Optimize Portfolio

Following are the basic Rules of Portfolio Optimization:  Rule #1: Investment should be of the Type, "LONG TERM".  Rule #2: Portfolio has to be "Reviewed once every month" (Needs to be re-visited).  Rule #3: Portfolio has to be "Rebalanced" at regular intervals (Advisable once a Month).  Rule #4: Ensure to pick up the Stock when it is "Rightly Priced" (Avoid highly priced stocks).  Rule #5: Gradually "Diversify your Portfolio" covering major sectors (say 20 scripts of 5% each).  Any new rules we come across will be added to these RULES.  Rebalancing has not been considered this week as we need to have good examples to explain the same. Any questions you have, please do not hesitate to put in your comments so that I can take them up in the following articles.  Stay tuned, following are the items that will get published in the following weeks:   What is Rebalancing the Portfolio?  First Optimized Portfolio from Indian Stocks.  1st

  Let us consider the earlier example of the Optimized Portfolio (PU001-04252021) where we have considered 30 US stocks clubbed in “Dow Jones Industrial Average” ( https://optimizeportfolio. blogspot.com/2021/04/dow- optimized-portfolio-pu001- 04252021.html ).   We have highlighted and indicated the top 5 (in Green) that constitute the Optimized Portfolio with a specified weightage. Now what about the remaining 25 that were not mentioned is the question?   MMM CAT GS JNJ NKE VZ AXP CVX HD JPM PG V AMGN CSCO HON MCD CRM WBA AAPL KO IBM MRK TRV WMT BA DOW INTC MSFT UNH DIS Table showing all the 30 stocks of DOW Jones Industrial Average.   Let us consider we have 2 categories of Investors: New Investor , Who starts his investment based on the suggestion provided in Optimized Portfolio (PU001-04252021). Gradually increase your stake Month on Month with the weightage shared for AAPL, HD, NKE, UNH & V stocks. Also continue to keep a watch on the Monthly Review of the Portfolio - PU001-04