How To Build a Portfolio

How To Build Your Portfolio


Dear Investor,


Indian economy is on the cusp of accelerated growth resulting into potential opportunities for investments. I offer you the systematic process to build your portfolio that endeavours to participate in all-round growth of Indian Economy. For this we together will identify the stocks that will benefit from it. I will aim to identify stocks that will provide long term capital growth and by investing in well diversified portfolio of equity & equity-related securities across market capitalization & sectors and to reap potential benefits for the investors.

 The investment objective will be to generate capital appreciation from a diversified portfolio of equity & equity-related instruments.

Portfolio construction process

Step 1 : The Qualitative Factors

1. Analysis of business.

2. Analysis of business model.

3. Impact of Macro-economic variables on the business model.

4. External variables and its impact on the company.

5. Sell-side research interaction.

Step 2 : External Analysis

1. Geo-politics and it's impact on business.

2. Competition Analysis.

3. Channel checks.

4. Management meetings.

5. Corporate governance.

6. Plant visits.

Step 3 : Quantitative Analysis

1. Financial analysis.

2. Earnings projection.

3. ROE projection.

4. ROIC projection.

5. Application of risk metrics and discount.

Step 4 : Investment Tools

1. Building investment thesis.

2. Valuation model.

3. Target price.

4. Attractiveness vis-a-vis other stocks in the investment universe.

Step 5 : Investment Decision

1. Stock report.

2. Stock weight with entry and exit points.

3. Investment Committee approval.

4. Ongoing monitoring.

Hey don't get bogged down by the terminologies. Most of these things are available on the net, and I will help you find them , understand them and use them. Besides I am already here to help you out of these technicalities.

So let's build a sound portfolio together for my and your future.

Happy Investing