Stock Market Investment is not for just Profit, but for an Investment in Nation...!
As I promised in my early article My First Experience in Stock Market, I am writing here about My Portfolio.
By writing down this Hub, I have some purposes. They are :
- It will be a good guide to inexperienced stock market investors.
- How to check investment growth as easy as a mutual fund.
- Beware new investors about the importance of expenses that affect the growth of an investment.
- How to beat index through best self-management and balanced allocation to the various financial instruments.
- Above all the facts, I want to develop a successful investment strategy myself, which should be an inspiration to all.
Growth Since 9th March 2020
The monthly Growth of this Portfolio is available in Table 3 of Stock Portfolio II,
Growth of My Stock Portfolio
Growth of Nifty 50
Growth of Next 50
My first investment really started on 09.03.2020. My investment until 31.05.2020 was Rs 107,000.
For convenience, my additional investment will be on the first day of every month. The money will keep as a Cash reserve to invest in falls in the market in the same month.
I had invested only in mutual funds for the last 2 years. But I got enough time from March 2020, to restart investments in stocks directly.
I decided to revenge with my past bitter experiences of losses of the direct stock market investment.
The investment I did after the correction during Corona but purchased some blue-chip stocks and others not at its lowest price.
In the deep fall of the stock market since Corona, I tried to purchase some mutual funds, but all fund transactions were failures.
I am not able to purchase mutual funds at its lowest price. A big amount is missed from my account which I kept for stock investment.
It comes back to the bank account only after 2 months. This incident was really disappointing for me. Because it was a golden chance for equity-related investment.
This also persuaded me to invest in the direct stock.
Net Asset Value or NAV calculates by dividing the Fund value by the total units. The face value of one unit is Rupees 1000.
Additional investment will be on the first day of every month.
The unit allotment of the fund invests will be on the basis of the NAV of the previous day (Last day of the month).
For example, If NAV is 1100 in 30.11.2020, for the fund of 11,000 invested on 1st December 2020, 10 units should allot.
In Mutual Funds, NAV is calculating on a daily basis.
In this portfolio, it is on monthly basis. But NAV will update every day.
NAV Details and allotment of the unit are seen in Table I of Stock Portfolio 2.
This method is taken for easy calculation of investment growth.
Year & Month
Invested Fund on the first day of the year will keep as the Cash reserve or in Liquid Fund and will use for purchasing Stocks and Exchange Traded Funds at a low price throughout the year.
Booking of profit is very important. Unrealized profit is just paper profit. I realized this important lesson during my investment journey.
The following are the top stocks traded for realized profit since May 2020.
Profit Booked (INR)
Nifty Bees ETF
It is very important to get an income from stock market investment through trading and dividend.
My important aim of this positional or swing trade is to create an additional income.
I started writing on Hub pages with this intention of creating a passive income. But I realized this is a great venue to express my ideas.
I honestly will try in the future, can we create an income from trading and investing in the stock market? And what are the suitable methods for it?
This article will be a live experiment before you.
Booked profit for the first five months is about INR 25,000 is re-invested for fund growth. The income will depend on the volatility of the market.
The annual income earns from short-term trading and dividend can be seen below.
Monthly Income Details are available in Table 3 of Stock Portfolio II.
Income from Trading (INR)
Dividend Income (INR)
Annual Income (INR)
Annual Income ($)
The growth of Large Cap, Mid Cap, and Small Cap Index are comparing with Multi-cap Index and My Stock Portfolio in the Table below.
It is remarkable that about 80 % of the market capitalization in Nifty 500 is Large Cap Stocks.
In My Portfolio, 50 % is Large Cap Stocks. Balance 50 % is in Mid Cap, Small Cap Stocks, and in ETFs (Equity, Debt & Gold).
I have no restrictions to select any stocks or ETFs. My only aim is the Growth of my funds and defeats Indexes. I already defeated Large Cap and Multi-Cap Indexes. My next Target is Mid Cap Index.
Index returns show as Lump sum Investment return. But My Fund return shows as a varied Systematic Plan return.
Growth from 09/03/2020 to 30/11/2020
Nifty Next 50
Nifty Midcap 150
Nifty Small cap 250
Expenses are Different in various brokerage firms.
Recently discount brokers started free delivery purchases.
My Account is with a Full-service broker. A huge percentage of my profits reduced by high charges by this brokerage firm " A ". I won't mention the names of the brokerage firms because of no intention to sponsor or defame any.
100% of my fund is the investment in this firm.
I started 2 more accounts under two discount brokers for various purposes. They are " B " & " C ". My only cost for holding these accounts is Annual Maintenance Charges of INR 700. The reason is the exception of the brokerage fee for stock delivery. But no exception for taxes and DP charges under discount brokers.
The following is the Expense incurred in "A" brokerage for 4 months. These charges are excluded from the fund value.
DIS , AMC and Taxes
I think I had covered almost details of my portfolio except for TOP HOLDINGS.
The reason is that I am not an authorized person to recommend stocks or any other financial instrument.
I mentioned above some stocks which gave me top booked profit. There is no guarantee for their future return.
All are I doing on the basis of my study and experience in the field.
This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.
© 2020 Indra