Some crystal ball gazing for 2020

Given the lackadaisical performance of our markets in 2019, a lot of people who are connected with it directly or indirectly are hoping for 2020 to be a much better year. Let me try and do some crystal ball gazing to speculate how the year might pan out. 

To begin with, it is important to understand that the global situation is really facing a lot of headwinds in economic terms and the cutrrent events unfolding are unlikely to change this any time soon. A lot of the global growth depends on countries such as US, China, Japan etc and the current context in this is not reassuring at all. In US, the impending impeachment of Trump is likely to cause a lot of friction and instability, the US-China trade talks are at best a patchwork, demand situation in any of these countries is also a cause for worry. The US stock markets however, are doing quite well compared to many others and this has caused money to flow into them. This really is a double whammy – countries such as India suffer from the negative situation in the US in terms of sentiment and also get impacted adversely as there is less FII money available. On top of these issues such as buying oil from Iran, the situation in Kashmir has caused a certain amount of cooling off between India and US which affects exports considerably.

For India though, the domestic situation is a far greater concern as compared to the international one. The implicit assumption last year was that a victory of the BJP led NDA will act as a tonic for the beleaguered markets and things would go well from there on. In practice the aggressive posturing by the BJP on a variety of issues, their inability to form the government in Maharashtra, loss in Jharkhand, continuing slide of the economy in terms of the IIP and GDP numbers have managed to create an uncertain situation and as we all know the markets do not like uncertainty. BJP presented 2 budgets in 2019 and both lacked direction and were completely unimaginative as far as growth was concerned. Yes, the current Finance minister did try and correct this by taking some measures when the market slide was unabated, and this has helped in recovery of the headline indices. In my opinion though this was too little and definitely too late.

Some of you may ask as to whether I am being unduly negative when the markets are at their life time highs. The point is the NIFTY and Sensex numbers are due to money being pumped into a few companies. The broader markets have remained pretty much where they were earlier and stocks like Yes Bank been beaten down so badly on price is an indication of lack of investor confidence. I see two real issues connected to each other in a very direct way. Firstly consumer confidence is at the lowest for a long time now and secondly this has resulted in consumption not picking up. A direct result is the earning growth of companies is muted and companies are reluctant to invest, even when they now have some unexpected extra money due to the cortprate tax cuts. Finally for all those who are saying that our indices should cause a cheer or two, look at the following data point. In 12 years from 2008 to 2020 January, NIFTY has gone from 6000 to 12000 levels. That is an annual return of 6 % and your money in a bank FD would have earned as much, definitely a lot more in instruments such as PPF.

All right, enough of the doom and gloom then, let us look forward. In terms of politics, though the BJP is well entrenched in the centre, they are losing the states and an united opposition poses a significant challenge in these elections. This may well cause the BJP to adopt more populist measures at the cost of fiscal prudence and this will have long term negative effects for the economy. In the short run though measures such as income tax cuts, reversal or reduction of LTCG taxes, lowered petrol prices will definitely help boost consumer confidence and hopefully also help in kickstarting the consumption demand. I see this happening in the second quarter of 2020 and the markets may well anticipate this and start rising in the early part of 2020 post the budget. If the cycle of events play out as expected and corporate earning growth is a reality finally, the market growth will also be sustained. I think this is possible if things are handled well from here on.

So finally for the predictions then – I think Nifty will be in the range of 12000 to 12500 till the budget and may well scale 13000 by June or so. From then the paths can be both choppy and uncertain – there is a possibility of reaching 14000 by December if all goes well but a more likely figure will be 13600 or so. However, if things go wrong it is quite easy to see Nifty back in the sub 13000 range, may be even lower than 12500. I think the first scenario will hold and am hoping for it too ūüôā

What will be the impact on the investments and what should be the choices in 2020? Let me try and do a post on this tomorrow.

Has your MF investment worked out?

To begin with, my apologies to all my readers, many of who have enquired of me as to why I was not writing in my blog, for my long absence from the blog. It was caused by a random occurrence of several factors – a couple of trips abroad, some mentoring work for B school students, my son’s starting of his professional career, my parents visiting Hyderabad etc. Let us see whether I am able to keep up this new resolution !!

Let me take up something which a lot of people have been asking me for much of this year. Has it been beneficial to invest in Equity MF over the years? Many people had started the MF investments through SIP, being lured or convinced by agents or advisors, thinking that an annualized return of 12-15 % on an average was a given. Yes, it was understood that equity as an asset class will be having the ups and downs, but over the long run it was kind of given to undestand your money will double every 6 years. A lot of financial planning for most people have been based on this premise over the last 10 years and it is a good time to take stock of how things have panned out.

