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MF Investment Help
Tracked by: 0 Boarder
Its not at all really the time to buy gold when entire asset class is available with 60-80% cheaper, wise investors would surely not track that gold which is yet to see declines ahead. Gold is the costliest commodity so far at present.
Some asset class liek realty is down over 87%, who the hell is going to buy that costly gold instead of this mouth watering realty equity prices.
Gold is costly now. Investors could like to buy it at Rs 8000 per 10 gms....
In reply to:
Strike gold in times of financial crisis
Posted by :
MMB Messenger
There is gloom and depression all over; but these times provide some of the best opportunities to create wealth. 
Tracked by: 4 Boarders
Equity investment is for the long term.
Equity has given the best return for the long term.
If you invest lumpsum , if the market keeps going up - you will get the best returns. If the market keeps coming down - you will incur maximum loss. Since nobody can predict when the market will go up or down, it makes sense to invest via SIP for the long term.SIP makes sure that you do not loose maximum.
SIP should not stop only after a bullish market. If you have been investing for a year, the average cost of your units is high. If you stop now , you can break even only if the sensex crosses 17-18000. If you keep investing for a year and if the market stays around the same level, the average cost of your units will come down closer to today`s level. When market starts going up , you will break even much faster , maybe when sensex levels cross 10,000. So investing via SIP now makes sense. Infact lumpsum gives you better returns in a bullish market. SIP should be carried on for atleast one full cycle before you stop. Most investors are salaried people. Investing via SIP brings about a discipline. When it comes to insurance, very few people stop paying the premium. Insurance gives you so little returns.
Investors need to apply the same kind of discipline while investing via SIP. Investing now is less riskier. Today there are less people investing in equity. Investing in equity funds has got nothing to do with sensex levels. It only depends upon your asset allocation and your horizon. As long as you keep balancing your asset allocation regularly - you have nothing to fear. If your horizon is atleast 3-5 years away - this is the best time for all investors especially first time investors to start investing via SIP.
SIP in a bear market is safer than a SIP in a bull market. ...
In reply to:
Learn to invest in equities without an iota of risk
Posted by :
Dragonbhat
Hi Ashalanshu,
Very mature and intelligent comments from you. I am not advising against SIP because the markets are down. Markets will go up and down - that is their nature. However, SIPs are sold on the wrong basis. SIPs don`t mean lowering your cost averaging - it doesn`t work that way except on paper.
If you have the patience read MMB boarder Callahan`s post on SIP in his blog: samsdungeon.blogspot. com
BTW, I know Callahan just the way i know you, only virtually.
My point with SIP is SIP is good if a person`s goal is to forcefully save money. But if the goal is to average down. Don`t Do It.
I repeat just for emphasis `Don`t Average Down.`
You are a smart person, look at the heading of this thread `Learn to invest in equities without an iota of risk` - can there really be a free meal? can someone really invest in equities without risk?
More we run away from risk the more we court it. The very action of averaging down will drag one`s networth lower and lower.
If I buy at 21k, then at 19k, then at 18k then at 17k - Now, i think 16k is absolute bottom. Markets can`t go lower than this i think. Whoosh markets go lower. By the time it is 12.5k i have invested all my money i now no more have any money to average down.
Regards,
Dragon.
Tracked by: 0 Boarder
Great article,its really good....
In reply to:
Strike gold in times of financial crisis
Posted by : MMB Messenger
There is gloom and depression all over; but these times provide some of the best opportunities to create wealth.
Tracked by: 0 Boarder
Yes and it is also so correct! 100% in agreement with Yogesh.
Sunaina...
In reply to:
Strike gold in times of financial crisis
Posted by :
vijay.2002
Excellent article. Great one liner: \"If it was as simple as listening to the idiot box, everyone would be a successful investor.\"
Tracked by: 0 Boarder
The present market condition is very bad. In this falling market shall I invest my liquid surplus cash in Stocks or Mutual Funds for 2 to 3 years horizon. Suggest good stocks & Funds....
In reply to:
ABN AMRO Mutual Fund is now Fortis Mutual Fund
Posted by : MMB Messenger
ABN AMRO Mutual Fund has announced changed its name to Fortis Mutual Fund with immediate effect.
