Why I added all my mutual fund position for tax saving in Feb 2017 to my portfolio and also share why this is the last and final portfolio report update.
A report I share each month on the progress of my portfolio of stocks and mutual funds with reasons of each and every stock that I own along with contract notes of trades executed in the current month and share plan for the coming month.
Note: This is not my complete portfolio in the market and I may have open trading positions as well as some previous investments prior to Jan 2016 and other riskier small and micro cap investments.
The market is very resilient to correct and this is mainly because of very strong fund flow into the market from the domestic investors through mutual funds. DSP BlackRock Micro Cap Fund (which is the best small cap fund of 2017) has stopped accepting fresh money from Feb 20 2017 with reasons given that new investors can impact the returns of the existing investors. The fund’s asset under management has grown 15 times in last 4 years from managing 300 Crores to 4500 crores now.
DSPBR Tax Saver
DSP BlackRock Tax Saver Fund is my choice of fund to invest in 2017 and I completed my final tax saving investment of ₹45k in this fund on 22nd Feb 2017 (Contract notes here).
I only added a position in my tax saving scheme because I think this is the perfect time to complete your investment in mutual funds because I don’t foresee market (especially indices) going down more than 5% from here due to very high domestic fund flow.
Very low chance of downside and so is the best time to be investing in mutual funds. I can be wrong and will love to be wrong for more value buying.
Why This is Last Portfolio Report & Update?
I have been told that if you wish to speak publicly about stocks, you need to be a Sebi approved research analyst. Here is a SEBI circular I am referring to.
Everything I share on my blog is for educational purpose for my readers and the process I use to select stocks. The idea is never to share the stock tips but the process of selection of the right stocks. Yet I do share about stocks and the readers can invest in exact same stocks instead of working out their own research.
SEBI’s guidelines are not to share information in public domain anything that related to specific stock unless you are registered with them as a research analyst.
So I decided to be a research analyst just for the sake of being able to publish monthly reports for my readers. Needed an NISM certificate.
The fees are very nominal and the process is simple. Need an NISM certification and produce few legal documents and IT return documents.
But the main catch is in the terms of being a research analyst.
So if I am a research analyst, I cannot trade or recommend a stock that I have invested in.
So becoming a research analyst just for the sake being able to share my investments openly is not a viable solution. I don’t trade in these stocks for sure but I invest in them on a regular basis.
On top of it, becoming a research analyst is not the whole point of my blog either. It contradicts my blog’s vision where I don’t want to recommend stocks to people because I don’t tell them what they should be doing but rather the aim of this blog is to educate them and let them understand what they should be doing for themselves.
Give a man a fish; he eats for a day. Teach a man to fish and he eats for a lifetime. I prefer teaching my readers how to fish, how to spot, understand and profit from the market so you, too, can eat for a lifetime.
This is when I had to take the call of stopping monthly portfolio reports I share. Still, I can always share my contract notes openly because sharing this contracts notes does not mean I am recommending the stock but it is letting people know what I am doing. So I have decided to share only my contract notes here.
Portfolio Update
Capital investment increased from ₹16,32,676 to ₹16,74,972 an increase of ₹42,296 in the month of February. The performance of the portfolio built so far is as follows:
Profits Realized
- Infosys: 780 (60)
- Average Buy: 1165
- Average Sold: 1178
- Tata Steel: 9,200 (400)
- Average Buy: 280
- Average Sold: 303
- Larsen & Toubro: 2,080 (20)
- Average Buy: 1241
- Average Sold: 1345
Total Profit Realized: 12,060
Dividends
- Zydus Wellness: 325
- Larsen & Toubro: 365
- Jubilant FoodWorks: 250
- Britannia Inds.: 900
- Birla SL Tax Plan: 8,581
- DSPBR Tax Saver: 4,166
Total Dividend Received: 14,585
Stocks
Stocks I am holding in my portfolio along with the link to why I have invested in them.
