#VGM System Update for Practitioners
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#VGM System Update for Practitioners
As we continue refining our approach for long-term consistency and capital protection, here are two important updates in our #VGM portfolio framework:
- Portfolio Breadth Increased:
We will now maintain a minimum of 25 stocks in the portfolio (up from 20), with equal weight allocation.
️ This ensures diversified exposure across strong RS names and reduces portfolio-level volatility.️ Max allocation per stock = 4% of total capital.- Risk Control Enhancements:
Maximum stop-loss from entry has been standardized:
• Exit if DBS triggers OR
• Maximum 20% stop-loss, whichever comes first.
In the rare case a stock hits the full 20% stop-loss, the capital impact is just 0.80% (4% × 20%).
️ This keeps our emotional comfort and portfolio stability intact while letting winners run.Why This Matters:
We are not here to avoid losses—we are here to control them sharply and let trend & strength create outsized winners over time.
Small controlled losses
+ Strong trend-followers 
= Sustainable performance 
#VGM #RiskManagement #TrendFollowing #RSbasedInvesting #ProcessOverEmotion
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I refer to your video on VGM-Trading & Investing. You suggested to use Parag Parikh Mutual Fund-Value Investing and Motilal Oswal Mutual Fund-Growth Investing for creating Stock Universe for the VGM-Trading & Investing.
It is not clear which funds (of Parag Parikh and Motilal Oswal) you are talking about. Can you clarify?
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Parag Parikh Flexi Cap Fund
Parag Parikh ELSS Tax Saver Fund
Parag Parikh Conservative Hybrid Fund
Parag Parikh Dynamic Asset Allocation Fundselect only equity stocks and avoid arbitrage positions
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Motilal Oswal Large and Midcap Fund
Motilal Oswal Midcap Fund (Formerly known as Motilal Oswal Midcap 30 Fund)
Motilal Oswal Small Cap Fund
Motilal Oswal Focused Fund (Formerly known as Motilal Oswal Focused 25 Fund)
Motilal Oswal Flexi Cap Fund
Motilal Oswal Large Cap Fund
Motilal Oswal ELSS Tax Saver Fund (Formerly Known as Motilal Oswal Long Term Equity Fund)