First time investor - Review my portfolio please

Hi experts

I am a beginner in stock market trading. I have made investments in below stocks in smaller amount as a starting point . I want to invest for long term. I request experts and every one to review my portfolio and guide me . thanks.

1. Ashok Leyland - 19 shares @ 108.
2.Balrampur chini mills - 10 @ 170
3. heidelberg cement - 15 @ 125.45
4. MBL INFRA STRUCTURE -@ 24.37 80 shares
5. ITC - 10 @ 282

 

how did you land up with MBL infra?

 

i guess its a wrong choice?

 

ya sort of casino gamble. either u will lose most of your money or if the company is able to revive then will get good gains ( more chances of former). better to stick with companies with better risk to reward ratio.

 

Hi bobgalee,

I would suggest stick to quality mid caps and large caps...Time in market is more important that timing the market. Your portfolio should not have more than 15 stocks. Diversify by picking quality companies in Private Banks, NBFCs, HFCs, Infra, Retail...most quality companies in these sectors have gone up in recent times....If yo are willing to take some risk..invest in quality pharma and IT companies as these sectors are down....

Continue to invest in SIP mode by buying small quantities every month...Keep a long term horizon...dont look for short term gains...

If you want to invest in small caps better to go with a Mutual fund in small caps...as fund managers are in a better position than us retail investors to identify multibaggers....they have the resources and the money to do that...

Some companies I suggest:
1) Piramal Enterprises
2) IndiaBulls Housing
3) DHFL
4) Yes Bank
5) IDFC Bank
6) REC
7) Lupin
8) L&T Finance
9) ITC
10) Garware Wall Ropes

 

I can notice that you have kept a well diversified portfolio. All the stocks in your portfolio are from different sector. That's good!

However, the fundamentals of most of the stocks are not strong. As you are new to investing, I will recommed you to buy stocks of strong large and mid caps. ITC is a good selection in your portfolio and AL can also give good returns. But, MBL and heidelberg, I'm not sure of. It's good that you are planning to invest for long term. Nevertheless, you also do not want to lose your years of time by remaining invested in low rewarding stocks.

My suggestion, go for some mid and large caps stocks in beginning and rebalance your portfolio. Invest in small cap stocks once you have enough knowledge and experience.

Hope this is helpful. Further, you can also find this post about fundamental analysis useful: How to do Fundamental Analysis on Stocks? Happy Investing!