RESPONSE TO READERS' QUERIES: @ABIR 25/6/2012

MID-RISK PORTFOLIO WITH A 3 -YEAR PERSPECTIVE

• GOLD ETF, say BENCHMARK, UTI, or any good one: Rs 1 Lakh straightaway, don't try to time your entry since that won't really help.
• NESTLE; Rs 0.25 lakhs (cmp 4500; best entry 4400, buy some now and add on dips)
• HUL; Rs 0.25 lakhs (cmp 450; best entry 400, buy some now and add on dips)
• GODREJ IND; Rs 0.25 lakhs (cmp 235, buy all now)
• TITAN IND; Rs 0.25 lakhs (cmp 216, buy some now and add more in 180-200 range)
• JUBILANT FOODWORKS; Rs 0.25 lakhs (cmp 1150, buy some now add more around 950 - 1000)
• ITC; Rs 0.25 lakhs (cmp 251, buy some now and add more around 225)

• DIVIS LAB; Rs 0.5 lakhs (cmp 984; buy some now and add more around 940-950)
• DISHMAN PHARMA; Rs 0.25 lakhs (cmp 65; buy around 55 levels)

• HDFC BANK; Rs 0.5 lakhs
• ICICI BANK; Rs 0.5 lakhs
• SBI; Rs 0.5 lakhs
• AXIS BANK; Rs 0.25 lakhs
• YES BANK; Rs 0.25 lakhs
• BANK OF BARODA; Rs 0.25 lakhs
• BAJAJ FINSERV Rs 0.25 lakhs
• HDFC; Rs 0.25 lakhs
• Buy the BANKS and FIs above at cmp since the time horizon is adequate.

• LARSEN; Rs 0.5 lakhs
• IRB INFRA; Rs 0.25 lakhs
• LANCO INFRA; Rs 0.25 lakhs
• IVRCL; Rs 0.25 lakhs
• KEC; Rs 0.25 lakhs
• JP ASSOCIATES; Rs 0.25 lakhs
• RELIANCE INFRA; Rs 0.25 lakhs
• GMR INFRA; Rs 0.25 lakhs
• SIEMENS; Rs 0.25 lakhs
• HDIL; Rs 0.25 lakhs
• The above INFRA/REALTY scrips can be bought at cmp; with a 3 year view there should be no problem)

• M&M; Rs 0.25 lakhs
• HERO MOTO; Rs 0.25 lakhs
• TATA MOTORS; Rs 0.25 lakhs
• Can be bought at cmp

• TCS; Rs 0.5 lakhs; can be bought at cmp.

• The above Portfolio is for an investible corpus of Rs 10 lakhs; but can be scaled up or down in accordance with actual funds to be invested.
• 10% in GOLD, 15% IN FMCG, 7.5% in high growth PHARMA, 27.5% in BANKS/FIs, 27.5 % in INFRA/REALTY, 7.5% in AUTO and 5% in TECH, in my opinion optimally balances the defensive buffer as well as the relatively high return rate sensitives assuming the easing of the Interest Rate Cycle going ahead.
• A word of caution, while one could buy and forget the defensives for the next three years, the rate sensitives would need to be monitored and acted upon suitably as the Rate Cycle unfolds for possible realignment/profit booking/switch  maybe a year or year and a half down the line. 
• All the best and happy investing, Abir.