So recently, I inherited a portfolio, worth 40 lakhs as of today, and I think it is not well diversified! The majority of the portfolio consists of hydropower companies(Upper, HIDCL, RHPL, SJCL, CHCL)- around 80% and 15% in Commercial banks (GBIME, SBI, NBB, KBL, MEGA, SRBL). So, I want to diversify the portfolio a bit inorder to spread and average out sector specific risk! But I’m new to the Nepalese Market and don’t want to diversify for the sake of diversifying! My question to you guys is- How would you guys go on about optimizing this portfolio? Which stocks should I sell? Suggest some scrips!! Thansk!!

More at: r/NepalStock by acruelcashflow

9 comments
  1. All good ideas here. However, I would advise against completely selling off every scrip since all of them are in their lowest support points. You never know when a small whiff of information breaks out in the market and a particular stock jumps 5x.

    Personally, I would sell around 30-40% of every scrip you have. You’ll get around 15-16 lakhs. Use this money to buy strong companies others have mentioned in sectors other than Commercial Banks and Hydros.

    I would wait for a few days before selling the 30-40% portion tho. Continue following the scrips you have and if any of them hit positive circuit, sell them.

    Edit:

    Obligatory *~Not an investment advice*

  2. First u have to find out who u are trader or investor then u should do it in ur own way.
    If it was me i will sell most of the bad fundamental companies and hold cash or buy debenture because i guess some of the debenture is trading below their facevalue(or trading very cheap currently) which will rise when stock falls and i will wait for favorable time to buy good company at cheap price.

  3. Its really a bad portfolio with 40 lakhs you can make a healthy portfolio with mix of companies like nil,licn.nica,pcbl,mnbbl.gbbl,bnt,shivm,cit,nrn,unl,fowad,nubl,cbbl,jblb,mlbsl . This portfolio will outperform market in long term and my target is two or three companies will give at least 5x in next 5yrs. You can buy and forget these stock even in bear market.

  4. I would sell Upper, HIDCL, RHPL and SJCL, keep CHCL and the rest. That’s more than enough of diversification as far as I can tell for a beginner.

    When you have some knowledge, sell some banks and buy insurances. Hold long and sleep soundly.

  5. Buy manufacturing and processing, Investments, Dev banks and Micro Finance too if u want to diversify your stocks. Hydropower and commercials banks are two stocks

  6. Go for actual good stocks with good ROE and PE. If you want to go long term look for stocks like UNL. If you are looking for short term look for finance and development bank also laghubitta and manufacturing ones.

    One Genuine Advice: Do your own research before hitting buy button on TMS.

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