INTRODUCTION

 Hi All, Welcome to my new blog series. 

My Intensions towards this blog series is to publish the data which normally common retail investors do not consider while investing in Stock Market. This data can be very powerful tool as far as the individual stock portfolios are concerned. 

Normally Every investors invest with Fund Managers and also maintain individual stocks portfolios. Fund managers are the experts and they have intel of Fund House as well, so leaving that portfolio aside, lets concentrate the individual stock portfolios. 

Management of Individual Stock Portfolios, in India is very haywire. Following are the ways of selecting the stocks in India for personal portfolios:

1. Selection of the stock by following Telegram/ Whats App universities, blindly. 95% of the time telegram groups with more than 100 people will be loosing the the money of the selected stock because they have followed the suggestion blindly. Most of the times these big groups are created to create the buyers for selling from the portfolio clients. These groups simply provide supply for the demand of selling (**there will be always exceptions to everything), so the buyers from such group acts as dumping ground for big sellers.

2. Most of the times, the stock buying is result of Monkeys Whisper, and we do not know the rationale, fundamentals, technical or even any speculation while buying. 80% of the time this type of selection fails, because no cross check happens while buying the stocks. This type of selection also can give hit ratio of 80% for profits if the information is from trusted source and backed with rationale, fundamentals and/or even speculations but it is totally gamble and depend on the luck if you have such source or not.

3. Few who have some knowledge smartly manage to copy the common stocks appearing most of the funds/ PMSs/ Small cases in personal portfolio, duplicating the stocks without knowing the risk to reward ratio, horizon and the price to buy or sell. 70% of the time this type of selection fails as investor buy the stock duplicating the same stock but most of the time they do not track the changes (rebalancing or restructuring activity in the folios from where they have copied). If they manage to even restructure or rebalance according the the fund/ PMS they are following, it is just a duplication of the same stock with extra transaction cost. This may lead to liquidity crunch when better opportunity comes. It is of course personal choice but yes COST is important factor in everything.

4. Investors (Not Fund managers or Equity researchers) who are associated with Finance or Financial Services or investors who learned the analysis, do there own study and work on fundamentals and technical of stock best in their own capacity. The hit ratio of selection of the stock in this case is quite higher than the previous types of selection of the stocks. Still I can say 45% room to increase the profitability as market never follow single rule, that means Fundamental and Technical are basic studies of the market, market gets driven by either of them at a time, not both at same time. There are another very important drivers of the market, SPECULATIONS and LIQUIDITY.

5. News based buying, No comments of this type of selection of the stock, I am sure everyone has done this and experienced the results. leave your thoughts and experiences in comments if you can..

One can definitely increase the percentage returns of the INDIVIDUAL STOCK PORTFOLIOS by doing 5 simple steps mentioned below:

1. Knowing the individual Risk Appetite while selecting the stocks.

2. Knowing the powerful concept of Money Flow.

3. Knowing WHY to Buy and WHY to exit. 

4. Knowing the activities of Big Players. It can be stock specific or It can be Sector Specific.

5. Maintaining the discipline in keeping stop loss as well as in booking the profits with respect to the changes happening with the money flow in that stock specific sector. 

Now, If you further dig down, you realize that the stock market is like Rabbit Hole, one can not have everything at once, something or other will be missed for sure. But there is smart way to tackle this situation, specially for common people who do not understand the fundamentals and technical analysis. That is POINT NO. 2, Tracking the money flow.

TRACKING MONEYFLOW:

I came to conclusion that tracking money flow is the smartest way to manage the individual portfolios, but it leads to another question : whose money flow?? lets find out below:

People who knows me and tracking my blogs know this for sure but for everyone, there are 4 Categories of the investors in the market. 

1. Clients: This type includes all the retail investors including HNIs.

2. DIIs: Domestic Institutional investors, this type includes institutional investors like, mutual fund houses, banks, insurance firms and others etc.

3. Proprietary Desk (Prop Desk): They are financial institutions, investment bank, brokerage house who are registered with authorizing body of the country (SEBI in India) and they invest in the financial instrument WITH THEIR OWN MONEY not sharing profits to anyone else. Normally they are active more in Derivatives Segments than cash segment. Banks and Financial institutions can register under this category by creating separate desk.

4. FPIs: It includes foreign portfolio investors, Foreign Institutional Investors, Qualified Foreign Investors (QFIs) and sub accounts under QFIs. 

Out of these, 4th category that is FPIs category is the one who have maximum money in India Stock Market, Followed by Prop Desk and DIIs. That is why we normally hear every time about FIIs and money associated with it. 

Here in this blog series, I will try to publish the money flow data of FPIs who are the biggest investors in Indian Stock Markets and who drives the Indian Stock Market. This will include, Fortnightly Sectorial Shifts of money flow in the Indian Stock Market, changes in country wise AUC (asset under custody) data of FPIs. This data will be useful for those who are holding certain stocks and want to align the individual stock portfolio with respect to the activities of the big players (FIIs Only). There will not be any stock buying or selling recommendations in this data. Any stocks which I will be mentioning is with respect to the sectoral money flow and their past performance with it. Past performances is not driver of future performances of the stock so do not trade or invest with this data..

Please Follow the blogs to get the updates each time and share it in your circle if you find the blog series interesting and different than conventional theories of investments....

HAPPY INVESTING.......