📊 Step-by-Step Investment Plan
1️⃣ Build Safety First (Low-Risk – 40–50% of capital)
Purpose: Capital protection + steady growth
- Index Funds / ETFs: Nifty 50 & Sensex.
- Blue-chip stocks: Reliance, TCS, Infosys, HDFC Bank, ICICI Bank, Asian Paints, etc.
- Government-backed instruments: PPF, NPS, Tax-saving bonds (optional for stability).
💡 Method: Use SIP (monthly investment) so you buy at all market levels and reduce risk.
2️⃣ Grow Consistently (Medium-Risk – 30–40% of capital)
Purpose: Better returns with moderate risk
- Sectoral Leaders (Banking, FMCG, IT, Pharma, Auto, Energy).
- Dividend-paying stocks (HUL, ITC, NTPC, Coal India).
- Flexi-cap or Mid-cap mutual funds → higher growth than large caps.
💡 Method: Hold for 3–5 years, review fundamentals every quarter.
3️⃣ High Growth & Opportunities (High-Risk – 10–20% of capital)
Purpose: Boost returns with small allocation
- Small-cap stocks with strong earnings growth (careful selection).
- Thematic funds (e.g., EV, green energy, digital, AI, pharma).
- Short-term swing trades using technical analysis (support/resistance, moving averages).
💡 Method: Strict stop-loss (8–10%) and profit booking (20–30%).
4️⃣ Risk Management Rules (Non-Negotiable)
- Max 10–12 stocks (don’t over-diversify).
- Risk only 2–3% of portfolio in one stock.
- Always use stop-loss orders.
- Keep an emergency fund (6–12 months expenses) outside investments.
5️⃣ Portfolio Example (₹10 Lakh Allocation)
- ₹4.5L (45%) → Nifty 50 ETF, Reliance, HDFC Bank, TCS
- ₹3.5L (35%) → HUL, ITC, ICICI Bank, Mid-cap fund
- ₹2L (20%) → Small-cap opportunities, EV/Green energy stocks, Swing trades
6️⃣ Monitoring & Exit Strategy
- Review portfolio once every 3 months.
- If fundamentals weaken → exit immediately.
- If profit crosses 50–70% in a short time → book at least partial gains.
- Reinvest profits into low-risk/core holdings.
✅ With this structure, you stay in the market (compounding + long-term growth) while minimizing risks (through diversification + stop-loss + allocation strategy).