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Risks Identified   
2
Actions Taken     
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Risks Accepted  

Portfolio Strength

Portfolio Valuation


Downside Potential

Your portfolio has a downside potential of ₹ -92 K (9.6% of Portfolio)


5 additional stocks forming 6.2 % of portfolio have Valuation Risk.
HDFC Bank, Edelweiss Financial, Federal Bank, HDFC, Shriram Trans. Fin, Chola. Invest & Fin., Honeywell Automation, Future Lifestyle, TeamLease Services, Trent, CG Power & Indl.Soln, Info Edge, Coromandel Interntl., Jubilant FoodWorks, Castrol India, Larsen & Toubro and Tata Steel stocks also carries Valuation Risk. They have already been highlighted under earlier risks.

Cummins India

CMP: 900 | ₹29 K (2.7% of Portfolio)

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Risk

VRValuation Risk

Bharat Electronics

CMP: 195 | ₹16 K (1.5% of Portfolio)

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Risk

VRValuation Risk

TVS Motor

CMP: 637 | ₹11 K (1.1% of Portfolio)

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Risk

VRValuation Risk

ABB India

CMP: 1352 | ₹7 K (0.6% of Portfolio)

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Risk

VRValuation Risk

Zee Entertainment

CMP: 523 | ₹2 K (0.2% of Portfolio)

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Risk

VRValuation Risk

FAQ's : Valuation Risk

When an asset is overpriced as compared to its fair value, your portfolio is exposed to valuation risk. Valuation risk impacts return on investment, as the more overvalued the asset is, the lower the probability of return for the investor.

Over valuation is usually a temporary phenomenon. Sooner or later, due to self correcting mechanism, the price of such stocks will fall, either gradually or often with a dramatic crash. If you have overpriced stocks forming a large portion of your portfolio, as the price reduces your portfolio value will decrease, even if the correction is only to its fair value.

Don't believe the myth that you can time the market, sell at the highest price or get out at the peak. If you have access to fair value of the company, compare the CMP. This will help you gauge where the stock stands from a valuation perspective. It is safer to sell overvalued stock and book profits, at least partially. And invest in fundamentally strong companies at attractive prices to continue to earn good returns and avoid valuation risk.

Your Action

Others Actions

1. Max Financial SELL 50
2. Larsen & Toubro SELL 42