As I have been dealing with equity for nearly a quarter of a century now, I probably have a lot of knowledge and experience to speak somewhat definiteively of this. In January 2008, Nifty scaled 6000 for the first time before the now famous crash of that year. Even if we assume that Nifty will reach 12000 in January 2020 ( a fairly tall order some may say, though I am hopeful), it would have only doubled in 12 years. This is a return of only 6 % as opposed to the 12 % that most investors have been sold into. Even if you looked at a supposedly stodgy product such as PPF, you would have earned nearly 8 %. More importantly, if you had planned some goal for 15 years in 2010, you are now probably faced with the prospect of being way short of your goal. This is fine if you have 20 plus years of your career left but for people in their 40’s and 50’s this is a fairly tough situation. People who are interested in financial independence and looking at doing different things will now need to re-evaluate their options.

Does this mean that the MF investment has been wrong? Not at all – equity as an asset class is really the only sensible way to beat inflation in a country like India and MF is a good vehicle for this. Also, though Nifty returns are only 6 % annually, most of us invested in well managed active funds and these returns are somewhat better, though nowhere near the 12-15 % that were touted without any real sense. With the changes in MF categories by SEBI, it may also make more sense to stick to funds that invest in the top 150 or 200 companies, unless you have a lot of time on your hands. Finally, do not put all your eggs in one basket, invest in fixed income products and other instruments that can serve as a hedge and provide you stable returns even if unglamorous.

The above is all very fine for people starting now but what of people who have been investing for long and have now not got enough in their kitty for their goals? They will definitely need to work out different strategies – I will take up one case study from a person who wanted some advice from me recently.

Bottom line – MF investments are good for your financial life but you need to do these by being more aware of it as compared to before. The old method of deciding on a SIP amount and letting it be in the auto mode will not work any more.

Building an equity MF portfolio in new FY

Much as I would like to write regularly for the blog, of late I find it difficult to get the time to do so. In the last 3 months I have been rather busy mentoring B school aspirants and very recently went on a vacation to Phuket for a week. The blog remains close to my heart though and in this new FY I will make a renewed attempt to be regular in writing.

I get a lot of reader queries on how to create an ideal long term portfolio of equity MF schemes. There have been several posts written on this and you can search the blog to read those up. However, fund performances and the market dynamics keep changing, so it will make sense to revisit that now. With the new SEBI classification of MF categories it is easier to build a portfolio now. You can have a set of choices in each category and then select one from each to get your 4-5 funds. I have given a choice of a few funds in different categories below and any selection of these will result in creation of a robust, long term portfolio of equity MF. These are all well known funds that have been recommended by several analysts and I have done my own fact finding about these too, so I can suggest them with complete confidence.

Here are the MF scheme suggestions in the different categories :-

  • Large cap funds
    • HDFC Top 100
    • ABSL Front Line Equity
    • ICICI Blue Chip
  • Multi cap funds
    • Franklin India Equity
    • Mirae Asset India Equity
    • Kotak Standard Multi cap
  • Mid cap funds
    • Franklin Prima fund
    • DSP Mid cap fund
  • Small cap funds
    • DSP small cap fund
    • HDFC small cap
  • ELSS funds
    • Axis Long term equity
    • Franklin India Tax shield

If you want you can add an international fund to this mix but that is only required for sophisticated investors. Most of you can simply select funds from the categories here and build a portfolio where you can invest for the long term. Some pointers for this :-

  • If your risk appetite is low and you are disagreeable to market volatility then you may want to stick to only large cap and multi cap category, with a small investment in mid caps. Avoid small cap funds in this case.
  • If you believe in the India growth story and are looking at the long term for your portfolio then have a mix of all categories with sufficient allocation to mid cap and small cap funds.
  • If you are well off and looking at this portfolio to have high growth with tolerable risks then put most money in mid cap and small cap funds. There will be a lot of volatility but over the next 15-20 years you will be able to get good benefits.

What about the likely returns from these fund categories and where should we invest for fixed income then? I will cover these in other posts, hopefully soon !!

How has my first Mutual fund investment performed?

Over the last week, I have been taking a closer look at some investments I have done in my early days as an investor and trying to see how they have worked out. While readers will know by now that I started investing in stocks since 1990, my foray into the Mutual fund world was only in the year 2001. This was after we had shifted to Chennai in 1998 and, despite having 2 young kids with high expenses, happily found that we had quite a bit of invest-able surplus every month, thanks to a strategic job change that had resulted in a pretty decent take home compensation.

