personal finance

PM Modi announces his diversified portfolio; here’s how you can create yours on D-Street


NEW DELHI: A well-diversified portfolio is a key to success, whether it is political arena or Dalal Street.

Newly appointed Prime Minister Narendra Modi on Friday allocated Cabinet portfolios to his new ministers.

The architect of the Bharatiya Janata Party’s massive victory in general elections Amit Shah was awarded the key ministry of home affairs.

While Rajnath Singh bagged defence, the person assigned to pump India’s growth was Nirmala Sitharaman, who got finance ministry.

Analysts said just like ministries are diverse with each Cabinet portfolio having its own importance, investors must also have diverse stocks in their portfolios with both defensive and aggressive bets.

Considering prevailing market conditions, G Chokkalingam, Founder of Equinomics Research and Advisory said, “I would suggest 5 per cent investment in gold, 45 per cent In debt and rest in equities. We are bullish on midcaps for the next six months. Beyond that point of time, the government’s decisions to pull up the investment cycle and improvement in aggregate demand as well as manufacturing sector will drive sentiment. We are not positive on real estate sector.”

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An investment portfolio is a combination of various financial securities such as stocks, mutual funds, bonds, fixed deposits, retirement savings instruments and other alternative investments. At a broad level, the portfolio should be structured in such a way that it stands the best chance of meeting your stated investment aims within your acceptable level of risk.

A diversified investment portfolio can protect your wealth in volatile times, analysts said.

Here is the list of portfolios allocated to the new ministers:

Name Ministries
PM Narendra Modi Ministry of Personnel, Public Grievances and Pensions; Department of Atomic Energy;
Department of Space; and All important policy issues; and All other portfolios not allocated to any Minister.
Amit Shah Minister of Home Affairs
Rajnath Singh Minister of Defence
Nitin Gadkari Minister of Road Transport & Highways, Minister of Micro, Small and Medium Enterprises
Nirmala Sitharaman Minister of Finance
Piyush Goyal Minister of Railways and Commerce and Industry
S Jaishankar Minister of External Affairs
Ravi Shankar Prasad Minister of Law; Communication and IT
Ramesh Pokhriyal Minister of Human Resource Development
Narendra Singh Tomar Minister of Agriculture, Rural Development and Panchayati Raj
Smriti Irani Ministry of Women and Child Development; Minister of Textiles.
Ram Vilas Paswwan Minister of Consumer Affairs; Food and Public Distribution
Dharmendra Prasad Ministry of Petroleum and Natural Gas; and Minister of Steel
D.V. Sadananda Gowda Minister of Chemicals and Fertilizers
Harsimrat Kaur Badal Minister of Food Processing Industries
Thaawar Chand Gehlot Minister of Social Justice and Empowerment
Arjun Munda Minister of Tribal Affairs
Harsh Vardhan Minister of Health and Family Welfare; Minister of Science and Technology; and Minister of Earth Sciences
Prakash Javadekar Minister of Environment, Forest and Climate Change; and Information and Broadcasting
Mukhtar Abbas Naqvi Minister of Minority Affairs
Prahlad Joshi Minister of Parliamentary Affairs; Coal; and Minister of Mines
Mahendra Nath Pandey Minister of Skill Development and Entrepreneurship
Arvind Ganpat Sawant Minister of Heavy Industries and Public Enterprise
Giriraj Singh Minister of Animal Husbandry, Dairying and Fisheries
Gajendra Singh Shekhawat Minister of Jal Shakti
Ministers of State (Independent Charge)
Santosh Kumar Gangwar Ministry of Labour and Employment
Rao Inderjit Singh Ministry of Statistics and Programme Implementation; Ministry of Planning
Shripad Yesso Naik Ministry of AYUSH; and MoS Ministry of Defence
Jitendra Singh Ministry of DoNER; PMO; Personnel, Public Grievances and Pensions; Department of Atomic Energy; and Department of Space
Kiren Rijiju Ministry of Youth Affairs and Sports; and Minority Affairs
Prahalad Singh Patel Ministry of Culture; and Minister of State (Independent Charge) of the Ministry of Tourism
Raj Kumar Singh Ministry of Power; New and Renewable Energy; and Skill Development and Entrepreneurship
Hardeep Singh Puri Ministry of Housing and Urban Affairs; Civil Aviation; and Commerce and Industry
Mansukh L. Mandaviya Ministry of Shipping; and Chemicals and Fertilizers
Ministers of State
Faggansingh Kulaste Ministry of Steel
Ashwini Kumar Choubey Ministry of Health and Family Welfare
Arjun Ram Meghwal Ministry of Parliamentary Affairs; and Heavy Industries and Public Enterprises
General (Retd.) V. K. Singh Ministry of Road Transport and Highways
Krishan Pal Ministry of Social Justice and Empowerment
Danve Raosaheb Dadarao Ministry of Consumer Affairs, Food and Public Distribution
G. Kishan Reddy Ministry of Home Affairs
Parshottam Rupala Ministry of Agriculture and Farmers Welfare
Ramdas Athawale Ministry of Social Justice and Empowerment
Sadhvi Niranjan Jyoti Ministry of Rural Development
Babul Supriyo Ministry of Environment, Forest and Climate Change
Sanjeev Kumar Balyan Ministry of Animal Husbandry, Dairying and Fisheries
Dhotre Sanjay Shamrao Ministry of HRD; Communications; and Electronics and Information Technology
Anurag Singh Thakur Ministry of Finance; and Corporate Affairs
Angadi Suresh Channabasappa Ministry of Railways
Nityanand Rai Ministry of Home Affairs
Rattan Lal Kataria Ministry of Jal Shakti; and Social Justice and Empowerment
V. Muraleedharan Ministry of External Affairs; and Parliamentary Affairs
Renuka Singh Saruta Ministry of Tribal Affairs
Som Parkash Ministry of Commerce and Industry
Rameswar Teli Ministry of Food Processing Industries
Pratap Chandra Sarangi Ministry of MSME; and Animal Husbandry, Dairying and Fisheries
Kailash Choudhary Ministry of Agriculture and Farmers Welfare
Debasree Chaudhuri Ministry of Women and Child Development.

