10 STEPS TO BUILD AN IDEAL STOCK PORTFOLIO

1. Invest in 15-20 well researched stocks ideally. Maximum 25 stocks.
2. Invest in not more than 02 companies in same sector.
3. Allocation in particular stock: Minimum 5%. Maximum 10% of the total portfolio.
4. Invest in not less than 05 sectors and not more than 10 sectors.
5. Allocation in particular sector: Minimum 10%. Maximum 20% of the total portfolio.
6. Allocation ratio should be 65 : 35 : 10 in Large Cap : Mid Cap : Small Cap respectively.
7. Investment in Value : Growth : Momentum stock in the ration 60 : 30 : 10.
8. At least 10 to 15% of the portfolio must be defensive stocks.
9. At least 10 to 15% of the portfolio must be out of the flavor stocks.
10. At least 25% of the total portfolio value should be cash reserve at any time.