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Choosing mutual funds with the use of the Value Research fund rating system is a good starting point. Top rated funds (4* or 5* ) indicate that they have a given a superior risk-adjusted performance in relation to other funds within the category.
Diversification, quality fund selection, periodic review and disciplined investment , even through a declining phase of the market, are keys to build wealth over time. It is difficult to time the market in any manner and any temptation to do so generally leads to big market surge. So disciplined, regular investing will prove useful in managing your investment anxiety.
Here is an example -
If you were investing Rs 1000 in HDFC TOP 200 via SIP for the last 10 years (August 1998 to JULY 2008) your actual investment amount of Rs 1.2 lakhs would have grown to Rs 6.92 lakhs.
During this time frame , if you had stopped investing during a bear phase, say the tech collapse (February 2000 to September 2001) you would have invested Rs 20,000 lesser. So your investment would have been 1 lakh instead of 1.2 lakhs. This 1 lakh would have grown to Rs 5.16 lakhs by July 2008. So by investing Rs 20,000 less your overall loss would have been Rs 1.76 lakhs.
So do not look at SENSEX while investing. As long as your horizon is long term - continue to invest systematically and stick to your asset allocation and keep balancing it every year.
Now you can breathe easy ! ...
In reply to:
Why Fund Managers
Posted by :
PoorInvestr
I had invested in many mutual funds managed by big AMCs. Due to the market turmoil I had lost a lot. Even during recent fluctuations these funds are gaining anything. But also have shares which I manage myself which are coming up and I didn\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'t loose much as in these MFs. My question is what are those Fund managers with hefty salary doing. Is this a trick fooling the public and gaining for somebody on the name of market turmoil?. 
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I had invested in many mutual funds managed by big AMCs. Due to the market turmoil I had lost a lot. Even during recent fluctuations these funds are gaining anything. But also have shares which I manage myself which are coming up and I didn\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'t loose much as in these MFs. My question is what are those Fund managers with hefty salary doing. Is this a trick fooling the public and gaining for somebody on the name of market turmoil?....
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Gold, the king of metals, has a stranglehold over our collective psyche which is perhaps unparalleled. It is rare to come across a housewife in India who does not know the current price of gold. Imagine how convenient it would be if you could buy gold (preferably everyday) from home, rather than having to visit a jeweller or a bank!
This write-up presents an efficient way to invest in gold through the stock market. You can invest in gold by buying units of gold exchange traded funds (ETFs).
Bereft of technicalities, gold ETFs are mutual fund schemes that invest in gold. Mutual funds are regulated by the Securities and Exchange Board of India (Sebi) and are not to be confused with the unregulated and unregistered chit funds.
As a retail investor you can peacefully invest in gold through gold ETFs with the full assurance that they are governed by a proven legal framework.
Gold ETFs buy standard gold (99.5% purity) and place it with custodian banks for safekeeping. Against this gold, units are issued, which are equivalent in value to about 1 gram of gold. These units are traded in the stock exchange like any other share.
The value of a unit of a gold ETF [net asset value (NAV)] is the current price of gold, less the scheme’s expenses (explained later on). This is computed daily and published in the web site of the ETF. Accordingly, when the price of gold rises, so does the value of units and vice-versa.
Units of gold ETFs are listed and traded on the National Stock Exchange and you have to buy (or sell) it through a stock broker. However, you do not have to visit the stock broker’s office for this. You can transact from your home through the internet. A computer, broadband connectivity and basic proficiency in using them are all that are necessary.
To begin with, you need to open a ‘3-in-1’ account. Many of the new private sector banks like ICICI Bank, HDFC Bank, Kotak Mahindra, Axis Bank etc offer ‘3-in-1’ accounts that can be operated through the internet. Public sector banks do not provide this facility.
The trading mechanism:
Firstly, to buy units of gold ETFs, you have to deposit the requisite amount in your savings bank account. The price of standard gold is now about Rs 12,000 per 10 grams. Say, if you want to buy one unit (i.e. about 1 gram of gold), you need to deposit about Rs 1,250 in your savings bank account.
Secondly, you have to log into your trading account and place your buy order. The trading account will also show the amount available in the savings bank account. For first time users, attending a demonstration of web trading conducted by the service provider is highly recommended.
While placing your order to buy units, you compare the 1) current price of gold (http:www.bombaybullion.com), 2) the value (NAV) of units and 3) the current price of the units in the National Stock Exchange (NSE).
