It has been almost three months and now we are officially in the 2017 – 18 financial year. In the context of the returns, 2016 – 17 was the fantastic year with Nifty reporting 17% return and Nifty 500 reporting 37% (13 months from 11th Feb 2016 – 31st March 2017).

If your portfolio had given negative returns, my advice will be to reassess your portfolio and might require massive clean-up and rebalance it. Looking it through our perspective, the performing businesses for the past year were not the one we like (quality business) but all the businesses involved with commodity. That does not bother us much as long as the fundamentals of those businesses had not changed. We do not invest looking at where the market is heading and our goal is to fetch average returns of 20% per anum.

If you follow value investing approach like us, you must be aware that one of negativity of this approach is that you will be out of the market first. This impacts negatively to your overall returns but also creates opportunity to get back into the market at attractive prices.

Here is how our three portfolios managed to do in the past year.

Portfolio 1

Name Quantity Purchase Price Current Price Total money invested Current position Standing
Axis Bank 511 INR 391.10 INR 490.80 INR 199,852.10 INR 250,798.80 25.49%
Kitex garment 552 INR 430.10 INR 427.20 INR 237,415.20 INR 235,814.40 -0.67%
Castrol 533 INR 375.00 INR 432.40 INR 199,875.00 INR 230,469.20 15.31%
TCS 90 INR 2,226.60 INR 2,431.80 INR 200,394.00 INR 218,862.00 9.22%
coal India 660 INR 302.85 INR 292.65 INR 199,881.00 INR 193,149.00 -3.37%
cash INR 34,543.30
Total INR 999,997.10 INR 1,163,636.70 16.36%
NSE 500 INR 5,833.40 INR 7,995.05 37.06%

 

Portfolio 2

Name Quantity Purchase Price Current Price Total money invested Current position Standing
Axis Bank 515 INR 428.38 INR 490.80 INR 220,615.70 INR 252,762.00 14.57%
Kitex Garment 485 INR 430.10 INR 427.20 INR 208,598.50 INR 207,192.00 -0.67%
Indiabulls housing 298 INR 686.44 INR 997.75 INR 204,559.12 INR 297,329.50 45.35%
TCS 105 INR 2,316.45 INR 2,431.80 INR 243,227.25 INR 255,339.00 4.98%
coal India 773 INR 306.24 INR 292.65 INR 236,723.52 INR 226,218.45 -4.44%
cash INR 23,908.85
Total INR 999,997.10 INR 1,262,749.80 26.28%
NSE 500 INR 5,833.40 INR 7,995.05 37.06%

 

Portfolio 3

Name Quantity Purchase Price Current Price Total money invested Current Position Standing
Axis Bank 470 INR 432.99 INR 490.80 INR 203,505.30 INR 230,676.00 13.35%
Indiabulls housing Finance 324 INR 683.24 INR 997.75 INR 221,369.76 INR 323,271.00 46.03%
Coal India 704 INR 305.55 INR 292.65 INR 215,107.20 INR 206,025.60 -4.22%
TCS 89 INR 2,320.04 INR 2,431.80 INR 206,483.56 INR 216,430.20 4.82%
Kitex Garment 521 INR 410.20 INR 427.20 INR 213,714.20 INR 222,571.20 4.14%
cash INR 21,076.50
Total INR 999,997.10 INR 1,220,050.50 22.01%
NSE 500 INR 5,833.40 INR 7,995.05 37.06%

 

We will continue this exercise for this financial year. But instead of three portfolios we will follow only one portfolio. Portfolio 2 had given the best results so we will liquidate that and rebalance our portfolio with the best 5 picks for this financial year.

Stay tuned and we will share our top picks for this financial year in the third week of this month.

Aziz Dodhiya is the chief investment officer for the Valueoperations funds which operates in the Indian market as an FPI (Foreign Portfolio Investor). We do not offer any personal advice to buy or sell any stocks and the views that are shared by Aziz might not incline to your personal investment strategy and this is the reason we tell you to take professional advice before going ahead with our views.