Portfolio Building Guide - Share Market Course

Module 1: Portfolio Building Basics

1.1 Portfolio क्या है?

Portfolio एक collection है विभिन्न financial investments का जैसे stocks, bonds, mutual funds, ETFs, और अन्य securities। यह एक basket के समान है जिसमें आप अपने सभी investments रखते हैं।

1.2 Portfolio Building क्यों जरूरी है?

• Risk Management: विभिन्न assets में diversification से risk कम होता है

• Wealth Creation: Long-term में wealth बनाने का systematic approach

• Financial Goals: अपने financial objectives achieve करने का structured way

• Income Generation: Regular income और capital appreciation दोनों possible

1.3 Portfolio के Types

1. Conservative Portfolio: Low risk, stable returns

2. Moderate Portfolio: Balanced risk-return ratio

3. Aggressive Portfolio: High risk, high potential returns

4. Income Portfolio: Regular dividend/interest income focused

5. Growth Portfolio: Capital appreciation focused

Module 2: Investment Planning और Goal Setting

2.1 Financial Goals Define करना

Short-term Goals (1-3 years)

• Emergency fund creation

• Vacation planning

• Car purchase

• Wedding expenses

Medium-term Goals (3-7 years)

• Home down payment

• Children's education

• Business expansion

• Major purchases

Long-term Goals (7+ years)

• Retirement planning

• Children's higher education

• Wealth accumulation

• Legacy planning

2.2 Risk Assessment

Risk Tolerance Factors

• Age और time horizon

• Income stability

• Financial responsibilities

• Investment experience

• Emotional capacity for losses

Risk Categories

1. Conservative Investor: 60-70% debt, 30-40% equity

2. Moderate Investor: 50-60% equity, 40-50% debt

3. Aggressive Investor: 70-80% equity, 20-30% debt

2.3 Asset Allocation Strategy

Age-based Formula

• Equity Allocation = 100 - Your Age

• Example: 30 साल के व्यक्ति के लिए 70% equity, 30% debt

Goal-based Allocation

• Short-term goals: Higher debt allocation

• Long-term goals: Higher equity allocation

• Medium-term goals: Balanced allocation

Module 3: Asset Classes और Investment Options

3.1 Equity Investments

Stock Categories

1. Large Cap Stocks
   
   

   • Market cap > ₹20,000 crores

   • Stable, established companies

   • Lower volatility

   • Examples: TCS, Reliance, HDFC Bank

2. Mid Cap Stocks
   
   

   • Market cap ₹5,000-20,000 crores

   • Growth potential

   • Moderate risk

   • Examples: Bajaj Finance, Asian Paints

3. Small Cap Stocks
   
   

   • Market cap < ₹5,000 crores

   • High growth potential

   • Higher risk

   • Examples: Emerging companies

Sector-wise Diversification

• Banking & Financial Services (20-25%)

• IT & Technology (15-20%)

• FMCG (10-15%)

• Healthcare & Pharma (10-15%)

• Energy & Utilities (5-10%)

• Infrastructure (5-10%)

• Others (15-20%)

3.2 Debt Investments

Fixed Deposits

• Guaranteed returns

• Low risk

• Suitable for emergency funds

Government Securities

• G-Secs और T-Bills

• Sovereign guarantee

• Various maturities available

Corporate Bonds

• Higher yields than G-Secs

• Credit risk assessment जरूरी

• Rating agencies की ratings check करें

3.3 Mutual Funds

Equity Mutual Funds

1. Large Cap Funds: Stable, lower risk

2. Mid Cap Funds: Moderate risk-return

3. Small Cap Funds: High risk-return

4. Multi Cap Funds: Diversified across market caps

5. Sectoral Funds: Specific sector focus

Debt Mutual Funds

1. Liquid Funds: Very low risk, high liquidity

2. Short Duration Funds: 1-3 years investment horizon

3. Medium Duration Funds: 3-4 years horizon

4. Long Duration Funds: Interest rate sensitive

Hybrid Funds

• Equity और debt का combination

• Balanced risk-return profile

• Professional management

3.4 Alternative Investments

Gold

• Portfolio का 5-10% allocation

• Inflation hedge

• Physical gold, Gold ETFs, Gold mutual funds

Real Estate

• REITs (Real Estate Investment Trusts)