The order book of NSE displays the price and quantity at which people are willing to buy sell units. It can be seen in your trading account as well as the NSE web site.
Anybody in India can place orders through their broker and the best five orders, in terms of price and time, are displayed in the order book. When your buy order matches with some other sell order, you would be a proud owner of units of a gold ETF! The next day, your savings bank account will be debited the value of your purchase (+ the brokerage @ 0.75% + service tax @ 12.36%). On the second day, units will be electronically credited to your demat account.
To sell units of a gold ETF, you will do exactly the reverse. You will be able to sell units at approximately the price of gold on that day. Units will be debited from your demat account and the sale value will be credited to your savings bank account.
How to select the ETF:
ETFs recover a portion of their annual expenses from unit holders. The lower the expense charged, the better it is for you - remember, the value of units (NAV) is the current price of gold, less the scheme’s annual expenses. The estimate of expense that will be charged is given in the offer document of the scheme. The offer document gives the contractual the terms and conditions binding the ETF and is available in the web sites of the ETF and Sebi. Therefore, read it before investing (after all, it is your money!).
Liquidity of units, as can be seen from the number of units traded daily, the daily traded value and the size of the ETF scheme, could be another criterion. If you seek dividend income, you can choose the scheme offering a dividend option.
Advantages of Gold ETFs:
You can accumulate gold over a long period by buying say even one unit of a gold ETF (about 1 or ½ gram of gold) every month. At the end of say 10-15 years, you will have sizeable investment in units, which you can readily encash for future needs such as your daughter’s marriage!
You will not incur bank locker vault charges for buying holding units of gold ETFs. However, you will incur charges for your demat account. Unlike physical gold, there is no tension in storage or for safe keeping of units. On the other hand, you can never be 100% sure about the purity of gold, bought from your neighbourhood jeweller. Moreover, there is no loss by way of ‘making charges’ while selling units.
Income from units of gold ETFs is exempt from tax. Wealth tax (applicable for physical gold) and gift tax for values below Rs 50,000 are not applicable to units. However, depending on your holding period of units, capital gains tax is applicable.
Conclusion:
Despite any problems that you may experience initially due to lack of familiarity, over a period you will gain expertise and enjoy the benefits. Later on you may even pass me investment tips! Here is wishing you many ‘golden’ investment opportunities!
(DNA Money)...
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dear moneyboy
Your choice of funds are very good. Just keep on investing and add 2-3 more funds as you move along your career path and as your surplus income increases.you can increase the SIP amt also in these two funds. monitor your investment regularly....at lease once in a three months.
Regds
ashport...
In reply to:
will i be i rich
Posted by : money_boy
Thank you sir,
I have invested in sbi contra, Reliance Regular saving fund 1000 each
Regards,
Money boy
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Thank you sir,
I have invested in sbi contra, Reliance Regular saving fund 1000 each
Regards,
Money boy...
In reply to:
will i be i rich
Posted by :
kentmss
Dear money boy,
Just 8 months into investments and already complaining. This is a boring work, money boy, this sip business.
Keep investing and stay invested, is the mantra for becoming rich.
Your investment horizon of 10 years should definitely work in your favour. And you are only 20 now, so why worry?
Of course, it would have been better if you had given the funds you have invested in, for me to give you a more clear answer.
Either way, I would say, you should not be losing any money if your investment horizon is 10 years.
Visit goodfundadvisor dot blogspot dot com for learning about investments in Mutual Funds.
Regards,
Best of luck,
Srikanth
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It will be the closing NAV of that day + any entry load if any....
In reply to:
Know to which NAV will be applicant!!
Posted by : ajax303
hi im Ajay, I want to know that which NAV will applicant if i purchase any Tax Saver funds. Suppose i purchase any Tax Saver MF before 1:00 pm of 2th Aug. Is it will apply 1th Aug. NAV or closing of 2th Aug. NAV.
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Dear money boy,
Just 8 months into investments and already complaining. This is a boring work, money boy, this sip business.
Keep investing and stay invested, is the mantra for becoming rich.
Your investment horizon of 10 years should definitely work in your favour. And you are only 20 now, so why worry?
Of course, it would have been better if you had given the funds you have invested in, for me to give you a more clear answer.
Either way, I would say, you should not be losing any money if your investment horizon is 10 years.
Visit goodfundadvisor dot blogspot dot com for learning about investments in Mutual Funds.
Regards,
Best of luck,
Srikanth...
