Model portfolio - compounders

weekly performance report - compounders #12

Investment talk

A model portfolio contains large and midcap cap stocks whose growth is higher and more consistent return in equity. Compounders are companies that can compound shareholders’ value over the long run. The model portfolio invests in stocks listed in NSE500 and newly listed IPO.

Weekly report will come in tag name - weekly performance report - compounders#xx

Rebalancing report will come in tag name - Rebalancing portfolio - compounders#xx

Overall performance :

Model portfolio - compounders have performed equally/marginally better than the Nifty 50 index for the year 2022 - (JAN 2022 to till date 20th March 2022).

Model portfolio - compounders created on 23th Jan 2022 and invested the same on 24th Jan 2022 in the virtual portfolio for tracking of returns.

From 24th Jan to till date 20th March 2022 - Nifty 50 has given a return of (-1.39%) and Model portfolio return of ( -1.11 %).

Weekly return :

Please refer to the below report for the weekly performance and the Latest news/update in companies invested in the Model portfolio - compounders.

Model portfolio - compounders - 1 week returns (2.62%) comparing to Nifty 50 index (3.95%).

Market correction:

In 1 Month period portfolio performed well - returns (-0.54%) compared to nifty 50 returns (0.06%) , even the Nifty 50 index was corrected ( - 9.63% ) from 17350 to 15670 between 21st Feb 2022 to 08 March 2022, recovered to 17343 from 9th March 2022 to 17th March 2022.

Notional loss - Unrealized Investment Portion

Due to PAYTM share fallen 42% from 1st Feb to 20th March 2022, It contributed a notional loss of Rs. 1605. Overall Loss of portfolio was Rs. 1661.40

So in an overall portfolio notional loss of Rs.1661.40, Paytm share notional Loss itself contributed 96% to the overall portfolio unrealized profit.

In the future if Paytm share start performing well, Model portfolio - compounded may give a higher return than the Nifty 50 index or if Paytm share underperformance counties we will try to buy some more shares of Paytm for long term 2 to 3 years.

Paytm share currently trading at discount to the listed price and also as per the business model of Paytm in financial services it can soon become profitable. If this happens in 2 to 3 years’ time, then the share price may trade above the listed price of Rs. 1950.00

So invested price in the compounded model portfolio at Rs.918. it can give 100 % returns in 2 to 3 years’ time.

Latest news/update in companies invested in the Model portfolio - compounders.

Cash flow statement:

Model portfolio - compounder ( 06th March to 20th Mar 2022) - NILL

The above model portfolio was created on 23th Jan 2022, It contains 16 equity stocks and 1 debit ETF.

16 stocks are in large and midcap companies, whose growth is higher and more consistent return in equity. Companies that can compound shareholders’ value over the long run.

1 debit ETF - Nippon liquid bees - Liquid funds invest in bonds having a maturity of up to three months. They are suitable to park the amount you have set aside to meet any emergency needs or any surplus money that you don't need for a few weeks up to a year. You can expect to earn better returns than what you would get from a bank account.

Model portfolio has 16.20 % allocated to cash - 1 debit ETF - Nippon liquid bees, IF market corrects further this quarter Q12022, those cash allocation will be utilized to buy more shares of existing companies in a model portfolio or new opportunities comes in the market ( eg: newly listed IPO, where growth is high . NSE may come up with IPO and list in exchange this year 2022)

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