Hello all,

I am trying to build a fresh new portfolio with 1 lak with a long term view of about 4-6 years at a minimum. Here are my thoughts:
1) ONGC (Oil & Gas) - 50000
2) NTPC (Power) - 25000
3) Suzlon (Alternative energy) - 25000

I also have few more stocks in thoughts: BHEL, L&T but dont have cash right now that i can invest more.

Can you please give your views on the same?
Do you think these would give me good returns at the end of say 4-6 years?

Your portfolio is not diversified enough. ONGC and NTPC are great stocks but they are PSUs, and being PSU's their profit margins are contained by politics. (PSU's raking in the moolah from voters? not a good idea). PSU's should not form 75% of your portfolio.

Also, 50% on Oil and Gas and 50% on power related makes it too concentrated.

Since you mentioned L&T, Add L&T at the very minimum. From your focus on PSU's I guess that you want a defensive portfolio. In that case I suggest you add a diversified MF like HDFC Top 200.

Also don't build your portfolio at one go. Try buying in chunks of 5000 - 10000 at regularly spaced intervals.

Regards,
Sudhanshu

Actually, I don't even consider HPCL, BPCL, IOC and ONGC as companies.

These function as "government departments", where the primary goal is social development and profits are secondary.

If oil prices keep going up in the long-term, these companies will never really make any profits.

Anyone investing in oil PSU's is assuming that government will be generous in the future and allow these companies to function as real commercial undertakings.

NTPC is a similar case where financial returns and profits are controlled by the government.

However, in the power sector, the government does allow power companies to make a fixed ROE and this ensures that the power companies remain profitable in the long run.

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These are just general statements on the two sectors and I still haven't looked at the valuations of the individual companies.

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This illustrates what Alchemist posted earlier.