Posts Tagged ‘Rupee cost averaging’

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.

🙂

In this blog, 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.

🙂

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.

🙂

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 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.

🙂

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 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.

🙂

EQUITY UPDATE for 21st August,2009

Equity Update

POST MARKET REPORT 🙂

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 remained unchanged 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 session’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 today’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 it’ll try to test higher levels in the next week but that will attract profit taking too.

🙂

Support – 4485-4450

Resistance – 4565-4600

🙂

SENTIMENT INDICATOR

PCR of index options is at 0.96 from last trading session’s 0.97

PCR of Stock options is at 0.40 from last trading session’s 0.31.

PCR of total F&O is at 0.94 from last trading session’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 session’s 32.15

🙂

TABLES :

1.

Daily Equity Update

🙂

2.

sector watch


Comment: Realty & Auto are the major gainers in day’s session 🙂

🙂




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 session’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 today’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 it’ll try to test higher levels in the next week but that will attract profit taking too.

Support – 4485-4450 Resistance – 4565-4600

SENTIMENT INDICATOR

PCR of index options is at 0.96 from last trading session’s 0.97

PCR of Stock options is at 0.40 from last trading session’s 0.31.

PCR of total F&O is at 0.94 from last trading session’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 session’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.

🙂

In this blog, 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.

🙂

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.