ICICI Direct's 7-stock diversified portfolio offers upto 15% returns in 3 months1 min read . Updated: 20 Nov 2020, 08:11 AM IST
The portfolio is mid cap dominated with 40.9% weight. 36.8% is in large cap and remaining in the small cap stocks.
ICICI Direct shares a seven stock portfolio consisting of large cap, mid cap and small cap stocks for a medium term of three months to earn between 8% and 15% returns, depending upon the duration. ICICI Direct explains the portfolio as, "A medium term portfolio wherein the essence of attractive technical set up backed by robust fundamentals can offer handsome returns in a trending market."
The portfolio is benchmarked against NIFTY 500. It is a high-risk portfolio. The seven stocks in the portfolio, along with their weight is as below:
Stock, Weight in the portfolio, Amount invested (in Rs)
Divis Laboratories, 21.1%, ₹3,427
SBI Life Insurance, 15.7%, ₹2,550
Supreme Industries, 18.5%, ₹2,998
Oberoi Realty, 14.0%, ₹2,265
V-Guard Industries, 8.5%, ₹1,376
India Cement, 12.5%, ₹2,025
Jindal Stainless, 9.7%, ₹1,581
Total portfolio value is ₹16,222. The portfolio start date is November 18.
Methodology of the portfolio selection
"The Idirect Research team handpicks the stocks after undergoing extensive Technical research across universe of 918 stocks listed on NSE. The specified universe undergoes various screeners based on broad technical concepts encompassing price structure analysis, relative strength ranking, Dow theory, in -house bottom up model," says the brokerage.
ICICI Direct adds that it stick to companies with credible business history over business cycles, reasonable business model with decent management pedigree, robust balance sheet.
Market cap distribution of the portfolio
The portfolio is mid cap dominated with 40.9% weight. 36.8% is in large cap and remaining in the small cap stocks. The brokerage categorises the stock in terms of largecap, midcap and smallcap based on the market capitalisation process as prescribed by the SEBI.
SEBI defines a large cap company as those listed companies which are ranked from 1st to 100th company in terms of market capitalization. Mid cap companies are ranked from 101 to 250 in terms of market capitalization and small cap companies start from the 251st ranked company.
When to book profits?
ICICI Direct will communicate portfolio entry, book profit and exits on its website and also through mobile and email notifications to the investors.