Starting a Portfolio

In investment it is very easy to talk about what should be bought or sold. So just to make things more practical and much more enjoyable I am creating this dummy portfolio and as a rule I will be adding stocks and book profit/losses, from the stocks that appear in Money Today as part of its story.

Investment Policy: There is no set style, therefore will pick stocks from any of the screeners. If I have the time, to look at the annual reports, and the patience to study each stock then I will  pick and choose stocks from among the list given in the magazine.  If I don't have ample time then as a rule I will be investing equal amount of money in all the given stocks.

Since this is a dummy portfolio, hence money is at least not a problem. :P

(I haven't fig which would be the best website to use to keep track of the portfolio. Would appreciate if someone can share their thoughts and suggestions)

So the first set of stocks for the portfolio are from the story -- "Lynching it the Peter Lynch's way". They are-

Scrip	Buy Price	Investment amount kept assumed	Quantity	Buy Value
Balmer Lawrie	297.05	3000	10	2970.5
Engineers India Research	152.7	3000	20	3054
India Motor Parts	420	3000	7	2940
India Nippon	175	3000	17	2975
Infotech Enterp.	349.15	3000	9	3142.35
Kirloskar Industries	240	3000	13	3120
All purchases were made on Feb 14, 2014; Brokerage charges was assumed at 0.5%

Since I didnt had the time to go through the stocks one-by-one I have made equal investment in all the stocks. And total investment according to this was to the tune of Rs 18,201.

Additionally I would suggest that an amount of Rs 6000 should be kept in a liquid fund. The only important factor I would look at is that the fund should have AUM of more than 500 cr and decent history against the category.

p.s. Initially this would be haphazard since I am also putting my self in some sort of discipline. But with time I expect that the portfolio actions will be revealed between every 15th-20th of the month. 

Although many would write on stocks we never get to know if such writers or analysts would put their money where their mouth is. This is for various reasons. Most importantly being in the media, I can vouch that in all the places where there is a lot of emphasis on ethics most of us are in a way not allowed to invest in stocks.

Its not a blanket ban but there is ample check and balances in the form of approvals and declarations that ensure that writing on stocks or stock market is not biased. Which is what makes the process cumbersome, so we don't invest in stocks. Hence, most tend to invest through mutual funds. Therefore, this blog is above everything an exercise on improvement.