WHAT IS SYSTEMATIC INVESTMENT PLAN (SIP) ?

SIP or Systematic Investment Plan is one of the most searched term on Google. Many Investors those who have already made SIP investments in mutual funds are often confused about SIPs. So here is a quick guide to SIPs and how you can use them to create a wealth over a long period to achieve your longterm financial goals. 

What is an SIP ?

An SIP or a Systematic Investment Plan allows an investor to invest a fixed amount regularly in a mutual fund scheme.

Why should you do SIP ?

One,it imparts financial discipline to your life. Two,it helps you to invest regularly without wrestling with market mood, index level etc. For example if you are supposed to a fixed amount every month in a mutual fund scheme, you need to find time to do it. When you have the time, you might be worried about market conditions and think of postponing your investments. Or you might be thinking of investing more if your mood is optimistic. SIP puts an end to all these predicaments. The money is automatically invested regularly in a scheme without any effort on your part.

What are the other benefits of SIPs?

SIPs helps you to average your purchase cost and maximise returns. When you invest regularly over a period irrespective of the market conditions, you would get more units when is the market is low and less units when the market is high. This averages out the purchase cost of your mutual fund units.

Another benefit called eighth wonder of the world by some, is the Power of Compounding. When you invest over a long period and earn returns on the returns earned by your investment, your money would start compounding. This helps you to build a large corpus that help you to achieve your longterm financial goals with regular small investments.

How much do I need to start a SIP?

You can start investing in mutual fund scheme via SIP with a minimum of 500 ₹.

Can I customise my SIP ?

Yes, you can. Though the most popular SIP is investing a fixed amount every month, investors can customise the way they put money on SIPs. Many fund houses allow investors to invest monthly, bi-monthly and forenightly, according to their convenience.

Apart from this, Step-ups SIPs allow investors to increase the SIP amount periodically. "Alert SIP" is another form of regular Systematic Investment Plan which send an alert to the investor to buy more when the markets are down.

Incase of "Perpetual SIPs", investors don't have to choose the end date of SIP. Once the goal is met, the investors can stop the SIP by sending a written communication to the fund house.

I will upload  "How to start Systematic Investment Plan (SIP) online?" in my next post.

  Thank you !! Happy Investing !!

INVESTING IS DEFINITELY A PROFIT .. IMPORTANT SHARES OF 2018 !!

In the year 2017 , investors in the Indian stock market had a high profit margin , especially in the backdrop of Incorporation and JP Associates.

The SENSEX and NIFTY indicators have achieved 28% growth in 2017, and in 2018 if the same growth continues, the possibility is likely to be lower. 

According to a study published by various stock exchange systems , So I have compiled 18 companies that are profitable in 2018 .

GREAT START IN 2018 

According to the study of the stock market system, the impact on the GST on the market now declines and economic growth will return to it's normal route in 2018.

Apart from GST, the wastage losses that prevailed for the last one year are likely to be the same in 2018 with the impact of the RERA rules implemented by the real estate sector.

IMPORTANT FIELDS 

Investors should look into the field of consumer , IT , Capital Goods and Infraa in 2018.

And now we will see more profitable companies in 2018. Furthermore, the market price of the company is based on January-1. You can know the live price by clicking on the Company names below : 

#1 

Company Name : Motilal Oswal

Market Price : 349 ₹ 

Target Price : 410 ₹

#2

Company Name : Nilkamal

Market Price : 1836 ₹

Target Price : 2215 ₹

#3

Company Name : Motherson Sumi Systems Limited.

Market Price : 379 ₹

Target Price : 458 ₹ 

#4

Company Name : Bank Of Baroda 

Market Price : 151 ₹

Target Price : 208 ₹ 

#5

Company Name : CanFins Homes Ltd.

Market Price : 473 ₹

Target Price : 612 ₹ 

#6

Company Name : Bharat Forge

Market Price : 723 ₹ 

Target Price : 810 ₹ 

#7 

Company Name : Asian Granito India Ltd.

Market Price : 576 ₹

Target Price : 640 ₹

#8

Company Name : Everest Industries 

Market Price : 581 ₹ 

Target Price : 624 ₹

#9

Company Name : Birla Corp.

Market Price : 1150 ₹

Target Price : 1300 ₹

#10

Company Name : InterGlobe Aviation 

Market Price : 1201 ₹

Target Price : 1505 ₹

#11

Company Name : Endurance Technologies

Market Price : 1355 ₹

Target Price : 1550 ₹

#12

Company Name : Godrej Agrovet

Market Price : 579 ₹

Target Price : 648 ₹

#13

Company Name : Ramakrishna Forgings Ltd.

