Strike the correct investment deals, ideas to make money from experts

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Key Highlights

  • A quick stop to get viewers queries answered
  • Short term & Long term views on market shares

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We spoke to two of our seasoned market experts, Kunal Bothra and Ashish Kapur who once again answered all your queries on what to buy and how to buy.

Q. Vincent: I have been holding on to shares of General Insurance RE since the IPO and it’s not done too well for me. Should I hold on?

Ashish Kapur says: I think the space looks very interesting and given the fact that insurance is generally as a subject has really come back during covid – including General Insurance – I think the company is very well established. Hope your time should give you good returns.

Q. KR Balan: I had bought 50 L&T Infotech and Mindtree about 3 months back. Should I book profit and move to some other sector or sit on cash and enter again to same scrips or just hold?

Kunal Bothra says: The question here is that whether there is an urgency to sell the stocks at current levels and liquidate to book out the profits. Or the other point is that you want to hold on to it from a long-term perspective. I think even if you entered in the last 3 months, you will get money out of both of these stocks very shortly. So you have already created a buffer for yourself. These stocks are going through a very long-term uptrend. If there is a multi-year upside that could be in play then these stocks have the potential to go significantly higher from current levels. If there is some urgency in terms of funds, then probably yes you might look out to book profits and maybe buy back again. But if it is from a longer-term investment then I think you should not displace your investments over here. In fact, you can look to add a couple of other IT names as well, specifically from a long-term view.

Q. Manas from Chennai: I am a long-term investor and I am invested in more midcap and a few large-cap companies individually in his portfolio. I have stayed away from a few of the large-cap names because I am holding Mutual Funds in these counters, so he doesn’t want to overlap. That has been the strategy so far. But based on the levels we are at right now, I was wondering whether I should shuffle my stock portfolio and move towards defensive names. Is that something I should do?

Kunal Bothra says: Add a few of the defensive names to your portfolio but you do not need to shuffle your portfolio completely. So every market trend gets into a phase where there is a point of excess in the market and then from those excess points you see the markets or the particular sectors like the midcaps and maybe small-caps. They could go through routine corrections. Not all stocks or sectors in the small caps could revive when you see a v-shape recovery – like what we saw in the month of August and September. Many of the smallcap and midcap indices have rallied. All the stocks have rallied up significantly. So you will have a mix of stocks and sectors. It depends on the individual portfolios you have built up into these indices. But specifically from a longer-term play, I think you should not try and shuffle significantly. Yes, the market is overbought and overheated as such, but then a time correction could be a good enough correction for these stocks and indices.