Five Steps To Become A Successful Investor :

Choosing the investment products according to your goals and your time frame helps in creating the desired corpus, but the truth is that very few manage to stick to their investment policies. Many get greedy when the market rises; people who say 'this time it's different' often end up making terrible investment mistakes.

But worry not, we have the solution for you, to simplify your investment and to make your investment goal-oriented, so that you can know how better you can achieve your goals-whether you are planning to purchase your dream home or want to become a crorepati. Realizing your dream is now within your hand's reach. Follow the below mentioned steps to improve your financial standing and for a better future:

 

Save Money Systematically: Not only do systematic investments lend discipline to our personal finance; they also help in saving money regularly which, many a times, gets wasted in non-discretionary expenses. Make a commitment of putting some amount of money every month into Monthly SIPs. SIP investors get the benefit of rupee cost averaging. If you had invested through SIP in any of the top-5 performing large-cap mutual funds, you would have got an astounding return of more than 65% in the 1 year period and 35% in the three year Period. So, save first and spend later. That way, you can control your monthly household budget as well.

 

Curtail Your Expenses: How often do we buy something which we generally don't use? There is a difference between need and want, and often, we get caught in buying the products or services we don't actually require. Your neighbour purchasing a swanky car doesn't make a case for you to do the same. Really, neighbour's envy is not the owner's price... that was just a marketing gimmick. Make a wise decision before committing to huge expenses that may lead to stress on finances. Have you ever thought that by just curtailing your expenses by 10% every year, you can double your savings in 7.5 years? Before splurging, think how hard you work for earning that money.

 

Make A Financial Plan: If you don't know exactly where you're going, how will you know when you get there? The objective for investing is very important while choosing your investment avenues It is necessary to first set a time frame and chart your goals (Child education, retirement planning, home buying), and then choose the investment which matches your objective and tenure.

 

Don't Invest For Quick Returns: Everyone has the temptation to make a quick buck or get abnormal profits from investment. More often than not, persons end up losing their life savings. While historically, equity has beaten every other asset class, be it gold, FDs or real estate, in terms of returns, it has taken its own time in doing so. There is no free lunch in the equity market, so due diligence is required. It is better to invest through a mutual fund where a professional manages your money and provides you steady returns in the long run.

 

NO Last Minute Investment: Research has found that many people make their investment at the time of tax filing, just to save some amount, but in the process, end up buying products which they don't necessarily require. For an efficient tax planning, one should always plan from beginning of the financial year.

By following the above steps, you may not become wealthy in a short span of time, but it will definitely give you peace of mind and a sizable corpus in the long term. Make sure you remember this rule by legendry investor Warren Buffett - 'Rule No. 1: Never lose money; Rule No. 2: Don't forget rule No. 1'.

Information Courtesy : Karvy Value Blogs

Five Best Investment Options For Retirement :

Retirement is probably the most neglected goal and ironically also the most important one too. It is one goal where you have got rewarded for your hard work put in all those years and waiting to enjoy the fruit. Despite the galaxy of products available in the investment universe, there seems to be sheer confusion with respect to picking products for retirement. EPF probably has been the only saviour in this space. Being a mandatory deduction, there is a common perception that EPF corpus would enough to secure the post retirement life. However, without any other investment, this corpus is unlikely to suffice one's retirement needs. So, what other investment options are available for someone planning for retirement or already into it? What are the steps to be taken while planning for retirement? Let's check out:

Step 1:

• Decide your monthly expenses.
• Decide how much you would be spending on your leisure trips and vacations.
• Decide what corpus is required to support your child's marriage or any other purpose if required.
• Decide if your current insurance is enough or you seek further coverage for Health and Life.
• Decide on the Emergency Fund that you would like to keep aside for unwarranted circumstances

Step 2:

• Although it is advisable to not take risk, for investment it is important to define your risk appetite.
• With risk, you also need to define how much you want to earn on your investment.
• Also define the tenure of investment and requirement of Cash flows in terms of Monthly, Quarterly, Half-Yearly, Annually, or After a specified period (like 3 years or 5 years)

Step 3:

Based on the defined objectives, pick Investment Products that suit you the MOST.

Here are five investment options you can consider for this crucial goal:

1) NPS

• New Pension Scheme or NPS has been the trending product ever since launch.
• It provides you the flexibility to invest as per your risk appetite and also to choose the fund manager.
• You can choose to invest up to 50% into equity.
• 40% of the NPS corpus withdrawal is tax free.
• It is one of the cheapest products available.
• You can avail tax deduction up to Rs. 2,00,000 u/s 80CCD and additional deduction for employer contribution with no upper limit.

2) Fixed Deposits

• Apart from banks, companies also offer FDs of various tenures such as 5,10,15 and so on.
• The rates on offer are generally higher than the rates offered by Banks.
• These instruments can be considered based on their rating, interest rates and the cash flows.
• The corporate fixed deposits are available for various tenures with Interest being paid Monthly, Quarterly, Half Yearly, Annually or at Maturity.
• Investors looking at regular cash flows and interested in fixed rate of interest can invest in these deposits.

3) Tax Free Bonds

• Tax Free bonds are bonds raised by Government entities for realizing certain objectives.
• These are very long term in nature.
• The interest rate offered is benchmarked to the similar tenure government papers.
• The interest earned on these is tax free irrespective of the investment amount.
• Every year Government gives permission to organizations to raise money based on the requirement.

4) PPF

• Public Provident Fund is one of the very few investment options which come with EEE benefit i.e tax deduction on investment, tax exemption on interest and tax exemption on maturity amount as well.
• The tenure is 15 years with option of extending it in blocks of 5 years.
• Currently, the interest rate is 8.8% p.a.
• It gives the flexibility to invest any amount in the year, with maximum limit of Rs. 1.5 lakh per year.
• It is also one of the safest products.

5) Mutual Funds

• A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities.
• By investing in Mutual Fund one can have benefit of diversification apart from being managed by Professional, thus one need not track markets.
• It is regulated, so the investor interests are protected.
• It also offers flexibility of choosing from various categories like Equity, Gold, Debt and Money Market. Most schemes being open ended, they also offer liquidity.

Final Word

Whatever products you choose from these, make sure you do that as per the investment tenure and your age. When goals are near, equity needs to be avoided and there is a need to shift to debt oriented products.

Information Courtesy : Karvy Value Blogs

Karvy Smart Trader 08 Aug 2016 :

Smart Trader is a weekly product from KARVY, which will help you to take Long/Short Positions based on the swing movement of F&O stocks. The report comprising of 8 stock recommendations will be released before the first trading day of the week. The stock selection will be based upon Technical and Derivative parameters.

STOCK	SECTOR	CMP	ACTION	ENTRY*	SL	TGT
AUROPHARMA	PHARMA	770	BUY	766	740	820
AXISBANK	BFSI	567.3	BUY	562	540	600
BAJAJ-AUTO	AUTO	2862	BUY	2840	2745	2995
CENTURYTEX	CEMENT	705.3	BUY	706	675	752
DLF	REALTY	164.5	BUY	165	157	177
IOC	ENERGY	576	BUY	571	554	614
ZEEL	MEDIA	496.4	BUY	493	472	525
ASHOKLEY	AUTO	88.1	SELL	90	94.5	83

 

*Refers to (if any call is not initated ,entry levels for the recommendations(s) will be sent on the trading terminals) (CMP: Currrent Market Price |SL: Stoploss| TGT: Target )