to Amara Raja or Buy Atul Auto).
Given that I have three holdings in the BFSI sector, which would be the best to increase in amount? Or should I increase my holdings in the BFSI sector proportionally?
Should I prune my portfolio in terms of the number of shares?
Thanks in advance for your comments and suggestions.
I am not competent enough to give a score. However, I believe buying something good is important but at what price is also important. Hope, you have taken care of that.Also, though many are proven stocks, some of the stocks have not been performing well in terms of business performance or have poor history. Hope, you have a strong rationale to hold them
Thanks for your reply. Not sure which companies (business performance/poor history) you are referring to.
While most of the picks are for the long-term, Suzlon and Indigo are purely speculative/short-term plays. While I’m hoping for a turn-around in Suzlon in the near term (2-3 years), Indigo was a pure play on the oil prices. Not sure if this is the right way to select stocks, but I feel as long as I can segregate my long-term and short-term bets, I can afford to take this risk.
Interesting names you have listed to be removed from the portfolio. Could you let us know in 1-2 lines the rationale behind the same? Anything fundamentally wrong in these Cos or would they underperform relative to the other Cos in the portfolio?
I would have removed TCS,ITC, HDFC , Jubliant ,Suzlon and some of the speculative bets. Some of the very large caps will make your returns muted.You may think of adding Induind Bank and increasing stake in Kotak Bank.
