Home
Option Tools
Services Offered
Payment Details
My Services
Contact Us
Market Heatmap
Charts
Charts (Premium)
Chart Watch
JCharts (EOD)
JCharts(EOD-COMM)
HCharts (EOD)
HCharts (EOD-COMM)
Forum
Stock Lists
Screener (EOD)
Screener (EOD-Comm)
Breadth Charts
Calculators
Education
Links
FAQs
Search
Advertise Here
Charts (Old)
Login Form





Lost Password?
No account yet? Register
  iCharts Discussions

 FAQFAQ   SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 

Ideas About Mutual Funds

 
Post new topic   Reply to topic    iCharts Discussions Forum Index -> Mutual Funds
View previous topic :: View next topic  
Author Ideas About Mutual Funds
MF.iCharts
White Belt
White Belt


Joined: 01 Jun 2016
Posts: 8

Post: #1   PostPosted: Mon Jun 13, 2016 6:44 pm    Post subject: Ideas About Mutual Funds Reply with quote

Video about how to educate the youth of India to be financially independent.

https://www.youtube.com/watch?v=vU1l1TB7GzI
Back to top
View user's profile Send private message
MF.iCharts
White Belt
White Belt


Joined: 01 Jun 2016
Posts: 8

Post: #2   PostPosted: Fri Jun 17, 2016 12:45 pm    Post subject: Reply with quote

Why invest ?

https://www.youtube.com/watch?v=JEAOOjo3xaM
Back to top
View user's profile Send private message
MF.iCharts
White Belt
White Belt


Joined: 01 Jun 2016
Posts: 8

Post: #3   PostPosted: Mon Jun 20, 2016 11:10 am    Post subject: Investing for Beginners & Finding our own Investing Styl Reply with quote

Investing for Beginners & Finding our own Investing Style


When a lot of people first start to read & learn about investing they invariably end up reading about Warren Buffett in their first few weeks of reading. From there onwards begins this fairy tale dream ride into the idea that someday they can also invest like Warren Buffett. The next automatic step that people tend to take is to read what any other fund manager worth their salt has to say about Warren Buffett. To remind you, at this point there is not a single rupee invested by this person, ever in his life (apart from may be the automated Fixed Deposit certificates & PPF investments).

After having read & being enamoured with Warren B’s performance & his dazzlingly simple explanations of how he analyses businesses, people start with the notion that investing is an easy affair. By this time, the activity of really sitting through an entire market cycle not being able to find great investment opportunities or even spending huge amounts of time & effort in researching industries & their managers has never happened to them.

The problem with a beginner learning to invest is that we tend to immediately get sucked into the investing blog world. In this world, a lot of people are strikingly original in researching their own ideas while a lot are “me too” people who are constantly following what other smart fund managers are doing. Not enough effort is spent to understand why investing is important & what are their unique needs to invest. People rarely do any cash flow analysis of their own life & are massively unaware of their own patterns of spending & making money. People automatically assume (especially salaried people) that they will somehow have enough money by the end of the year to put into some tax saving mutual fund & not to forget the mammoth 8% “tax-free” compounder of public savings – The Public Provident Fund.

Any person who wishes to take charge of their investments & wants to compound their savings at a rate of at least 5% more than the fixed deposit rate has no other legal option but to invest in Stocks.

Investing in stocks, especially from this background is going to be a tremendous uphill task. By this time each new fund manager we read about, we start to feel like we must mimic his/her style of investing. It makes sense when these fund managers lay out their ideas & explain their thought process. Using these fund manager’s ideas as a blind entry point can prove to be disastrous. It is not different from following trading tips from public investment forums or your local broker.

Blindly following fund manager’s ideas & investing styles seems easy & straightforward to do. On the contrary it is the most difficult thing to do. Most of the time, these professional investors discuss ideas with a time lag. A lot might have changed from the time they have invested in that idea & by the time we get to read about it. Instead the best way to learn from someone else’s idea is to use it as a first filter. This way we can get an investment idea from some professional investor & then start doing our own research in order to learn about the business & industry better. Sadly, this rarely happens, unless the investor is genuinely dedicated to learn.

