Percentage change in the “relative” percentage of the entire MCAP (for whatever it’s worth).

Source: view-source:http://www.bajaar.me/blog/hist.html (by @vml)

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Sector 2.JPG1525×793 216 KB

Sector 3.JPG1526×625 155 KB

Sectors v1.xlsx (64.6 KB)

You can’t drive forward looking in the rear view mirror! However, all good drivers are taught to periodically glance back.

@reacher I can understand what you went through, even I learnt my lessons the hard way , so I never invest more than 10% of my asset in F&O on a sunny day. Just to answer you which may not be in context with the question’s title , I will brief my investment strategy.
I follow 10:70:20 as my ratio of F&O,Stocks,Fixed Returns:
Now say a recession like 2008 hits, my portfolio would look like this:
============== F&O === Stocks === FD
Before Recession : 10 ===== 70 ===== 20
At peak Recession: -40 ==== 35 ===== 20

So to safeguard F&O a/c you liquidate Stocks and FD move 20 lakh each to F&O:
F&O: (10-50+40)=0, Stocks: (70-35-20)=15, FD:(20-20)=0
1 Crore becomes 15 Lakh. How scary does it look? Trust me even the best lot would struggle to hold on to their nerves.

Now after market comes back to breakeven like in 2010:
F&O: (10-50+50+40+400)=450, Stocks: (15+15)=30, FD : 0
Now how does it look in 2010. Market Just came back to where it was in 2007, you have simply grown your asset 4.8x when others were getting their account wiped out in the midst of recession.

However I still don’t consider the above ratios very safe. What if it’s a bigger depression than 2008? It’s believed the next depression is going to be bigger than 2008. Besides our assumption of a valuepickr’s stocks’ portfolio to have the same beta as the index is too optimistic to be true. Moreover emotionally it’s not as simple to execute as on papers. If someone is still not scared show him this http://www.macrotrends.net/1319/dow-jones-100-year-historical-chart:
2008 => -50%(It took 2 years to break even)
1932 => -88%(It took 25 years to break even)

I use a LAS account and pledge stable companies’ shares. I keep loan amount to about 10% of the portfolio. This is as suggested by Basant Maheshwari. He says that this way the interest can be serviced by dividends.

Meanwhile till the time this thread was closed MALABAR INDIA FUND took position in Vaibhav Global.

They ave taken 1.46% position on Sept Q..Good sign for company..Now after Nalanda Indian Fund & Mattews India Fund, Malabar is 3rd FUND who took position in Vaibhav global…I hope soon DII will also come after Q3 or year end results

Shareholders more than 1 percent
Name Category Sep-15 Jun-15 Mar-15 Dec-14 Sep-14
GLOBAL DEPOSITORY RECEIPTS (GDRs) Depository Receipts 12.16 – – – –
NALANDA INDIA FUND LIMITED Public Shareholding 12.66 12.69 – – –
MATTHEWS INDIA FUND Public Shareholding 1.54 1.54 1.54 1.54 1.55
MALABAR INDIA FUND LIMITED Public Shareholding 1.46 – – – –
PANYAEK JAINKIJMANEE Public Shareholding 1.3 1.3 1.3 1.3 1.3
SONYMIKES HOLDINGS LIMITED Promoter Group 18.38 – – – –
SHIVRAM GLOBAL PRIVATE LIMITED Promoter Group 16.36 16.39 – – –
BRETT PLASTICS PRIVATE LIMITED Promoter Group 8.79 8.81 – – –
NIRMAL KUMAR BARDIYA Promoter Group 5.52 5.53 5.53 5.53 5.54
RAHIMULLAH Promoter Group 3.81 4.05 4.05 4.1 4.1
DEEPTI AGRAWAL Promoter Group 1.96 1.97 1.97 1.97 1.97

I agree liquidity is less and a quick exit is difficult but that is not what I am looking for. Personally for me both of the above factors do not concern with BQ or MQ and are ignorables. Having said that I do look for liquidity at a portfolio level mainly to take advantage of opportunities that Mr. Market provides. Most of this liquidity come from cash or opportunistic bets (a small part of my portfolio) that I carry. For long term bets with high conviction and a long runway I do not worry about liquidity. Good mgmts. sort liquidity out in due course of time. I hope more people have NSE listing as a criteria for investment, I will gladly accept my improved chances on BSE .

Disclosure: Invested at an average price of 600 it forms more than 10% of my portfolio allocation. No transactions in last 6 months