• Direct property investment

• Long-term wealth creation

Commodities

• Commodity ETFs

• Futures और options

• Portfolio diversification

Module 4: Portfolio Construction Process

4.1 Step-by-Step Portfolio Building

Step 1: Emergency Fund

• 6-12 months का monthly expense

• Liquid funds या savings account में रखें

• Easily accessible होना चाहिए

Step 2: Insurance Coverage

• Term life insurance

• Health insurance

• Adequate coverage ensure करें

Step 3: Asset Allocation Decision

Sample Portfolio for 30-year-old:

- Equity: 70%

  - Large Cap: 35%

  - Mid Cap: 20%

  - Small Cap: 10%

  - International: 5%

- Debt: 25%

  - Fixed Deposits: 10%

  - Debt Mutual Funds: 15%

- Gold: 5%

Step 4: Security Selection

Equity Stock Selection Criteria

• Strong fundamentals

• Consistent earnings growth

• Good management quality

• Reasonable valuation

• Strong competitive position

Mutual Fund Selection

• Fund manager track record

• Expense ratio

• Consistency in performance

• Investment philosophy

• AUM size

4.2 Diversification Strategies

Geographic Diversification

• Domestic investments (80-90%)

• International investments (10-20%)

• Emerging markets exposure

Sector Diversification

• No single sector > 25%

• Cyclical और defensive sectors का mix

• Growth और value stocks का balance

Market Cap Diversification

• Large, mid, और small cap का proper mix

• Market conditions के according adjustment

Module 5: Risk Management

5.1 Risk Types

Systematic Risk

• Market risk

• Interest rate risk

• Inflation risk

• Currency risk

Unsystematic Risk

• Company-specific risk

• Industry risk

• Management risk

• Operational risk

5.2 Risk Mitigation Techniques

Diversification

• Asset class diversification

• Sector diversification

• Geographic diversification

• Time diversification (SIP)

Position Sizing

• No single stock > 10% portfolio

• Sector allocation limits

• Risk-based position sizing

Stop Loss Strategy

• Individual stock stop loss

• Portfolio level stop loss

• Trailing stop loss technique

5.3 Portfolio Protection Strategies

Hedging

• Options strategies

• Index futures

• Currency hedging for international investments

Rebalancing

• Regular portfolio review

• Asset allocation maintenance

• Profit booking और loss cutting

Module 6: Investment Strategies

6.1 Value Investing

Benjamin Graham Principles

• Intrinsic value calculation

• Margin of safety

• Financial strength analysis

• Long-term perspective

Value Stock Characteristics

• Low P/E ratio

• Low P/B ratio

• High dividend yield

• Strong balance sheet

6.2 Growth Investing

Growth Stock Features

• High earnings growth

• Revenue growth consistency

• Market leadership

• Innovation capability

Growth Investment Approach

• Higher valuations acceptable

• Focus on future potential

• Technology और emerging sectors

6.3 Dividend Investing

Dividend-focused Strategy

• Consistent dividend paying companies

• Dividend yield analysis

• Dividend growth rate

• Payout ratio sustainability

Dividend Portfolio Benefits

• Regular income generation

• Lower volatility

• Inflation protection

• Tax advantages

6.4 Index Investing

Passive Investment Approach

• Market index tracking

• Low cost investing

• Broad market exposure

• Consistent returns

Index Fund Selection

• Tracking error analysis

• Expense ratio comparison

• Liquidity consideration

• Fund house reputation

Module 7: Portfolio Monitoring और Review

7.1 Performance Measurement

Return Calculation

• Absolute returns

• Annualized returns

• Risk-adjusted returns (Sharpe ratio)

• Benchmark comparison

Portfolio Analytics

• Asset allocation drift

• Sector concentration

• Risk metrics analysis

• Correlation analysis

7.2 Rebalancing Process

When to Rebalance

• Asset allocation deviation > 5%

• Quarterly/half-yearly review

• Major market movements

• Goal timeline changes

Rebalancing Methods

• Calendar-based rebalancing

• Threshold-based rebalancing

• Combination approach

• Tax-efficient rebalancing

7.3 Portfolio Review Checklist

Monthly Review

• Portfolio value tracking

• Individual stock performance

• Market developments impact

• News और events analysis

Quarterly Review

• Asset allocation check

• Rebalancing requirements

• Performance vs benchmark

• Goal progress assessment

Annual Review

• Complete portfolio overhaul

• Strategy effectiveness

• Goal adjustments

• Tax planning

Module 8: Tax Planning और Optimization

8.1 Tax-efficient Investing

LTCG vs STCG

• Long-term capital gains (>1 year): 10% tax

• Short-term capital gains: 15% tax

• Equity mutual funds: Similar taxation

Tax-saving Investments

• ELSS mutual funds (80C)