- Ashok Leyland 1,81,300 (2000) [Why]
- Invested: 1,60,192
- Profit: +21,108
- Britannia Inds. 1,45,323 (45) [Why]
- Invested: 1,18,731
- Profit+Dividend: +27,492
- Jubilant FoodWorks 1,01,075 (100) [Why]
- Invested: 1,09,503
- Loss+Dividends: -8,178
- Jubilant Life Sciences 2,15,940 (300) [Why]
- Invested: 1,34,636
- Profit: +81,304
- Pidilite Industries 6,82,150 (1000) [Why]
- Invested: 7,18,864
- Loss: -36,714
- Zydus Wellness 2,13,538 (250) [Why]
- Invested: 2,04,690
- Profit+Dividends: +9,172
- Total Stocks: 15,39,326
- Invested: 14,46,617
- Profit+Dividends: +94,184
Mutual Funds
- Birla SL Tax Plan-D: 1,14,901
- Invested: 1,05,000
- Profit+Dividend: +15,786
- DSPBR Tax Saver-D: 1,51,718
- Invested: 1,50,000
- Profit+Dividend:+5,882
- Total Mutual Funds: 2,66,619
- Invested: 2,55,000
- Profit+Dividend: +24,264
Overall
- Total Portfolio Valuation: 18,05,945
- Capital Invested: 16,74,972 (Total Investment in stocks & mutual funds less dividends receieved and realized profits)
- Unrealized Profit: +1,18,448
- Dividend: +14,585
- Realized Profit: +12,060
Key Highlights
Few key points worth mentioning
- Has not incurred a loss in any of my positions and don’t expect any major losses either in Jubilant Foodworks or Pidilite Industries.
- The overall portfolio has crossed 18L which means it is not a small portfolio anymore.
- The unrealized profits is more than 1L and total profits is 1.45L.
- The overall annualized return from the portfolio is close to 15% despite a significant unrealized loss from Pidilite Industries. Without the loss from Pidilite, the performance of the portfolio is well above 25%.
- The income from dividend has started to pick up considerably and expect a fat dividend coming my way in March from Birla SL Tax Saving fund.
- Has not booked any profits for the past few months and I continue to let my profits ride even when it was quite tempting to book a profit of 1L in Jubilant LifeScience.
- Couple of stocks has doubled (well almost) in 15 months. Tata Steel from my initial purchase of under ₹225 and Jubilant LifeScience from my purchase level of ₹445.
- Booking profits (though very small) in Infosys was a very wise decision because I anticipated growth issue in IT stocks.
- When I mention about good returns, I should also mention Zydus Wellness which has not performed as well as I anticipated but it is not a loss making position.
Over to you
If you have any questions or comments share them in comments below and I love to respond to them.
very informative. Your clear cut explanation made me enter into stock markets, and and get some understanding of the market. Looking forward for more.
Glad you like it Aditya.
Jubilant life sciences is in the ASM and has high default probability. Do you still invest in that?
I was out of it at around 750 Level.
Hi Shabbir,
i am new to investing in mutual funds. I gained some knowledge reading articles and watching videos and talking to some advisors. One question which is troubling me is why cant we divide the amount in different fund houses in the same category as well. Is there any loss of returns apart from tracking and managing the portfolio.
Let’s say, we have 50000 rs per month to invest in equity based mutual funds. What i feel is if we can divide the amount in large cap, multicap, small cap, mid cap and balanced funds with 2-3 fund houses in each category. This will give us around 10-12 funds which can now be managed easily by sites like MFU.
Do you see any implications with returns or any loss of value? I feel, by dividing in multiple fund houses we can monitor each of them by returns and performance and then can switch funds accordingly after an year or so. Although we can monitor even without investing in multiple funds. Please explain.
Thanks
Ankur Garg
Ankur,
No there is no other implications and if you know you want to be investing in different fund houses but ultimately in the same stocks, it is fine with you. The reason no one does it that way is because it isn’t very fruitful to manage more than one fund when one is enough.
For someone managing 12 funds is fine and for others 4 fund is enough. On top of that, you don’t need to invest to see the performance of the fund.
Hope it helps.
Thanks
Shabbir Bhimani
Now Open a Demat Account is very easy and from anywhere India. Just contact me on this no 9653081294,9914087561. It just take 15 minutes. or want to know about it more just ring me i will happy to help you…..
Not blogging anymore?
Why do you think like that.
Why are you holding the Tata Steel stocks. Its ICR is low and EPS is also negative. It might go down.
I am not. I sold it off but actually sold it off way too early.
why the portfolio not update since Match 2017
If you wish to speak publicly about stocks, you need to be a Sebi approved research analyst and I am not and don’t have plans either.
