Tag: investment

Make a wise investment decision with Mutual Funds

Posted on by Aziz Ampanwala

What is a general perception when you hear the word mutual funds investment? I bet the first thing that crosses your mind will be “risk” i.e. if you have never invested in mutual funds. But should that bother you when you have a successful moderator working for your investment funds in the market? Well, you would be interested to go through the article to know more about Mutual Funds.

To all the readers who are not well-versed with Mutual Funds, here is a brief description:

Mutual Fund investments are investments made in companies or firms which are public listed on National Stock Exchange / Bombay Stock Exchange. The returns on such investments depends upon the company’s performance and the overall market.

Why should you invest in Mutual Funds when you have a safer option of FD’s (Fix Deposits) you may ask?

The answer would be though mutual funds are not as safe as a FD deposit, still if mutual funds are invested in right companies comparing their past records and management, then the returns on yearly basis are much higher competitively and there is more flexibility  plus tax benefits.

Talking about Mutual Funds investment and risk, a balance is needed, which could yield a better dividend and is safer to investment in, here is where a unique plan from ICICI Prudential Mutual Fund steps in, the “Balanced Advantage Fund” scheme which is an open-ended equity oriented fund that brings multiple benefits to your investments. It strives for growth by investing in equity markets, while providing relative safety through investments in debt instruments.

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I would like to share some interesting facts and figures to illustrate on why the ICICI Prudential Balanced Advantage Fund is a good choice.

Investment Objective:

The objective of this fund is to create wealth over a long period of time through a balanced investment in equity markets as well as debt markets and money instruments. It also aims to do this by mitigating the risk from equity markets as much as possible by not sticking to a single strategy alone.

Why Invest?

  • Benefit from an in-house asset allocation model that aims to buy low & sell high
  • Aim to gain from market volatility over the long term

Fund Highlights

  • Invests in both equity & debt instruments
  • Provides tax-free returns#
  • Aims to provide month-on-month tax-free dividends$
  • Manage your monthly cash flow with Automatic Withdrawal Plan^ & Monthly Dividend Feature

#As per prevailing tax laws for FY16-17, returns earned after one year are tax free.

$Distribution of dividend is subject to approval from Trustees & availability of distributable surplus

^Automatic Withdrawal Plan is only a feature for regular withdrawal from the scheme and shall not be construed as an assurance or guarantee of return.

A 3-in-1 fund

BAF may be considered to be three funds rolled into one. When valuations become expensive the fund’s equity allocation can fall to as low as 30%. In such market conditions, the fund resembles a monthly income plan (MIP). When the market becomes fairly valued, the fund raises its allocation to equities to 65%, thereby resembling a balanced fund. And when market valuations decline, it raises its allocation to equities to the maximum limit of 80%. At such times it resembles an equity fund. Thus, it can be viewed as a three-in-one product, with the added benefit of being taxed like an equity fund.

BAF’s ability to perform in all market conditions makes it a very good fund for people with low to moderate risk appetite, who have invested in FDs all their lives but now want a moderate taste of equities. This is a fund for investors who don’t want to be bothered about questions such as: the market has risen (or fallen), should I book profit or stay put? The fund takes care of all these issues on investors’ behalf.

Thanks to BAF’s stellar performance, investors have reposed their faith in it. The fund’s asset under management (AUM) has risen from Rs. 204 crore in March 2013 to over Rs. 10,000 crore in November 2015, a 47-fold growth over just two-and-a-half years.

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Disclaimer:
Mutual Fund investments are subject to market risks, read all scheme related documents carefully

Get Smart with FinSmart E-Learning for Investors

Posted on by Aziz Ampanwala

We have a habit to be unorganized and casual about how we spend our  money, but what if we realise the potential of our hard earn money and make it earn for us, sounds like I am cracking a joke, right? Well! I am not because recently Finsafe have released an e-learning module named FinSmart to provide a scalable learning solution on personal wealth management.

Bangalore, India, April 20th 2016.

