Portfolio Strategy For Beginners: How To Select Stocks And Sectors During A Nifty Downturn

In a market experiencing a significant downturn, understanding how to structure a resilient portfolio is crucial. Gaurang Shah, Senior Vice President at Geojit Financial Services, shares his expert insights on crafting a strong investment strategy at this challenging juncture. According to Gaurang Shah, the emphasis for beginners should be on informed investing rather than speculative trading. A focus on large-cap stocks is encouraged, as these have faced significant corrections, particularly due to foreign institutional selling. Large-cap stocks not only offer stability but also represent key sectors that have undergone recent adjustments. For sector choices, Gaurang Shah recommends sectors showing robust potential, including IT, capital goods, engineering, power, select defence, cement, and both public and private banks along with strong NBFCs. Beginners are advised to create a balanced portfolio by selecting 5-6 sectors, picking 2-3 large-cap stocks from each, and considering a Systematic Investment Plan (SIP) approach to consistently build wealth over time.