Blind reliance on professional investor’s style has two other drawbacks.

First, we never get to learn what our own style of investing is. We never get to learn how much risk we can tolerate with our own money on the table. We always assume that someone else’s measure of risk is also applicable to us. But we have our own unique cash flow needs which the professional investors may not have. So it makes sense to learn about how we need & use cash in order to plan our investments accordingly.

Second, blindly following someone else degrades our own ability to learn. Cloning other investor’s styles has been popularly discussed by Mr. Mohnish Pabrai. He does it himself. But what we generally fail to consider is the amount of research that goes into reverse engineering the idea & finding out details on our own to validate it. With our diminished will to learn about the business, especially after the investment case is wide open in front of us, we can never hope to be good at critically analysing businesses.

Finally learning to invest on our own has tremendous advantages. Apart from getting to know our own investing style, we also get to know a lot about our own psychology. We start observing ourselves & realise what situations make us feel afraid or what events make us feel greedy. With a logical & rational understanding of investing we can practice the virtues of restraint & patience to hone our investing skills. Researching ideas on our own forces us to read about a lot of businesses & generally what’s happening across the world. How industries work? How do we get to use the stuff we use everyday? Who makes them? What does it take to successfully sell the product or make us buy it? All these details help us paint a vivid picture of this live & dynamic world which exists beyond the prime time reality TV shows & daily TV serials.

In his easy to understand & brilliant book F-Wall Street by Joel Ponzio, he advocates this very basic list of Ten intelligent investing commandments:

Never Invest in anything you do not understand.

Price follows value over the long term.

Price volatility does not imply any additional or reduced risk; the risk is in the price you pay & your evaluation of the opportunity.

The stock market is a place to buy & sell businesses, regardless of the myriad of other (or faster) ways to make or lose money in stocks.

There is no tomorrow, only “five years from now”.

Earnings are for the Income tax department & accountants; business owners & silent partners rely on Cash.

A great business is one that will survive the bad times, wait for the bad times to invest in great businesses.

Unless it affects the business of your company or it is filed with the exchanges, it’s just noise. Analyst opinions and general market trends do not affect the business of your company & are not filed with the exchanges

He who turns over the most rocks, wins.

If you don’t have a margin of safety, you don’t have a good opportunity.


Remember, investing is simple, but not easy. If it were easy, we would all be billionaires & I’d most certainly be on my private yacht instead of writing this blog post.

----

By Raunak Onkar
Raunak Onkar heads the Research department at PPFAS Mutual Fund.
Back to top
View user's profile Send private message
MF.iCharts
White Belt
White Belt


Joined: 01 Jun 2016
Posts: 8

Post: #4   PostPosted: Wed Jun 22, 2016 10:50 am    Post subject: Reply with quote

Plan for retirement early:


Below is the image shows if one would have invested in All the Midcap funds that where available during of 2000 top in both SIP(Rs 500 month) and lump-sum form(Rs 1,00,000).

<img src="http://i.imgur.com/9i3LOOh.png?1">



-> If one increase their sip with inflation it help them to achieve their retirement goals fast and appropriate amount at time of retirement.

-> Lump-sum investor can Re-Invest like example when RSI 5 on monthly chart is over sold (below 30) or use some method where it it allows to you to invest at bottoms and not at highs.



Disclaimer : Information is solely for informational purposes, not for trading purposes or advice.
Back to top
View user's profile Send private message
AjitS
White Belt
White Belt


Joined: 21 Aug 2013
Posts: 135

Post: #5   PostPosted: Wed Jun 22, 2016 12:50 pm    Post subject: Reply with quote

This is very good information and helpful comparison. Thanks.

These are mid-cap funds - which have risk of eating into your capital (if the NAV goes down from your purchase price.) Is it true that the same risk will not be there with Debt funds though with lower returns?

