Last year, in March’ 2010, I made the mistake of creating a FD for Rs.100000/-. I did not have time to look into other investment options and blindly went for this option through my ICICI a/c. What was worse is that, the interest rate offered, back then, was 7%. The only clever thing I did was that, I made the FD for 390 days only. So, at the end of the term, sometime in April’ 2011, an amount of Rs.106500/- was credited to my a/c, after deducting TDS etc.
This time around, I had the same option of renewing that FD at about 9.25%; but I decided against it. I made up my mind to create a ‘Capital Protection Oriented Fund’ of my own and test its performance for a period of 1 year. I know it sounds silly, but I did. Its a bit experimental, but all I wish to achieve from it is growth at 12-14%. Here’s what my fund now consists of:
a. I made a FD of Rs.40000/- at 8.5% for 390 days only. The interest generated is Rs.3400/-. I could have got a higher interest, but I would have to go for a longer term.
b. I put another Rs.10000/- in a NFO called ‘Sundaram Equity Plus’, so I now have 1000 units of it. The reason for investing in this NFO was that, it balanced out the equities with gold; 5 – 35% to be placed in gold and 65 – 95% in equity.
c. The remaining Rs.50000/- I put it in the stock market in the following scrips in a balanced portfolio:
i. Jaypee Infratech – 100 nos @ 52.15
ii. Punj Lloyd – 75 nos @ 56.5
iii. IRB Infra – 50 nos @ 158.38
iv. Next Mediaworks(Mid-day Multimedia) – 50 nos @ 5.75 [penny stock purchased so I don’t leave out a single paisa]
v. Zee News – 25 nos @ 11.05 [penny stock purchased so I don’t leave out a single paisa]
vi. Rajesh Exports – 50 nos @ 86.7
vii. Reliance Com – 50 nos @ 82
viii. Vijaya Bank – 50 nos @ 69.6
ix. Manappuram – 75 nos @ 57.5
x. IPO Muthoot Finance – 40 nos @ 175 [had applied for more, allotted 40]
xi. FPO Power Finance – 43 @ 192.85 [5% discount to retail investor]
I shall keep updating this as and when I do a buy/sell. Suggestions/comments welcome!
This post was also published on Yahoo Network
Update 1 in Feb-2012: I sold Rajesh Exports @ 136.15, giving me a profit of 2472.05. I should have sold it earlier, when it had touched a high of 145, but I missed the opportunity as I wasn’t able to track my portfolio during that period. Anyways, I re-invested the amount in buying the following:
i. Manappuram – 45 nos @ 45.15
ii. Jp Power – 45 nos @ 45.35
iii. Vijaya Bank – 50 nos @ 57.75
Update 2 in May-2012: The FD of Rs.40000/- matured and I decided that this time around I would not renew the FD for that high a value. Too much money in debt instrument isn’t a good idea. So, I created a new FD for Rs.30000/- at 9.25% interest. This FD matures in June’13 and the maturity amount is Rs32974/- . The remaining proceed of Rs13400/-, I re-invested it in the following:
i. Adani Power – 50 nos @ 50.75
ii. IRB Infra – 25 nos @ 111.15
iii. JP Associates – 45 nos @ 59.4
iv. Manappuram Fin – 25 nos @ 23.65
v. Muthoot Fin – 20 nos @ 131.5
vi. Power Fin – 17 nos @ 140.25
July 13, 2011 at 12:49 PM
ow old is the portfolio now, and how is it performing? Also, is it passive i.e. you are not changing the composition for the year?
July 13, 2011 at 1:51 PM
@samir: the portfolio is doing pretty ok. i was looking @10% returns, but the recent downtrend has pushed the values of jain irrigation and punj lloyd. so, the current return is 6.75%.
* its not passive, i intend to shuffle around and buy/sell. but the scrips did not reach the target i had in mind. moreover, there is nothing worth buying for which i should sell any of the mentioned scrips. its been just 2 months now.
* if u have any buy suggestion or target sell amount on the above scrips, then do let me know.