Finsafe India Private Limited has launched an e-learning module providing comprehensive information regarding personal wealth management. The 2 hour long module named FinSmart is aimed at people who want to make the most of their disposable income. It’s an excellent option, rather than just saving money and earning literally nothing out of it, learning and understanding different way to invest money opens up windows for better chances of ROI.

FinSmart covers basics of investment and concepts like inflation, compounding and risk in great detail. Investment tools such as mutual funds, debt instruments, insurance and pension, as well as factors affecting them are described in depth. Users also gain from a comprehensive financial planner, a model portfolio and the facility for making online investments.

FinSmart is an initiative of Mrin Agarwal, who won the CNBC Grand Jury Award for work done towards Financial Inclusion & Education in 2015. Mrin is also the co-founder of Womantra, a training program aimed at enhancing financial awareness among women. Womantra has trained more than 5000 people across 40 corporates across India over the last 2.5 years. The training sessions conducted by Womantra brought out that most young professionals in India were not prepared to achieve their financial aspirations and further highlighted the critical need to raise financial awareness and inclusion.

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Finsafe was created with the purpose of being a knowledge repository that simplifies financial information and empowers people to create wealth. “In a surging economy like India’s, it is crucial that individuals are informed to take effective action to improve overall financial well-being and avoid monetary distress.” says Mrin Agarwal. A Standard & Poor’s Financial Services LLC survey has found that more than 70% of Indians fare badly in financial literacy.

Finsafe’s efforts converge towards building a more financially inclusive future and FinStart is designed to address the investor awareness gap. FinStart is among the first of its kind opportunities for Indians to learn all about wealth management and investment at the place and pace of their choice.

About Finsafe India Pvt. Ltd.

Finsafe is a finance education & inclusion organization focused on equipping people with strategies to handle their money with focus on goals, growth and safety. Finsafe is a pioneer in bringing e-learning solutions on personal-wealth management to India. Learn more at www.finsafe.in .

Stock Market Investment – Be Wise

Posted on by Aziz Ampanwala

Investing in Stock Market is always considered to be not for the faint hearted, but what if the company is consistently performing well? Stock Market investing might be risky but it’s not the case when you analyze and compare the stock performance with proper basic knowledge of Market or even hiring a consultant is a wise choice if you are keen into trading into share market stocks.

Recently, while I was browsing the BSE website for a GLIMSE of where the market is going, I came across Kushal Tradelink Ltd, and while I was checking their stock performance I was surprised to see that the company has been a consistent performer in the Last 6 months when the BSE was not stable and fluctuating on a downward turn, sharing a screenshot  analysis for overview.

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So, if you see the Performance you would be tempted to invest in such a company but before that let me share with you the company details:

Kushal Tradelink Ltd has been in the market since 16 years now, it was incorporated in 2000, its major business is into Paper Sector, and they have 3 giant paper mills in Gujarat and a corporate house as well, apart from that the company also has wholly owned subsidiary in Singapore and in Ajman(UAE), subsidiaries are involved trading of physical agricultural, chemicals, paper waste and metals trading

Kushal Tradelink Ltd major revenue is generated through its paper manufacturing from recycle paper plants which had a turnover of Rs. 89.47 Cr., up 33.38% from last quarter Sales of Rs. 67.08 Cr. and up 21.44% from last year same quarter Sales of Rs. 73.68 Cr. Thought being listed in the BSE in B group I believe that it will be soon on S&P BSE 500. Stock is trading actively with over 10 lac shares average on a daily volume, stock price has risen consistently and have never fall even Rs. 10 from its high price at any point of time, company have declared interim dividend twice 40% in January and 60% in March.

Note*: December and September Quarter turnover and profits do not includes their subsidiaries turnover and profits, that will be accounted in annual financial balance sheet.

