Originally Posted by pcpune

It might not be a prudent advise for most---AND I DONT USE OR PREACH THIS TECHNIQUE..MOST OF MY STCOKS DONT BOTHER WHERE THE SEN OR NIFTY IS GOING AND I ALWAYS INVEST FOR LONG TERM DONT WORRY ABOUT DIPS TOO MUCH!!!!

Digvijay- Most FIIs and HNIs, always insure against any sudden fall in the stock market - normally they have nifty PUT options (10 to 25 % of value of their portfolio) at 500-800 points below the current levels.So, if have a folio of 25 lacs, buy 5-10 PUT options NIfties at 4800 or below, it would maybe cost you,1000-5000-10000 kind of Rs,but insure you against ANY sudden fall..

Now, this ratio for HNIs maybe 50 crores of the portfolio (1 to 5 lacs of insurance per month!!!)

I DONT THINK PEOPLE LIKE US SHOULD BE DOING THIS!!!!!!

Originally Posted by ash7979

I don't have 30 years history or my father was a classmate of RJ or something

I just started putting my money in stocks since last 5 years, started as treader (not like intraday, but like buy a stock like that wait for 10-15% gain & then sell that) & then realize that this is not the way to Create wealth, so started reading mainly on intranet & decided to follow this method, so far I am okay with this & I believe this is to create "Wealth" other then just playing with stocks, you feel good playing this game, like intraday or positional trade but wont able to create wealth..I maybe 100% wrong,but this is what I learned in last 5 years & still laerning

Originally Posted by ash7979

I also like HDFC over LICHF due to reason mentioned by PCPune,

• like diversified portfolio of HDFC & HDFC is going to list its Insurance arm on BSE/NSE in next couple of years (or meybe before that), so all HDFC stock holder will get benefit from that.
• HDFC also hold HDFC MFs and its one of the best MF in india, so you get HDFC's MFs as well thru HDFC stock
• HDFC being sen stock less susceptible for "Great fall" in bear face & provide stability to one's LT (10-15 years) portfolio.

So, if you want any company from HFs or wanna play Indian RE story for say next 10 years,so I feel that HDFC is the best pick at least for me...So I have only HDFC from banking & RE in my portfolio (except Andhra Bank, Dividend play)

PCPune, if you have ability to analyze equity on fundamental basis, then why believe on others (MFs or bank ETFs) and I feel SIP is a Product for person who dont know ABC of equity & I dont think, if you have such a knowledge , then you should go for SIP & get a mediocre return on your investment (close to FDs or NCDs of many bluechip companies like TATA motors)...

Many analyst, fund houses and other hedge funds do the SIP and trade the markets through ETF.


I dont know what fund houses do with your money, but I surely not want a mediocre return on my money, so I dont believe in SIP for large sum (as I said earlier SIP is product designed for less financially aware individuals, not like you, me or PCpune
I believe in conviction & concentrated portfolio for "Great return" form my investment, what the fun you get a stock of 5000% return, but that stock have ONLY 1% of your portfolio

Conviction breaks once your investment value reaches below the 30 percent of orginal value. One should understand that stock performs both ways the go up 10 times and also reduces by 10 percent.

Yes, that do but technical change drastically for any company but fundamental wont (except you get traped into Satyam like stock & that is chance we have to take)..So you think Infosys can go back it 10 years low??? If yes then I can believe on you or else please ur effort for finding another Infosys
So, bet on less quality stock & bet hard on them, so I choose mostly small caps (who are either market leader in their own segment or have potential to become market leader due to their growth) with good management (as management of company play major role for company to become "Really Big" & then "Reaward" its shareholders as well).

If your bets are right you will be next Warren Buffet. Small caps give maximum returns if they are in ur favor. But always remember there is only one Warren Buffet in last 30 years.

I don't wanna be WB or RJ and if there is only only WB, so we should not try to achieve at least 1% of what WB or RJ achieved...I bet on quality smallcaps (with good managements ) & put at least 30% of my money in Large caps as well, like I have HDFC & some other for the same.
I prefer to have around 11 stocks in my portfolio (keep 9 for at least 10 years & can churn 2 in every 2 years) I am trying to follow this process, so let see how successful I will be with this approach...pcpune,wiseman & other please comments on my approach & I am open for any type of comments be it positive, negative or stupid
11 stocks are very less for a good portfolio( > 10 lacs), that too all small caps, no way buddy, I dont recommend it.
I dont believe in too diversification, if you diversify too much, then you will become Index & wont able to beat Index (and I want to beat Index Thumbs down consistently )

You should have at least 7 sectors in your portfolio, with three stocks in each sector.

(I have enough sectors covered with ONLY 11 stocks & I dont take more then 2 stocks from each sectors & usually pick only 1 from each sector & bet high on that,like I bet high on Page (Textile & Retail sectors covered with 1 stock ONLY)
You should not have more than 50 percent exposure in small caps.

(I have 70% exposure to Quality SmallCaps), it conventional wisdom that you should have only 30% of ur portfolio as smallcaps (I do reverse) lets see what I get out of that
Always remember stock markets are basically betting, so why not have bet on something which gives u high probability of sucess.
I didnt get what you mean by the above statement

And one more thing there is only one Warren Buffet in last 40 years, I hope we all understand that
Hey, if there was only one Don bradman, so why sachin started playing cricket??? I think RJ is also good if not that big as far as WB is concerned & I said earlier that I dont wanna to be WB, I just wanna money money to be double-triple or maybe more than that in next 50-10 years, so that I can live a decent Post retirement life (I aspire to have a early retirement, maybe in late 40s) .

Originally Posted by kazihamed

me too 5 yrs in market..and what 5 years seen from one of specturm to other..gained valuabl exp but with heavy cost

Originally Posted by RAJESHP

ash7979 and kazihamed,

Can you share how much you made in stock market in yrs total, I mean
total of all the money you put in and total of all the money you made/or current valuation of these stocks.

I just need if you put X, is it 2X or 3X or 1.2X or what. Please be honest and account for all the investments good and bad (very important)

Originally Posted by RAJESHP

ash7979 and kazihamed,

Can you share how much you made in stock market in yrs total, I mean
total of all the money you put in and total of all the money you made/or current valuation of these stocks.

I just need if you put X, is it 2X or 3X or 1.2X or what. Please be honest and account for all the investments good and bad (very important)

Originally Posted by Digvijay

Well I believe people invsting less than five lacs shall do it with Mutual funds and any thing above 10 lacs should have certain hedging attached to them. Its my personal view, u can choose to differ.

I think people should be made aware of buying these options and ways to protect their portfolio.

I know these techniques and i generally use them in volatile times, they give good protection to your equity portfolio.

Also I do trade in F&O.