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View of an inquisitive average Indian investor
In the given scenario I often feel uncomfortable to buy new companies for my portfolio. But, my investment centric mind doesnt let me stop. I have figured out following few options to cautiously participate in the market yet staying away from being over zealous.
1. Continuing my SIPs in equity and hybrid mutual fund schemes. These are long term investments. I am continuing these for over 3 years to 5 years. Hence, the average cost of buying the units is pretty low compared to the current price. A dip in the market unlikely to blow away my capital.
2. Buying add on MF units on dips. Though overall marker remains highly priced, there are days when consecutively 2 or more trading sessions have been victim of profit bookings. I make some add on investments in my existing mutual fund scheme. I dont believe in bottom fishing, hence stick to a minimum amount and maximum 2 trades per month, discipline is the key for long term wealth creation. I even buy the nifty bees and junior Nifty, the Index funds on those days.
3. Investing in quality IPOs – Given the optimistic markets condition, there have been an avalanche of equity IPOs this year. Being a small investor, I stay away from SME IPOs, as it has a huge monitory commitment (upwards of 1 lakh rupees for each). But I am always in look out for good IPOs. Few IPOs I applied for this year were BSE, CDSL, MBL, Dixon, Capacite, D-mart. Ofcourse I am not the only intelligent retail investor. Hence, most of the issues were super success with huge multi-times subscriptions. Hence, I was lucky to get three of the ten IPOs I applied for. No qualms to say, I made an average 60% profit on my investment and exited on the very listing day. One of the reasons of exit is IPOs are often highly priced compared to their valuation, so opportunity of cashing in on listing day looks safe to me.
4. I did invest in some debt funds. Interst rates going southwards, that was the only way to earn some extra bucks on cash. Fixed deposits rates are at multi year low, liquid and ultra-short term debt funds are at position to give 1-3% extra income on your idle cash. This money will be also used incase there is a significant correction in the market.
5. Though I dont recommend the stocks per say, but still these are learnings. Crisis many a times turn out to be an buying opportunity in equity market, if the stocks are like Infosys and JKumar Infra. Sudden news of shell companies being banned and erronously including JKIL in the list resulted in shedding a chunk of market cap on JKIL. It has given a brilliant entry point to the investors. Infosys management issues also has a similar story to tell. However I am not a certified stock analyst and their future growth potential needs to be studied well incase one makes a buying decision.
Investing is an art and science, and I am learning it with time. The insights and experience I share in hope that it eases some stiff negative and scary ideas about investing. Financial planning and managing money is fun.
Here is a low down on few more ideas you can look at at this point of time, are –
1.If you have an existing investment in the market with a high profit in the book, and feel the PE is stretched beyond comfort level.You may look at booking partial profit if not full (assuming the equity investment is more than a year old,and the return is tax free). Parking this money in liquid funds/short term debt funds is wise, untill you see a good bet. If you are savvy investor, you can consider parking someportion in the FMCG stocks (I call them Evergreen).
2. If you have accmulated cash, and you may also park the cash in liquid fund, and using STP (systematic transfer plan) invest in equity mutual funds.
Would love to hear what are you doing in your investments given the current market conditions. Share your ways of inveating. Look forward to hear. If you like the post, do share and comment.
Be disciplined and grow rich!
NPCI – Enabler of the Indian cashless dreams
On what basis we should decide to invest in which mutual funds?
Happy Loans
Financial awareness – planning helps
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To participate, you need to do the following –
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3. Post the answers in comments section in the post
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(Only Indian participants)
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Quiz :
1. Which of the following investment does not comes under 80c purview?
a) Tuition fees b) Premium for life insurance policy c)interest repayment for housing loan d) principal repayment towards housing loan
2. The returns earned from equity mutual funds are tax free if the investment held for minimum of –
a) 6 Months b) 1 year c) 2 year d) 3 years
3. What is contingency fund –
a) Money kept aside for travel and movies
b) Fund for Tuition fees
c) Money kept aside for emergency situations like accident/ sudden illness/ job loss
d) None of the above
4. You should start saving money –
a) As soon as you start earning
b) After marriage
c) When you need a downpayment of some loan
d) When your child grow up
5) SIP (Systematic Investment plan) in equity mutual fund helps in –
a) Investing in discipline manner
b) Help fighting market volatility
c) Create wealth over long term
d) All of the above
6) What is a pure life insurance?
a) Term plan
b) Savings plan
c) Guaranteed plan
d) ULIP Plan
** End**
NPCI the enabler of India’s dream of less cash society
NPCI the enabler of India’s dream of less cash society
ICICI Lombard IPO – Details and review
Financial
|
FY 17
|
FY 16
|
FY 15
|
FY 14
|
FY 13
|
Total Assets
|
48,885.8
|
35,445.0
|
32,414.2
|
25,070.8
|
20,290.5
|
Revenue
|
7180.49
|
5804.25
|
5044.81
|
5028.41
|
4487.39
|
Profit
|
667.01
|
481.96
|
558.40
|
412.82
|
302.65
|
%NPA
|
9.2%
|
8.2%
|
10.1%
|
8.11%
|
6.7%
|
Allotment portion
|
Percentage
|
QIB
|
Upto 47%
|
NII
|
14% and above
|
Reserved for ICICI Bank shareholders
|
4%
|
Retail
|
33% and above
|
ICICI lOMBARD ALLOTMENT, lOMBARD ALLOTMENT STATUS, ICICI Lombard IPO
Capacite Infraprojects IPO – Details and review
About Promoters – With significant experience in the construction industry, the management is visionary. Promoters has been hands on in the business and driving the growth story. It has significantly experienced board of directors in the sector, ensuring securing projects from big clients and strengthening its position in the field, gives them an edge over competitors.
Financial Year
|
Fy 17
|
Fy 16
|
Fy 15
|
Fy 14
|
Revenue
|
1165.96
|
860.246
|
562.580
|
216.582
|
PAT
|
69.66
|
48.84
|
32.04
|
4.11
|
Profit margin
|
5.9%
|
5.6%
|
5.6%
|
1.8%
|
Price Band – 245-250 Rs.
Bankers to this issue are –
1. Axis Capital Limited |
2. IIFL Holdings Limited |
3. Vivro Financial Services Private Limited |
Funding Working Capital Requirements – 250 Crore
Funding Purchase of Capital Assets – 51.95 crore
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