Its at CMP, I let weights vary ± 2%. Beyond that, I rebalance.
I have written about this numerous times, it feels like repeating the same answer over and over again. You can search through this thread to understand my thoughts on diversification. My performance (excluding dividends) has been in the top quartile of all MFs over my investing period, despite having such a diversified portfolio. So, I do not see a point to these discussions, as they are not value additive.
Good point. It requires a lot of effort to benchmark each stock against the appropriate index, and I dont see the upside of doing this. Nifty is the actual opportunity cost for me as it is very easily accessible in a low cost manner.
As I have mentioned before, I have three benchmarks: Nifty, Banyan tree PMS, Mittal analytics PMS. I have managed to do better than the first two, but have underperformed the third.
I can share it, but I dont see the rationale for doing that as I keep on rebalancing regulary to take care of weightage. As a result, in a lot of positions my actual invested capital (net of redemptions and dividends) is negative. Also, I keep on booking losses regularly to offset capital gains which again skews the average price.
Today’s allocation at CMP is the only thing that matters, everything else (like what price I bought it at) is just an academic exercise.
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