Could you tell me the ideal stock quantity for me as I am investing 10k in each stock and I get minimum 30 percent return so I am not happy with reward. FYI my portfolio is of 5 Lacks investing since 2017.

Ans:

For long term, you can invest in stocks such as Kajaria Ceramics, Berger paints, Metropolis, M&M, Ashok Leyland, Britannia, V-guard, Polycab, Biocon and Birlasoft.

Ans: It also depends on the investment corpus. However, 5-10 stocks are good to begin with.

Ans: SIP #stocks for 10 to 15 year horizon:

Bank: Kotak
Home Fin: HDFC Ltd
InfoTech : TCS
NBFC: Bajaj Fin
FMCG: Nestle
Paints: Asian Paints
Retail: D-Mart
Chem: SRF
Engg: Honeywell
Jewellery: Titan
Pharma: Divis
Hospitals : HCG
Agrochem: PI Ind
Motors: Tata Mot

Disclaimer: Views expressed here are for your understanding and analysis. pl speak to your financial advisor before taking any decision.

Ans: achieving a target of 30 crores in 20 years is an ambitious goal that requires a thoughtful strategy. While it's tempting to focus solely on the numbers, remember to consider the journey of investing. Reflect on what this goal means to you and the life you envision for yourself and your loved ones.

Considering the long horizon, a disciplined approach to monthly investments can make a significant difference. It's not just about the amount but also about staying committed to your financial journey through market ups and downs.

Diversification across various asset classes can provide a balance between growth potential and risk mitigation. While equities often offer higher returns over the long term, don't underestimate the importance of having a well-rounded portfolio.

Lastly, investing is not just about chasing numbers. It's a tool to help you realize your dreams, aspirations, and the life you've imagined for yourself. So, as you embark on this journey, remember to enjoy the process and appreciate the milestones along the way.

Ans: You are 46 and already doing mutual fund SIPs. That is a very good sign. You have exposure across large, mid, small and hybrid categories. Your investment style shows long-term focus. Now, you wish to start stock investing. That is natural when you gain confidence.

Let’s explore this next step properly. We'll do this in a simple, complete, and professional manner.

Understanding Your Current Portfolio
You are already doing a few right things:

Ongoing SIPs in 5 mutual funds.

You hold across large, mid, small and hybrid.

Holding since 3 to 4 years.

Equal allocation among all caps.

Clear long-term view for mutual funds.

That is a solid base. Now you want to step into direct stocks. You want to start small, which is wise.

Basics of Direct Stock Investing
Investing in stocks is very different from mutual funds.

In mutual funds, fund manager takes decisions.

In stocks, you take full control.

So risk is higher in direct stocks.

Returns can be higher or lower depending on skill.

Start small. Gain understanding. Then increase investment.

You mentioned using Groww app. That is fine for execution. But don’t rely on it for stock selection.

How Many Stocks You Should Own
You plan to begin with Rs 5,000 to Rs 10,000. That is fine.

Start with a small basket of 4 to 6 stocks. Keep it simple.

Why only few?

Easy to track.

Easy to learn from.

Avoids over-diversification.

Quality matters more than quantity.

As you increase money later, you may go up to 10 stocks. No need to hold more.

Holding too many stocks creates confusion.

What Kind of Stocks You Should Choose
Just like mutual funds are divided by cap, so are stocks.

Here is how you can structure your stock basket:

Large Cap Stocks:

These are big and stable companies.

Less volatile. Safe for beginners.

Should be 50% of your stock portion.

Mid Cap Stocks:

Medium-sized companies.

More risk, more growth potential.

Keep 30% here.

Small Cap Stocks:

Very volatile. Sharp ups and downs.

Needs high patience and long horizon.

Keep 20% max in these stocks.

Use the same cap-mix thinking as your mutual funds. That keeps your approach uniform.

Also include companies you understand. Don’t chase random names.

Time Horizon for Stocks
Mutual funds are meant for long-term. You already follow that.

Same rule applies for stocks.

Stocks give good returns only over long-term.

At least 5 to 7 years holding is needed.