On Thursday, 57-member council of ministers were sworn in by President Ram Nath Kovind. New names such as Amit Shah, Subrahmanyam Jaishankar and Anurag Thakur were introduced, while many were dropped.

Just like the government reviewing performances of ministers, investors should keep tracking the performance of their stocks on a regular intervals so that laggards and slow performers are discarded and replaced by better ones.

This can be achieved by having a number of stocks (from different sectors, market cap or geography) or fixed income securities (of different tenure, credit rating, etc) and at times different kind of assets (stocks, debt and commodities).

However, there’s a catch.

One should know that too much diversification is no diversification. There should be limited number of stocks in your portfolio. The key to creating a manageable portfolio is to know what exactly the target you want to achieve.

Going with market experts, there is no ideal asset mix of investment portfolios, especially as individual preferences, time horizon, income/liquidity requirement, financial situation and knowledge/experience varies widely across investors.

Unmesh Kulkarni, Managing Director, Senior Advisor, Julius Baer India in an earlier interaction with ETMarkets.com explained that asset allocation changes over time and changing circumstances.

“Most advisors use standard templates for advising on asset allocation decisions, such as 70 per cent equity:30 per cent debt for aggressive investors, 50 per cent equity and 50 per cent debt (for moderate) and 30 per cent equity:70 per cent debt (for conservative). These (illustrative) proportions serve as a good starting point, but as one goes through the journey of investing, it is desirable to calibrate the asset mix to the specific needs, age profile and financial situation of the investor,” he said.

Markets experts who were eagerly awaiting to know India’s next finance minister said Sitharaman’s appointment may not either cheer investors, nor make them hit the panic button.

Dalal Street had a lukewarm reaction to the development, as BSE Sensex was trading around 100 points lower post portfolios announcement.





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