Posts Tagged ‘Mutual Fund industry’

Systematic Investment Plan(SIP)..Whats That?

Systematic-Investment-Plan-SIP

Wealth creation is an art and over the years it has changed its avenues and area of interest for investors.

๐Ÿ™‚

In this blog, we will discuss what is SIP and what are the benefits of SIP?

๐Ÿ™‚

SIP or systematic investment plan is a simple and time honored investment strategy for creation of wealth in a disciplined manner over long term period.

๐Ÿ™‚

It aims at a better future for investors by giving a good rate of return as compared to one time investor in volatile market by lowering the average purchase cost.

๐Ÿ™‚

It is evident from the recent slowdown that the Mutual fund invested trough SIP route has prevented the pitfalls of equity investment and is enjoying the high returns, if compared.

๐Ÿ™‚

So it makes all the more sense today when the stock markets are volatile.

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BENEFITS of SIP.

1. Power of compounding:

If money is invested at an early age one can make money work with greater power of compounding with significant impact on wealth accumulation.

๐Ÿ™‚

2.Rupee cost averaging:

It is not so easy to predict the movements of the market.

An automatic market timing mechanism that eliminates the need to time oneโ€™s investments is Rupee cost averaging.

Though SIP does not guarantee profit, but one can invest through it as it goes a long way in minimizing the effects of investing in volatile markets.

๐Ÿ™‚

3. Convenience:

It is very easy and convenient to operate through SIP route as it could be done by simply providing post dated cheques with the completed enrolment form or give ECS instructions.

The cheques can be deposited on the specified dates and the units credited into the investorโ€™s account.

The SIP facility is available in most of the categories in domestic Mutual Fund industry.

๐Ÿ™‚

SIP features:

If one would like to earn a good return from its principal then he should have a disciplinary approach.

The disciplinary approach is a vital to earning good returns over a longer time frame.

Once invested through sip route, investors are saved from bothering to identifying the ideal entry and exit points from volatile markets.

๐Ÿ™‚

Conclusion:

Though SIP resolves a dilemma often facing investors due to ups and downs in the market price but investor finds it difficult to decide when to invest in the equity scheme.

The success of investors SIP hinges on the performance of his/ her selected scheme.

If the investor is able to make wise decisions and make the best of the Indian volatile market, SIP is definitely a powerful tool to create wealth over time.

๐Ÿ™‚

Rights Given to MF holders By SEBI :)

MF-Investor-Rights

The recent move by SEBI, banning entry load and capping exit load, among other things, has turned the spotlight on the possible improvement in rights of mutual fund (MF) holders in the country.

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Sure, we already have regulations in place. But the recent Sebi move points to improvement in investor rights.

The important rights that are available to MF holders are as below as per Sebi Regulations on MFs:

A) An investor is entitled to receive statements of accounts in 6 weeks from the date of request for unit certificates.

Every unit holder has the right to receive a copy of the annual statement and periodic statement regarding his transactions.

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B) He also has a right to receive information about investment policies, objectives, financial position and general affairs of the scheme.

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C) Trustees are bound disclose to unit holders any information that could adversely impact investments. Investors have the right to information regarding any adverse happening.

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D) With prior Sebi approval, AMC can be terminate by 75% of the unit holders of the scheme present and voting at a special meeting.

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E) He is eligible to receive dividend within 42 days of declaration, and the proceeds within 10 days from the date of redemption or repurchase.

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F) They can also pass a resolution to wind-up the scheme.

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G) An investor can also send complaints to Sebi, who will take up= the matter with the concerned MFs and follow them up till the issue is solved.

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H) With the consent of 75% of the unit holders they have the right to approve any changes in the close ended scheme.

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However in present world, usually no fund house takes an investor for granted, as nobody wants bad publicity.

Also, fund houses know that the Sebi is extremely serious about investor protection.

Still there is scope for more improvement.

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When it comes to quantitative rights like receiving dividend or redemption cheque on time, things are very much in place.

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However, when it comes to transparency or frequency of portfolio disclosure, things can still improve.

Transparency is a big issue in mutual fund industry.

Still there are schemes in market with strange and funny names, or the repackaged schemes where the investment objective and investment portfolio are not close to each other etc;
These can confuse investors.

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Another area which could improve is frequency of portfolio disclosure. Many Fund houses are lacking in the disclosure of portfolio twice a year, a choice given to them.

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So moral of the story is that before investing everybody should take necessary action to familiar with the scheme and at the same time should be aware of their rights and obligations.