• PPF (80C)

• NSC (80C)

• Tax-saving FDs (80C)

8.2 Tax Loss Harvesting

Strategy Implementation

• Book losses to offset gains

• Avoid wash sale rules

• Portfolio tax efficiency

• Year-end tax planning

8.3 Investment Structures

Direct vs Regular Plans

• Direct plans: Lower expense ratio

• Regular plans: Distributor commission

• Cost impact analysis

• Platform selection

Module 9: Common Mistakes और Best Practices

9.1 Portfolio Building Mistakes

Over-diversification

• Too many stocks/funds

• Overlapping investments

• Management complexity

• Returns dilution

Under-diversification

• Concentrated positions

• Sector concentration

• Single stock dependency

• High risk exposure

Timing Mistakes

• Market timing attempts

• Emotional decisions

• Panic selling/buying

• FOMO investing

9.2 Best Practices

Systematic Approach

• SIP investments

• Regular monitoring

• Disciplined rebalancing

• Long-term perspective

Research और Due Diligence

• Fundamental analysis

• Company research

• Fund analysis

• Market understanding

Risk Management

• Position sizing discipline

• Stop loss implementation

• Portfolio insurance

• Emergency fund maintenance

Module 10: Advanced Portfolio Strategies

10.1 Core-Satellite Approach

Core Holdings (70-80%)

• Index funds/ETFs

• Blue-chip stocks

• Stable mutual funds

• Low-cost investments

Satellite Holdings (20-30%)

• Sector bets

• Small cap stocks

• Thematic investments

• International exposure

10.2 Factor-based Investing

Factor Categories

• Value factor

• Growth factor

• Quality factor

• Low volatility factor

• Momentum factor

Multi-factor Approach

• Factor combination

• Risk-return optimization

• Factor timing

• Portfolio construction

10.3 Dynamic Asset Allocation

Market Conditions Based

• Bull market strategy

• Bear market strategy

• Sideways market approach

• Volatility-based allocation

Tactical Asset Allocation

• Short-term adjustments

• Market opportunities

• Risk management

• Return enhancement

Module 11: Tools और Resources

11.1 Portfolio Tracking Tools

Online Platforms

• Mutual fund websites

• Broker platforms

• Investment apps

• Portfolio trackers

Spreadsheet Templates

• Asset allocation tracker

• Performance calculator

• Rebalancing tool

• Goal tracker

11.2 Research Resources

Financial Websites

• Company annual reports

• Mutual fund factsheets

• Market research reports

• Economic indicators

Analysis Tools

• Stock screeners

• Mutual fund analyzers

• Portfolio analyzers

• Risk calculators

11.3 Professional Help

When to Seek Advice

• Complex financial situations

• Large portfolio sizes

• Tax complications

• Specialized strategies

Advisor Selection

• Credentials verification

• Fee structure understanding

• Service offerings

• Track record analysis

Module 12: Case Studies और Examples

12.1 Sample Portfolios

Conservative Portfolio (Age 50+)

Emergency Fund: ₹5 lakhs (Liquid funds)

Equity: 40% (₹8 lakhs)

- Large Cap Mutual Funds: 25%

- Dividend Yield Funds: 15%

Debt: 55% (₹11 lakhs)

- PPF: 20%

- Debt Mutual Funds: 25%

- Fixed Deposits: 10%

Gold: 5% (₹1 lakh)

Total Portfolio: ₹20 lakhs

Aggressive Portfolio (Age 25-35)

Emergency Fund: ₹3 lakhs

Equity: 75% (₹15 lakhs)

- Large Cap: 30%

- Mid Cap: 25%

- Small Cap: 15%

- International: 5%

Debt: 20% (₹4 lakhs)

- ELSS: 10%

- Debt Funds: 10%

Gold: 5% (₹1 lakh)

Total Portfolio: ₹20 lakhs

12.2 Goal-based Planning

Retirement Planning (Age 30, Goal: ₹5 crores in 30 years)

• Monthly SIP: ₹25,000

• Asset allocation: 80% equity, 20% debt

• Expected returns: 12% annually

• Review every 5 years

Children's Education (Age 35, Goal: ₹50 lakhs in 15 years)

• Monthly SIP: ₹15,000

• Asset allocation: 70% equity, 30% debt

• Step-up SIP: 10% annually

• Debt allocation increase closer to goal