Saturday, August 21, 2010

IS IT RIGHT TIME TO BUY MUTUAL FUND ?

If you ask me honestly then I say yes. Because mutual fund have a very good tool called sip. If we buy a share in sip method then we spent a high brokerage but in mutual fund SIP charge is very low and SIPS are a very good tool for new investor because it average out your buy price and always protect you from big losses.
In this blog I already discuss 2 mutual funds below their offer price 10 rupee. I always prefer a sideways sector fund to investment when market is high.
Pl
ease also remember ULIP is not a mutual fund. It is an insurance tool. Always prefer ELSS for saving tax instead of ULIP

Friday, August 6, 2010

Sharegenius Method of Profit Booking in Mutual Fund SIP.


1.This formula of mutual fund profit booking is very simple but very powerful method to book profit in a SIP of the mutual fund.
You may apply it on any funds history.
2. I think you like this superb method of profit booking because this formula invented by me from 5 to 6 year hard research work on NAV history of mutual funds.
3.In this formula when your total portfolio value grows 11% then book profit in your 33% mutual fund units and continue your SIP.
4.For example, you start SIP of 500 rupees in a mutual fund at NAV of 10.

After 15 months of your SIP suppose your total unit is 733 total investment 15*500=7500.
 Now NAV is 11.36, so current value of your portfolio is 11.36*733= 8326.88 
so your net profit is 8326.88-7500=826.88
 It is above 11% of your investment so now book your 1/3 (33%) holding.
It means if you own 733 unit then you sell 733/3=244.33 unit it will give you the total amount of 244.33*11.36=2775.58.
In this INR 2775.58, you book all of your profit 826.88 and remain 2775.58-826.88=1948.70 is the principal investment which you book, 
So your remain investment in SIP is 7500-1948.70=5551.30.
Now continue your sip add per month 500 in principle amount and wait next 11 % rise in total investment.
5.  Read Part 2 of this article, where I provide Excel sheets of practical examples with using this method here is the link of next part:-

top mutual funds India

BIRLA SUN LIFE INTERNATIONAL FUND PLAN A


1. I think this is the right time to make a SIP on Birla sun life international equity fund plan A because currant NAV of this plan is 8.51 still below issue price or face value of units 10.
2. about 3 year ago when our and international markets is traded on all time highs then international equity funds launch in our markets I think this is the first international fund of Indian mutual funds.
3. This fund launches 2 plans in plan A 100 % of investments make in international markets through international funds .

4. So I think if we make a SIP of 500 per month in this fund then it may diversify our portfolio in international stocks.
5. The international portion of this fund would be managed with the following objectives:
• Invest in countries that have a low correlation with the Indian Economy.
• Invest in countries that have strong and stable economy
• Choose sectors and segments that are posting strong growth in these countries.
• Choose stocks in these countries that have strong market presence and have high potential for growth

KEY WORDS:- TOP MUTUAL FUNDS IN INDIA

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