Investing in stock market is indeed a very difficult task. Most of the investors are unable to beat market returns because they invest in those sectors which are still emerging.

Today mutual funds are much stronger than the previous year and their growing AUM (asset under management) says it all.

As per Apr 2018, the total category wise AUM of MF industry increased by 20% to an Rs. 23.25 Lakh Cr YoY basis.

On equity mutual fund front, AUM increased by 41.5% to Rs 7.14 Lakh Cr YoY basis.

With the start of the financial year  2018, a lot of mutual funds housed are betting big under these sectors. There is no doubt that these sectors will create enormous wealth for their investors.

Sectors in Action for Financial Year 2018-19

 

An investor could look over those stocks where fund houses are adding fresh positions. I have created a model portfolio based on the companies where mutual funds have a good amount of existing holding. I have also added few companies where they are adding fresh positions.

I understand following mutual fund completely is not good as we never know when they will exit. But if we look at overall money flow in the industry then we can get a fair idea of upcoming wealth creators.

Considering present market situation it is not advisable to invest your whole capital. Therefore while investing in any of the portfolios, it is recommended that invest only 55% of total capital. Invest rest of capital when any stock drop around 10%.

Invest around 25% of the total invested amount on every 10 % drop in prices of the stock.

Excel link for the portfolio.

BlueChip Portfolio

 

 

MidCap Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

Source

IDBI Capital Mutual fund monthly report

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