ICICI Securities can be trusted to thing or two about stocks and so their Model Stock Portfolio was greatly anticipated by investors. The Model Stock Portfolio does not disappoint at all and it is evident that it has been designed with a great deal of thought.
Advantages of the Model Stock Portfolio:
The biggest advantage of the Model Stock Portfolio is that it enables effective diversification of risk and reward through a basket of stocks. The Model Stock Portfolio helps to build stable wealth over a period of time as individual stocks have different life cycle processes. The stocks represent sound businesses of quality companies.
The Model Stock Portfolio requires the investor to keep a couple of things in mind:
First, the investor’s risk profile. Is the investor an “aggressive” investor or a “conservative” investor? This will decide whether the investor’s weightage should be towards relatively-safe large-cap stocks or relatively-riskier mid-caps.
Second, the model stock portfolio is intended for investors who have a reasonable long-time frame of 3 – 5 years. This is required because the underlying businesses have to mature for the stocks to deliver heavy returns.
Third, the investor must decide whether he wants to invest in a lump sum or go the SIP route as advised by all the master investors.
| Name of the company | Model Portfolio | ||
| Largecap | Midcap | Diversified | |
| Largecap Stocks | |||
| Auto | 7 | – | 4.9 |
| Maruti Suzuki | 3 | – | 2.1 |
| Tata Motors | 4 | – | 2.8 |
| Bank | 24 | – | 16.8 |
| HDFC | 8 | – | 5.6 |
| HDFC Bank | 8 | – | 5.6 |
| SBI | 8 | – | 5.6 |
| Capital Goods | 8 | – | 5.6 |
| L & T | 8 | 5.6 | |
| Cement | 3 | – | 2.1 |
| ACC | 3 | – | 2.1 |
| FMCG | 9 | – | 6.3 |
| Asian Paints | 3 | – | 2.1 |
| ITC | 6 | – | 4.2 |
| Metals | 12 | – | 8.4 |
| Coal India | 6 | – | 4.2 |
| Hindalco | 3 | – | 2.1 |
| Tata Steel | 3 | – | 2.1 |
| Oil and Gas | 13 | – | 9.1 |
| Gail India | 3 | – | 2.1 |
| ONGC | 4 | – | 2.8 |
| Reliance | 6 | – | 4.2 |
| Pharma | 4 | – | 2.8 |
| Lupin | 4 | – | 2.8 |
| Power | 3 | – | 2.1 |
| NTPC | 3 | – | 2.1 |
| IT | 14 | – | 9.8 |
| Infosys | 6 | – | 4.2 |
| TCS | 8 | – | 5.6 |
| Telecom | 3 | – | 2.1 |
| Bharti Airtel | 3 | – | 2.1 |
| Midcap Stocks | |||
| Auto | – | 8 | 2.4 |
| Exide Ind. | – | 8 | 2.4 |
| Aviation | – | 6 | 1.8 |
| Jet Airways | – | 6 | 1.8 |
| Bank | – | 20 | 6.0 |
| Federal Bank | – | 8 | 2.4 |
| Oriental Bank of Comm | – | 6 | 1.8 |
| Yes Bank | – | 6 | 1.8 |
| Construction | – | 6 | 1.8 |
| JP Associate | – | 6 | 1.8 |
| FMCG | – | 6 | 1.8 |
| Dabur India | – | 6 | 1.8 |
| Oil and Gas | – | 6 | 1.8 |
| GSPL | – | 6 | 1.8 |
| Pharma | – | 14 | 4.2 |
| Biocon | – | 6 | 1.8 |
| Glenmark | – | 8 | 2.4 |
| Power | – | 8 | 2.4 |
| PTC | – | 8 | 2.4 |
| Realty | – | 6 | 1.8 |
| Oberoi | – | 6 | 1.8 |
| Retail | – | 6 | 1.8 |
| Shoppers Stop | – | 6 | 1.8 |
| IT | – | 6 | 1.8 |
| Mahindra Satyam | – | 6 | 1.8 |
| Media | – | 8 | 2.4 |
| Dish TV | – | 8 | 2.4 |
| Total | 100 | 100 | 100 |
I have gone through all the above and got some good idea.
I HAVE GOT SOME GOOD IDEA.