Stocks and mutual fund positions added to wealth building portfolio in April 2016 and plans for the upcoming month along with portfolio performance and lessons learned.
A report I share each month of the progress to my wealth building portfolio of stocks and mutual fund position added with reasons and contract notes to remain fully transparent. I also share important lessons I learn along with the plans for the upcoming month.
Note: This is not my complete investment in market and I have other investment prior to January 2016. After January 2016 all my investments are shared here.
April has been a month where I could execute what I had planned. I intended to invest early and did manage it quite.
Infosys
Infosys has been a constant performer in the portfolio and I always prefer accumulating more each month.
I had plans to accumulate before the results and manage to add good position in Infosys on 1st April (contract notes here) itself and then on 7th April (contract notes here) when the market was in bad shape on those days.
Major IT players TCS, Wipro and HCL Tech all had disappointing results season and it is only Infosys that came up with better than expected results and also gave good guidance for the coming quarters.
It will always be a wise decision to accumulate more Infosys but then at a lower price. At 1200+ it is quite adequately priced. I would prefer to accumulate if I see a decline in Infosys on the back of correction in the market.
Tata Steel
Investment in tata steel in Feb at around 230 level has been the best performing investment in our portfolio.
People are really bearish about metal sector but then metal stocks are just roaring and this is what market is all about. I added more position to Tata Steel before the sale process of the Chorus getting started on 11th April and when the market was in really bad shape. Manage to enter into it at around 325ish levels (Contract notes here).
Larsen & Toubro
We started accumulating Larsen & Toubro in March and accumulate more as we move along and did exactly the same.
Portfolio update
Performance of the portfolio we have built so far.
Stocks
- Infosys: 72,486 (60)
- Invested: 69,929
- Profit: +2,557
- Larsen & Toubro: 25,092 (20)
- Invested: 24,814
- Profit: +278
- Tata Steel: 87,775 (250)
- Invested: 63,137
- Profit: +24,638
- Zydus Wellness: 37,478 (50)
- Invested: 43,423
- Dividend: 325
- Loss: -5,620
- Total Stocks: 2,22,830
- Invested: 2,01,302
- Dividend: 325
- Profit: +21,853
Mutual Funds
- Birla SL Tax Plan-D: 1,02,261
- Invested: 1,05,000
- Dividend: 8581
- Profit +5,742
Overall
- Portfolio: 3,25,091
- Invested: 3,06,302
- Dividend: 8,906
- Profit: +27,595
Lessons learned
Zydus Wellness
Zydus Wellness has been in my wait and watch list for a few months but will keep an eye on it to see if it goes back to 650ish levels again. May accumulate more once it cools off from 750ish again and takes support at around 650ish.
Tata Steel
I have been an aggressive buyer in Tata Steel but then at the current levels I will be in wait and watch mode. Will take a fresh call after analyzing the quarterly results.
Larsen & Toubro
At times, you tend to think that you may miss an opportunity and take the buying decision that you should not be taking. I believe it is a big learning lesson.The levels at which I invested is possibly a trading level where it should have been purchased with a target. I just cannot keep the trader in me quiet.
Plan Ahead
I will avoid buying Tata Steel above 350ish levels and will wait for the bad results or market correction to see if the stock cools off from the current levels where we can accumulate more.
Will accumulate Infosys and Larsen & Toubro, keep a keen eye on Zydus Wellness.
I have other good list of stocks where I want to invest in and am actively looking at Jubilant Foodworks though it looks very expensive even after correcting in couple of trading sessions from 1325+ level to 1150ish level.
Over to you
As always I’d love to respond to any questions or comments that you may have. Thanks!
Shabbbrji, I have both Tata Steel & L&T in my portfolio and agree to what you say… Still I want to add more.. What price to buy for Tata Steel .. Around 325 is ok ? Can you guide for HUl and Britannia ? As to enter or exit… As I am holding them too… Or to switch from it. Thanks..
For Tata Steel I would prefer as close as possible to 300 because it is expected to have bad results and that will help us add more at lower levels. So wait and watch for that.
L&T is good buy at close to 1200 levels but I don’t see it going there anytime soon. Still market correction can help it go there. I am adopting wait on that stock as well.
HUL and Britannia are both hold. I really like Britannia and may soon add to my portfolio but I already have too many stocks in my portfolio as well.
Shabbir ji, Fully agree with you. L&T is laggard since last year july. I am holding at 1600 levels.ICICI Bank is also a pain for me for long time now. Still holding both stocks.
@milindshripad:disqus, I think you can look to average L&T but then it is not a laggard and is a good mover in either direction. You possibly purchased it when it was highly priced.
At 1200 it is quite adequately price but would prefer to be buying as close as possible to 1000
ICICIBank is an avoid for me or rather I avoid banks as there is nothing unique selling proposition about any banks apart from SBI which again is a PSU.
Hi ,
This month looks no now pick from you , only adding existing one .
Yes @muthukrishnansambandam:disqus This will be the case as we move forwards where we will be accumulating in existing stocks that new stocks.