A few days ago, I opened a position in INP (Barclays Bank Zero Cpn ETN(ITR) – see my previous post on INP) increasing Parchayi and my investment in India to 16% of our total investments.
A breakdown of our portfolio (including all stocks and mutual funds) shows 98% investment in stocks, 2% in bonds (via some mutual fund). Of the stocks 61% are US and 39% International. Of the International Stock 60% is in Emerging Markets and 40% in Developed Markets. Currently my target for our portfolio is 50/50 US/International and 60/40 Emerging/Developed so we are off the target portfolio as far as US/International goes, but my international part is exactly on target, by co-incidence more than design. About 28% of our portfolio is in individual stocks and the rest is in mutual funds/etfs.
As an investor it is always nice to have a target asset allocation and periodically check how far off you are. I have shown my breakdown by market but it is also nice to have a breakdown by cap, sector etc. to make sure that the portfolio is properly diversified. For example I realized that our portfolio is heavily weighted towards large cap stocks. So my next order of business is to increase mid-cap holdings. Our individual stock holdings are all in different sectors and the funds we own are mostly index funds that are not sector targetted.
It is a simple task to get all this information and it took me less than 5 minutes to get this information from different accounts.
Indian stock market provides the real candiated for the growth portion of the portfolio. Typical US portfolios are underweight in India which is a huge loss of opportunity.