How much funds you allocate to investment vis a vis Trading?
How many stocks (minimum and maximum) are you comfortable with?
Total investment in a stock must be averaged over a period of time. When to stop fresh buying?
How you decide the allocation ratio to stocks.
Thats a hell lot of questions Rocky and let me answer them one by one.
1. I had a very high allocation to trading but slowly over time in the last year, I moved them to investing because I see lot more potential and returns in investing than in trading when compared to the amount of time I need to dedicate to trading. Trading is more active than investing.
As of now my trading portfolio is under 2L only and I have plans to put those into investing as well because it has been quite sometime when I had taken a trading positions.
2. I am not comfortable when the list goes in double figure but I am fine even with 1 stock. I prefer to keep developing a habit where I only consider checking stocks once every week or month. Being a trader as of now I still actively track my investment as well though it is not much that I trade with my investment. More like a time killer now.
3. Has not plans to stop buying based on time but I prefer if I can spot value or no. At current levels I don’t see any value buying. Yes I see some good value buying in small caps but I don’t share them publicly as they can be seen as speculative.
4. I am a very aggressive investor and I have all my allocation in stocks. All does not mean I don’t have investment in gold or property but then those are for use by my wife as well as in a flat I live and office. If I consider those investments, my equity portfolio is quite small. Not even 20% of my total allocation.
Hope it answers all your queries and if you have more, will be more than happy to answer them all.
Hi Shabbir,
It is good to have a cautious approach. Your blogs have been a constant source of information to everyone. SEBI’s circular is for the greater good of retail investors but as they say,” When Bulls Fight, Crops Suffer”. Hope will find a way around.
Glad you find my blog useful and will try to keep the good part of it coming following the guidelines of the regulators.
Atleast you can show us portfolio update on what you bought and sold right from next month, isn’t it? By the way I have added you in my blog roll hope it is ok?
I don’t think so I can share because after 30 days only research analyst can share and not otherwise.
No worries on adding me to your blog roll.
Let me tell bro I m totally new trader I exactly don’t hv any idea but still I trading so hw u do n what u do? Explain???
You can start from here – https://shabbir.in/start-here/
Very disappointing.Keep us update on your portfolio and mutual funds analysis under SEBI rules.
Sure I will.
Very good decision by you to sell infy and LT which I Missed. Should I book profits in mutual funds?
Milind, I don’t see any reasons to be booking profits in MFs now and you can let it ride and add if there is a crack unless you have a need for funds in the near future.
I am never a fan of booking profits with my investment and I book profits all the time with my trades.
Just saw the calculations you have made to arrive at total profit/ loss. Hands down salute to you for your meticulous calculations. One should learn a lot from you to keep record and tabs on the investment.
The pleasure is all mine.
Hi Shabbir,
Thanks for sharing you knowledge and thoughts on markets and stocks,
It was very informative to me. I am also investing in stocks and my whole idea is
to build a solid portfolio and build capital.
I used to read your articles every month but since you telling SEBI guidelines wont allow
you discuss on any stock specific ideas. Can you discuss with a declaimer like.. This
not recommendation for any investment just sharing your opinion or your knowledge.
I have the same disclaimer on all pages in the footer where it says this is just for education purpose only. I used to share the contract notes to be very transparent and I discussed about stocks I invested because that would mean I believe in those stocks but SEBI needs to not have investment interest of the person discussing the stocks.
Both can have its pros and cons and my email is flooded with request to keep sharing and I will try to share them to the extent I can which is contract notes but not beyond that point. I can always share about stocks I like but that to in general.
Yeah! Please do keep sharing your ideas and knowledge on markets and stocks.Like you saying in general but not too specific. Any blogs you have written is always informative.
But I do see some top PMS fund managers sharing there top investments or stock picks in media.. I dont knoW may be they are all certified analysts.
Yes I will keep sharing the ideas but will not be able to share stock specific ideas on the blog but general investment ideas as well as how I would evaluate or reject a company will definitely keep sharing.
PMS manager sharing stocks can mean they are allowed to do so.
This is quite a shocker for me because I used to learn so much from your investment. I would like you to continue sharing your investment because we know you are not doing it for the sake of making quick profits by recommending stocks to your readers.
Yes it has been for me as well.