28 November, 2010

Thoughts on the Core Portfolio

Ideally I would like my portfolio to double every couple of years, and be at least a millionaire within a few years, and then live happily ever after. Wishful thinking? Absolutely! Will this happen? Unlikely... unless I win the lottery. Of course since I have never bought a lottery ticket, that's not really happening.

I am willing to settle for a core portfolio of securities with a low/medium risk profile and a medium/high return. This is a reasonable requirement for almost everyone... right? The only challenge is to identify the right investment vehicles.

So far, here is my plan: put in the bulk of my investments in good balanced and large cap oriented mutual funds. This represents the bulk of my portfolio and should provide reasonable results with a reasonable risk. I can essentially fire and forget, and focus on other things. Like the itch to beat the market, where I set aside a small amount that I can play around with directly in the stock market, and any losses, though painful, do not wipe me out!

Thoughts on what goes into the core portfolio: HDFC Prudence, HDFC Top 200, Franklin Bluechip, and maybe a couple of index funds.

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