Say the stocks in your long-term portfolio no longer holds relevance in 2026 and beyond and are not at a loss, should one think about portfolio re-balance?
Would it make more sense to make use of the current market downtrend to pivot towards sectors or industries that have become more promising or aligned with future trends?
Is now the right moment to change your investments?
Is your portfolio ready for the future, or is it stuck in the past?
Makes sense, but you should be very sure that by doing the rebalancing you are materially benefiting, example you are getting out of a stock and use the proceeds into something else which is better performing. Remember, when i started, it was only PSU stocks as my fear was companies should not collapse, then realisation over time came that private sector same industry stocks do much better, now I have none of PSU except SBI. So u need to be very sure if the rebalance is good for your portfolio and not doing just because there is a noise around. Just curious, what was your position when the index hit 26,000. would you have done the reblancing then. Food for thought.
To the best of my knowledge even the best of experts cannot guess this. The only way to offset this aspect is invest in a mutual fund where the expert managers may keep changing based on trends and times and I am sure they will know better than individual investor in individual stocks.
Think of when you bought a share. What was the logic in buying at that time, What went wrong now and why is it is necessary that you need to sell it now. Maybe these questions will help. I am talking only about direct investment in shares and not investments in mutual fund or etfs.
I have yes bank shares. during the peak of yes bank crisis, it fell to less than 8 if i remember right. If I had sold, i would have got a very small amount which was not relevant even to me. So I decided to hold it, wrote off the investment in my books but I still hold the shares.
Personal view could be totally wrong.
Most of them were doing well, with gains of 60-100% when markets hit a new high in the third quarter of 2024. Then, when FII’s began to pull their money out of India, the stocks stopped rising. They lost value day after day.
Sometimes, a stock would go up 8-10% in a day, giving hope to hold on. But the next days, it would lose another 20%, gradually dropping more each day. Many are now down by 40-60%.
At this rate, I think it will take at least 1 or 2 years of a good bull-run to just break even. If I aggregate in batches and sell some of them now, I can cover my losses with others that have gained. Break-even and start fresh with business that are relevant in 2026 and beyond.
The investment logic was mostly perfect in most cases, and the companies have earned many good returns on their profits, but those numbers do not show in their share prices.
Profits are appreciating but share price is depreciating.Inverse relation between performance of a company and its share price.
Over the last two years, I feel I have missed out on the chance to participate in these companies P&L gains, and with a drop of 40-60% in value, I believe it will take a long time before they can get back to their old level.
On the above context, I was curious if there are other investors using this downtrend to re-balance their investment ideas and conviction in the companies they have invested in.
funds like multi asset omni fof among others do a decent job actually. tactically I think its smart to allocate to such funds going forward.
like nippon’s 5Y cagr is close to 18%+, but irrespective of returns the concept itself is solid. Better than a Large-Midcap 250 or 500 because when markets fall these funds rotate into gold, silver or debt. And since everything is index based you still get that safety cushion. makes it easier for the fund manager too i guess
Portfolio should have all types of stocks unless you prefer thematic investing.
One up on wall street book has six distinct categories check it out.
Nothing wrong with having dividend stocks ITC/TCS/VEDANTA etc
Cyclical/ASSET plays stocks MGL/PETRONET LNG
Turnarounds KRBL ( I bought it as turnaround stock while LTFOODS zoomed)
We often have questions about position of a stock in portfolio when its in loss but we should question it when its in profit too.
I passed on beacon to fund managers but still do not trust them hence 70/30 portfolio.
PS: I am bored rn and not an investor but stock picking is sure a hobby.
is there any etf similar to the multi asset fund
there is no genuine multi asset ETF yet in the indian market. only MFs
there is this nifty AAA sdl 50:50 which blends like AAA corporate bonds with state dev. loans, so it mixes two types of debt inst. stil single asset class but the most blended debt etf here.
I am looking for something like NPS, equity: bonds: Govt Bonds. Dont like mutual fund, want etf.
why?