When we were approached by a Financial adviser who wanted us to invest in equity through the vehicle of MF, it seemed a natural progression from my investments in stocks. To start with we wanted to look at a large cap fund and see how things worked out for a while. The choice of Franklin Blue Chip fund was a logical one among the schemes that were in vogue then. We started off with a 10000 Rs investment in February 2001 and over the next 12 months this investment went to 50000 Rs. The NAV of the scheme was around 10 Rs only during those days, courtesy the markets having tanked due to the Harshad Mehta scam and we got 4722 units for our investment. With one thing and another I did not keep up with my investments in this after January 2002 Рour focus shifted to buying an apartment in Chennai, we started a stock portfolio in a meaningful way and my professional life got busy. When we did start our MF investments again in 2008, the MF universe had changed quite a bit and there were many schemes on offer. 

So the long and the short of the story is that I have had the investment in FT Blue chip fund for nearly 17 years now. This makes it an ideal investment candidate to check if equity investments in the long run have really worked. We had invested in the dividend option  and the fund has declared a dividend unfailingly every year since 2002. Some basic data on the fund performance is as follows :-

  • Dividends over the year have added up to 2.85 lacs
  • Current value of my units in this scheme is 1.83 lacs
  • As I said earlier, our investment between Feb 2001 and Jan 2002 was 50000 Rs
  • From the FT site, I can see that this translates to an XIRR of 30 % plus.

Without getting into any discussions of relative performance etc, one can see quite easily from the above that the investment has done rather well. Though future projections are fraught with risks, this should encourage all investors to invest in MF schemes for the long term. The expectations should not center around the XIRR here, but even with an 18 % XIRR your investment will grow 16 fold in 16 years, which is remarkable.

Was a dividend option a good idea? Yes, for us it was as it enabled us to spend on some things during the years when money supply was tight, despite my high income, due to our buying the Chennai apartment and trying to pay it off quickly. I also have a feeling that taking some money off the scheme has worked well in the bad years of the market. This has to be corroborated by data and I will do a separate post on that soon.

The bottom line though is this – investment in MF is a very viable option in the Indian markets for the long term. If you have time on your side, start this now. In fact, any investor with more than 10 years till he needs the money must do so.

Build a long term portfolio through focus on sectors

In some of my blog posts I have covered the topic of building a portfolio for a new investor. While there are many ways to do this, building a long term robust portfolio is best done through sectoral focus. This has several advantages and one should keep these in mind while building the portfolio. Firstly, investing in a few important sectors will ensure that your portfolio is a representative one and reflects the indices in some manner. Secondly, a combination of such stocks will act as a natural hedge against any serious downfall in the markets. Thirdly, it will be easy to review and change such a portfolio as you are having both the industry and company dimension to look at.

Which will be the sectors to put in money now? Given the economy and demography of India, anything which is related to the domestic infrastructure building or domestic consumption will be great areas to bet on. Remember, you are building a portfolio for the long run, it does not matter if it tanks by 20 % in the present year. The important thing is to identify good companies in the sector – these must have good market presence and asset base to ensure longevity in a positive manner. Avoid flashy companies where results go all over the place and which are in high debt.

For people starting off here is a set of sectors and some suggested companies in them :-

  • Financial sector (Banks)
    • Large private bank – choose between HDFC Bank / ICICI / Kotak / IndusInd
    • Large PSU bank – SBI / PNB
    • Smaller private banks – Yes Bank / Federal Bank / RBL
  • Housing Finance companies
    • LIC Housing Finance / HDFC
    • Indiabulls Housing Finance
  • Cement / Paint companies
    • ACC / Ultratech¬†
    • Heidelberg / Ambuja
    • Kansai Nerolac / Asian Paints / Berger Paints
  • Auto companies
    • TVS Motors / HeroMotocorp
    • Maruti / M & M
  • Pharma companies
    • Cipla / Lupin / DRL
    • Shilpa Medicare
    • Ajanta / Granules / Aurobindo
  • FMCG
    • Marico / Dabur
    • HUL / ITC
  • Engineering
    • L & T
    • BHEL / BEML
  • IT Services
    • Infosys / TCS
    • Hexaware / KPIT / Mindtree

Avoid Telecom companies and also any other businesses which are cyclical in nature like Sugar and other agro based ones.

