Dear Radhika nandlal,

I DONT see GOLD as an effecient Investment from Returns Point of view
& hence never monitored it as Investment avenue. If you understand it Properly & monitor Regularly, it may be an Option.

Regarding 100 - AGE Formula,my views are as Following.

If somebody youngman in TWENTIES has only few Thousand Rupees, he should Invest at least 6 months Expences in DEBT & Remaining ( say less han 50% of Total Assets) in Equity.

If somebody is above 50 years & have 1 Crore Rupees, he should Invest 5-10 Lacs in Debt & Remaining ( over 90% ) in Equity so that he is not short of money at the Age of 80 years(considering Infltion).

for VAC please visit w w w moneytoday dot in website & Click on Mutal Funds & 10th month. Lot about VAC was Exchanged last month by vvrk & Anshal on this Board.

P.C.Sharma...

Dear Radhika Nandlal,

I am not Expert in Share Market although I started Investing in shares ( only Primary Market ) since 1987. I sold most shares after getting 300 - 400 % Profits within 1-4 years. I also lost money in few IPOs( hardly 10% of Profits ).

I started Investing in Tax saving Mutual Funds from 1990
(hardly Rs.10000 per year).

Profits Earned from Shares / Mutual Funds are very low in Comparison to my Regular Income as Engineer /Construction Business.

I held Shares of 1 company for over 14 years & got Profits 25 Times
( 2500% )when sold few months back.

Being Mechanical Engineer by Profession, I know TOO MUCH about many Companies & therefore not comfortable investing in Secondary Market.

I think that Most MUTUAL Fund Managers are more Intelligent than me.
therefore I Invest in Mutual Funds.

Returns of Reliance Growth Fund & SBI Tax Gain Scheme 1993 are best I recieved ( more than 100% from 2005 till date ) in Dividend Payout Option.

I always opt for Dividend Payout even if I dont need Money.

I had never Invested in any PLAN of LIC because I did not Require Life Insurance of 1-2 Lacs & Returns are less than FD / PPF.Currently( after 2004) I have 18 Lacs Life Insurance cover through ULIPS of Plivate Insurerance Companies.

I started studying Mutual Funds Investments since 2004 only. Presently I can share my Following Observations / Conclusions with you & other Boarders.

- Few Good ULIPS with minimum Premium & Maximum Insurance Cover are BEST & CHEAPER option for Insurance & Retirement for INFORMED Investor. In many cases GREEDY Insurance Agents Cheat Investors by Selling Costly ULIPS to earn HIGH Commissions.

EQUITY / Balance Mutual Funds are Best Option for Wealth Creation.

For Safe Investments MIP / Mahila Unit Scheme are Better than FD.

Investments in FD may prove to be most INJURIOUS to your Financial Health after retirement( In view of Inflation & Tax Laws).

If somebody Invests 10% of Salary in GOOD ULIPS/Mutual Funds for 30 years,he can recieve 5 Times of Salary every month after 30 years(SWP from Mutual Funds).

I am INVESTING all my Incomes in Diversified EQUITY Mutual Funds by VIP ( Value Averaging Process).

I DONT believe in Following Theories

- Equity Investment = 100 - Age

- Long Term Investment without Profit BOOKING



Although Timing of Market is Impossible. However all of us try TIMING the Market. TIMING the Market is not CRIME. One Should try to BOOK Profits ( as per VAC Process).

Nobody can get Maximum Profits but we should try to get OPTIMUM Profits( 15-25% Per year).

Best Wishes.

P.C.Sharma













...

Dear ashgoel,

Your observations / Conclusions are absolutely correct.

SIP is Excellent option for Salaried Persons, specially those who have no Time to monitor & Invest as per situations.

Economic Times Supplement ( Investor Guide)of today Carries an Article on FRONT PAGE Explaining the Importance of TIMING the Market.You may not catch the ABSOLUTE TOP or BOTTOM but no harm in TRYING to Time the Market.

Investors may Invest Partially by SIP & add Lumpsum on Declines. In Bull Market you can not Invest except SIP if Market goes up Continuously for 6-12 months.

P.C.Sharma










...

Dear Mone,

Performance of all your Funds is better than Average Except Reliance Tax Saver Fund.

Continue SIP in all 4 Funds.

Dont Redeem Fidelity Tax Saver & Templeton Equity Income.You can Expect GOOD Returns after 2-3 years.

Switch Reliance Tax Saver to Reliance Equity Advantage Fund after 3 years Lock-In.

P.C.Sharma...

Dear Wadia,

I feel that Money control Boarders may be considered as INFORMED INVESTORS. For Such Investors Large Cap Oriented Diversified Equity Funds as mentioned by you are Better Option.

For Average Investors(not able to Monitor their Investments),Index Funds may be OK.

In US Context Index Funds are Better,. In Indian Context,Efficiently Managed Div. Equity Funds are Better for Informed Investors.

P.C.Sharma



...

Dear Big Joohn,

FD in State Bank of India may be considered as Safe even beyond
Rs.1 Lac.

If your Invesment Horizon is long ( more than 5 year ), Invest in UTI Mahila Unit Scheme.

If your Time Horizon is more than 10-15 years, Invest in Single Premium ULIP of LIC / SBILIFE or other with Protector Fund/Balancer Fund.

P.C.Sharma...

Dear Radhika Nandlal,

For God sake DONT Invest even 1 Rupee in any Pension Plan due to POOR Annuity Returns & Adverse Tax Laws.

Instead of Putting money in FD, Invest in UTI Mahila Unit Scheme with Dividend Reinvestment Option ( Div.Tax Free) to earn more than 11% on long Term Basis. This Scheme Invests less than 30% in shares
& more than 70% in Fixed Income Instruments. Even today,its 1 year/2year Returns are +ve.

P.C.Sharma





...

Thansk pcspune, I will check it out. In UK right now there is a gold rush. Its so sad to invest for a 25 year term when i am 46, of what use to me? However i have emailed ur investment pattern to my nieces, nephews and kids so they read it at office. I will however be trying out ulips and mahila plans....

Thanks a lot pcspune for giving us a glimpse into your investment style. I have in fact saved ur post for future reference. YOu see this is the time to sell everything and invest in equity related instruments. BTW you havent mentioned gold at all. In UK I understand folks are Queing up to buy Gold. Dint know UK will display the herd mentality that India displays for the yellow metal. LOL Mahila unit scheme really looks interesting, i should look it up and also take some ULIP... what i feel sad about though is that i dint have the interest when i was 20 years old to invest safely and wisely. Only now i have developed an enormous interest in Wealth creation. Had i this kind of interest, i could have beaten my hubby to the game. LOL.. frankly the kind of interaction MMB provides it would be impossible to get anywhere in the world. Its almost like a free service. Thanks a lot. Equity investment = 100- age Yes the above leaves no room for optimism for citizens over 40. Regards Radhika What is VAC process?...

Pune, Thanks, but i am not sure if i can take risks with MFs at highs, now though there is no risk in MFs so i might break and invest in MFs. Yes pension plans are lousy. I dont know what to do. I think i will just sit on everything as is. LOL...

Hello Everyone, Thanks to your suggestions I invest in 4 funds in SIP. 1.DSP ML TIGER (I dont see amny people recommending ths fund. Why? If i can move to anyother fund , what can it be?) 2. franklin India Prima plus fund - i dint see anyone recommending this 3.Sundaram select focus 4.HDFC growth I invest 2500 pm one each of this. Please suggest if i should move to someother fund....

Sir What does SWP mean in the above article.? Thanks ...

Dear Mr. Sarma, I read a few days back --within two to three days-- that an Indian court has ordered that the insurance companies should not insist to submit an FIR copy for a MV accident and claim should be considered with other evidences available. Would you please let me know where it appeared with the details and your comments. thanking you with regards, v.krishnamoorthy ...

Hello Sir, instead of Buyingin the crashing markets, better exit at current levels, these are still the best levels to exit. Exit all big caps and mid cap stocks, I am Venkat from Training8m, Queensland Australia...