how to make a good stock portfolio

make a good portfolio is one that keeps your money safe in the market in any way and helps you in the long term while keeping your portfolio always in the green. To create such a portfolio, you should mostly invest your money in large-cap stocks.

Define your goals

First, you should determine your purpose, and based on that, you can start your investing. For example, if you want to create your portfolio for retirement so that you don’t face any financial difficulties after retiring, you can create your portfolio in this way.

• How much monthly profit do you want from stock market? 20/25/30/40/50/ Your goal can be anything with these money
• How much long-term wealth can you create, 20 lakh, 40 lakh or 1 crore
• How much risk can you take during this entire investing period
• Have you kept any emergency fund for yourself or your family or not because if someone in your family faces any health issue, do you have an emergency fund for that or not

Because your luck is to have financial freedom after retirement, that is why you will also create a stock portfolio for yourself which can be known as how to make a good stock portfolio

You can divide your portfolio into 3 parts

A good stock portfolio consists of three types of stocks

• high dividend yield stocks which can become a good passive source of income for you like coal India, power grid corporation, Gail India, tata steel, rec limited,bpcl itc limited infosys, ongc all these companies have strong cash flow due to which they give you dividend yield of up to 5/9% yearly
• If you invest the money received as dividend and continue this cycle, then it is possible that in 7/10 years you may get the same amount of money per month as you had invested in the first time.

Wealth creation stocks 25/30%

To build long term wealth, you should buy some such stocks which grow by 25/30% annually i.e. the stocks which are traded the whole year, it never happens in their business that they make profit only in one quarter and incur loss in the remaining quarters, for example

• tata motor, tata power, itc limited,hal,Adani green, Adani port,
• This gives strong support to your portfolio. Even if you get less dividend in any quarter, you can get help how to make a good stock portfolio growth stock.

Make a good portfolio If we look at Tata Motors, it has given a return of 1200 times from 2019 until today, which no other large-cap stock has provided. The stock’s high is 1180, it is currently around 650. However, Tata Motors was at 90 rupees 5 years ago in March 2019, and since then it has provided returns till 2025. Tata Motors holds 70 percent of the EV sector share.

Some major points tata motor

• Tata Motors is a company of the Tata Group and is a debt-free company, which is quite significant for a large-cap company. If you look at any other similarly large company in the market, it is certain that it will have some level of debt.
• Tata Motors’ business is quite strong not only in India but also in foreign markets, and its main profit comes from cars like Land Rover and Jaguar.
• Tata Motors’ business is quite strong not only in India but also in foreign markets, and its main profit comes from cars like Land Rover and Jaguar.
• Tata Motors is the leading vehicle company in India, and if companies like Tesla plan to launch in India in the future, it is possible that Tata Motors could collaborate with them, and Tata Motors can also generate better returns for its investors from this.

Tata power

• Tata Power is a leader in the power sector in India.
• Tata Power is the leader in installing solar systems, having set up the most charging stations in India so far.
• In India, many predictions regarding pollution are being made as time progresses, and there is also a shortage of electricity. If we look at the coastal power aspect, they have many projects underway for which they are already working on coastal power, and their order book is quite strong even now. You can get an idea of this from the track record of the last 5 years.

Itc limited

Some major points

• ITC is an FMCG company whose business is well established not only in India but also in other countries, resulting in minimal gaps in its demand and supply, and it continuously remains profitable.
• ITC Limited’s dividend yield is very good; ITC has always provided its investors with good dividends and growth, which means you benefit from the price increase as well as receiving dividends twice a year.
• They operate in the Multiple sectors in areas like copy, pen, pencil, juice, farmer, bakery etc., and at the same time, they have a 50% monopoly on cigarettes and tobacco.
• Some time ago, ITC also demerged its hotel business, which is expected to bring substantial profit in the future. Recently, ITC gave one share of ITC Hotels to those who held ITC shares.

defensive and safety stocks 10/20%

• Larsen and Toubro, Bharti Airtel, Tech Mahindra, Sun Pharma this type of stock write example how to make a good portfolio.
• Although all these stocks provide lower dividends, their growth is faster compared to growth dividend stocks, which is why they can also be included make a good portfolio.
• When the stock market falls, these stocks suffer less loss because their business model is very good, and their demand and supply remain consistently maintained. However, when the market recovers, they recover quite quickly along with the market, so you can also include these stocks in the category of how to make a good stock portfolio.

Sector allocation strategy

Power sector

• Power and energy sector how to make a good stock portfolio with example: Tata Power, NTPC, NHPC, Power Grid Corporation, these are some small, mid, and large cap companies. If you are thinking about investing in the power sector, make a good portfolio
• you can create a good portfolio by checking all the fundamentals based on your goals and time period, make a good portfolio and some of these stocks also fall under PSU and Navratan stock categories. Among these, Tata Power is an old and the most trustworthy company in the private sector of the Tata Group and the rest are government companies.

Banking & NBFC

Make a good portfolio in banking, there is hardly any bank that gives a very high dividend, and you rarely see growth of 25/30%. But one thing is certain that if there is growth in India, then we can also see good growth in the banking sector.

Therefore, if you want make a good portfolio, you can look at small cap banks for the long term, or for a moderate time, you can consider mid cap banks like PNB, IDFC, IOB, SBI, ICICI, HDFC, and try to make a good Portfolio

Medical and pharma sector

You may find many options for investing in the medical sector. If you invest in any type of small, mid, or large-cap company, you are likely to gain benefits in the long run because not just in India, make a good portfolio but worldwide, medical inflation tends to increase by approximately 10 to 14% every year. Therefore, you can invest in any established company that has some patented formula and a strong market presence.

