investment in stocks thro sip

POSTED BY logaraja ON November 14, 2012 11:40 am COMMENTS (6)

Hi,

I am planning to invest in stocks through SIP for next 5 years.I have chosen following scripts,

HDFC,  BHEL, ITC ,l& t, tata steel.

,I need your advice on this approach.I need your support to choose 2 from this list..

Regards,

Logaraja

6 replies on this article “investment in stocks thro sip”

  1. Dear Logaraja, are you really diversifying your portfolio by investing direct Eq. way? Please check the holdings of your existing MFs for the stocks you want to enter directly.

    Now show me the diversification.

    Thanks

    Ashal

  2. somasekhararaom@gmail.com says:

    Hi,

    Avoid ITC in your portfolio. it Will not give you good returns in long term.

    Thanks,
    Sekhar

  3. TheZionView says:

    From your list i only know about HDFC,L&T and ITC.

    These three are good business and should give sustained gain.

    But you should remember a SIP in Direct Equity(stock) is not the same as Mutual Fund. Its not ok to monitor these once or twice in a year. These might need much frequent monitoring and from much wider horizion. Which mean you will need to invest about 2-4 hours a week.

    If you understand the equities the three mentioned above is a no brainer choice and should easily beat market index.

  4. logaraja says:

    Thanks for your reply.I am already investing in MF.I just want to have a direct equity portfolio of 2 good bluechip stocks.I have chosen l&t and hdfc bank.I will invest thro sip mode.what do u think about my stocks?will it be good for long term wealth creation?I dont have much knowledge about this..I have chosen by searching in google.Please help..Thanks in advance.

    regards,
    logu

    1. BanyanFA says:

      Logaraja,
      How much funds are you talking about to invest on a monthly basis into these stocks ?

      If you can split them into 4, I would suggest, ITC, HDFC, L&T and SunPharma. All of them have good management, consistent returns, good business model and bluechips.

  5. BanyanFA says:

    Hi,
    Your stock selection seems to be reasonable and diversified. I would also suggest to rather replace BHEL with a pharma stock such as Sun Pharma / Lupin / Cipla. This will make the selection even better.

    Just out of curosity, have you thought about investing via Mutual Funds rather than directly into stocks ?

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