Prajna Capital

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• How to interpret ROE
• SIPs and Long Term Returns
• How to monitor your investments?

How to interpret ROE Posted: 01 Nov 2014 07:36 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   How to interpret ROE A higher ROE suggests that a company is able to effectively generate cash internally. This ratio is useful for comparing the profitability of a company to that of other firms in the same industry. The better way is to compare a company's ROE with its industry average.   Company A Company B Net Income Rs 200 crore Net Income Rs 300 crore Equity Rs 400 crore Equity Rs 1200 crore RONW 50% (200/400)% RONW 25% (300/1200)%   Company A generated 50 percent returns in the form of earnings for every rupee invested by shareholders. Company B generated lower returns for its shareholders compared to company A.   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 Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms --------------------------------------------- Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Franklin India Bluechip ICICI Prudential Top 100 Fund B. Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Birla Sun Life Front Line Equity Fund Franklin India Prima C. Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Birla Sun Life Dividend Yield Plus SBI Emerging Businesses Fund HDFC Mid-Cap Opportunities Fund ICICI Prudential Discovery Fund D. Small and MicroCap Funds Invest Online DSP BlackRock MicroCap Fund Franklin India Smaller Companies E. Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund ICICI Prudential Banking and Financial Services Fund F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund G. Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Birla Sun Life Gold 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 Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

SIPs and Long Term Returns Posted: 01 Nov 2014 06:32 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   SIPs and Long Term Returns Investing in equity is one of the best way to have a good returns on one's investments over a period of time (i.e. long term). Using the mutual fund route to invest in equities is comparatively less riskier option as compared to directly investing in stock markets. Professional money managers will be taking care of your investment, and you do not need to directly monitor the investments on a day to day basis. While investing in a mutual fund, the Systematic Investment Plan (SIP) route is considered to the best option. By investing in the Systematic Investment Plan one gets benefits from both an up market as well as a down market. What is a SIP: One should ideally invest via the SIP (systematic investment plan) route, as this ensures that one does not need to time the market. Since the investment takes place each month irrespective of the market condition, one benefits from both an up market as well as a down market. In times of bull runs, one's portfolio returns will be higher, and in bear markets one will get more units for the same amount of investment - which will later lead to better returns. In an SIP model investors tend to purchase more units when markets falls and fewer units when the market rises. Hence the average cost per unit declines over a period of time, thus being an effective tool of risk management. This benefit can be availed only when the investor tries to stick on for a long term basis as market is highly volatile and it is difficult to time the market. Hence, it is advisable to always invest in mutual funds via the SIP route and automate this investment to ensure that it is made correctly each month. Equity investment: Even though the risk factors associated with equity investments are high, there are ways in which you can reduce the risk of gaining low return from your investment, investing in equity via Systematic Investment plan (SIP) route is and one of the best to get good returns at a managed level of Risk. However, investing in long run SIP can get you a stable return without incurring losses over the long term, the reason behind this is the risk associated in the long term equity investments are much lower, especially when one averages the cost over a period of time. What is your risk appetite? Whether you want to invest via SIP or directly into equity depends upon your level of risk tolerance. If you are risk averse then investing via SIP in mutual fund/equities is advisable, if you have large risk appetite and are able to analyze the markets on your own, then you can invest directly in equities. The returns gained from long term SIP and long term equity investment gives a different picture, a 10 year SIP return can be in the range of 12%-15%, whereas the long term return from equity investment lies on how good one is in analyzing the market condition. Summary: • Systematic Investment Planning (SIP) - a less riskier platform as compared to direct equity investment to drop in your investment to gain a good return. • Investing via SIP reduces risk associated with the investment returns. • Long term investment via SIP will reap a stable return at lower risk – i.e one will have the benefit of Higher Risk Adjusted Returns. • Always investing in Mutual fund via SIP is advisable for better returns in long term.   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 Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms --------------------------------------------- Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Franklin India Bluechip ICICI Prudential Top 100 Fund B. Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Birla Sun Life Front Line Equity Fund Franklin India Prima C. Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Birla Sun Life Dividend Yield Plus SBI Emerging Businesses Fund HDFC Mid-Cap Opportunities Fund ICICI Prudential Discovery Fund D. Small and MicroCap Funds Invest Online DSP BlackRock MicroCap Fund Franklin India Smaller Companies E. Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund ICICI Prudential Banking and Financial Services Fund F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund G. Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Birla Sun Life Gold 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 Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

How to monitor your investments? Posted: 01 Nov 2014 05:11 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   How to monitor your investments? Having made an investment in a mutual fund, you should monitor it to see whether its management and performance is in line with stated objectives and also whether its performance exceeds or lags your expectations. Unlike individual stocks and bonds, mutual fund reviews are required less frequently, once in a quarter should be sufficient. A review of the fund's performance should be carried out with the objective of holding or selling your investment in the mutual fund. You might need to sell your investment in a mutual fund if any of the events below apply – You change your investment plan. For example, as you grow older you might adopt a more conservative investment approach, pruning some of your riskier (equity-oriented) funds. A fund changes its strategy. A fund that alters its investment objective or approach might no longer fit your strategy. The fund's poor results persist. If a fund regularly trails other funds that invest in similar securities, consider replacing it. The poor performance is more often than not a reflection on the relative expertise of the asset management company.   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 Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms --------------------------------------------- Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Franklin India Bluechip ICICI Prudential Top 100 Fund B. Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Birla Sun Life Front Line Equity Fund Franklin India Prima C. Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Birla Sun Life Dividend Yield Plus SBI Emerging Businesses Fund HDFC Mid-Cap Opportunities Fund ICICI Prudential Discovery Fund D. Small and MicroCap Funds Invest Online DSP BlackRock MicroCap Fund Franklin India Smaller Companies E. Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund ICICI Prudential Banking and Financial Services Fund F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund G. Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Birla Sun Life Gold 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 Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

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