Market Price : 858 ₹

Target Price : 975 ₹

#14

Company Name : Apollo Tyres Ltd.

Market Price : 269 ₹

Targe Price : 305 ₹

#15

Company Name : Kajaria Ceramics Ltd.

Market Price : 729 ₹

Target Price : 851 ₹

#16

Company Name : South Indian Bank Ltd.

Market Price : 31 ₹

Target Price : 38 ₹

#17

Company Name : NCC Ltd.

Market Price : 134 ₹

Target Price : 162 ₹

#18

Company Name : Jagran Prakashan Ltd.

Market Price : 179 ₹

Target Price : 199 ₹

WHAT IS BITCOIN ?

Bitcoin is a digital currency created in 2009 it follows the ideas set-out in a white paper by the mysterious Satoshi Nakamoto , whose true identity has yet to be verified .  Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralised authority , unlike government issued currencies . Today's market cap for all Bitcoin in circulation exceeds $7 billion. 

There is no physical form for this Bitcoin , only balances kept on public ledger in the cloud , that- along with all Bitcoin transactions-is verified by a massive amount of computing power. Bitcoins are not issued or backed by any banks or governments, nor are individual Bitcoins valuable as a commodity. Despite its not being legal tender Bitcoin charts high on popularity and has triggered the launch of other virtual currencies collectively referred to as Altcoins. 

CREDITS : INVESTOPEDIA 

WALL STREET CRASH OF 1929 - BLACK TUESDAY

October 29th 1929 , the stock market crashes and the largest economic downturn in history began , the great depression. This event was known as Black Tuesday and it marked the largest ever upset on wall street. Investors lost $14 billion on the  New York stock Exchange, equalling $199 billion in 2017 dollars today. During the four days following the crash, investors and the public lost more than $30 billion which was more 10times the federal budget.

But What caused Black Tuesday? How could a financial crisis this large come about? Part of the blame for the crash on Black Tuesday was how stock brokers played the market in 1929. Because nothing was digital, the brokers had to write out physically the changes in the values of stock. This caused people to never really know the true value of their stock. The time delay made people anxious and uproar ensued. The investors began selling their stocks at record speeds,plunging the value of everything. Many have their entire life savings wiped out, and even committed suicide. At one point New York hotel clerks even cynically asked incoming guests, "You want a room for sleeping or jumping?". Ultimately this crash among the other factors led to great depression.

From 1929 to 1939 , the US experienced what was part of the worst economic downturn in the industrialized world. Hoover believed that the government should not interfere directly with the economy and therefore this was his solution to the great depression, yet this was ineffective and the country continued to suffer. 

Ultimately FDR won the presidency and led the country back on the path to repairing the disastrous financial market. FDR implemented system of programs to restore the country called the "New Deal".  This included programs such as Work Progress Administration (WPA) which provided permanent employment for about 8.5 million people. Additionally he created the civilian conservation corps (CCC) which employed millions of young men on environmental projects. 

In the end FDR's programs began to work the country's increased steadily by 9%. However the lesser known fact is How much the World War-2 helped the economy. The production of weapons, uniforms and other wartime goods spurred the economy. Without war spurring production the recession could have lasted much longer. Ultimately America owes its end of recession to a war that bolstered the economy.

WHAT IS AN INVESTMENT ?

What is an Investment ?

An investment is an asset or item that is purchased with the hope that it will generate income or will appreciate in future. In an economic sense an investment is the purchase of goods that are not consumed today but are used in future to create wealth. In finance an investment is monetary asset purchased with the idea that the asset will provide income in future or will be sold at a higher price for a profit.

HOW IT WORKS :

Investments can be stocks, bonds, mutual funds, interest-bearing accounts, lands, derivatives, art work, old comic books, jewellery - anything an investor believes will produce income (usually in the form of interests or rents) or become worth more.

WHY IT MATTERS : 

The safety of the principal is of concern in any investment, although some investors are more risk tolerant than others and are thus more willing to lose some of their principal in return for the chance of generating a higher profit. The investor's ability to tolerate risk and the incremental return associated with the increasing amounts of risk are two primary factors that distinguish types of investments from one another and help determine appropriate investments for a given investor.

Have a Happy Investing !!!