The following article is for more sophisticated mutual fund investors. I am very much thankful to Mr.Prakash P. Joshi, who has done such a great hard work and give me the opportunity to publish such a nice hard work on this Blog for its readers.
| Growth Stocks in the range of 95 % & above AND Value Stocks in the range of 0 % & up to 5 % PURE GROWTH | Growth Stocks in the range of above 55 % & up to 95 % AND Value Stocks in the range of above 5 % & up to 45 % GROWTH BLEND | Growth Stocks & Value Stocks Both each in the range of 45 % to 55 % BALANCED BLEND | Value Stocks in the range of above 55 % & up to 95 % AND Growth Stocks in the range of above 5 % & up to 45 % VALUE BLEND | Value Stocks in the range of 95 % & above AND Growth Stocks in the range of 0 % & up to 5 % PURE VALUE |
| TOTAL INVEST MENT |
| 6.60 % {1} | 6.60 % { 2 } | 6.60 % {3 } | 6.60 % { 4 } | 6.60 % { 5 } | GIANT CAP | 33.00 % |
| 5.40 % { 6 } | 5.40 % { 7 } | 5.40 % { 8 } | 5.40 % { 9 } | 5.40 % { 10 } | LARGE CAP | 27.00 % |
| 4.00 % { 11 } | 4.00 % { 12 } | 4.00 % { 13 } | 4.00 % {14 } | 4.00 % { 15 } | MID CAP | 20.00 % |
| 2.60 % { 16 } | 2.60 % { 17 } | 2.60 % { 18 } | 2.60 % { 19 } | 2.60 % { 20 } | SMALL CAP | 13.00 % |
| 1.40 % { 21 } | 1.40 % { 22 } | 1.40 % { 23 } | 1.40 % { 24 } | 1.40 % {25 } | TINY CAP | 7.00 % |
| 20.00 % | 20.00 % | 20.00 % | 20.00 % | 20.00 %
| TOTAL | 100.00 % |
NOTES
1) This model of Fund Style has been designed for more precision, in place of the existing usual nine (9) squares model.
2) Suggested distribution pattern of the total Investments in % term in each category for proper diversification however, but with increasing wattages from Tiny Cap to Giant Cap.
3) If, for any reason(s) fund(s) in a particular category is / are not available then, one should keep on moving first to the left and then, if necessary, to the one step in up direction(from it’s original category place) and then again keep on moving towards left, as an alternative.
4) The Fund might have stocks pertaining to various different categories [squares] however, the ultimate overall style of that particular Fund, will be decided by the category of stocks having more than 50 % weight in the total portfolio, for convenience purpose.
5) The figures in { } brackets indicate Fund Style Serial Number for easy identification.
6) All the shares listed on BSE & NSE should be sorted out i.e. whether Growth Stock or Value Stock AND also by Market Cap wise i.e. whether Giant / Large / Mid / Small / Tiny etc. Giant being the highest 20 % of Market total Capitalizations and next 20 % in each subsequent category... For this purpose, at the end of the Day all the listed Companies on BSE & NSE are to be arranged in a descending order according to their respective market Capitalization and then, the total “number “[of so arranged Companies] is to be divided by 5 (five) in order to get the above said market capitalization category of each & every such Company for proper classification purpose.
7) Value Research should develop suitable software so that this category sorting is done every day after market hours by about 9. 00 p.m. in respect of each listed share on BSE & NSE.
8) The above method will enable the finalization of Fund Style and also ideal method / bouquet of Investment Portfolio for proper diversification.
By Mr. Prakash P. Joshi.
AMFI Regd. ARN 54820
E-mail:--- ppj_2001@yahoo.com & Cell No. 99203 34762
Vile Parle (East), Mumbai 400 057.
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