Portfolio Management – How to Allocate Money?

This strategy is to clear the Subscriber doubts on Portfolio Management.

PORTFOLIO MANAGEMENT IS IMPORTANT!

As said before Portfolio Management is equally Important as Multibaggers & One should do the following:

  • Put only 70% Capital in Stocks
  • Keep aside 30% as Cash Fund for Bear Market Investment – This will zoom you Portfolio Returns!
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Above is Extract from Futurecaps Master Mind Training

2 TYPES OF CAPITAL

Investor often comes with 2 Types of Capital:

  • INITIAL CAPITAL let us say you are starting with 5 Lakh
  • ONGOING CAPITAL let us say you can yearly invest 5 Lakh = Approx 40K per month

HOW TO ALLOCATE MONEY IF YOU ARE MULTIBAGGER SUBSCRIBER?

INITIAL CAPITAL you can keep the Cash Fund as 2 Lakhs & Invest the 3 Lakhs in Current Multibaggers which are in Recommended Price range.

ONGOING CAPITAL you can fully Invest the 40K every month on recommended stocks every month until the Per Stock Limit reached.

PER STOCK LIMIT if you plan to keep a Portfolio Capital of 10 Lakh with 10 Stocks then 1 Lakh is your Per Stock Limit. In the next year if your Portfolio Capital increased to 15 Lakh then 1.5 Lakh is your Per Stock Limit.

WHAT TO DO ON BEAR MARKET let us assume a bear market hit & your portfolio crashed 30% while the stock have still growth intact. In this case you can Spread the 30% Cash Fund across all stocks equally. Now the Per Stock Limit increased to 1.7 Lakh Per Stock Limit.

HOW TO ALLOCATE MONEY IF YOU ARE HIDDEN GEMS SUBSCRIBER?

If you are Hidden Gems Subscriber the Preferred Allocation is 30% of your Stock Capital.

If you are Both Multibagger & Hidden Gems Subscriber then you need to have 2 Portfolios. Let us see the Allocation of 2 Portfolios & Cash Funds for above scenario:

INITIAL CAPITAL you can keep the Cash Fund as 2 Lakhs

  • Invest 2 Lakh in Multibagger Plan
  • Invest 1 Lakh in Hidden Gems Plan

ONGOING CAPITAL you can fully Invest the 40K every month as:

  • 30K in Multibagger Plan
  • 10K in Hidden Gems Plan

SUMMARY

Portfolio Management is an Essential Skill to become Rich. You can follow the above Strategies & for Advanced Learning choose the Master Mind Plan. You will Learn how much of your Net Worth to be Invested in Stock Market to become Rich in the classes.

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