We are suggesting make a good portfolio a few companies that have provided good returns in the market over the past several years: Cipla, Aurobindo Pharma, or you can also consider Sun Pharma, which is one of the top companies in Nifty 50.

IT and technology sector

If you want to invest in a company with good technology, you should look for ones that are part of a strong group because their business spreads not only in India but also in foreign countries. If a company faces any issues in its business abroad, it can lead to losses. Keeping all these things in mind, we are suggesting some names of companies that make a good portfolio.

• Tech Mahindra: is a company of Mahindra and Group, and the company has a good and fast business model for 5G networks. make a good portfolio Additionally, it is a mid-cap company that has the potential to become a large-cap company in the long term.
• The company’s dividend yield is also quite good, indicating that the company is profitable, and if you check the track record of the last 5 years, it is quite impressive, which is why you can keep this company on your watch list.
• Wipro: make a good portfolio second option we can look at my app iPro which is Azim Premji’s company, and it has provided substantial multi-bagger returns so far. If someone had invested 10,000 in this company’s IPO, today their total value along with dividends would exceed 500 crores. So, you can understand how much potential there is in the company
• Infosys: if we talk about Infosys, it is a leader in the IT and technology sector and usually gives dividends 2 to 3 times a year. If you want dividend income along with growth, you can also include Infosys in your list and buy it when you find it right to make a good portfolio.
• HCL Technology: at HCL Technology, if you want to take a company whose business is growing a lot and is also quite old, you can keep HCL Technology on your list. Its dividend is quite good as well. HCL’s business is in 20 countries, which indicates that the chances of loss in the company are very low, and for making a good portfolio, it can be an ideal company in the IT and technology sector.
• TCS:TCS Tata Consultancy, which is a company of Tata Group and a leader in the IT sector, has a market cap of approximately 12 lakh crores. However, there is a problem with TCS that it is a very large company and the chance of it becoming a multi-bagger in the future is very low. If you want to invest your money in it for safety purposes, you can, there is no problem in that.

infrastructure

In the infrastructure sector, you do not need to search for companies because in this sector, only a few companies receive most of the growth which the public or government trusts. This is because these companies mostly work for the public, like building bridges, if a company works poorly, it can endanger lives. Therefore, only some old and trustworthy companies can progress in this sector.

The largest company is Larsen & Toubro, which is part of Nifty 50, and generally handles most of the infrastructure work. Its order book is also quite strong and has provided good returns over a long time. If you want to invest in infrastructure considering India’s growth, you can certainly include it in your list make a good portfolio

How to select good stock

How understand business model

Check what work the company has been doing in the last 5 years; if it has returned, then look at the company’s order book, which is easily available in the news nowadays regarding how many new orders the company is receiving. So, you can open your demat account to see all that information. You also need to see if the company is working on a regular business model or a cyclical model, as is often the case in the steel sector. How to make a good portfolio; keep these points in mind.

Check the company’s financials.

• Check the company’s ROE
• . The company’s dividend yield is between 5 to 10 percent.
• The company may be giving dividends.
• The company has been in profit for the last one year.
• check company permoter holdings make a good portfolio

check the company’s dividend history

In the last 5 years, the company has given a dividend, as mentioned for some companies like Tata Steel, Gail India, ongc, bpcl, and vst Industries. If you look at the dividend yield for the last 5 years for all of these, you will find it between 50 to 100 rupees, which is a good dividend yield.

Valuations matters

• if make a good portfolio If a stock seems expensive to you, you need to check it in the market. If the stock appears to be valued more than the industries in the market, you should buy the stock only after it comes to its fair value.
• If you feel that you need to take a stock, some stocks always trade above their fair value. For example, Nestle is usually always above its fair value, so you can also buy such stocks through SIP anytime. Never invest more than 2 percent of your total portfolio in any stock.

Review the portfolio at the right time.

• At one point, you should specify when you can check your portfolio after a continuous period to make a good portfolio.
• If you have checked your company twice and the stock is continuously going down, then you should exit it. And if you are buying any stock for dividends, you should think about averaging down when it goes low.
• make a good portfolio make a good portfolio You can hold stocks that give good dividends to maintain your lifestyle.

Think long term and be patient.

• You should hold some dividend stocks up to 50%.
• Yearly portfolio growth approx. 20 to 25%
• Risk management
• You should always have money to average.

If you want to make a good portfolio, the four points mentioned here, if you can follow them for a lifetime, then you can assume that after 3 years of investing in stocks, your portfolio will almost never be in the red, you will always be in profit and will be able to maintain a good lifestyle.

conclusion

• So far, how to make a good portfolio we have told you about many things through which you can manage your portfolio well and maintain your profit and lifestyle going forward.
• You have to maintain a good balance of portfolio dividends and growth.
• You need to maintain a long-term investment perspective so that you can benefit from compounding and create wealth in your life.
• Whenever you want to buy a stock in the market, you should research it thoroughly first, comparing its fair value with the market price before making a purchase.
• how to make a good portfolio You have to check your portfolio in 3 to 6 months.
• If you want to become financially free quickly, you need to reinvest your dividends.
• You should keep your how to make a good portfolio diversified so that your risk can be minimized, but do not diversify too much that it affects your profit negatively.

Disclaimer

All the statements made here are solely for informational purposes; consult your financial advisor before making any kind of investment.