Wealth Creation

[amitrandive]

Sir, based on the above percentage allocated portfolio, can you suggest sectors/stocks to build such a portfolio?

saravkarun

Advise on equities not allowed as per SEBI rule.

However you can select the stocks from CNX500 as per the sectors.Usually in each sector you should select a stock which has consistently outperformed the Sectoral index.

Defensives such as pharma sector,FMCG's should form the base.
Middle segment should include stable sectors such as Engineering,Financials,Some stable IT firms.
Top segment should be IPO's , hot stocks,small caps,etc.

This alone is not enough.We should understand the market cycle and invest accordingly.

Also after investment and allocation we cannot relax.Any portfolio needs regular review and proper churning at regular intervals.

 

[amitrandive]

 

[saravkarun]

saravkarun

Advise on equities not allowed as per SEBI rule.

However you can select the stocks from CNX500 as per the sectors.Usually in each sector you should select a stock which has consistently outperformed the Sectoral index.

Defensives such as pharma sector,FMCG's should form the base.
Middle segment should include stable sectors such as Engineering,Financials,Some stable IT firms.
Top segment should be IPO's , hot stocks,small caps,etc.

This alone is not enough.We should understand the market cycle and invest accordingly.

Also after investment and allocation we cannot relax.Any portfolio needs regular review and proper churning at regular intervals.

Thank you sir for your valuable advice. I will research the CNX500 and will create a portfolio.

 

[amitrandive]

 

[amitrandive]

Number of multi-millionaires growing the fastest in Pune

http://epaperbeta.timesofindia.com/index.aspx?eid=31814&dt=20150401

Pune has emerged as India's fastest growing city with multi-millionaires, according to a New World Wealth report that focuses on performance between 2004 and 2014. The wealth research firm says seven out of the 20 fastest growing cities for the superrich in Asia-Pacific are from India.

Pune saw a 317% growth in the number of multi-millionaires between 2004 and 2014 -the numbers increasing from 60 to 250. A multi-millionaire is an individual with net assets of $10 million or more. Overall, Pune is ranked the third fastest growing city for the super-rich in the Asia-Pacific region after Ho Chi Minh City , which saw a 400% growth (from 40 to 200), and Jakarta, which recorded a 396% increase (from 280 to 1,390) in multimillionaires.

Overall, India has more multi-mil lionaires (14,800) than Russia (11,700), Brazil (10,300), Canada (9,800), France (8,200), Singapore (6,600) and Australia (6,100). The US has the world's highest number of multi-millionaires (183,500) followed by China (26,600), Germany (25,400) and the UK (21,700).

 

[amitrandive]

 

[amitrandive]

Sir, based on the above percentage allocated portfolio, can you suggest sectors/stocks to build such a portfolio?

saravkarun

Advise on equities not allowed as per SEBI rule.

However you can select the stocks from CNX500 as per the sectors.Usually in each sector you should select a stock which has consistently outperformed the Sectoral index.

Defensives such as pharma sector,FMCG's should form the base.
Middle segment should include stable sectors such as Engineering,Financials,Some stable IT firms.
Top segment should be IPO's , hot stocks,small caps,etc.

This alone is not enough.We should understand the market cycle and invest accordingly.

Also after investment and allocation we cannot relax.Any portfolio needs regular review and proper churning at regular intervals.

Thank you sir for your valuable advice. I will research the CNX500 and will create a portfolio.

saravkarun

You can refer this link for portfolio creation as per the sectors.

http://www.traderji.com/technical-a...high-probability-breakouts-9.html#post1058048

 

[Smart_trade]

Ramdeo Agarwal of Motilal Oswal has written a book titled "The Art of Wealth Generation" in which he has given what he looks for in a wealth generating stock..he mst have given few case studies also , the book was published only yesterday..I look forward to buying it ASAP.

Smart_trade

 

[amitrandive]

Ramdeo Agarwal of Motilal Oswal has written a book titled "The Art of Wealth Generation" in which he has given what he looks for in a wealth generating stock..he mst have given few case studies also , the book was published only yesterday..I look forward to buying it ASAP.

Smart_trade

Another fantastic link for Ramdeo Agarwal fans.

http://www.motilaloswal.com/Financial-Services/Research/Thematic/Wealth-Creation-Study/-/45

 

[amitrandive]

Keep Investing as Simple as Possible
http://www.fool.com/investing/genera...-possible.aspx

Excerpts

There are no points awarded for difficulty in investing. The investor with the most complicated model or the most elaborate theory doesn't always win. Indeed, elaborate theories can often be the fastest route to self-delusion. Simple rules work far better than deeper thinking, because most of that deeper thinking is just an exercise in bias confirmation.

Stock Selection
In general, no. I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities. In the old days any well-trained security analyst could do a good professional job of selecting undervalued issues through detailed studies; but in the light of the enormous amount of research now being carried on, I doubt whether in most cases such extensive efforts will generate sufficiently superior selections to justify their cost.

Portfolio Formation
Essentially, a highly simplified one that applies a single criteria or perhaps two criteria to the price to assure that full value is present and that relies for its results on the performance of the portfolio as a whole -- i.e., on the group results -- rather than on the expectations for individual issues.

Other studies show a basic rebalancing of assets -- buy stocks when they're down, sell bonds when they're up, and vice versa -- every year can lead to superior returns if done consistently over time.

Past performance is no guarantee of future return. These strategies may be entirely spurious. The more data you search through, the higher the odds you'll find what you're looking for, whether it's real or cherry-picked. And as Einstein put it, "Not everything that can be counted counts, and not everything that counts can be counted." Brand loyalty, corporate culture, and trustworthy management are all things that can't be captured in a formula, but that we know are characteristics of great investments.

But many of us are emotional investors. We often make completely different decisions based on tiny changes in mood or circumstance.

Simple, consistent, and formulaic investment approaches don't suffer from that bias. Any chance to substitute emotion with unbiased facts is likely a step in the right direction.