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EQUITY UPDATE for 21st August,2009

Equity Update

POST MARKET REPORT ๐Ÿ™‚

The BSE Sensex closed higher by 228.51 points or (1.52%) at 15,240.83 and NSE Nifty ended up by 75.35 points or (1.69%) at 4,528.8.

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BSE Mid Caps and Small Caps closed with gains of 81.93 and 102.71 points at 5,559.32 and 6,462.98 respectively.

The BSE Sensex touched intraday high of 15,275.17 and intraday low of 14,835.08

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Among the Sensex pack 28 stocks ended in green territory and 2 stock ended in red territory.

The market breadth indicating the overall health of the market remained positive as 1711 stocks closed in green while 958 stocks closed in red and 102 stocks remained unchanged in BSE.

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The S&P CNX Nifty is up by 73.45 points or 1.65 % to 4526.90.

The NSE turnover was up Rs.14697.33 from last trading sessionโ€™s Rs. 13245.55 crore.

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NEWS UPDATES

– Shares of eight tea companies jumped on increase in tea prices

– Bharti Airtel rose after a newspaper report quoted Chairman Sunil Mittal as saying that the company is not looking to sweeten its deal to buy a stake in South Africa’s MTN.

– Bharat Heavy Electricals bagged an order worth Rs 2,630 crore.

– Flawless Diamond (India) s board approved a 10-for-1 stock split.

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OUTLOOK

Index opened in red on the back of on mixed cues from the markets across the globe but rose steadily as the day progressed.

Technically, it managed to sustain to above 4350 levels, which triggered buying spree across the board on the last trading day of the week.

Realty & Auto counters were the major gainers in todayโ€™s trade with significant gain in Midcap & Small cap as well.

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Market breadth also managed to close strongly in green resultant to spurt.

Technically, we expect that itโ€™ll try to test higher levels in the next week but that will attract profit taking too.

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Support โ€“ 4485-4450

Resistance โ€“ 4565-4600

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SENTIMENT INDICATOR

PCR of index options is at 0.96 from last trading sessionโ€™s 0.97

PCR of Stock options is at 0.40 from last trading sessionโ€™s 0.31.

PCR of total F&O is at 0.94 from last trading sessionโ€™s 0.94.

The advances are 750; declines are 336 and unchanged are 30.

The implied volatility has increased to 35.41 from last trading sessionโ€™s 32.15

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TABLES :

1.

Daily Equity Update

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2.

sector watch


Comment: Realty & Auto are the major gainers in dayโ€™s session ๐Ÿ™‚

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POST MARKET

The BSE Sensex closed higher by 228.51 points or (1.52%) at 15,240.83 and NSE Nifty ended up by 75.35 points or (1.69%) at 4,528.8.

BSE Mid Caps and Small Caps closed with gains of 81.93 and 102.71 points at 5,559.32 and 6,462.98 respectively.

The BSE Sensex touched intraday high of 15,275.17 and intraday low of 14,835.08

Among the Sensex pack 28 stocks ended in green territory and 2 stock ended in red territory.

The market breadth indicating the overall health of the market remained positive as 1711 stocks closed in green while 958 stocks closed in red and 102 stocks remainedunchanged in BSE.

The S&P CNX Nifty is up by 73.45 points or 1.65 % to 4526.90.

The NSE turnover was up Rs.14697.33 from last trading sessionโ€™s Rs. 13245.55 crore.

NEWS UPDATES

Shares of eight tea companies jumped on increase in tea prices

Bharti Airtel rose after a newspaper report quoted Chairman Sunil Mittal as saying that the company is not looking to sweeten its deal to buy a stake in South Africa’s MTN.

Bharat Heavy Electricals bagged an order worth Rs 2,630 crore.

Flawless Diamond (India) s board approved a 10-for-1 stock split.

OUTLOOK

Index opened in red on the back of on mixed cues from the markets across the globe but rose steadily as the day progressed.

Technically, it managed to sustain to above 4350 levels, which triggered buying spree across the board on the last trading day of the week.

Realty & Auto counters were the major gainers in todayโ€™s trade with significant gain in Midcap & Small cap as well.

Market breadth also managed to close strongly in green resultant to spurt.

Technically, we expect that itโ€™ll try to test higher levels in the next week but that will attract profit taking too.

Support โ€“ 4485-4450 Resistance โ€“ 4565-4600

SENTIMENT INDICATOR

PCR of index options is at 0.96 from last trading sessionโ€™s 0.97

PCR of Stock options is at 0.40 from last trading sessionโ€™s 0.31.

