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- Profit With Mid Caps funds In Long Term
- Cashless Motor Insurance
- Equity Investing and Analysing businesses
| Profit With Mid Caps funds In Long Term Posted: 22 May 2014 05:16 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Buy only if you can manage higher risk, MFs best route for lay investors
Often it is said that today's mid-cap stocks are tomorrow's large caps. This means if you can identify a fundamentally strong mid-cap company, invest in the same and hold it for 5, 10 or 15 years, the same stock would be worth several times your initial investment. In other words, if you have the risk taking ability to invest in such stocks, either directly or through the mutual fund route, and remain invested for long, you can probably benefit hugely from the runaway growth of such companies.
This holds good for the Indian market too. If you look at the history of the market, you can see some of the leading companies of today were mid-caps a few years ago: Infosys and Bharti Airtel are examples of this phenomenon.
Although there is no exact definition of a mid-cap stock, and so the definition also changes in the market's context.
Usually, a company with a market capitalisation of between Rs 1,000 crore and Rs 5,000 crore is taken to be a mid-cap stock in India. If you observe, these are also the stocks which do not fall within the group which constitute the BSE sensex or the NSE nifty indices. This scale could shift substantially in a strong bull run when several of the non-nifty companies may also have market cap of over Rs 5,000 crore. On the other hand, if the market is in an extremely bearish phase, like from October 2008 to March 2009, some of the stocks in the benchmark indices may have a market cap closer to or lower than Rs 5,000 crore. But like in the bull phase, not all stocks with over Rs 5,000 crore market cap will be a large-cap, in a bear phase not all with a Rs 5,000-crore market cap will be a midcap. The market has its own way of classifying a large-cap, a mid-cap and a smallcap stock, and there is some element of subjectivity to the classification.
In India, the two leading bourses — the NSE and the BSE — have their own mid-cap indices. As an investor, if you are not experienced enough to distinguish between stocks by their market capitalisations, you could follow these indices for a better and safer understanding of mid-cap and other stocks. tor to invest in midcaps, we also educate them about the likely volatility, measured by the standard deviation. As an investor you can invest in these stocks only when the investment horizon is several years (long term) and you have the risk taking ability.
So how much of one's portfolio should be invested in midcaps? Again that depends on the risk-taking ability of the investor and the time horizon of the investment. There should be a strict monitoring of the midcap exposure, combined with regular reviews of the exposure to these stocks, financial planners and advisors said.
Exposure to midcaps through the mutual fund route brings down the overall volatility of the portfolio while a direct exposure through midcap stocks makes the investment more risky. Whatever the chosen path to mid-cap investing, while investing in these stocks one should always take the wealth creation approach, meaning one should stay invested in these stocks for several years.
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
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--------------------------------------------- Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
2.Franklin India Smaller Companies E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF | ||
| Posted: 22 May 2014 12:14 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Cashless Motor Insurance
Hurdles such as approvals for repair and fixed rates can make the process time consuming
The pitch ' our insurance company has tied up with 1,600 garages' seems attractive to buy cashless motor insurance. However, this means little if the garages aren't located close when needed.
As is the case in the health segment, insurers offer cashless motor insurance, too, provided you choose to go to a garage that is part of the insurer's network. These schemes are gaining popularity— about 80 per cent of claims are from such policies, say industry players. For cashless motor insurance, most companies have a reasonable number of tie- ups. For instance, Bajaj Allianz has tie- ups with about 1,700 garages, while HDFC Ergo has tie- ups with about 1,600 garages across the country.
Such schemes are convenient:
If a network garage is located close to your residence, simply walk in for repairs after you have taken the approval of the company.
Another major advantage is customers need not pay the money upfront, as the insurance company concerned already negotiates and fixes the rates with the garage for tasks such as painting, denting and replacing spare parts.
Typically, if the insurance policy is bought from an authorised agent/ dealer of the manufacturer, the cashless facility is assured across the company's network in India, says Vijay Kumar, chief technical officer at Bajaj Allianz General Insurance. But in this case, the premium might be marginally higher, as it is customised for the manufacturer concerned for assured quality of repair, use of genuine parts and ease in the claim- handling and the repair processes. If you are buying a policy on your own, check for the number of garage tie- ups the insurance company has and whether the garages are authorised or capable of servicing claims for the vehicle- make owned by the customer.
Only in case of the roadside garage is the cashless facility not available, because these tend to be unauthorised and do not conform to certain standards. If you have a luxury car and a preference for a trustworthy garage, don't go for a cashless policy. Remember, if you don't have a cover such as a depreciation cap, you will have to pay the depreciation amount from the admissible claims. Also, the approval for repairs can be time- consuming. If the damage is a minor one and you want to address it quickly, or if the vehicle is old, maybe reimbursements are a better option.
So, while the cashless facility is preferred for private cars, in case of two- wheelers, not too many prefer it. It is also possible the garage might tell you for the rates fixed, you might not get the best possible work done. So, if you want better service you might have to pay additional charges or compromise on the quality
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
2.Franklin India Smaller Companies E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF | ||
| Equity Investing and Analysing businesses Posted: 21 May 2014 09:36 PM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Equity Investing and Analysing businesses
Whether you are a novice or an experienced investor, knowing how a business works and making sense of the numbers will hone your stock-picking skills
Sitting on a panel watching young students make presentations on equity investing is an interesting experience.
They displayed a lot of optimism about equity, a bewilderment at the possible gains, and were somewhat overwhelmed by the quantum of information they had to process.
Equity investing requires a good understanding of finance. The outcome of business decisions is in the balance sheet of the company and a serious equity investor should know how to read and comprehend. Every business uses capital to build assets, generates revenue by using the assets, and hopes to make a profit after paying all the expenses incurred in the process. How well this cycle has been working is evident in the financial statements of the business. To begin with, just the basic questions can be asked. If a company says it is expanding into the business of technology-enabled education and is winning contracts to set up its system in schools, the question to ask would be: how long does it take for sales to be realised in cash? If a company is renting large retail spaces to sell multiple products, the financial statements should show the ratio of stocks to sales, and whether profit is made after paying the rents.
Equity investing also involves the crowd.
Technical analysts know how to deal with price and its signals. The others form their own views and take action, but always run the risk of being wrong. The collective wisdom of the market might turn out to be tough to beat. A speculative trader can deal with it easily, but a long-term serious investor in equity should be able to decide his comfort with the market signals, and the extent of his need for confirmation and approval for the markets. This can be difficult when the loss on a stock after careful research keeps mounting. This is tougher than waiting for prices to go up. At least there is the consolation of long-term gains in that case. Equity investing can be more about the stomach than about the head, and investors should be sure they have the right attitude.
Successful equity investors are not made overnight. They may begin with the skills of analysis, learn how to evaluate a business over time and get better as markets teach them the hard lessons. And, young investors who are enamoured by equity should pick up one stock, any stock, and see if they are able to figure it out in detail.
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
2.Franklin India Smaller Companies E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF |
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