Build A Portfolio For The Next 5 Years, Now!

Market is going nowhere as mentioned in one of my previous dialogues. This kind of dull movement in the market may persist till the election results are out. Not much time left for the elections and the results, actually — barely 3 months to go. I am telling you — accumulate as much of quality stocks as you can because I believe the next government is going to be formed by the BJP and it will be a stable government. Let us, for argument’s sake, say, even if the BJP does not form the next government, any government that comes to power has to take the economic agenda forward. That is a good enough reason for me as an investor to bet on Indian equities. 

The GDP growth rate is intact, market structure is strong and more and more investors will keep investing in the asset class that promises highest returns. I reiterate that interest rates may come down a little bit. That may augur well for stocks that are interest rate-sensitive. 

The current issue is a special issue, wherein we have discussed at length the performance of various stocks, sector-wise. In the special cover story, we have included reports on 25 sectors and have analysed how the leading companies have performed in their respective sectors. I am sure you readers will enjoy reading the special cover story that discusses in detail the growth in sales and profitability of 25 sectors. Also, you will find the list of Top 1000 companies based on market capitalisation, which will help you identify stocks for building your diversified portfolio. 

In our regular cover story, we have addressed the concerns of investors pertaining to the auto stocks. Most of the investors have been bullish on auto stocks, however, there is visible stress in the sector. Several auto stocks are trading close to their 52-week lows. Do read our cover story and especially read our message on auto stocks and their inclusion in the diversified portfolio. 

Market is testing investors’ patience right now. It is a perfect time to revisit the basics of investing. Do not try to be adventurous at this juncture in the markets. Prepare a solid diversified portfolio for a period of five years at least, as in the next five years, the economy will grow at an impressive rate. Be confident about your stock ideas. The confidence will come from the quality of research you do. 

Trust me, a well-diversified portfolio is the key to success in the stock market. In case you don’t know how to construct a well-diversified portfolio, seek external help (of the experts). You can also learn portfolio management skills and do it yourself. 

Also, it is high time investors consider index investing. Some portion of the capital can be parked in the index funds or ETFs that track key benchmark indices. 

Whatever action you take, remember equity investing is all about long term investing and how well you construct and actively manage your portfolio. We are always there to support you in managing your portfolio with some great stock ideas. 

Invest in a diversified portfolio, accumulate quality stocks and wait patiently!