Once you have the above framework, all you need to do is to get a low cost Demat account where you can buy stocks without paying high brokerage or annual charges. Based on how much money you have, decide on a quarterly allocation of funds and start buying based on the right time. Remember, you always buy in small lots and check the DMA figures to make sure there is some basic logic to the price. Also, do not go overboard on the number of stocks. You should buy from each of the above but not more than 2/3 from each of them.

Let me give a typical portfolio created out of this strategy :-

  • HDFC Bank
  • SBI
  • Federal Bank
  • Indiabulls Housing Finance
  • Kansai Nerolac
  • Ultratech Cement
  • TVS Motors
  • Maruti
  • Cipla
  • Shipa Medicare
  • Marico
  • ITC
  • L & T
  • BEML
  • Infosys
  • Mindtree

These 16 stocks should be a good one to go with, though you can definitely change some as per your personal preferences. For example, you can replace Maruti by M & M and Mindtree by Hexaware and ITC by HUL and the basic nature of the portfolio will not be altered. Try to have only about 16-20 stocks as with any more you will be spreading the portfolio too thin. In any case, you will review the portfolio once every year and can replace some stocks if you are not happy with their performance.

What should be the investment in this portfolio. It can be anything really but I think you need to invest about 25-50 K in every stock for it to be meaningful. Ideally you should build up this portfolio between now and 2019 end. So we are talking about 4-8 lacs over the next 15 months. If you do not have these resources, you can still build a portfolio with above logic but lesser number of stocks. Put in 1-2 lacs in about 4-8 stocks to start with and you can keep adding more as and when you get money available.

Now to the million Dollar question Рhow will this portfolio perform in the long run? Well, though it is difficult to predict equity performance over any duration, for 10 years it becomes a little easier. At a conservative estimate this portfolio, with a thorough annual review and change, should deliver at least 15 % annual growth. So a 8 lac portfolio will become about 32 lacs in 10 years. You can therefore assume a multiple of 4 to your invested amount. 

This is a great time to build a portfolio by investing in good stocks. If you have a goal in 10 years time of 40 lacs, just build a portfolio of 10 lacs with these stocks and let the markets do the rest. If you are just starting off and can invest only 2 lacs over the next year then do so – maybe in 10 years you can buy a car of your choice.

I hope to see you getting started today so that you reap the benefits in 2019 !!

Building a stock portfolio with expert recommendations

The past few months have been very interesting ones for the Indian markets. Most people will agree that the valuations of a large number of stocks were stretched and unsustainable, so the correction, though brutal, have had the benefits of bringing down the markets to levels where one can look at investing. The mid cap and the small cap space may well witness more pains, even though the large caps seem to have stabilised for now. The quarterly results were largely good, though not spectacular, and with the festive season falling in Q3 it can be expected that the current quarter results will be good. Is this the time to build a portfolio for the future then?

In my opinion, if you do not have a stock portfolio now, it is a good time to start building one. Several stocks are available at attractive prices and present a great opportunity of handsome gains between this Diwali and the next. The important thing is to pick the right stocks so that the portfolio is a high performance one. In this regard it is best to go with professional recommendations, even though you must do your due diligence to ensure you are comfortable with the stock in your portfolio and are broadly aware of the risks that are associated with the stock.

I have been following a lot of recommendations over the last 2 weeks and have come up with this selection from different experts, both from Fund houses and brokerage houses:-

  • Birla Cable
  • Engineers India
  • Escorts
  • Federal Bank
  • Heidelberg Cement
  • Hindustan Oil Exploration¬†
  • Himadri Speciality Chemicals
  • ICICI Bank
  • L & T Finance Holdings¬†
  • NALCO
  • NBCC
  • Petronet LNG
  • Sonata Soft
  • South Indian Bank

You can start investing in these with the basic rules in place – buy in small lots, stagger your purchases, be aware of important events such as state election results, be in cash to take advantage of sudden market changes etc. If you have 5 lacs plus to invest, you can look at the next 4-5 months to put your money in. With a lower amount, look at the next 2-3 months and invest in fewer stocks, not the whole lot.

A disclaimer here will be in order – I have a few of these stocks and am actively considering the option of adding the rest to my secondary portfolio between now and end of the year.

Stock ideas for potential gains this Diwali

Now that the markets seem to have stabilised a little over the last 2 weeks, there is a return of investor interest in terms of making new Diwali investments. The Muharat trading is traditionally supposed to be a good omen for the rest of the year and with so many stocks being battered down in 2018, there are quite a few opportunities in terms of investing in some that will potentially give good returns in next few months.

