Smart Investing..

During one of my presentations two of my clients Mr Ram and Mr Balram (name changed) where arguing on the time to invest in the market. Mr Ram was of the opinion that its not a good time to invest as the present valuations are not right, it’s overheating, there is liquidity concerns etc. On the other hand Mr Balram had a different view. He said invest into few good companies and forget about it for some time and the argument continues... So who is correct?? In my opinion both are correct. The difference is in the way they invest. Mr Ram is a trader who tries to invest at a lower level and exits at a higher level. For him actual non-cumulative return is what matters the most. He only keeps profitability view and not long-term view. Mr Balram on the other hand is an investor. He wants to put money not for the short term but long term (4 to 5+ years). He try’s to put a system in place to achieve his goals and dreams. He is most bothered about the long-term markets and long-term economic

During the last market correction one of my client came to me and said why don’t you give me a mutual fund, which tries to beat the market by buying when markets go down and selling when its up. Why is it that MFs are not so aggressive?That’s a genuine concern which lot of investors have and to do so one has to actively manage the portfolio of stock, which happens in a portfolio management service. What is a Portfolio Management Service? PMS is a service designed for those customers who due to lack of time or knowledge cannot actively manage their portfolio. The service includes making a portfolio based on the risk appetite, needs, goal, time frame etc and actively managing the portfolio on behalf of the client to reach the specified objective. The investor is constantly informed about the happenings in the portfolio by way of personal interaction and reports. The PMS team will study the economic data, fund/scrip wise performance and research on various data relevant for the performanc

Mutual fund is a fund or a common pool of money for a common purpose i.e. to invest in an asset class and to get the best return possible. The returns are generally based on the NAV (Net Asset Value) of the fund, which I will explain in a different blog entry soon. Mutual funds can be divided into the following types: Based on the maturity of the fund: Here we have open ended and closed ended funds. Open-ended funds as the name itself suggest is a no lock in funds and can be invested and redeemed any time. Lock in funds on the other hand is locked in for a specific duration and can only be redeemed on the specified dates with or without load or on maturity example will be the fixed tenure funds issued by few fund houses fund houses. Based on Charge/Load: There are two types of load, entry and exit. Entry is when we buy the funds, we have to pay some charge ideally it will be 2.5%. Exit load is when we come out or redeemed the funds. Ideally for exit load there are some conditions lik

We all want to invest our hard earned money as properly as possible. What stops us from investing is not lack of information but too much of information which makes us confused. Lot of newspapers, TV channels and of course investment professionals from various firms with lot of data and products will surely confuse you. What to Do??? The best way is to put the money in a product which gives the highest return, but its not easy as fixed deposits give 10-11% taxable, bonds give 8% taxable, mutual funds around 18-20% uncertain , structured products and PMS around 20-25% uncertain, gold has given 19.7% in last 5 years, real estate has given more that 80% in certain pockets in not even a year and in other pockets its negative. Even the volatility in the stock market has gone up substantially due to the rising liquidity from local and FII's. So how does one plan for the hard earned money. I would say take the help of the experts when you are investing for the first time. Some of the bel