# Portfolio Review India > Review an Indian equity or multi-asset portfolio for concentration, factor and sector tilts, hidden overlap between direct stocks and mutual funds, tax position, and position sizing. Use when the user shares a holdings list, a broker statement or a fund portfolio and asks what they should do, whether they are diversified, what to trim, how to rebalance, or how their portfolio is positioned. - Skill: `sharma23yash-oss/portfolio-review-india` (Agent Skill) - Install (CLI): `npx skillmds@latest add sharma23yash-oss/portfolio-review-india` - Raw SKILL.md: https://api.skillmd.com/api/skills/sharma23yash-oss/portfolio-review-india/raw - Safety review: pending - Works with: Claude Code, Claude.ai, OpenAI Codex - Category: Coding & Dev Tools - License: MIT - Author: sharma23yash-oss (https://skillmd.com/u/sharma23yash-oss) - Updated: 2026-09-17 - Page: https://skillmd.com/skills/sharma23yash-oss/portfolio-review-india --- # Portfolio Review (India) Before any opinion, build the picture. Most Indian retail portfolios have three problems the owner cannot see: they are one bet wearing fifteen names, they own the same stocks twice through funds, and they have never counted the tax cost of fixing it. ## Step 1 — Normalise the holdings Get everything into one table, at current prices: ``` | Instrument | Type | Qty | Avg cost | CMP | Value ₹ | Weight % | Bought on | Holding period | Unrealised ₹ | ``` Types: direct equity, equity MF, debt MF, ETF, gold (SGB / gold ETF / physical), EPF/PPF/NPS, fixed deposits, real estate, cash. If the user gives only equities, ask what else exists before commenting on asset allocation — a "100% equity portfolio" is often 40% equity once EPF and property are counted. Compute total portfolio value and each position's weight against it. ## Step 2 — Look-through the funds This is the step almost everyone skips. Every equity mutual fund is a bundle of stocks; the user's true stock exposure is direct holdings **plus** the fund look-through. 1. Pull each fund's latest monthly portfolio (AMFI / AMC disclosure). 2. Multiply each fund holding weight by the fund's weight in the portfolio. 3. Add to the direct equity weights. The output is the **true single-stock exposure**. A user with 6% in a bank directly, plus four funds each holding 8% of the same bank, typically has 10–12% in one name and thinks they have 6%. Also compute **fund-to-fund overlap** (see `mutual-fund-analysis-india`). Two large-cap-leaning funds overlapping 70% are one fund charged twice. ## Step 3 — Concentration and diversification | Measure | How | Reading | |---|---|---| | Top-1 weight | | >15% is a single-name risk decision, not diversification | | Top-5 weight | | >45% means five decisions drive the outcome | | Effective number of holdings | `1 / Σ w²` (inverse Herfindahl) | A 30-stock portfolio with an effective N of 6 is a 6-stock portfolio | | Sector concentration | vs Nifty 500 weights | Note deliberate vs accidental tilts | | Market-cap split | large / mid / small using AMFI's semi-annual list | Small-cap weight above ~25% needs to be a choice, not a drift | **Effective N is the most useful single number in a retail portfolio review.** Compute and report it every time. Also flag **correlation clusters**, which look like diversification but are not: PSU banks together; all-NBFC exposure; IT services names that share the same USD-revenue and US-discretionary-spend driver; commodity producers sharing one input price; and "India consumption" names that are really one macro bet. ## Step 4 — Factor and style read Without running a formal regression, characterise the portfolio: - **Growth vs value**: weighted P/E and P/B versus the Nifty 500 - **Quality**: weighted ROCE, net debt/EBITDA, and the share of the portfolio in companies with negative free cash flow - **Size**: weighted market cap and the mid/small share - **Momentum**: share of holdings within 10% of a 52-week high versus more than 30% below - **Yield**: weighted dividend yield Then say plainly what the portfolio *is*. "This is a mid-cap growth portfolio with a financials overweight and no defensives" is a useful sentence. "You are well diversified" is not. ## Step 5 — Position-level review For each holding, classify: | Class | Definition | Action framework | |---|---|---| | **Core** | Thesis intact, position sized correctly | Hold; rebalance only on weight drift | | **Oversized winner** | Thesis intact, weight above the sizing rule | Trim to target, with tax cost computed | | **Thesis broken** | The reason for owning it no longer holds | Exit regardless of price paid | | **Orphan** | No stated reason for owning it | Either write the thesis or sell | | **Anchored loser** | Held only because it is down | The purchase price is not a fact about the company | | **Legacy / inherited** | Never chosen | Review on merits, note the cost basis and grandfathering | Ask the user for the **one-line thesis on each position**. The ones they cannot articulate are the review's real output. ## Step 6 — Risk checks specific to India - **Promoter pledge** on any direct holding — run `shareholding-pattern-analysis` - **Governance flags** on the top five weights — run `forensic-redflags-india` - **Liquidity**: for each holding, position size versus 20-day average traded value. If exiting a position would take more than a few days' volume, it is not a liquid position at that size. - **SME-platform and micro-cap names**: mark separately; they behave differently in a drawdown - **Unlisted or pre-IPO holdings**: illiquid, and taxed on a 24-month long-term clock - **Single-employer risk**: ESOPs plus salary plus employer's stock in a fund is a concentrated bet on one payroll ## Step 7 — Tax-aware rebalancing Never propose a trim or exit without the tax number. Pull it from `capital-gains-tax-india`: - Long-term equity gains are taxed at **12.5% above ₹1.25 lakh** per tax year; short-term at **20%**. - **Positions within days or weeks of completing 12 months should usually wait.** Compute the date and say so. - Realised losses this tax year can offset gains — short-term losses against both, long-term losses against long-term only. - Pre-1 February 2018 holdings carry **grandfathered** cost; the taxable gain is often far smaller than the unrealised gain shown by the broker. - Sequence the rebalance across two tax years where the saving is material and the market risk of waiting is acceptable — and say what that risk is. Present rebalancing as: **target weight → trade → tax cost → net benefit**. A rebalance that costs more in tax than it reduces in risk should not be recommended. ## Step 8 — Asset allocation, if the user wants it Only after the equity picture is clear, and only against a stated objective and horizon. Cover: - Equity / debt / gold / cash split versus the user's stated horizon and drawdown tolerance - Emergency reserve in liquid or overnight funds, sized in months of expenses - EPF, PPF and NPS as the debt allocation most Indian investors already hold and forget to count - Gold as a rupee-hedge and diversifier, typically a single-digit to low-teens allocation, with SGB versus gold ETF chosen on tax and liquidity grounds - International exposure, subject to the industry-level RBI/SEBI limits on overseas investment by mutual funds, which have been capped and reopened more than once — verify the current position before assuming a fund can accept fresh flows Do not produce a specific allocation as a recommendation. Produce the trade-offs and let the user choose, or route them to a SEBI-registered investment adviser. ## Output format ```markdown # Portfolio Review — **Total: ₹X | Positions: N | Effective N: n.n** ## What this portfolio is ## Composition | Asset class | Value | Weight | Target? | ## True stock exposure (direct + fund look-through) | Stock | Direct % | Via funds % | **Total %** | ## Concentration | Top 1 | Top 5 | Effective N | Largest sector | Mid+small % | ## Correlation clusters - : X% combined ## Position review | Holding | Wt | Class | Note | Holding period | Unrealised | Tax if sold | ## Fund overlap | Fund A | Fund B | Overlap % | ## Issues, ranked 1. ... ## Rebalancing options (with tax) | Action | From → To | Tax cost | Rationale | ## Questions for you 1. ``` ## Hard rules - **Never recommend buying or selling a specific security.** Frame everything as observations, trade-offs, and options with their costs. - **Always do the fund look-through** before commenting on diversification. - **Always attach the tax cost** to any suggested trim. - Use the user's own stated objective and horizon. If they have not given one, ask before commenting on allocation. - State clearly that this is analysis, not investment advice, and that a SEBI-registered investment adviser is the right route for a recommendation.