Kushal Tradelink Ltd are aggressive in the sales, bagging contract of Rs. 200Cr. with Shree Rama news prints, 250Cr. Deal with Adron enterprise ltd (Adani Group), 1000Cr. Deal with Bungee India (fortune 500 company) as well as more than 1500 SME business across India are regular buyer of their paper products.

Showing confidence in the growth of Kushal Tradelink Ltd, there has been a sharp increase in the number of retail investors , comparing after December Quarter 7991 retail investors have invested in Kushal Tradelink’s stock and after March quarter it rose to 20,000+ that shows increasing substantial public interest in the company’s stock. (refer for details: BSE

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Sometimes wise decisions are made by comparing analytical data and going through the progress pattern of a company before investing in stock market, and if I talk about Kushal Tradelink Ltd and the details I have mentioned above, it is quite obvious that the performance and growth is consistent and investment in such stocks pay consistent dividend.

If you have any questions or queries, please comment below.

Are you Post Retirement Ready

Posted on by Aziz Ampanwala

When i hear the word “Retirement” and life after that, the first thing that comes to my mind is, its too early to think on these lines, there is still time before i start planning, maybe in my mid thirty early forties, right now it’s time to enjoy life in the fast lane.

Now, you would think why we have such a mindset, well we shall rather curse our surrounding for considering the retirement scenario not that seriously and just counting on the thoughts of “Our children will take care of us” or “who knows how long i shall live”,” i rather use it when its needed”, but what they are not realizing is that if they have funds after their retirement which is accumulated in their earning phase of 30 odd years, then they could be rest assure about living a peaceful life after retirement, without worrying or depending upon their children or any third source for funds.

Every one of us has dreams to live a peaceful life after retirement, a house near the mountains or valley close to nature, roam around the globe without any hassle, play with your grandchildren and fulfill their petty needs, there are so many example and it differs from person to person on what they aspire to do after retirement.

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So, when did i realized about retirement funds? Just a week back but don’t be surprised, good folks at blogadda.com arranged a informative session on retirement mutual funds conducted by Reliance Capital management team and invited bloggers to attend and know the benefits of Retirement Mutual Funds.

Sharing some facts and figures:

* Life expectancy set to increase due to medical advancement and affordable technology, average set to increase by 70 yrs by 2050
* India is one of the lowest in terms of retirement assets at 15.1% of India’s GDP and $128 asset/capita
* A good 3/4 of Indian population lacks sufficient funds for after retirement life.
* People are not aware of Schemes related to Retirement Mutual Funds, and hence go the traditional way of FD’s and reinvesting on it, life insurance or gold investment which have a limitations such as
Taxable Income
No growth in corpus
Low ability to fight inflation
* People believe that they will plan for Retirement post the age of 40 yrs, starting early is better.

A example that will give you a fair idea on how your current retirement investment funds wont serve you enough and how mutual funds will : A illustration:

You invested Rs.5000 every month for 30 years
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HOW TO READ THE GRAPH :
If over a 30 year period, the accumulated retirement corpus was Rs. 3.46 cr from a monthly SIP of Rs. 5000 at an assumed rate of 15%, then one can withdraw an annuity of Rs. 3 Lakh per month over next 30 yrs assuming that the corpus would grow at 10% post retirement

Based on Mutual funds Retirement, 2 scheme Reliance have come up with are :
1) Wealth Creation
2) Income Generation Scheme

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Some Key features to the above schemes are Flexibility To Manage Investments, Auto transfer to move from accumulation to distribution and Systematic Transactions.

A Illustration showing ideal way for invest for Youngster

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A Illustration showing Ideal Way To Invest For Investors Nearing Retirement

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For a smoother hassle free Retirement solution for employee, Employer can enroll and deduct systematically from salary, this can be done in a monthly single credit with their Reliance Salary ADDvantage facility.

To check out more details about Mutual funds Retirement from Reliance, please visit their website for further information: Reliance Mutual Funds Retirement Scheme.

Also check out their Retirement calculator which gives you a fair idea on how much should you invest according to the inflation in coming years you wish to invest your funds for retirement.