Portfolio Update – 31/Dec/2023
It is an year end today and the time has come for yearly portfolio performance review vis-à-vis my chosen index i.e. Sensex. My core objective of the investment is to beat Sensex in longer period of time. I used to keep records of investment but in a random fashion till 2019. This year I incorporated the investment records of missing year 2017-18 in the overall analysis. It is now 6.5 years of documented investment journey records and I learned many things during portfolio management process.
Since I am managing my retirement corpus by self, my approach towards investment is highly diversified one more tilted towards Peter Lynch style of investing. Due to my own analysis over a period of two decades of various market data I firmly believe in Diversification of asset class across everything. I am invested in more than 100 stocks at various levels/sectors/cap/industry! Having engineering qualification and long tenure managerial experience at all levels has helped me in appreciating the various gamuts of investing and company management view and temperament. My mathematical and statistical know-how is helping me deeply in uncovering various aspects of return/risk at stocks as well as at portfolio level.
The year 2023 has been lot better than year 2022.
i) Advance/Decline Ratio: The Sensex traded for 246 days in 2023. Out of which Sensex ended green in 142 days and red in 104 days which resulted in ADR of 1.37.
My Equity portfolio ADR is 1.54 showing slightly better than Sensex in comparison with PF ending 149 days in green and 97 days in red.
ii) Monthly return analysis: The Sensex started showing strength from the month of April’2023 and given positive return till July’2023. The index dipped in the month of August’2023 by -2.55% and in the month of October’2023 by -2.97%. The best monthly return of Sensex was in the current month of December’2023 with 7.84% followed by Novermber’2023 with 4.87% which actually tilted the yearly Sensex return positively and year 2023 closed with handsome return of 18.74%.
And this behaviour of market indicates that how important it is to be in the market all the time irrespective of rise and fall because you never know when the best phase of market will come. So the best learning is to always remain invested in the market with high quality and timing is futile in long term.
The best monthly return of My Equity portfolio was in the month of November’2023 delivering 6.93% and closed the year with a return of 24.86%.
Brief snapshot of PF performance at the end of year 2023 are as follows:
- My Asset allocation- Equity : Debt = 86% : 14%
- Portfolio Beta = 0.99
- Portfolio Sharpe Ratio = 2.85
- Monthly return analysis:
- All Years return
- Trail returns as on 31/Dec/2023
XIRR returns:
- Top 20 companies of PF
Wishing everyone lots of success and happiness in their investing journey. A very happy and prosperous New Year 2024 to all.
VK
Disclaimer: I am not a SEBI registered advisor. My thoughts are only for academic and self-learning and improvement purposes. I am invested in all the names mentioned above and may exit anytime. Please do your own due diligence, research and homework before investing.
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