Friday 23 September 2016

SIP Investment & SIP Mutual Funds


SIP Investment & SIP Mutual Funds



Still Doing SIP
Add more Value to your Investments Opt out for
Value Averaging  SIP Investment Plan (VIP)
Sip Mutual Funds is well known for rupee cost averaging wherein you invest a fixed amount of money every month. It works more efficiently in volatile markets as you get more numbers of unit’s when the market in on downside and vice versa.
Value averaging investment plan (VIP) is a dynamic concept that helps you elevate the advantage of averaging.VIP generates 1.5% to 2% additional CAGR over a five-year time period.
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How does it work?

We can better understand how the two plans work by assuming a monthly investment of Rs 10,000 in a VIP and an SIP. To keep it simple, we assume that the rate of return expected is 1% per month (CAGR of 12.68%). In the first month, the investor puts Rs 10,000 in the VIP and SIP. Since the assumed rate of growth is 1% per month, the invested value should grow to Rs 10,100 by the time the second instalment is due.

However, this rarely happens and depending on the market situations, the actual value will be either higher or lower than the expected value. Now assume that instead of going up by 1% as expected, the NAV has tanked by 5%, so the current value becomes Rs 9,500. While the SIP investor will continue with the Rs 10,000 investment, the VIP investor will compensate for the deficit of Rs 600 (Rs 10,100 - Rs 9,500) and make an investment of Rs 10,600.

At a growth rate of 1% per month, the first two instalments should have grown to Rs 20,301 by the time of third instalment. Now assume that the market has jumped 4% during the second month and the invested value has reached Rs 20,904. Since the current value is higher than the targeted value, investment for the month will be reduced by Rs 603 (i.e. Rs 20,904 - Rs 20,301) and the VIP for the month will be Rs 9,397. In VIP, this process is followed month after month till you reach the goal date.

For achieving a goal VIP works best as compared to SIP as it is reviewed every month.
If interested call us on 
Mukesh Gupta  +91-9810184368
B Com, FCA, CPFA, CFP^CM 
Director
Or
Prabhakar 9899835232
Wealthcare Securities Pvt. Ltd.
A 54 A, Lower Ground Floor,
Lajpat Nagar- II, New Delhi-110024
Give us a Missed call on +91-98710 90316 to arrange a call back from our office
Do Whatsapp +91-9582012572
Telephone No 011- 4657 5550 (Five lines)
Data Source: Economic Times
Disclaimer: Mutual fund investments are subject to market risks. Please read the scheme information and other related documents before investing.

Monday 19 September 2016

SIP Is A Methodology Of Investment Which Is Gaining All The Success It Deserves



Let us now see the changing investment patterns. While savings held in the form of currency or cash have seen an increase in the last couple of years, those in pension and provident funds have seen a slight drop.This change shows that Indians are now more aware of options.Risk appetite of Indian investors is increasing. They take exposure to stocks through mutual funds via SIP investments. As a result, inflows into equity mutual funds are at all-time highs now. Gradually people are realising that the returns they get by investing in bank deposit is dismal and there are other avenues which will give them better returns. This typically happens when interest rates go down. The current rate of interest on fixed deposits at banks ranges from anywhere between 5.5% and 8.75%. Stocks, on the other hand, give much higher returns, depending on equity market performance, and also provide short-term liquidity.With India’s stock markets expected to reach new highs, it isn’t surprising that retail investors, too, want a piece of the pie.

However, when we talk about SIP investments, most people have an extreme view on SIP too. Some consider it as a heavenly safe ‘instrument’ while some consider it as a volcano. First, let us be clear that SIP is not an instrument. It is only a method of investment. For those who simply parrot the word SIP, here is the long form: SIP Investment Plan. Did you notice that there is absolutely no mention of ‘investment in what’? This re-enforces that this is just a methodology of investment and not an actual investment.






Friday 16 September 2016

National Pension Scheme

Plan a secure future with the National Pension System



Dear Investor,

Planning for your retirement may not be on your mind. However, your expenses would increase after retirement, so how to keep up with those expenses?

The answer lies in planning your retirement pension. Plan your retirement with the National Pension System, which helps you to create pension corpus for your retirement years and also save additional tax now.

Additional Tax Benefits
Get additional deduction of Rs. 50,000/- over and above Rs. 1.5 Lakh deduction under section 80C#.



*Tax saving of Rs.15,450 calculated at 30.90% p.a. (30% + Education cess 3%) on Rs. 50,000 in the highest bracket i.e. for people with income up to Rs.1cr.
#Tax deduction upto 10% of salary (Basic + DA) under section 80CCD(1) within the overall ceiling of Rs.1.5 lakh under section 80CCE and an additional deduction of Rs. 50,000/- under section 80CCD (1B) per assessment year (applicable from FY 2015 -16/AY 2016-17)
^Plus contribution processing charges (0.25% of contribution amount subject to minimum of Rs. 20) and taxes as applicable.