PORTFOLIO INVESTING

PORTFOLIO INVESTING

I intend to create two model portfolios where I shall enter my transactions after they have been executed. The results will be there for all to see (warts and all!). (DISCLAIMER!: Under no circumstances I am advocating these stocks or that one should try and duplicate these portfolios. If you do so then it is entirely on your own risk!)

My primary aim in this is to quantify my own results which can then be assessed objectively and quantitatively. I plan to have two types of portfolios, both starting with a notional amount of Rs. 100000 as on January 26, 2000 . We shall add 10000 to each of these portfolios on the 1st of every month.

Aggressive growth portfolio: I am a firm believer in both technical and fundamental analysis. I use fundamental analysis to select the companies which I would like to invest in and technical analysis to time my entry and exit points. This portfolio is likely to be very active with a high percentage of turnover and may not be suitable for people with very little time to spend poring over the stock sections of newspapers or on CNBC India. Exciting perhaps, but also with the ability to stomach some losses, which hopefully should not be large.
Steady growth portfolio: Here again the basic principle in identifying and entering into the stock is the same but the stock is more likely to be held for a longer time and averaging more of a factor.