Thursday, July 2, 2015

Shares which may safeguard your portfolio from any volatility

An investor should always have 30%-40%  of his investment invested in good quality, less volatile shares. These shares work as a safeguard for the portfolio in case of any negativity. Followings are few examples of such type of shares.

1. Dabur India
2. HUL
3. Britannia
4. Powergrid
5. Bayer Cropsciences
6 Abbott India
7 Nestle

The reasons for less volatility in these type of shares are :

1. Leadership position in their respective segment
2. Clear Business Model
3.Visible Future Growth
4 High Demand in HNIs

Investors can see the price performance of these shares during the down period of the market.

I have abbott and Bayer in my portfolio. Investors are advised to consult their financial consultant.

Five Shares which can give you good return quicker than and more than expected over next 2-3 years

Five Shares which can give you good return quicker than and more than expected over next 2-3 years 
MCX
Now all the negatives are behind for MCX.  With no capex requirement, healthy cash position and clarity in regulatory framework ,MCX is in the position to get benefited from the booming economy.               
VST Tillers
The company is the largest manufactures of power tillers in  India. It also manufactures tractors and other agri equipment like rice transplanter, power reaper etc. Last year, the company has started its new unit at Hosur.  The company is expected to be benifited from good monsoon and increased govt spending on agriculture.
Umang Dairies
It is a JK group company. It is turning into a great turnaround story. A small improvement in the performance will lead the share price into 3 digits which, I  think , would be just a start of the journey
IDFC
IDFC is continuously testing the patience of the investors.  After conversion into the bank, it would have access to low cost funds and high margin business.  Which is making it a must buy. I am sure that the patience will be paid off.
Force Motors
After Firodias taking over full control over the company, the company is poised to grow significantly from hereon. The company manufactures a range of vehicles including Small Commercial Vehicles (SCV), Light Commercial Vehicles (LCV), Multi Utility Vehicles (MUV), Sports Utility Vehicles (SUV), Heavy Commercial Vehicles (HCV) and Agricultural Tractors. Its flagship product traveller   is enjoying leadership position.  The company has also partnered with BMW for supplying of engines and gear box for later’s Chennai car plant.  Wide range of products, debt free status and market cap of Just over 2000 Cr.  is making it a must buy for a long term investor.
  
I don’t believe in giving targets. I believe that long investor should invest in good companies at right price. If it is difficult to determine right price, investor should invest as SIP.  Long term investor should buy and hold the shares to get the benefits of compounding,

All the shares discussed above are in my portfolio. I intend to hold them for long term. However, investors are advise to consult their financial adviser before investing.