Mock Portfolios, Major Gains: My Triumphs in the Virtual Stock Market

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Disclaimer: This blog shows a mock stock portfolio and charts for education or showcase for potential employer only, not for investment advice. The portfolio and charts are based on the blogger’s personal research and reflect the real past returns of the portfolio. However, the portfolio and charts may not suit your financial goals or risk appetite, and past performance is not indicative of future results. You should research and consult a qualified investment adviser before investing. The blogger is not responsible for any losses or damages from relying on the portfolio and charts. The blogger has no affiliation or endorsement with any company, organization, or entity on the blog. The portfolio and charts may change without notice, and the blogger can modify, delete, or update them anytime. 

Investment in securities market are subject to market risks. Read all the related documents carefully before investing.



The Motive to write this blogpost is to showcase all of my previously constructed portfolios, their composition and current returns here at one place, instead of making different posts for each single one of them. Why I'm not giving a proper and elaborate explanation of the sectoral investments that i included in those portfolios? The reason is simple. I made those portfolios around 9 months back out of my passion of analyzing market trends and screening firms that are expected to benefit from this market wave. I never thought of making this post that's why I didn't mentioned anywhere the exact cause and condition that forced me to believe that this is a perfect bet for future. That's why I made another post on my Future portfolio where i mentioned elaborately how I select a sector and firm to make bet on. You can read about it here. The returns chart in this Blogpost is going to update regularly.


Now start.

Here's the list of all of  my mock portfolios.

This snapshot is of date 22nd November, 2023.

Out of them, Portfolio and Demo Portfolio 1 was constructed on March 17, 2023; Demo Portfolio 2 was constructed on March 23, 2023; Selected banks on March 27, 2023. Then i got busy in exams and left those portfolios to grow. I didn't add or remove any of the firms in the overall time period and let them grow on their own. The motive of making that portfolios were to check whether my research and stock selection is correct or not. In this or in any of the future posts, I'll not name any company name due to disclaimer in the beginning, but I'll try to explain other things like sectoral and category composition to the readers. 

I've already posted about Portfolio and Future portfolio, so I'm excluding them from this post, and I'll Post an elaborate post on Future Portfolio Global, hence it is excluded as well. 



1. Demo Portfolio:

Construction date: March 17, 2023
Total companies: 7 Only
Small cap: 7
Sectors: Textile (1), Healthcare (1), FMCG (1), Engineering (1), Software (1), Pharma(2).
Risk: Extremely High

Note: Highly concentrated portfolio of small cap firms which are prone to higher-than-average volatility as compared to Nifty 50 and contains a substantial market risk. I purposely selected those firms with a strong market presence to minimize the risk of default and having a great potential to ensure good returns. 


Here's how it performed in YTD (from March 17 to today) along with total returns provided by the underlying firms.


I didn't mentioned the name of firms and the units added in portfolio to not reveal the actual name of the company.

Strategy:
1. Keep the Number of firms low.
2. Select only those firms with high latent growth potential not based on their overall market share. 
3. Keep sectoral concentration as low as possible, i.e., include variety of sectors. 
4. Give equal weights to all companies, i.e., Equi-weighted portfolio.

Return comparison with best performing mutual funds:



2. Demo Portfolio 2:

Construction date: March 23, 2023 (To show none of my mock portfolios are even 1 years older till date)
Total Companies: 11 Only
Small Cap: 9
Mid Cap: 2
Sectors: Automobile, Chemicals, IT, Real Estate, Healthcare, Tourism, Defense, Textiles, Metals, Industrials and Engineering (1 company from each sector)

Risk: Very High

Note: Highly concentrated portfolio of diverse sectors out of which some contains a small degree of sectoral correlation. Since all constituent companies belong to different sectors, it reduces over weightage on a single sector but still individual stock volatility, due to small market share and somewhat low volume, remains. For this portfolio too, I selected those firms with a strong market presence to minimize the risk of default and having a great potential to ensure good returns. 

Here's the Overall returns provided by this portfolio from March 23 to till date as well as company-wise returns.


I didn't mentioned the name of firms and the units added in portfolio to not reveal the actual name of the company. Also, It's not that all the companies performed exceptionally well in that time period hence periodical rebalancing is crucial while making any Investment. Negative total returns doesn't means that the firm didn't performed anything during that period but events like dividend announcements and stock splits also have negative impact on stock price but they are also returns to actual investors which doesn't get captured by price movements. Hence actual returns of this or any of my mock portfolios to actual investors having these in their portfolio could be higher or equal to the returns shown here.


Strategy:
1. Keep the Number of firms low.
2. Select only those firms with high latent growth potential not based on their overall market share. 
3. Keep sectoral concentration as low as possible, i.e., include variety of sectors. 
4. Give equal weights to all companies, i.e., Equi-weighted portfolio.



Return comparison with best performing mutual funds:





3. Selected Banks:

Construction Date: March 27, 2023
Total Companies: 6 Only
Small Cap: 0
Mid Cap: 1
Large Cap: 5
Sectors: Banking Sectoral Portfolio
Risk: Moderate

Note: This portfolio contains 6 firms from banking sector. Risk is moderate because this is a thematic portfolio and hence highly concentrated to a particular market. Also, it is not well diversified as well containing only 6 companies. Since majority of the firms are large cap with ample liquidity and trading volume hence risk is not high. 

Here's the Overall returns provided by this portfolio from March 23 to till date as well as company-wise returns.

Strategy:
1. Keep the Number of firms low.
2. Select only those firms with high latent growth potential not based on their overall market share. 
3. Include only those firms whose overall Gross Non-performing asset ratio improved due to better policies. 
4. Give equal weights to all companies, i.e., Equi-weighted portfolio.


Return comparison with best performing banking thematic mutual funds:


4. Indian News Portfolio:

This portfolio is made on November 14, 2023. You may have seen that major broking and research firms assign some buy/sell ratings on some company stocks and those are in news. I used that news articles as my base of research and formed a portfolio out of those companies which qualified my personal selection criterion. 

Construction Date: November 14, 2023 (Less than 6 months old till date)
Total Companies: 13 Only
Small Cap: 6
Mid Cap: 5
Large Cap: 2
Sectors: Financial services (4), Chemicals (1), IT (2), Pharma (1), Oil & Gas (1), Infrastructure (1), Healthcare (1), Metals (1), Retail (1)
Risk: High; with large exposure to Finance sector and also due to large number of small and midcap firms.


Since there is no point of comparing 6 month returns of other funds with a portfolio which is not even 2 months old. Hence, I only compared the 1 months returns in the snapshots above. 


Ending Note: This blogpost is just for the purpose of education and showcase to potential employer and attach no recommendation for investment. Author is not a certified Investment advisor yet and takes no responsibility for any gain or loss you may incur if you follow this composition blindly by selecting any random company from above mentioned sectors. 


Thank you for Reading 🙏

If you are a Recruiter or a Fund Manager reading till the end, then I'm looking forward to having a positive chat about any potential Equity Research or Fund Management related opportunity in your organization to learn more about the mistakes I made while constructing these portfolios and the ways to correct them.

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