I have been going over a lot of expert picks and have also gone over a lot of data recently, to come up with a few stock names that make a lot of sense to invest in. These look good from both a technical and a fundamental standpoint and most can give a return of 6 – 10 % in the coming months. With our markets being hostage to liquidity as well as political news in election season, the risks cannot be disregarded altogether, but life has to go on and these picks are more likely to do well than many others.

So without further ado, here are my suggestions of stocks along with their target prices :-

  • Hindalco with a target price of 258
  • HDFC with a target price of 1910
  • Sterlite Tech with a target price of 390
  • Raymond with a target price of 790
  • CEAT Tyres with a target price of 1260
  • Vedanta with a target price of 235
  • IB Real Estate with a target price of 99
  • HDFC Standard Life with a target price of 430
  • Hero Motocorp with a target price of 3200
  • Intense Technologies with a target price of 75

You will need to do a bit of reading and fact finding on these stocks, mainly in terms of their Q2 results before you take the plunge. As always, buy on dips and in small lots when you are building up the portfolio. Look at this portfolio as a means of making some money between this Diwali and the next ( or well before that ). For long term portfolio building, the considerations are very different and you can read my posts on the secondary portfolio I am currently building.

Wishing all my readers and their families a very happy and prosperous Diwali.

Long term performance of MF – personal example #2

I am currently writing a series on real life MF performances on my blog. The first post of the series was about my portfolio created through monthly SIP between April 2008 and March 2010. Around the same time another portfolio was started by my wife and this too ran for the same period. Of course, in her case there was one fund which continued for 3 years but that will not change the analysis much.

So here is the portfolio and the performance of individual MF schemes in it:-

  • ABSL Frontline Equity fund has XIRR of 12.65 % and has been down nearly 4.75 % this year.
  • HDFC Top 100 fund ( earlier HDFC Top 200 ) has XIRR of 12.07 % and has been down nearly 1.21 % this year.
  • ICICI Prudential Value Discovery fund has XIRR of 18.63 % and has been down only 0.37 % this year.
  • DSP Equity fund¬† has XIRR of 11.04 % and has been down nearly 10.76 % this year.
  • IDFC Multi Cap fund ( earlier IDFC Premier Equity ) has XIRR of 16.07 % and is down 8.78 % this year.
  • UTI Dividend Yield fund has XIRR of 11.91 % and is up 1.61 % this year !!
  • Sundaram Small Cap fund has XIRR of 11.08 % and is down 31.54 % this year.
  • The overall XIRR of the portfolio is 14.35 %

Now, at first glance, this appears quite good and most MF investors will be happy to get such a result. However, when we buy into equity we need to look a little deeper to get a clear picture. So here then are some critical points to consider.

  • Starting on a positive note, the portfolio XIRR was about 20 % just 2 months back !!
  • Note that these purchases through SIP were between April 2008 and March 2010 ( March 2011 for one fund ), a great time to invest in MF.
  • The data clearly shows our markets have performed well over 10 years ‚Äď after all Sensex was below 10000 in 2009 and has been to 37000 this year.
  • So even with the best buying price and the best market performance ( discount the last 2 months ) we are looking at a return of less than 18 % over 10 years.
  • Consider also that these are some of the best funds of that time and fairly reputed now too.¬†
  • These are all regular funds so the expenses are higher as compared to Direct.

Summing up, it is good to invest in MF regularly and if you can do it at a time when the markets are in a downward trend then all the better. However, under most conditions you should temper down your expectations of XIRR to 12 %. If you get more than that it is a bonus but any plan with a return expectation which is greater does not make sense.

In my other posts on this series, I will provide more data and insights on this.

Long term performance of MF – personal example #1

Over the years I have been very impressed in seeing how investors have taken to investing in MF schemes. The success assumes more significance if you consider that Indian investors were rather averse to equity and retail participation in our stock markets have been a very poor percentage, in low single digits even today. Marketing of MF as an investment vehicle has a lot to do with the success and there are a few themes that are hammered incessantly, be it in advertisements or by financial planners or MF distributors.

The first of this is the long term performance of MF schemes and the second is the value of regular investments through SIP mode. So much so that most planners work with an XIRR of 12 to 18 %, depending on the type of MF being invested in. This is clearly not a good way to sell as the risks of the equity markets are greatly downplayed. The proof of the pudding is however always in the eating, so it is important to check this against some real data to see how it works. In this post and a few following ones I will aim to do that.

My own investment with MF dates back to 2001 when I did a few investments in Franklin Bluechip fund and ICICI Technology fund. While I will cover those in a future post, let me look at the investments that I did between 2008 and 2010 for an MF portfolio. I started the investments as the stock markets were really down and we wanted to look at some alternative to our normally heavy stock buying. From a market perspective it seemed a great idea and we obviously had time on our side – we did not want to take the money out for the next 10 years and maybe much more than that.

Cut to 2018 October, when I did a review of how the investments had fared in 10 years. I will just give the MF scheme names and XIRR here as the invested amounts are nor really relevant for the purpose of understanding long term performance.

So here is the portfolio and the performance of individual MF schemes in it:-

  • Reliance Value fund ( earlier Reliance Regular Savings Equity ) has XIRR of 12.6 % and has been down nearly 12.6 % this year.
  • L & T Equity fund has XIRR of 13.36 % and has been down nearly 5.5 % this year.
  • HDFC Mid Cap Opportunities fund has XIRR of 20.84 % and has been down nearly 14 % this year.
  • DSP Small Cap fund ( earlier DSP BR Micro Cap)¬† has XIRR of 21.06 % and has been down nearly 26 % this year.
  • The overall XIRR of the portfolio is 15.28 %

Now, at first glance, this appears quite good and most MF investors will be happy to get such a result. However, when we buy into equity we need to look a little deeper to get a clear picture. So here then are some critical points to consider.

  • Starting on a positive note, the portfolio XIRR was about 20 % just 2 months back !!
  • Note that these purchases through SIP were between April 2008 and March 2010, a great time to invest in MF.
  • The data clearly shows our markets have performed well over 10 years – after all Sensex was below 10000 in 2009 and has been to 37000 this year.
  • So even with the best buying price and the best market performance ( discount the last 2 months ) we are looking at a return of less than 18 % over 10 years.
  • Consider also that these are some of the best funds of that time and fairly reputed now too.¬†
  • These are all regular funds so the expenses are higher as compared to Direct.

Summing up, it is good to invest in MF regularly and if you can do it at a time when the markets are in a downward trend then all the better. However, under most conditions you should temper down your expectations of XIRR to 12 %. If you get more than that it is a bonus but any plan with a return expectation which is greater does not make sense.

In my other posts on this series, I will provide more data and insights on this.

My stock purchases – update #3

October has been a really bad month for the markets and what is more it came after a terrible September too. Like many other investors my equity portfolio, be it stocks or MF has taken a very bad hit. As far as my primary portfolio goes I am not too worried about it as that is a long term one and, even at my current stage in life, I can afford not to draw money form it for the next 10 years or so. I do need to review and quite possibly rationalise some holdings but that can wait for better days.

A lot of my current focus has been on my secondary portfolio – the one where I want to invest about 8 lacs and am hoping to see it grow to about 20 lacs in 10 years. In my two previous posts I had given some details about the stocks I am planning to buy and also a snapshot of it. From now on I will do a post every 10 days or so where I will talk mostly about the changes to it and the new purchases. Readers who are interested in following this series should make an effort at reading my 2 earlier updates for better clarity.

So here are some updates to my portfolio :-

  • I have started buying HDFC Bank and Indusind Bank as of yesterday. Though I am a little wary of banking as a sector, these banks should do well over the period that I have in mind.
  • As usual, I buy in small lots so it is 10 stocks per share that I have begun with.
  • Added some more of my earlier purchases this week as follows:-
    • Tata Motors
    • Intense Technologies
    • BEML
    • BHEL
    • Indiabulls Housing Finance
    • Yes Bank
  • As of now my total invested amount is 5.1 lacs and the portfolio is still in deep red.
  • My top holdings are Tata Motors and Intense Technologies. Together they make up 30 % of my portfolio in terms of invested amount.
  • These are also resulting in most of the portfolio losses currently but I am not too concerned about it as I think they will be on the upswing soon.

What do I look to buy with the 3 lacs I will put into my portfolio still? Well, in this market there are many options but I will largely stick to the 20 odd stocks I have bought so far. In these Banks, NBFCs and some of the other large caps can prove beneficial.

Should you be buying in this market when there is every possibility of further cuts over the next few months or so? Yes, definitely – you are getting Yes Bank at 180, Tata Motors at 170 and many others are attractive in terms of prices. Buying stocks now or at least investing in MFs is the best decision you can make for your money.

As for my portfolio, my prediction is it will be in the green by the time 2019 is here.