Harshal’s long term folio for wealth creation

Thanks for your question

I am not expecting multi-bagger return from the large cap scrips which i hold, but that being said, these scrips are extremely important part of my portfolio as they offer me the balance that i am looking for, and honestly if you look at the so call large cap companies which i hold, i am of the belief that these companies will compound my money way faster as compared to “mega large cap” companies such as reliance or TCS. So my focus has always being to choose scrips with good market cap but at the same time having huge runway ahead. That is the reason i have put equal allocation to quality mid-caps (compared to large caps) which are capable of providing me multi-bagger returns. By having equal allocation to mid-caps and large-caps, my portfolio will have a good cushion because of large-caps in case market is hit with another tragedy and will equally provide me more than above average returns because of high growth quality mid-caps and small-caps. Ultimately i want my portfolio allocation to be as follows:
40% – large-caps
40% mid-caps
20% small-caps

Having said all that, i never compromise on the quality of the business, management, balance sheet, and the future outlook of the business. And speaking about valuations, i have realised that, good quality businesses always trade at higher valuations, these high valuations are always backed by the future growth of the business, the quality of the management and the market leader position of the company, so i don’t mind investing in scrips with high valuations as long as they are properly justified.

Hope that answers your query

Thanks.