In Mar’2009, I began to invest in the stock market. I still remember my first stock purchase was DLF Limited. On that day DLF was trading at Rs 138.8 after plunging down from Rs 1100 levels in Jan’2008. After all my value investing researches it looked liked this purchase was wise. And yes, this stock did make me some handful money in months to come. Because when I sold its holding in Oct’2010, it was trading at Rs 380 levels. So in less than 20 months DLF gave me return of more than 175%. As this was my first stock involvement, I was hugely motivated to continue this momentum throughout my life. Now almost 3 years has elapsed and this portfolio consists of some top stocks. Investing my savings is like my hobby which in future I would like to make a profession. In order to manage my day to day expenses, the earning from my job is more than sufficient, so I am investing more for achieving financial independence than with objective of making quick money.
Before I actually started buying and selling stocks, I did studies on stock market investment I observed that my investing skills is worth giving one try. I was also able to track and correlate business news published in newspapers and on TV news channels. So ultimately in 2009 I decided to go for stock purchasing on my own. Before that I also invested in stocks through mutual fund route and it is still giving me amazing returns. But my interest in individual stocks was so high that I decided to do it myself.
In 2009 I opened and online trading account with Geojit Fianncials. The trading platforms that they provided then was satisfactory and matched my limited expertise. In addition to opening a online trading account I also looked for a suitable source from where I could do my stock analysis. I found that moneycontrol provided exactly what I was looking for. I am very fond of reading company’s financial statements and money control provided just this with minimum of complexities. It was moneycontrol where I first analyzed DLF as my first stock purchase.
I was well aware of the fact that stocks are risky. No matter how much analysis based decision you make in buying a stocks but still in short term the volatility of stock prices are unpredictable, and I was prepared to take this gamble. I turned my focus in long term returns from stocks than on its short term volatility.
In order to balance the high volatility (in short term) of stock prices, I decided to research and prepare a list of investment options with lower risk levels. As I was majorly investing in direct stocks, I decided to start Systematic Investment Plan (SIP) in balanced funds. In addition to this was also keeping some handy-cash locked in bank fixed deposits as emergency fund. I remember one time when I need around Rs 1.0 Lakh for meeting my medical expense, and only because I had good cash in fixed deposit and balanced fund that I was able to redeem them quickly.
Today my portfolio consists of a mix of value stocks, mutual fund units and fixed deposits. I take care that the proportion of my money between all of these does not get disturbed. I am almost in mid thirties so I prefer to keep my portfolio balance as 50% in Stocks, 25% in Mutual Funds (Balanced) and balance 25% in Fixed Deposits. In the last four years I am found that this mix of investments in my portfolio has helped me to manage all goals of my life.