In reply to:
will i be i rich
Posted by : money_boy
hi im 20 i have been reading about the benfits of sip so i started an sip of Rs 2000 p.m it been 8 mnths it is giving me negative returns so will i be rich if i invest for 10 years?
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hi im Ajay, I want to know that which NAV will applicant if i purchase any Tax Saver funds. Suppose i purchase any Tax Saver MF before 1:00 pm of 2th Aug. Is it will apply 1th Aug. NAV or closing of 2th Aug. NAV....
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U can become rich provided that in what fund u are investing and depends on fund manager. First u study the different funds and choose some four or five funds and in that invest small amount as sip like 500/- each fund for at least 36 months in one scheme. frequently once in a year you have to review your funds and than depndes on returns oer expectations u can continue or withdraw. This should be continued for next 15 years minimum. And i wish that you can generate at least One crore provided you should invest for 30 minimum years.
...
In reply to:
will i be i rich
Posted by : money_boy
hi im 20 i have been reading about the benfits of sip so i started an sip of Rs 2000 p.m it been 8 mnths it is giving me negative returns so will i be rich if i invest for 10 years?
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hi im 20 i have been reading about the benfits of sip so i started an sip of Rs 2000 p.m it been 8 mnths it is giving me negative returns so will i be rich if i invest for 10 years? ...
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I asked the question so that I can include the ULIP in my portfolio @ MC and track my investments completely.
And I did got the solution. I registered on licindia, and enrolled the policies. Now, I can check how many units are allotted in ULIP i.e. how many units I hold. So it makes my MC folio track complete....
In reply to:
Money Plus
Posted by : m_i_khilji
Thanks Ashal.
I will wait for the completion of 3 years and will see what to do.
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Thanks Ashal.
I will wait for the completion of 3 years and will see what to do....
In reply to:
Money Plus
Posted by :
ashalanshu
Dear MIKhilji, even regular tracking of its NAV 'll not help u, simply pay total 3 prem. wait for completion of 3 years & redeem at that time if u r not satisfied with the performance.
nothing can be done as of now.
thanks
Ashal
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Dear MIKhilji, even regular tracking of its NAV 'll not help u, simply pay total 3 prem. wait for completion of 3 years & redeem at that time if u r not satisfied with the performance.
nothing can be done as of now.
thanks
Ashal
...
In reply to:
Money Plus
Posted by : m_i_khilji
I bought LIC Market plus in March-2007 with 10K premium each for myself, wife and sister. Although, I know the charge for 1st year is 26.5%, 5% for 2nd & 3rd year and then 2.5% from 4th year onwards.
In March-2008 I paid second premium.
Although I can track the NAV of the Market Plus Growth Fund daily, but, I don't know, what is the current value of my policy (all 3 policies for that matter). Is there any way to get the exact value of my policy(ies).
Secondly, I want to quit the policy.
Please comment.
Specially Ashal, Kentmms, Wadia & Sharmaji.
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I bought LIC Market plus in March-2007 with 10K premium each for myself, wife and sister. Although, I know the charge for 1st year is 26.5%, 5% for 2nd & 3rd year and then 2.5% from 4th year onwards.
In March-2008 I paid second premium.
Although I can track the NAV of the Market Plus Growth Fund daily, but, I don't know, what is the current value of my policy (all 3 policies for that matter). Is there any way to get the exact value of my policy(ies).
Secondly, I want to quit the policy.
Please comment.
Specially Ashal, Kentmms, Wadia & Sharmaji....
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Please contact if you are in Mumbai,
UTI Technology Services Ltd., Plot No 3 Post Bag 18, Sector 11, CBD Belapur, Navi Mumbai 400614. email address mumbai @ utitsl . co . in.
Omit all spaces in between the email address while writing.
All these US 64 units were compulsorily converted into 6.75% bonds which were issued tax free. Please tell me the total number of units held under these certificates by your uncle so that I can be of more assistance....
In reply to:
HELP!!1 US 64
Posted by : waryabs
I seek help of the well informed and experienced.
My 90 year old uncle has certificates of “ UNIT TRUST OF INDIA, Unit Scheme 1964 (Clause 11)”. The certificates have been issued in 1991, 1993, 1994 and 1996. I am aware that us 64 was converted into tax free bonds..
Please advise as to who will be able to check and advise (a) status of the certificates and (b) details of payment in case these certificates have been redeemed. Email Id of the office which should be contacted may please be advised.
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