Month-end Finances as on 31 August 2018

Money-wise, this has been a happy month for me. I like writing such posts : ) 🙂 🙂

Even though I am not entirely proud of my writing schedule, either on the blog or for my book (both have been practically non-existent) – the investment portfolio is soaring.

Also there is a famous saying, “When you have nothing to say, say nothing.” I guess that summarises my state for writing of-late. Its not that I am short on plots; but my mind-space is filled with business (logistics, portfolio, travel). Its not necessarily a bad thing…

Life is a palate of colours and I can’t brush it all blue even though it may be my favourite colour! So WRITING is blue for me. But other colours are important too.

Anyway back to money.

Disclaimer: my portfolio has skewed hugely towards debt now – deliberately. And so benchmarking against NIFTY50 shall almost always show that I am underperforming. Nifty50 is large cap stocks, while my portfolio is less than 40% equity now! So I am going to include a third column of performance – 40% equity performance as well (even though my actual target is 35% equity, yet I do it 40% to put little pressure on myself). This shall hopefully give a more accurate picture. Time for the snapshot:

Nifty50 change Portfolio change equity growth
31/07/18 11,356.00 5.99% ₹ 13,80,55,618 5.30%
30/08/18 11,676.00 2.82% ₹ 13,98,72,883 1.32% 2.80%

Firstly the markets are doing well.

Secondly the portfolio grew 1.32% but equity too matched the market and grew 2.80%! Now thats quite neat! Some major movements I made –

  • booked profits in RIL scrip. Looking back, I sold them a little too early. but no regrets, I made over 100% profit in less than 2 years!
  • finally got rid of (rather it expired) the hybrid fund. it yield 6% over last 3years. but its chapter is over now.
  • increased exposure to PMS products. I will rather do less indulgence in small-caps and let professionals do that job.. learnt the hard-way.
  • most importantly – made huge investments in debt-portfolio. 2cr in a liquid fund, 1cr in a bank FD. The idea is to make 5lac per month fixed income from 8cr debt fund investments. I know at my age, it is a conservative thing to do – but given the high stakes, it is important to do so.

Current portfolio as below –

Portfolio: ₹ 13,98,72,883
Direct Stocks ₹1,23,35,901 38%
Equity MF ₹4,07,14,044
Debt MF ₹5,05,99,938 56%
Bonds&FDs ₹2,83,72,000
Bank A/C ₹28,51,000 6%
Loans Given ₹50,00,000

Targets for March, 2020 as below (1.5years) –

TARGETS: ₹20,00,00,000
DEBT ₹8,00,00,000
REAL ESTATE ₹5,00,00,000
EQUITY ₹7,00,00,000

Notice the new addition in above. I have been foolish to ignore it, but again, I learn things the long way than short. Anyway Real-estate shouldn’t be ignored especially in a developing economy. I am going to put 25% weightage to it, with a view to get 4-5% rental income but more importantly, look at capital appreciation over a 20-year horizon.

This money (for real estate) will be coming out of my business. As explained before,  the business isn’t doing too well so it is prudent to take out money and invest in portfolio – especially with an eye at the future!


Fingers crossed…



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