The data demonstrates that an investor who, through attempting to time the market, misses just the ten best days of market returns in the last ten years, will make considerably less than one who remains invested through volatile periods. This also demonstrates that volatile periods can account for a large part of upward changes in market levels. While it is uncertain whether the current upswing in market levels is sustainable in the short-term, for the medium-term, there have been no changes in economic fundamentals, which remain positive. India’s economy is still fore casted to grow on track, with FY08 forecasts ranging from between 8% to 8.5%. In this volatile market, the Systematic Investment Plan (SIP) method continues to be a viable way of investing in stocks through a professionally managed mutual fund, regardless of current levels. It is also important to distinguish between the run-up in the Sensex (to a great extent driven by just 5 out of the 30 stocks in the index), and the situation in the broader market, where there continues to be long-term stock picking opportunities that active fund managers can capitalise on.
The trading has been halted for an hour. The trading has been halted for the time since May 2004".
For those who are looking forward to understand the basics of derivatives, find below the following links.
Was going through these a couple of days back. They are really good in introducing the readers to derivatives and will help understand basics of Futures & Options.
The most searches that led viewers to this blog during last week is 'ICICI regular income bonds 2007'. This bond issue has seen a lot of interest. Some have asked whether the issue is safe. Any investment has risks associated with it. Risk - return analysis and an investor's need should be considered before you invest in any product.
Return Since Launch 28.33 * source - value research.
For beginners ULIP is Unit linked Insurance Plans which invest in units as desired by the investors. ULIPS are Insurance cum Investment Plans. SIP is not an investment instrument but an investment method to invest in Mutual Funds. You can regularly invest in equity mutual funds through SIPs. ( Read posts labelled SIP, Insurance and ULIP for more info).
SIP definitely scores over ULIP as an investment.
Unfortunately, the trend reflected through data is not that great. Data from preceding month shows that flows ( into equity market) from insurance companies (ULIPs) into equity were four times greater then flow from MFs. It's a good sign that people have realised the power of equity, but still we have to mature in terms of understanding and choosing the right instruments.
To answer the second question, Investment in equity mutual funds through SIP is the best way for retail investors. You need to spare time and need to have patience to achieve your long term goals in this route. Happy Investing!.
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