In that case, can we get some comparison of the best Debt funds available?
Back to top
View user's profile Send private message
MF.iCharts
White Belt
White Belt


Joined: 01 Jun 2016
Posts: 8

Post: #6   PostPosted: Wed Jun 22, 2016 3:05 pm    Post subject: Reply with quote

Like Equity has many diversification like Large Cap, Small Cap, Multi-Cap mid-cap etc.. Debt fund also has diversification like Gilt funds, Liquid Fund, Short Term Fund, Ultra short-term plans, Income fund, High yield bond schemes, Floating rate funds.

Selecting a debt type is more complicated then selecting a debt fund. As it involves corporate bonds with difference rating on them. Which A1+, AAA, AA, A&below A.

Different maturity period and yield to maturity. As long term gilt plans are very sensitive to rate cuts. One needs to decide on them.

Hence selecting a fund type is very difficult. Any how have computed comparison on gilt funds as they usually most safe debt fund category

Below is the image shows if one would have invested in Long Term & Short term Gilt funds 10 years back in both SIP(Rs 500 month) and lump-sum form(Rs 1,00,000).

Note Last Date is 21-06-2016 instead of 21-06-06

<img src="http://i.imgur.com/7WNEPId.png">


Note Taxation : If investment is held for three years or less, the capital gain is treated as Short Term Capital Gains or STCG. It is added to the income of the investor and gets taxed at the marginal rate of taxation applicable to the investor. Thus, STCG gets taxed as per the tax slabs applicable for the investor.

If investment is held for more than three years, the capital gain is treated as Long Term Capital Gain or LTCG. Investor is entitled to the benefit of indexation on LTCG and the capital gains post-indexation is taxed @20% plus applicable surcharge and 3% cess.

Disclaimer : Information is solely for informational purposes, not for trading purposes or advice. Take Assistance of Tax Consultant, Charted account , Registered adviser.

AjitS wrote:
This is very good information and helpful comparison. Thanks.

These are mid-cap funds - which have risk of eating into your capital (if the NAV goes down from your purchase price.) Is it true that the same risk will not be there with Debt funds though with lower returns?

In that case, can we get some comparison of the best Debt funds available?
Back to top
View user's profile Send private message
AjitS
White Belt
White Belt


Joined: 21 Aug 2013
Posts: 135

Post: #7   PostPosted: Wed Jun 22, 2016 3:28 pm    Post subject: Reply with quote

Thanks for the details. That was quick.
Back to top
View user's profile Send private message
MF.iCharts
White Belt
White Belt


Joined: 01 Jun 2016
Posts: 8

Post: #8   PostPosted: Mon Jun 27, 2016 1:58 pm    Post subject: Reply with quote

Quote:
“Supposedly sophisticated people, generally richer people, hire consultants, and no consultant in the world is going to tell you ‘just buy an S&P index fund and sit for the next 50 years.’ You don’t get to be a consultant that way. And you certainly don’t get an annual fee that way. So the consultant has every motivation in the world to tell you, ‘this year I think we should concentrate more on international stocks,’ or ‘this manager is particularly good on the short side,’ and so they come in and they talk for hours, and you pay them a large fee, and they always suggest something other than just sitting on your rear end and participating in the business without cost. And then those consultants, after they get their fees, they in turn recommend to you other people who charge fees, which… cumulatively eat up capital like crazy."

--
Warren Buffett
(Berkshire Hathaway annual meeting)


What do we infer from this, We must not regularly change our allocation and funds.

How to do it

1) Educate yourself, there is lots of information on internet which is easily accessible
2) Setting up expectation / goals and selecting your portfolio allocations on your goal and taking appropriate risk.
3) Make a plan that does not include studying 100s of parameter.
4) Be explainable to someone about your method of selection.
5) Honesty, integrity and the ability to say "I made a mistake".
6) How lucrative funds may be Say no funds that does not fit risk or objective.

If you are able to achieve you can save lots of money in long term by avoiding regular funds and investing in direct funds.