Tracked by: 0 Boarder
ABN AMRO Mutual Fund has announced changed its name to Fortis Mutual Fund with immediate effect. ...
Tracked by: 0 Boarder
In this bear market in which type of schemes did i invest?debt or equity? i want 15% return in 2 to 3 years....
Tracked by: 4 Boarders
Dear Dragonbhat,
Your last paragraph makes me wonder if you or any SIP investor has suddenly lost his job or whatever he is doing to earn the monthly income and has no money to further invest in SIP.
My dear, An SIP is a long-long term plan and one invests systematically and gradually to even out the ups and downs. If one is looking for a bottom, that is akin to market timing. SIP nullifies the greed and fear psychosis of an investor.
I would like to share one of my client`s emotional investing decisions. He has a couple of investments in MF online and a few SIPs with a broker. He intended to continue investing online just like an SIP but have completely stopped investing and started redeeming at a loss ever since beginning of this year but his SIPs are still continuing that were done through the broker. The reason for this he tells me is in such volatile market, I am unable to carry on investing online as the fear of loosing is too strong to commit any money, and watching the indices plummeting made him redeem at a loss. In fact his decision of not investing is loosing him the opportunity of buying at such low levels. I asked him that in that case why did you not stop the SIPs? His answer was the broker advised him not to and convinced him to continue as he is getting more units at lower NAV and when markets will turn for the better, he will earn more.
Regards,
Wadia...
In reply to:
Learn to invest in equities without an iota of risk
Posted by : Dragonbhat
Hi Ashalanshu,
Very mature and intelligent comments from you. I am not advising against SIP because the markets are down. Markets will go up and down - that is their nature. However, SIPs are sold on the wrong basis. SIPs don`t mean lowering your cost averaging - it doesn`t work that way except on paper.
If you have the patience read MMB boarder Callahan`s post on SIP in his blog: samsdungeon.blogspot. com
BTW, I know Callahan just the way i know you, only virtually.
My point with SIP is SIP is good if a person`s goal is to forcefully save money. But if the goal is to average down. Don`t Do It.
I repeat just for emphasis `Don`t Average Down.`
You are a smart person, look at the heading of this thread `Learn to invest in equities without an iota of risk` - can there really be a free meal? can someone really invest in equities without risk?
More we run away from risk the more we court it. The very action of averaging down will drag one`s networth lower and lower.
If I buy at 21k, then at 19k, then at 18k then at 17k - Now, i think 16k is absolute bottom. Markets can`t go lower than this i think. Whoosh markets go lower. By the time it is 12.5k i have invested all my money i now no more have any money to average down.
Regards,
Dragon.
Tracked by: 0 Boarder
During the times of Financial Crisis, buying gold considered as antieconomic move, it actually does not contrinute to the economy instead suck out the liquidity from growth economy, creating more write downs & job lay offs across world. Gold will come down to USD 400-USD 450 level in medium to long term, that time we can say that global markets are out of danger. Big Ticket Correction in gold is imminent for economy to get back onto track....
In reply to:
Strike gold in times of financial crisis
Posted by : MMB Messenger
There is gloom and depression all over; but these times provide some of the best opportunities to create wealth.
Tracked by: 4 Boarders
Dear Dragonbhat, My dear friend, First of all thanks for ur detailed reply. In case of SIP, It`s not for the normal averaging of price just like the Shares. In case of SIP, as i earlier posted, one should first decide his/her goals & later link that goals to investments. For any goal which is 10+ year beyond (children edu. & marriage funding, Retirement Planning etc.) SIP in Eq. MFs is the best investment which is light on wallet & easy to handle. Just for ur info - K-30 (Div. reinvestment option) the large cap oriented fund from Kotak AMC was launched in Dec. 1998. For a SIP of 1000 Rs. since investment till Nov. 2008.
As per VROL the SIP returns are 19.96 % (CAGR) as on 17th Nov. 2008.
U can check the same for any other fund.
I think the 19.96% CAGR is not a bad return at all after the recent crash.
Thanks
Ashal...
In reply to:
Learn to invest in equities without an iota of risk
Posted by : Dragonbhat
Hi Ashalanshu,
Very mature and intelligent comments from you. I am not advising against SIP because the markets are down. Markets will go up and down - that is their nature. However, SIPs are sold on the wrong basis. SIPs don`t mean lowering your cost averaging - it doesn`t work that way except on paper.
