Thank you for taking the time to post. So what happened initially was, I was not so sure about investing in smaller companies. I preferred waiting for some sort of correction in largecaps and started buying at low levels, it may be because of the increased volatility and security of bluechip companies. But I started to realize the drawbacks of my strategy and how it wasn’t a good method of investing in the longterm. Since the start of this financial year, I started listing some sectors and the major companies in that sector, like renewable energy, EVs, Diagnostic companies, Chemicals, etc. Even though I was convinced that the prospects of these companies are good I could not muster the courage to invest in them in one go, that’s why I decided to allocate first a small portion of my portfolio and take a decision to increase my allocation with every quarterly results. This helped me reap the benefits of stability in the bluechip stocks and I could buy quality midcap and smallcap stocks during the correction phase. As a result my whole portfolio could withstand the last years consolidation phase and even stay profitable the whole time.
Going forward all my new investments are either to buy quality mid cap and small cap stocks and hold very few largecaps which will give more returns as compared to the whole index. I keep adding 1-2 stocks of my existing portfolio if there is stock specific correction. I am perfectly okay having 20 stocks in my portfolio but I will take the midcap and smallcap allocation to almost 60% of my whole portfolio. Having 20 stocks just helps me keep my mind at peace incase of stock specific crash.
I hope I answered your post.
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