Do not buy stocks for short-term gain.

Markets may test your patience.

If you redeem stocks too early, chances of loss increase.

So apply the same perception to stocks. Long-term thinking is a must.

SIP Style in Stocks
You asked if stocks can be topped-up like SIP. Yes, they can.

This is called Systematic Stock Investing.

You can invest fixed amount monthly in same stocks.

Benefits of this style:

Lowers average buying price over time.

Helps avoid timing mistakes.

Makes investing disciplined.

You can start with Rs 2000 in 4 stocks. Then add Rs 500 monthly in each. That’s also SIP.

What Stocks to Pick First
You asked for suggestions. As a Certified Financial Planner, I will guide you on structure.

But I will not mention stock names.

Instead, here is the type of stocks you should look for:

Large Cap Stock Type:

Well-known brands.

Consistent profit history.

High market share.

Low debt, steady dividends.

Mid Cap Stock Type:

Growing fast in their segment.

Expanding margins.

Efficient management.

Small Cap Stock Type:

Niche leaders.

Good earnings growth.

Less debt.

Start with sectors you know. For example:

FMCG

Pharma

IT

Banking

Avoid stocks just because they are trending on social media.

Also stay away from penny stocks. They look cheap, but carry hidden risks.

Mutual Funds vs Stocks: Understanding the Difference
You are already doing SIP in mutual funds. That will give stability to your portfolio.

So use stocks for:

Learning about business models.

Trying out your personal analysis.

Getting active with investments.

But always remember:

Mutual funds are managed by professionals.

Stocks are managed by you.

So mistakes in stock selection may hurt more.

Keep your fund SIPs going. Don’t stop them.

Don’t sell mutual funds just because you now hold stocks.

They both can go together.

Direct Mutual Funds vs Regular: Let’s Address This Now
You currently hold all mutual funds in direct plan.

This has hidden disadvantages:

No expert review of fund performance.

You won’t know when to exit or switch.

Risk of ignoring rebalancing.

No support during market crash.

Over time, this can reduce returns.

Instead, invest through Certified Financial Planner-backed MFDs using regular plans.

Benefits include:

Asset allocation monitoring.

Portfolio restructuring when needed.

Guidance based on your goals.

Handholding during volatility.

Direct funds save small cost, but may lead to big mistakes.

Regular plans, when done with a CFP-led MFD, protect your long-term wealth.

Other Important Points Before You Buy Stocks
Before buying stocks, please ensure these are in place:

Emergency fund of at least 6 months’ expense.

Health insurance for family.

Term insurance if husband is earning.

Do not invest in stocks if you don’t have these basics in place.

Also, don’t use borrowed money to buy stocks.

Keep emotions out of it. Be patient.

You Asked About Groww App: Some Guidance
Groww app is fine for placing trades.

But don’t expect it to guide your stock choices.

Apps show star ratings, but these are not based on your goals.

Always decide stock selection based on business fundamentals.

Not on app ranking or influencers’ videos.

If you are not confident, take help from a Certified Financial Planner.

They can help you align your portfolio with your needs.

Taxes on Stock Investments
If you sell stocks within 1 year:

Gains are called Short-Term Capital Gains.

Tax is 20% flat.

If you sell after 1 year:

Gains are Long-Term Capital Gains.

Tax is 12.5% if gains exceed Rs 1.25 lakh in a year.

So always plan to hold long. Avoid frequent buying and selling.

It also keeps tax lower.

Final Insights
You are already on the right path. Your mutual fund SIPs are structured well.

Now, you are taking the next step towards stocks. Do it with care.

Start with Rs 5,000 to Rs 10,000.

Pick 4 to 6 stocks maximum.

Use mix of large, mid and small caps.

Follow long-term view, like your mutual funds.

Consider SIP in stocks if comfortable.

Avoid direct funds. Shift to regular with MFD and CFP support.

Keep emotions away. Stay disciplined.

Mutual funds and stocks can go together. But stock investing needs time, study and patience.

Keep learning. Don’t rush.

Invest safe. Invest smart.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment