Leave Your Financial Decision To Us
In life, making those decisions on your investments or insurance or expenses are scary and yet, unavoidable. An average Indian loses at least INR 1 Crore by making the wrong financial decisions during their lifetime.
This is where we come in to take care of your financial decisions so that you can live a life that you always wanted.
Mutual Funds are created when several people who wish to earn wealth (investors) combine their resources to create a huge investable amount (corpus). This large corpus is then invested into various companies across industries, operating in different sectors of the economy – depending on the type of fund chosen. All the investors of a mutual fund share in its profits, losses, incomes and expenses in direct proportion to their level of investment.
Companies that create mutual fund schemes are called Fund Houses or Asset Management Companies (AMCs). The professionals who study the markets and pick companies to invest in are called Fund Managers. Fund managers spend a great deal of time analysing markets and studying different sectors of the economy to figure out which companies are most likely to turn a profit – in different time frames – and choose the best option.
There are thousands of mutual funds in India, under different categories, offered by hundreds of AMCs and Fund Houses. For fairness and transparency, global agencies exist that analyse and rate the performance of funds over time and make sure that investors are well informed before investing. It is mandatory for AMCs to declare a standard against which the performance of any given fund can be measured – this is called a benchmark. There are also regulatory bodies like AMFI and SEBI that ensure no investor ever gets scammed.
Mutual funds allow individual to make their money work for them – meaning that they do not need to actively perform tasks for monetary again. Any amount invested in mutual funds will either grow or shrink depending on market performance and the skill of the fund manager.
There are many different types of mutual funds available today, and can be categorised based on investment objective, structure and asset class. Apart form this, there are also specialised mutual funds.
SIP or Systematic Investment Plan is method of investing in mutual funds. Under the SIP investment method, an investor picks a mutual fund scheme and decides to invest a certain fixed amount at fixed intervals. Investing in one scheme through small installment over time (rather than with a large amount at once) is Systematic Investment Planning.
For example: Mr. Anand wishes to invest Rs.25,000 in a mutual fund, but does not have this amount ready to invest at the moment. Mr. Anand can invest Rs.2,500 per month for the next 10 months, so the eventual total value of his investment will be Rs.25,000. In this way, Mr. Anand has fulfilled his investment goal and also gained many benefits – such as Rupee Cost Averaging, budgeting, etc. (which are explained below). This method of investing a fixed amount over time for a particular goal through a particular mutual fund is called Systematic Investment Planning or SIP.
The simplest way to understand the basic working of SIPs is to imagine a child and a piggy bank. The child ‘deposits’ a certain amount at certain intervals and before he knows it, the contents of the piggy bank have built up to a respectable amount.
In the same way, a systematic investment plan deposits a certain amount of money, which could be as low as Rs.500 or as high as the investor wishes, at certain fixed intervals of time, which could be a week, a month, an annual quarter, etc. and allows this amount to build up over time. The biggest difference between the piggy bank and the SIP, however, is the fact that SIPs don’t just keep the money aside for you, but also invest that money into profitable businesses and give you a share of the earnings. Also, with every periodic investment, the amount being reinvested keeps growing larger – which means that returns on the investments grow larger as well.
It’s up to the investor to decide whether he/she wishes to receive these investment returns in a periodic format, or as a lump sum at the end of the SIP’s tenure, when the investment matures. Of course, the detailed workings of a systematic investment plan that invests in mutual funds are a bit more complex and they sometimes speak a different language, but understanding the different types of SIP’s can help patient investors reap massive rewards.
TOP MUTUAL FUND HOUSES
Comprehensive Investment Planning
Goal-Based Investment Planning
Why place your money and trust with us?
Well, for starters, all our research ideas and investment strategies are conducted by a SEBI Registered Research Analyst with a Master’s in Finance degree (specializing in derivatives & other structured products) from a prestigious Ivy league school, whose advisory is keenly followed across major TV Channels like ET Now, Bloomberg etc., and a team of Analysts under his guidance and supervision. Hence, our advisory is highly trustworthy among our clientele.
We follow a Top-Down approach to research, i.e., an investment analysis approach that involves looking first at the macro picture of the economy (such as, GDP, inflation, interest rates, currency movements etc.) and then looking sequentially at smaller factors in finer detail. As Analysts, we next examine the general market conditions to identify high-performing sectors, industries, or regions within the macroeconomy. The goal is to find particular industrial sectors that are forecast to outperform the market. We then screen individual companies through a sophisticated model which takes into account key parameters such as RoE, RoCE, Operating margins, Liquidity and Leverage positions of companies etc. Top-down investing makes more efficient use our time and attention to relevant data because it depends mostly on looking at large-scale economic aggregates and readily available public data and involves choosing among relatively few broad regions or sectors as opposed to the entire universe of individual companies’ stocks.
We study the market through a mathematical model which is based on the concept of Market Profile, a relatively new concept, different from Technical Analysis, which still has a great deal of misconception and confusion about it. More than 98% traders still do not understand what Market Profile Charts can and cannot do. The concept is simple, to display price on a vertical axis against time on the horizontal, and the ensuing graphic generally is a bell shape–fatter at the middle prices, with activity trailing off and volume diminished at the extreme higher and lower prices. By using this technique, we are at an advantage as: