This is a quick scribble, since I'm in middle of many thoughts and writings and decision...and this is just an investment journal of what I'm thinking and going to do NEXT.
Here's the state of portfolio
- Have been adding few mutual funds to my portfolio, and have now concluded on this activity, except one last mutual fund SIP that needs to be started. My mutual fund allocation currently in my investment portfolio is 9%
- I've finally settled on fixed income securities - it'd be a combination of the following
a. Fixed deposits with healthy, stable banks, with deposits of up to Rs. 1 lac in each bank.
b. Floating rate debt funds. I've currently chosen SBI Magnum FRP - Savings Plus Bond Plan.
The current allocation of these fixed income (almost) securities in my portfolio is 12.94%, and I plan to increase it to about 20%, given the fact that I'm not planning to make any large equity investments in months to come, and there's quite some cash lying idle :)
- Cash and cash equivalent (in the form of liquid funds) currently stands quite high - at about 35%, and I plan to reallocate it into fixed income and equity mutual funds over next few weeks.
- The equities part of my portfolio is now structured into the following categories, mainly influenced by Dead Monk's portfolio. I must admit that most of the stocks were NOT bought originally with this thought, and it's a "re-allocation" I've done since I believe that most of the stocks in my portfolio are not bad businesses, and the fact that I want to remain invested in stocks.
a. High dividend healthy businesses - these are stocks that give a dividend yield of 4-5% or higher, and are healthy businesses (it's OK if there's industry wide slowdown or similar cyclical problems). I moved BHEL and MAZDA into this category, and current allocation here is 6.8%. I need to increase this, but I'll not buy stocks directly for few months now, when I want to focus on studies, and hence, to increase exposure here, I plan to move some cash into dividend plans of mutual funds
b. Stalwarts - this is influenced from Mr. Lynch, and I'll buy stable, large cap businesses that have been beaten down in market for some reason, and it is envisaged that the depression in stock prices is only temporary. Generally, these stocks may also provide good dividend. However, I don't intend to hold them for a very long time, but only expect 40 - 70% return when prices move up again, and this part of portfolio will have quite some churn. Currently, I hold BHARTI AIRTEL and INFOSYS in this category, amounting to 12.2%
c. Others - This includes speculative bets (stocks and derivatives), sidecar investments and all other types of stock investments. I had to move MCX into speculative category after NSEL fiasco, and this bucket now contains Piramal Enterprises apart from MCX, totaling to about 3% of my portfolio. I'll keep a strict upper limit of 10% on the speculative bets at all times, and these days, I'm thinking of trading in NIFTY options based on some highly trusted information sources :)
Hmm, so my portfolio is all right and not too skewed at present, except the actions identified above. So, let's now go back to work and resume studies, until 4 weeks later when I revisit my portfolio :)
