Actionable Insights : How many stocks one should hold in their stock portfolio...

✍️ Actionable Insights : How many stocks one should hold in their stock portfolio which consists of mostly small, micro & sme stocks?

👉 Here, we are talking about diversified portfolio focused on small, micro & sme (company with Market Cap between 100 Cr to 5000 Cr). It is strictly NOT advisable to have concentrated portfolio of 6-8 stocks consists of small, micro & sme. If you wish to have concentrated portfolio you should always include large cap & mid caps.

👉 Coming back to the number of stocks one should hold in their portfolio. It depends on the size of portfolio for example the smaller the size of portfolio (i.e., 10 Lac to 50 Lac portfolio can have max 15-25 stocks; 50 Lac to 1 Cr portfolio can have 25-35 stocks) , the number of stocks should be lesser. At the same time if your portfolio sizes is large (> 1 Cr portfolio can have 40-50 stocks, even if your portfolio grows up to 5-10 Cr still you should put a cap on # of stock to max 50, anything more than this will not be manageable & dilute the essence of equity investment which brings highest returns among all asset class) you have luxury to keep more number of stocks.

👉 Number of stocks also depends on a risk profile of an investor, age, expectations and kind of stock you are holding in your portfolio. In our next insights we will explain you "ticket size" concept which will help you to keep control of your number of stocks.

✍️ What next for?

1) How to keep our portfolio healthy & how to make sure it always outperform old version of you?

2) Understand the most efficient & simple concept of capital allocation called "ticket size" (it's our proprietary concept) which we follow.

Happy Investing....