I liked the clarity you have at your age, that you have a sound plan of investing in MF(s) for financial goals, EPF/PPF for retirement and Stocks for long term wealth creation.
I would like to know if you have done some performance comparison of your portfolio returns from 2018 to 2023 with Index, and How is the performance? Probably you may have to measure XIRR returns since you are investing regularly in most of the stocks.
If you have generated decent alpha of 4%-5% over the Index, then you are on right track. It may improve once Market rebound from current stagnation.
Your stock selection process will improve over a period based on your learnings, but long term approach seems good.
I do not have temperament for long term investing hence invest in about 20-25 stocks from 3-4 years perspective, and buy undervalued stocks and sell once they look overvalued. The average holding time is less than 3 years, with only few exceptions. For holding cash, I use Parag Parikh and Quantum Liquid Funds and some times Overnight Funds as these are more safe than some other Liquid Funds. This cash is generated after booking profits from selling the stocks, so that I can re-invest in new stock once opportunity is available.
But I have thought about shifting to long term buy and hold approach many times, so I have this curiosity about this approach and the returns it can generate.
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