<img src="http://i.imgur.com/1bNG4fQ.png?1">

Disclaimer : Information is solely for informational/educational purposes, not for trading purposes or advice.
Back to top
View user's profile Send private message
MF.iCharts
White Belt
White Belt


Joined: 01 Jun 2016
Posts: 8

Post: #9   PostPosted: Mon Jul 11, 2016 1:37 pm    Post subject: Reply with quote

Quote:
“If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes”


Quote:
“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”


Quote:
"The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd."


-- Warren Buffet.

<img src="http://i.imgur.com/gWBeCTf.png?1">

Lesson to be taken from his quotes are to stay invested for long time. Above is comparison between funds, one performed better before 2008 crash and one after that. Both the funds if held from 1st Jan to current period gave almost similar return.

Disclaimer: Although information has been obtained from and is based upon sources we believe to be reliable, we do not guarantee its accuracy and the information may be incomplete or condensed. Information is solely for informational/educational purposes, not for trading purposes or advice.
Back to top
View user's profile Send private message
MF.iCharts
White Belt
White Belt


Joined: 01 Jun 2016
Posts: 8

Post: #10   PostPosted: Thu Jul 14, 2016 10:47 am    Post subject: Reply with quote

Film actor Rajesh Khanna bought a bungalow in iconic Carter Road in Mumbai for Rs.3.5 lakhs in 1970. His heirs sold it recently for Rs.85 crores. The property has multiplied by 2428 times or an annualized return of 19.38% over 44 years.

Samudhra Mahal in Mumbai is another expensive property. A flat purchased in 1970 at Rs.700 per sq.ft was sold at Rs.1,18,000 per sq.ft in 2013. Money multiplied by 168 times in 43 years. This works out to an annualized return of 12.66%

In 1963, Godrej paid Rs.1 lakh to buy his first house, a 2916 sq.feet apartment at Usha Kiran, Carmicheal road, in tony South Mumbai. In 2011 he sold it for Rs.25 crore. Money multiplied by 2500 times over 48 years or an annualized return of 17.70%

In Dalal Street, Mumbai a sq.feet was Rs.100 in 1980. After 34 years, it sells at Rs.27,000 per sq.ft. Money multiplied by 270 times in 33 years. This works out to an annualized return of 17.90%.

The first three properties can be bought and owned by cream or elite of the society who are worth at least tens of crores, mostly hundreds of crores.

The last property in Dalal street; your father could have bought with whatever money available at his disposal. You can buy it even now. Your son or daughter would be able to buy it even 20 years down the line.

The last property is Sensex. A sq.feet is a metaphor for one unit. If dividend yield is also included (assuming 2% CAGR), Sensex would have delivered 20% annualized returns over last 34 years, higher than the most expensive prime properties in the country.

Good mutual funds and many stocks have delivered returns far superior to Sensex itself.

Power of equity is least understood in this country.

If you can withstand notional loss (if you don’t book) in portfolio during bear markets, not worry about daily price movements, it is possible to make much better money than what can be made out of best of real estate.

Give at least the same importance to equity as you give to real estate.

You don’t mind holding real estate for 20 or 30 years. Please do the same for equity ignoring bull and bear markets, notional profits and losses.

Many of you have been investing for last couple of years. Stay the course for at least another 15 to 20 years completely ignoring market fluctuations. You would be amazed at the fortune created for your retirement or to pass on to your children.
Must read....for those who love equity and for those who hate equity.....
Back to top
View user's profile Send private message
drsureshbs
White Belt
White Belt


Joined: 22 Oct 2008
Posts: 58

Post: #11   PostPosted: Tue Jul 26, 2016 12:23 am    Post subject: Reply with quote

excellent and very informative sir
Back to top
View user's profile Send private message
Display posts from previous:   
Post new topic   Reply to topic    iCharts Discussions Forum Index -> Mutual Funds All times are GMT + 5.5 Hours
Page 1 of 1

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
You can attach files in this forum
You can download files in this forum


Powered by phpBB © 2001, 2005 phpBB Group

@MEMBER OF PROJECT HONEY POT
Spam Harvester Protection Network
provided by Unspam