Portfolio construction by investing 3000 per month

Dear sir,
Kindly advise me on portfolio creation for monthly 3000 investment. Suggest me some stocks.
My current investment MF sip:10000 Rs.
Risk level :moderate
Time frame :longterm

 

You are putting Rs. 10000 in SIP? Which mutual fund? How long? How much return you have got?

You have any stocks? Which ones?

If return from SIP is good (20% CAGR) it is best to continue. Increase allocation in SIP. If return is not good (<15%) we can look for alternative.

 

you can start your own SIP in MCX & Heritage Foods

 

Franklin India tax shield - 2500
Hdfc Midcap opportunity-2500
Franklin India smaller company - 2500,Franklin high growth -2500.
Sip return is good for the past 3 yrs. Now I am planning to invest direct equity.

 

Thanks for the reply. How many stocks i need to watch

 

In my view, SIP in stock is not a good way to invest directly in stocks. The causes are :
1. Stocks need regular attention and portfolio churning. Buy and forget type of days are gone.
2. The business increase is to be monitored. Think of ITC, Nestle.
3. Today's good may be tomorrows bad.

I am just buying good stocks and setting a goal/target and selling at the target. With that I am buying 'not so good' stocks which are turnaround/would be turnaround stories also.

In all the cases valuation is the key.

Example : Yes Bk and Future Consumers
Sun Ph and Granules
Britannia and SRS Ltd
Pidilite and Waterbase etc

Regards.

 

Ashok Leyland, Infosys, Dcb

 

SIP thru mutual finds will be different from your direct exposure to the markets. Assuming you are aware about this and considering your risk appetite, I'd suggest you should strictly stick to the blue chips or index stocks.

 

In my opinion, constructing a portfolio with 3K per month is bit difficult. Best you can do is, pick one quality Large\Mid cap and keep piling them. Find a good performer with the face value of 10, that way you can give yourself chance for splits, bonus and dividends.

Here's an interesting scenario of how a Rs 10000 investment can turn into Rs 535 crores :

https://getricher.in/2014/investment-of-rs-10000-to-rs-535-crores-in-34-years/

All the best.

 

Thanks members for your help. All the posts are very useful. I am planning to accumulate idfc bank(new bank), ITC.

 

ITC is good as a FMCG. But its original business is Cigarettes (tobacco business) and later on diversified into FMCG. Its tobacco business is not doing so well.

 

The Wipro story has been quoted several times on different mediums (tv channels, websites etc.). But circumstances were different then from now. In those times, Mr. Premji was a majority share holder in wipro. Very small quantity of shares were held by retail investors. Liquidity in wipro shares was very low. You could not get wipro shares easily.

 

Syed - judging a company by the face value of its shares would be foolish. If you go by that means, you can't buy many a blue chips. The WIPRO example isn't the only one, you can find a few more. There's stories of how people have got their children educated and daughter married thanks to their investments in HUL, Colgate, Cipla, etc. But that is all history. The world and India was a very different place in the 20th century. India had "License Raj". People needed to wait for months to buy a scooter, bags of cement! WIPRO wasn't the only company with a ₹100 face value.

People who held those shares since IPO weren't excellent investors. They were just in the right place at the right time and things changed for the better at the turn of the century. Ignorance (information wasn't as quickly dispersed as it is now) and there were regional stock exchanges and ring trading. I stayed at Jetpur (a town 70 kms from Rajkot) and people had physical shares of Infosys! Can you imagine? This was in 2004-05. The kids went mad with the new found wealth.

 

Check the website (https://hindi.moneycontrol.com/mccode/news/article.php?id=405) for
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