PCR of total F&O is at 0.94 from last trading sessionโ€™s 0.94.

The advances are 750; declines are 336 and unchanged are 30.

The implied volatility has increased to 35.41 from last trading sessionโ€™s

32.15

SIP – A TIME HONORED INVESTMENT STRATEGY

systematic investment plan

Wealth creation is an art and over the years it has changed its avenues and area of interest for investors.

๐Ÿ™‚

In this blog, we will discuss what is SIP and what are the benefits of SIP?

๐Ÿ™‚

SIP or systematic investment plan is a simple and time honored investment strategy for creation of wealth in a disciplined manner over long term period.

It aims at a better future for investors by giving a good rate of return as compared to one time investor in volatile market by lowering the average purchase cost.

๐Ÿ™‚

It is evident from the recent slowdown that the Mutual fund invested trough SIP route has prevented the pitfalls of equity investment and is enjoying the high returns, if compared.

๐Ÿ™‚

So it makes all the more sense today when the stock markets are volatile.

๐Ÿ™‚

Below are some of the benefits of SIP.


Power of compounding:

If money is invested at an early age one can make money work with greater power of compounding with significant impact on wealth accumulation.

๐Ÿ™‚

Rupee cost averaging:

It is not so easy to predict the movements of the market.

An automatic market timing mechanism that eliminates the need to time one’s investments is Rupee cost averaging.

Though SIP does not guarantee profit, but one can invest through it as it goes a long way in minimizing the effects of investing in volatile markets.

๐Ÿ™‚

Convenience:

It is very easy and convenient to operate through SIP route as it could be done by simply providing post dated cheques with the completed enrolment form or give ECS instructions.

The cheques can be deposited on the specified dates and the units credited into the investor’s account.

The SIP facility is available in most of the categories in domestic Mutual Fund industry.

๐Ÿ™‚

SIP features:

If one would like to earn a good return from its principal then he should have a disciplinary approach.

The disciplinary approach is a vital to earning good returns over a longer time frame.

Once invested through sip route, investors are saved from bothering to identifying the ideal entry and exit points from volatile markets.

๐Ÿ™‚

Conclusion:

Though SIP resolves a dilemma often facing investors due to ups and downs in the market price but investor finds it difficult to decide when to invest in the equity scheme.

The success of investors SIP hinges on the performance of his/ her selected scheme.

If the investor is able to make wise decisions and make the best of the Indian volatile market, SIP is definitely a powerful tool to create wealth over time.

๐Ÿ™‚

Wealth creation is an art and over the years it has changed its avenues and area of interest for investors.

In this article, we will discuss what is SIP and what are the benefits of SIP? SIP or systematic investment plan is a simple and time honored investment strategy for creation of wealth in a disciplined manner over long term period.

It aims at a better future for investors by giving a good rate of return as compared to one time investor in volatile market by lowering the average purchase cost. It is evident from the recent slowdown that the Mutual fund invested trough SIP route has prevented the pitfalls of equity investment and is enjoying the high returns, if compared. So it makes all the more sense today when the stock markets are volatile.

Below are some of the benefits of SIP.

Power of compounding: If money is invested at an early age one can make money work with greater power of compounding with significant impact on wealth accumulation.

Rupee cost averaging: It is not so easy to predict the movements of the market.

An automatic market timing mechanism that eliminates the need to time one’s investments is Rupee cost averaging. Though SIP does not guarantee profit, but one can invest through it as it goes a long way in minimizing the effects of investing in volatile markets.

Convenience: It is very easy and convenient to operate through SIP route as it could be done by simply providing post dated cheques with the completed enrolment form or give ECS instructions.

The cheques can be deposited on the specified dates and the units credited into the investor’s account. The SIP facility is available in most of the categories in domestic Mutual Fund industry.

SIP features: If one would like to earn a good return from its principal then he should have a disciplinary approach. The disciplinary approach is a vital to earning good returns over a longer time frame. Once invested

through sip route, investors are saved from bothering to identifying the ideal entry and exit points from volatile markets.

Conclusion: Though SIP resolves a dilemma often facing investors due to ups and downs in the market price but investor finds it difficult to decide when to invest in the equity scheme. The success of investors SIP hinges on the performance of his/ her selected scheme. If the investor is able to make wise decisions and make the best of the Indian volatile market, SIP is definitely a powerful tool to create wealth over time.