I need an Advice on constructing a portfolio

I want to build a portfolio wherein I have stocks from 4-5 sectors each.Like for example IT,Banking,FMCG,Pharma.

Will this be a good strategy? Secondly which are the stocks which should and should be an integral part of one's portfolio? (Like for example bluechips L&T,ITC,HUL??)

Should we build a portfolio based on market capitalization like one from Large cap ,one from midcap and other from small cap?

Please advise.

 

For great returns u need mid caps and for stability of portfolio u need large caps. sectoral diversification reduces fail risk. so u construct portfolio as per ur needs.
Large cap like hdfc bank, asian paints, gives satability with decent returns.

 

Better have 50% bluechip stocks in large-cap and mid-cap space where safety of capital and guarentee of reasonable return is there. Blue chips are HDFC Bank, Bharat Electronics, Chola, where money is safe. Balance can be in mid-cap stocks where possibility of growth is there such as DHFL, CAPF, JB Chem, RSWM, Sutlej, Nandan, Kajaria, Cera.

This is very good strategy and must have because of diversification of risk. Allocation can be more for textiles and chem and bal in other sectors.

 

Thanks to all of you for the inputs.

I am considering the following:

Capital Goods:Larsen,BHEL,AIA Engg

FMCG:ITC,Jubiliant foods,Vadilal,

Textiles: Sutlej textiles,

Banking Pack :HDFC Bank / Yes bank / Indusind / Axis

LogisticsPack :VRL Logistics / Snowman logistics,

IT Pack : Tech mahindra,Infosys

Pharma Pack: Alkem Labs / Lupin / Coral Labs

Other: Visaka industries,Va Tech wabag,

Any additions/deletions?

Thanks and Regards

 

@ Nileshs ji

Your stock selection is very good , and it reflects your very good experience in stock market
My stock choice :

1. HDFC BANK
2.YES BANK
3.INDUSIND BANK
4.LARSEN & TUBRO (LT)
5.ITC
6.HINDUSTAN UNI LEVER
7.JUBILIANT FOODS
8.TECH MAHINDRA
9.ESCORTS
10.LUPIN
11.AURO PHARMA
12.VISAKA INDUSTRIES
13.VA TECH WABAG
14.ONGC
15.RELIANCE INDUSTRIES
16.NMDC
17.CONTAINER CORPORATION OF INDIA LTD
18.HERO MOTOCORP

 

You did not recommend any NBFC,if he wish to have two NBFC ,what will be your two top picks in that space or NBFC are avoid.

 

@Dear Kharb ji
i he asked to select 2 NBFC stock picks ....
My choice :
1.Sundaram Fiannce
2.LIC Housing Finance

 

Both are blue chip stocks. Other such stocks are Chola, CAPF and Bajaj Finance.

 

Thanks for all the valuable inputs from everyone.

I have zeroed in with the following:

HUL
Vadilal
Tech Mahindra
Aurobindo Pharma
Larsen and Toubro

Banks yet to choose.Indusind / Yes / HDFC

How does this look?

Regards,
Nilesh

 

your selected portfolio is good but it is very tight portfolio .....
HDFC BANK / YES BANK are good stocks
ALL THE BEST

 

Tight portfolio in the sense?Any additions / deletions required?

 

indus ind and yes bank are good choices. other picks are also good.

 

Stocks picks is good but can it be better is to be asked. Why you want big company like hul and Larsen in portfolio. These are mature stock with less growth potential in future. IMHO young person should look for blue chip mid cap stocks in infra space like Knr construction, sadbhav engineering instead of Larsen. Also in place of hul you can look for logistics co like tci and gati which are blue chip and good potential. I think you have think carefully before finalising portfolio.

 

Thanks for the detailed portfolio analysis.

I am in a dillema about how much much to allocate more and less to which stock. Should we allocate more to large caps and less to mid caps?

My present allocation is as follows;

Vadilal Ind--110 units

Larsen--25 units@1477

Aurobindo--39 units@783

HUL--50 UNITS@887

Tech M--135 units @535

Visaka ind--150units@140

VRL Log--150 units@364

TV18--1000 UNITS@40.90

Is the allocation right or I am allocating less to good stocks and more to less preferred ones.

I dont want too much defensive stocks but there should be stocks which give stability to portfolio.

Secondly how to do SIP in stocks?

Regards,
Nilesh Shirgaonkar

 

@Nilesh S ji
you are not mention your risk apatite and investment period ....
if you are having high risk apatite maintain mid and small cap stocks investment 50-60 % ( 15- 20 % in small cap stocks only)
moderate risk apatite 30 - 40 % ( 5-10 % in small cap stocks only )in mid and small cap combination
Low risk apatite investor below 20 % invest in mid cap stocks

In my view If any person can make good portfolio with some home work .... But it is not sufficient next biggest task is portfolio management and good entry and exit points ... reevaluation of portfolio performance and if needed reconstruct our portfolio ..... main point is maintain above market performance is reflect our skill

ALL THE BEST

 

I want to add a stock from FMCG pack.

I already have HUL. Should I replace it with ITC / Jubilant foods?

Your inputs please.

Nilesh

 

my choice is ITC

 

I have finally made a portfolio of the following:

1.HUL
2.Capital first
3.Larsen
4.Aurobindo
5.TV18
6.TCI
7.Hinduja ventures
8.Vadilal industries
9.Visaka
10.Tech Mahindra
11.Sudarshan chemicals

I still want to invest about 75k.

Any suggestions of missing industry or stock changes?

Regards,
Nilesh

 

Are you confident of investing in large cap stock like HUL and Larsen. Such stocks will not give big returns. You can find better FMCG and Infra stock in small-cap and mid-cap stocks which will give better return than HUL and L&T in next five and 10 years. So why be afraid and invest in large cap stocks. Even small and midcap stocks have good management and track record of delivery.

But if you want safety of capital and no compromise on quality of stock then such large caps stocks are very good for investment.

I am not confident about Visaka Industries because of worry of asbestos ban may affect it in adverse fashion. Also there are competitiors like Everest, HIL and Sahyadhari are also there in market. You have to study the stock carefully and also impact of asbestos ban on it in future if it happens.