Portfolio suggestions

Kindly review my portfolio: Pidilite 100 @345, Kaveri seeds 100@715, AIA Engineering 50@1015, Repco Home 100@625, Dewan home 100@460, Kitex garment 200@ 650, Nandan denim 500@76, Indo Count 100@425, Gati 200@150, Repro india 100@438, Granules 1000@85, Suven life 250@305, Astec life 250@178, Atul Auto 300@500, NCC 500@63. Time horizon 5 years. Please review my portfolio. @Meenakshi mam, @ Vidhi Mam, @ all market experts. Thanks.

 

You do have some high quality mid cap companies in your portfolio. I would refrain from commenting on individual stocks or any buy/sell about any particular stock but overall your portfolio does constitute of some high beta names. One thing I would like to ask you is that in the event of a downturn or stock meltdown would you be willing to hold on to your positions and maybe buy some more in some of the quality midcap names.

The thing is that these mid cap companies have a high beta. In simple terms if the market is moving upwards they would grow faster than the market indices but the same holds for vice versa when the market falls these might fall quite significantly. This fall shouldn't be taken as a conclusion that the underlying companies are bad or of poor quality but it is the general nature of mid caps that they have higher volatility. A wise investor would generally take advantage of the fall in the stock market prices and purchase more of the quality scripts that he/she has a firm conviction on. Since your time horizon is 5 years one can't predict how the markets would be at that moment of time.

If you are looking in for some stability in your portfolio, I would suggest you to add some quality large caps to your portfolio.This might just balance your portfolio as a whole but that is totally up to you. Some of us do have a higher risk taking ability than the others.

Happy Investing

 

Thanks for your valuable suggedtion. I request to Meenakshi Mam to please review my portfolio. Thanks

 

@Meenakshi Razdan

Is it advisable to average down a stock in a falling market? The exact bottom and top can't be predicted, so one should not average down, just booking loss is advisable. In a case, where the correction is not related to the stock fundamental, there may be a case of averaging can happen. I believe, averaging down is not a solution of a wrong stock selection. Why on earth one have to buy a stock of PE ratio 50?? I know the example of Page Ind or Sun Pharma, but these are exceptions. I have made a mistake in Pidilite.

This is my personal view only.

Regards.

 

@Meenakshi. Actually im investing in MF through SIP. Part of the investment transferred in these stock for fast growth. In case of market correction, i do transfer some more amount in these stocks. MFs usually less volatile, hence, hence transfer amount is only some petty loss. Please suggest?

 

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