How I plan to invest for now

In the last post I had written about the generic guidelines that one could follow in the current market situation. As is well known, every investment situation is different and the plans for investment will need to cater to this. I thought it will be a good idea to share my own investment plan with readers to give them a real life example on how you can make changes to your investments.

To give a brief background of my current situation for those who do not have an idea yet, I am now running a Consultancy practice in Hyderabad for IT and ITES organizations after having had different corporate roles in the Software space for 27 years, the last 15 years of which were as CEO. Right now I am financially independent as I have a passive income stream that meets my expenses. All of my active income is therefore available for investment purposes, indulgences and charitable causes. If you are interested in knowing more about my investment portfolio, search the blog for relevant posts.

Coming back to how I want to change my investments :-

  • Right now a part of my passive income comes from dividends in Stocks and MF. Though I do not anticipate a major downward revision in this amount, it is possible that the MF dividends will get lower for next FY if the markets continue their downward trend.
  • Fortunately, my passive income has the cushion of about 20 – 30 %, so even with a reduced dividend amount I should still be able to get along quite well. Moreover, some LIC policy maturing in December of this year can be used if needed. As such, there is no real risk to my FI status due to the markets tanking.
  • I currently have SIP in 7 funds that I will reduce to 5. Also, I plan to stop the SIP mode of investment as I believe the markets will go through frequent gyrations before resuming the uptrend sometime in 2016. I therefore want to invest more in my MF now, through tactical one time investments based on the market movements.
  • My plan here is to use my FMP maturity amounts to buy equity for now. This will be both for one time purchase of MF as well as bolstering my stock portfolio for making selective purchases.
  • Once the markets resume their upside trend, I will put money into debt funds to balance out the asset allocation.
  • My plan is to buy stocks which are already part of my portfolio through price triggers. I anticipate there will be several buying opportunities between now and December.
  • My equity portfolio remains for the long term, I do not need to touch it for the next 10 years.

If I look at my net worth it has depleted significantly over the last 2 weeks. However, the losses are notional and as I do not have any plans to redeem from either my stock portfolio or my MF portfolio in the short or medium term, I am quite hopeful of the net worth improving tangibly over the next few years. My expectation is that the Indian economy will do well over a period of time and earning of companies will improve, thereby pushing up stock prices and market indices.

The current market situation is therefore a definite opportunity, though one with fairly painful side effects !!

I am happy to see many people have got started out here. Also, become a part of my Facebook group Market Musings where a lot more is discussed on the general market situation and also individual stocks.

Interested readers may pls follow my blog on email by clicking on the relevant button on the right hand panel. I will shortly be stopping the practice of posting the links in different Facebook groups. Following the blog will ensure you get intimated whenever there is a new post.

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5 thoughts on “How I plan to invest for now

  1. Hi Sir, I tried to find post where you may have mentioned number of stocks you invest into as part of your stock portfolio but couldn’t find. I found the one about mutual fund but not stocks. Have you mentioned this anywhere ? if not , planning to do the same ?

    thanks

    Like

  2. Dear Sir
    1. I think if I want to see your old posts I am having to cluck menu, and then scroll down to all the posts I have read to reach the one I want to study. Is this is the only way or is there a simple way? Ideally if I click menu see a link to all your posts, and if I click the one I want to read it should automatically take me there.
    2. You mentioned about direct equity exposure. Do you mind suggesting few stocks that I can invest for long term, means buy it now and don’t look at it say for 15 yrs…I have most of my investment in equity Mf via SIP so no direct stock exposure, I am 33 at the moment.

    Like

  3. I like the first suggestion by Mr/Mrs Renga here.

    Also, I’d be interested in knowing more about your stock portfolio and the rationale behind selecting particular stocks if possible, Rajshekhar sir

    Like

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