Letter to Editor

I have read in detail the cover story published in the previous issue regarding automotive stocks and their future potential. I was extremely glad reading the same as I had kept automotive stocks on my radar for inclusion in my portfolio. Can you please suggest how much percentage of the portfolio is recommended to be allocated towards these emerging automotive stocks bearing a bright future due to the EV space?

-Vikram Shah 

Editor Responds: Thank you for your valuable feedback on the cover story covering automotive stocks included in DSIJ’s previous issue. Sector-wise allocation helps in diversification of investments which curbs investment risk and sets the stage for solid growth. On a general note, the sector-wise allocation is a dynamic process depending upon the performance of each sector at a particular point of time. Considering the future potential growth the automotive stocks possess, we recommend you park 15 per cent of your corpus towards them. We hope we have answered your question. Keep writing to us with your queries.