If you have the patience read MMB boarder Callahan`s post on SIP in his blog: samsdungeon.blogspot. com
BTW, I know Callahan just the way i know you, only virtually.
My point with SIP is SIP is good if a person`s goal is to forcefully save money. But if the goal is to average down. Don`t Do It.
I repeat just for emphasis `Don`t Average Down.`
You are a smart person, look at the heading of this thread `Learn to invest in equities without an iota of risk` - can there really be a free meal? can someone really invest in equities without risk?
More we run away from risk the more we court it. The very action of averaging down will drag one`s networth lower and lower.
If I buy at 21k, then at 19k, then at 18k then at 17k - Now, i think 16k is absolute bottom. Markets can`t go lower than this i think. Whoosh markets go lower. By the time it is 12.5k i have invested all my money i now no more have any money to average down.
Regards,
Dragon.
Tracked by: 0 Boarder
Commenting on the Wealth Builder Fund, Harsha Upadhayay of UTI AMC, said the company is looking at asset allocation between equity and gold and the exposure to gold will be through gold ETF. "This is ideal for all those investors who are seeking long-term capital appreciation with relatively less volatility in terms of returns."...
Tracked by: 0 Boarder
Excellent article. Great one liner: \"If it was as simple as listening to the idiot box, everyone would be a successful investor.\"...
In reply to:
Strike gold in times of financial crisis
Posted by : MMB Messenger
There is gloom and depression all over; but these times provide some of the best opportunities to create wealth.
Tracked by: 4 Boarders
Hi Ashalanshu,
Very mature and intelligent comments from you. I am not advising against SIP because the markets are down. Markets will go up and down - that is their nature. However, SIPs are sold on the wrong basis. SIPs don`t mean lowering your cost averaging - it doesn`t work that way except on paper.
If you have the patience read MMB boarder Callahan`s post on SIP in his blog: samsdungeon.blogspot. com
BTW, I know Callahan just the way i know you, only virtually.
My point with SIP is SIP is good if a person`s goal is to forcefully save money. But if the goal is to average down. Don`t Do It.
I repeat just for emphasis `Don`t Average Down.`
You are a smart person, look at the heading of this thread `Learn to invest in equities without an iota of risk` - can there really be a free meal? can someone really invest in equities without risk?
More we run away from risk the more we court it. The very action of averaging down will drag one`s networth lower and lower.
If I buy at 21k, then at 19k, then at 18k then at 17k - Now, i think 16k is absolute bottom. Markets can`t go lower than this i think. Whoosh markets go lower. By the time it is 12.5k i have invested all my money i now no more have any money to average down.
Regards,
Dragon....
In reply to:
Learn to invest in equities without an iota of risk
Posted by : ashalanshu
Dear Dragonbhat, I`m not at all angry with rags123 or any one else. I was just popping the question as now days due to so much hammering of Eq. market, a lot of people r either advising to redeem or to stop new investment. Be it Lump Sum or SIP.
Regarding ur Question - I have no idea when `ll the market `ll touch again the level of 21K?
Also regarding ur need urgently, my dear friend, in my view investment should be goal specific. Eq. as an asset class can perform only over long term 10-15-20 years. By this sense, if a person is investing for education or marriage corpus of his new born or for his own retirement, Eq. should be the first choice. If the investment is for a down payment of his dream house after 6-8 months or for a lump sum pmt. for any emergency, this amount at any cost should not be invested in Eq. It `ll be better to have this short term amount invested in Bank FDs, Pure Debt Funds etc.
Ur views are invited.
Thanks
Ashal
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I agree with this view. I have found such companies too for example GE Shipping. Also just I like the fact that you are encouraging us to find stuff on our own. Very rare when people just come and say buy XYZ.
Good one, can we please have something on how to analyze? some more hints please.
thanks....
In reply to:
Strike gold in times of financial crisis
Posted by : MMB Messenger
There is gloom and depression all over; but these times provide some of the best opportunities to create wealth.
Tracked by: 0 Boarder
Long term Gold has bottom of USD 450-550 per Ounce....
In reply to:
Strike gold in times of financial crisis
Posted by : MMB Messenger
There is gloom and depression all over; but these times provide some of the best opportunities to create wealth.
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