I am shocked to see that one can add only 9 stocks to a custom Fyers Thematic bucket ! Please increase it to atleast 20 - It should be fairly simple.
Other products out there allows unlimited stocks addition literally.
Where am I?
In FYERS Community - Pick others' brains on Trading/Investing you can ask and answer questions and share your experience with others!
FYERS Thematic, as the word suggests, is the collection or a group of stocks that follow a particular Theme. In any sector of the stock market, there are many stocks, and FYERS Themes aim at selecting the best stocks out of that sector, based on quantitative and qualitative parameters, that are aligned to provide good returns.
Studies have shown that the selection of a specific number of stocks in a portfolio helps in diversifying the risks. At the same time, selecting too many stocks results in over-diversification and a reduction in the returns. So, an optimum portfolio is necessary to meet the twin objectives - diversification of risk and maximization of returns.
Selecting a portfolio of 8 stocks assigns a weightage of 12.5% - thereby providing decent allocation to gain good returns. Increasing that portfolio size to 20, assigns a weightage of only 5% for each stock. In a theme, where the investment capital required is around 50,000Rs, a 5% weightage would imply an amount of Rs.2500. This amount is too less to acquire any good stock. For eg: a Bajaj Finance at 7000Rs, a Britannia at Rs.3800 or a D-Mart at Rs.4330.
Since investing in fractional shares is not allowed in India, and considering the price of a full share, having 20 stocks in a portfolio defeats the purpose of investing, especially for retail investors, who have less capital to spare for each purchase.
Also, if someone wanted to invest in 20 stocks or more, they could always prefer focused mutual fund schemes, which have a portfolio consisting of 20-30 stocks. This is a much better choice than direct equity investing through themes.
Different investing instruments for different folks! Each investor should choose a financial instrument based on their needs, returns expectations, and financial capabilities.
Cheers!
Thanks for the response. I do not agree for limiting stocks to just 8 to avoid over diversification and fractional share problem - The main advantage of creating own bucket is to accumulate a bunch of small cap stocks which will normally wont have price > 1000 . For large stocks, we anyway have low cost passive funds. Small cap sector is a burial ground where only few stocks survive and for that we need a diversified set of stocks.