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Essentials for good Portfolio

Keep in mind for preparing good portfolio:

  • Invest only in those shares which are strong on fundamental and technical basis.
  • Keep to try minimum 6 and maximum 12 company's shares in your portfolio,you should trade in limited shares otherwise you have to face problem in tracking and getting information about all shares.
  • You should keep growth shares in your portfolio as along with blue chip shares.
  • All of shares should not related to only one industry, you should keep shares related to different industries
  • Buy shares when INDEX decreased, sell share when index increased. Add new shares in your portfolio when index decreased, at that time you can get good company's share at low rate.
  • Do not invest all of your allocated fund at once, always partly purchase shares on every decrease and sell on every increase. For example If you want to invest Rs. 10,000 in share which price is Rs. 100, you should purchase 20 shares at Rs. 100, after some time rate decrease to Rs 90, at that time you should purchase 30 shares after some time share rate would be Rs.80 now you should purchase remaining 60 shares and sell partly when rate increase, by doing so your average cost always be low and average sell value always high.
  • Don't be greedy and Book your profit when you get desired profit
  • It is always good to purchase low rate share because you can get more average profit for example you have choice to choose share of RS. 40 and Rs. 400 If both company are strong and have future growth, Rs 40 share will reach soon at Rs. 80 than Rs. 400 shares reach at Rs. 800.
  • If any company's share in your portfolio is weak on fundamental basis and there is no chance to rise in future, you should sell that share immediately on any loss.
  • When you choose good shares in your portfolio, you can get desired profit with minimum risk.

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