ST da how to decide amount allocation for portfolio constituents....say for eg dmart, bajfinance... If one has investable amount of 10 lacs, both stocks are bluechip, then to invest 10 percentage in one and 20 in another how to decide on it....have named above two stocks only because these were being discussed....if the stocks are say jubilant food and hdfc life....
Time horizon is say 3 years
One can use equal allocation if one is conservative.....but depending on growth of the company, management quality, visibility of growth,corporate governance one can change the allocation.
In my portfolio highest allocation a stock gets is 20 %.......I have given higher allocation to HDFC Bank,Bajaj Finance,HDFC,DMart,Bajaj Finserv, and less allocation for other stocks like Maruti,L&T,RIL,Bata,Biocon, etc....
Smart_trade