Indica Investments are specialists in designing Direct Equity Portfolio. Stocks are meticulously selected on the basis of Fundamental and Technical Analysis Research (as detailed out in the Research Section)
In the first instance a Broad Based Direct Equity Model Portfolio is prepared which comprises scrips catering to all types of Direct Equity Portfolios suitable for various types of individuals and corporates. The outline of a Broad Based Direct Equity Model Portfolio for September quarter is out lined below.
After the blue print of the Core Direct Equity Model Portfolio is ready, we assign weightages to the different scrips present in the portfolio depending upon the risk appetite of the investor as well as the time frame for the portfolio to yield desired results. We take into consideration that, in no case, the weightage to any particular scrip should exceed 10% of the total portfolio and similarly the weightage to any particular sector should not exceed 30% of the portfolio.
TYPE OF PORTFOLIOS
i) Aggressive Portfolio
Higher weightages are assign to those scrips which are midcap, have high beta viz a viz market movements and have potential to become large caps in future. This leads to the composition of Aggressive Portfolio.
This is meant for those who are in the age bracket of 25 to 30 – young adults and have time in their stride and comfortable financial position.
ii) Moderate Portfolios
Greater concentration of large cap stocks mostly market leaders with low beta characteristic form a major portion of Direct Equity Model Portfolio. Here the risk is moderate and the returns are moderate too.
This is meant for those who are in the age bracket 35 to 50 - full adults that have limited time in their stride and have financial obligations to fulfill.
iii) Conservative Portfolios
Here 90% of the Direct Equity Model Portfolio consists of strictly large caps which are at the maturity stage of their life cycle but are market leaders and maintaining their leadership position propels us to keep them in the portfolio. They give steady returns and have low beta. Most of the sectors like FMCG, Pharma, IT, Utilities and alike fall in this category. Here the risk is very low but the returns are low too.
This is meant for those who are in the age bracket of 55 to 70 – near retirement of their life cycle and have little time in their stride for fruit to fructify. Since they have little sources of earning power they are dependent upon the regular cash flow of income to meet their daily, monthly expenditure. Here high yielding dividend stocks with low PE ratios serve their purpose of meeting regular cash flow.