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how much prportion of money into each share

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)

01 November 2010

IF I INVEST IN SENSEX's TOP 30 COMPANIES,WHICH CONTRIBUTE IN SENSEX's VALUE.
NOW I WANT TO KNOW THAT HOW MUCH AMOUNT SHOULD I INVEST IN EACH COMPANY WHICH PROVIDE ME SAME % GAIN OR LOSS WHICH SENSEX's BEAR ... IN OTHER WORDS I WANT TO EARN SENSEX's GAIN OR LOSS SO FOR THIS HOW MUCH PROPORTION OF MY MONEY SHOUID I INVEST IN EACH COMPANY??????
FOR EXAMPLE IF SENSEX NOW 20000 AND AFTER 2 MONTH IT WILL GO 22000 MEANS 10% GAIN, SO IN WHICH PROPORTION SHOULD I INVEST IN 30 SHARES SO I WILL ALSO GET 10 % GAIN AFTER 2 MONTHS

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10 Replies

Yogesh Shah (Managing Corporate Finance) (1051 Points)
Replied 03 November 2010

HI Lokesh,

You simply calculate total of company’s closing rates and then find % of each company’s closing rate in total.

Example – Co. A – 2250, Co. B – 1250, Co. C – 1300 and thus total of Index – 4800. Then calculate each co. %.Hence it will come as Co.A – 47%, Co. B – 26% and Co. C – 27%.

You also allocate your portfolio in same manner. Suppose you have Rs. 10,000/-. Then invest Rs. 4,700/- in Co.A, Rs. 2,600/- in Co. B and Rs. 2,700/- in Co. C. You will get same % of profit / loss as the Index is facing.

harry (student) (22 Points)
Replied 03 November 2010

hi lokesh,

its gud that u want to invest in share market.........but sens*x or nifty (stock market)...are of highly sensitive...in order to save ur money without any loss...........i suggest u to invest ur savings in Saving Bonds

CS Vijay Daxini (At Practice) (732 Points)
Replied 03 November 2010

why r u tacking sens*x return as benchmark dear invest in goverment ipo's and invest in branded company from the sector in which u want to invest which also have strong cash flows this advice is given in MONEY MANTRA BY ramesh damini MEMBER OF BOMBAY STOCK EXCHANGE ......

FURTHER IF SENSEX CONTAINS COMPANY OF A SECTOR WHICH IS NOT PERFOMING WELL THEN THAT MUCH PROPORTION OF U R INVESTMENT IS WASTED INSTEAD U CN INVEST IN SECHCOTRS WHI R PERFOMING WELL......

I CN RECOOMEND U SOME STOCK IN WHICH I HAVE INVESTED AND WILL STAY INVESTED FOR 1 MORE YEAR

1.INFOSYS TECHNOLOGIES(MU BUY PRICE @ 1848 ,50 SHARES)

2.HDFC BANK(MY BUY PRICE @ 2200.40 SHARES)

FURTHER CONTACT IN NDTV'S BUY OR SELL PROGRAMME EXPERTS ON YHAT SHOW WILL GUIDE U...mail id of of ndtv's that programme is buyorsell @ ndtv.com

HOPE THIS WILL SERVE U R PURPOSE

1 Like

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 04 November 2010

DEAR GUYS I ASK THIS QUS. NOT FOR REAL INVESTING SO PLZ WRITE UR ANSWER ABOUT THAT QUS ....FAIR ,,,,, I APPRECIATING UR ADVICES ON INVESTING BUT I WANNA ONLY ANSWER OF MY TOPIC........

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 04 November 2010

I THINK YOGESH's GUIDENCE's CONTAIN MISTAKE BECAUSE I HV DONE TOTAL OF ALL 30 STOCKS OF BSE IT COMES ABOVE 30000 AND CURRENTALLY ACTUAL SENSEX IS AROUND 20000-21000 ONLY.........

CS Vijay Daxini (At Practice) (732 Points)
Replied 05 November 2010

dear lokesh wat u say abt fantastic listing of coal india a goverment of india enterprise gov. holding 90% return of almost 20000 in a month timEif u want to make smart money in this market follow the advise of experienced investors .......

DONT TRY TO TIME THE MARKET BE IN THE MARKET FOR A TIME

ok follow this strateg

don't invest u r entire inv.amt. in market

allocate 5-10%in mutual fund

allocate 5-10%in commodity if u can

allocate 5-10%infixed income yielding securities ETC........ETC.....SO IN CASE MARKET GOES DOWN U R WELL HEDGED AGAIN IST LOSS ATLEST U R ENTORE MONEY IS NOT BLOCKED IN MARKET

I M AGAIN WARNING U PLEASE INVEST BRANDED COMPANY OF SPECIFIC SECTORS

SECTORS WHICH CAN OUTPERFOM IN THE NEXT QUARTER R TEXTTILE,MINING MEDIA(DISH TV IS GOOD BAT).....FURTHER U CAN INVEST IN JBL ALSO

DISCLAIMER:::THIS IS ONLY OPNION AND NOT ADVISE IF ANYTHING GOES WRONG I M NOT LIABLE FOR SAME ANY DECISION ON INVEST OR NOT TO INVEST IN MARKET IS OF INVESTORS PERSONAL DESION WHICH IS TAKEN AFTER WELL THINKING AND PERSONAL WILL TO GO FOR RISK

Yogesh Shah (Managing Corporate Finance) (1051 Points)
Replied 08 November 2010

Lokesh ...

I guess, you must have taken closing rates of shares from newspaper. Because, there total comes more than 30000. But dude, no. of companies over there is 50 (25+25). Whereas, SENSEX is of 30 companies.

You have to take total of that 30 companies which form SENSEX. Then you will get same figure at which SENSEX is at now.

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 08 November 2010

no my dear yogesh, i hv made total of bse 30 companies tht comes above 30000

Samarth Mehta (none) (59 Points)
Replied 09 November 2010

to get the returns equal to sens*x movement u will have to invest in your money in the same proportion as their weights in the index...to know weigts of companies in sens*x check out my replies to "DETAILS OF SENSEX TOTAL/VALUE" on forum which i guess is posted by u

Ramalingam K (Founder & Director - Holistic Investment Planners (P) Limited) (21077 Points)
Replied 13 May 2014

Booking Losses at the Right Time: A Less-known Wealth Management Strategy

Do you book profit or book loss?

You have bought the shares of ABC Ltd at a rate of Rs.100 per share. The current market price is Rs.150 per share. Also you have bought the shares of XYZ Ltd at a rate of Rs.200 and the current market price is Rs.125.

https://www.holisticinvestment.in/wealth-management-strategy

Regards

Ramalingam K, MBA, CFP,

Director and Chief Financial Planner,

Holistic Investment Planners

“Best Performing Financial Advisor Award” Winners from CNBC TV18

www.holisticinvestment.in

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