Basket Approach in non-core holdings - Financials
I will continue with my plan with building basket approach in my non core holdings - financials ( 6-7% in each hdfc, kotak, icici, bajaj finserv) as stated earlier for following reasons
- The role of non - core holdings is to let me allow to hold my concentrated core positions as long as their terminal value or franchise value is intact
- I dont want to be too adventures in non-core holdings. Its job is to provide buffer and allow me to be aggressive in concentrated positions
- Basket approach enables to take large allocation in a diverse financial which has long runway of growth
- They also provide good exposure to amc, insurance and brokerage business from both the sides - agency and product
- In my judgement equal weighted basket of 6-7% in each - hdfc bank, kotak bank, icici bank and bajaj finserv provided similar risk reward over a long term to any other large cap lending or non lending financials with better diversification of revenue streams
- More importantly, it helps to stick with the plan on day like today.
Subscribe To Our Free Newsletter |