Amateur Portfolio

Hello

This is First Serious (nervous) Attempt of investing in the share market for the long term (abt 3 years). My life was all about the Bank FD .. but have taken the plunge finally

Below is my portfolio

AXISBANK
BPCL
ICICIBANK
LT
SUNPHARMA
TECHM

a) What do the pros think ? Can I hold on this.. is it a stable portfolio

b) I have little more money to invest , which of the above should I build on further ?

c) What do you think of Kesoram .. The King has it ..

Thank you in advance

Regards
Karbhari

 

Reasonably OK portfolio,hold on.Your portfolio will certainly give respectable market returns in three years.You can add some housing finance company like DHFL or LIC housing at correction or even at current prices and some FMCG like HUL,ASIAN Paints .You can keep watch on prices of these last two stocks and can enter if prices dips below 800 or near .You can also enter RIL if it dips below 900 or near.You can also start investing in some good mid cap mutual fund throgh SIP like DSP microcap,Mirae emerging blue chip,Franklin small cap or Relince small cap fund.You can have two of them.I have all four.You can allocate 30% fund to mid cap mutual fund and invest 70% in large cap directly as invested earlier and add-on some more as advised.HDFC bank is a must stock in any portfolio , at least for a new invester to give stabilty .Keep about 10 to 15% as cash out of funds to be invested in stock market.If it tanks invest this slowly at every down fall.Take out that cash when market is at higher level.In this way you will not panic and will earn out of volitialty.

 

You are highly conservative investor obviously. First step is to develop confidence in stocks as the correct investment compared to FD. For that you have to read One Up on Wall Street by Peter Lynch and Intelligent Investor by Benjamin Graham. You must listen to youtube videos of Warren Buffett, Ramesh Damani, Sanjoy etc.

You must understand stocks are living companies with people and products. If products have demand, company will have profit. If company have big demand, more profits will come.

Once you understand concept of stocks nervousness will go and enthusiasm will come.

You can see video made in 1957 by NYSE which explains concept in nice way:

I suggest you spend three months understanding concept and study various stocks on paper. Read research reports, management interviews, business model. Once you are comfy make paper portfolio and give reasons for picking each stock. What is rationale behind the investment.

If you hurry and buy stocks and have bad experience you will have bitter experience throughtout lifetime and be scared of stocks. If you go on right path with slow and steady pace after full understanding of concept you will make a lot of money from stocks

 

my opinion is that all are stable and large cap stocks. No need to be nervous. since all r large cap stocks , the additional money you can put into some midcaps like repco, or some midcap pvt banks like dcb or city union.

 

@Srouta Mukherjee s advice is good. you can follow that. study yourself taking time and practice on paper for some 2-3 months and then start investing.