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|
BLTP |
SIP / STP |
REBALANCING |
| Initial Investment | In parts | Monthly Same Amount | Full Amount at the time |
| Result | Easy to Execute Plan | Resulting Poor Averaging | Poor Rate of return |
| Profit Booking | Not before 1.5 Yrs. | Not decided | On each higher PE level |
| Result | No STCG | Fear/Greed factor affects | STCG LIABILITY |
| Switch | As per requirement | Fix amount | On change in PE slab |
| Result | Highest Averaging | Resulting Poor Averaging | STCG LIABILITY |
| Growth Accumulation | Highest and Tax efficient | Limited | Highest but with |
| Result | Better Averaging | Resulting Poor Averaging | STCG LIABILITY |
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TRADITIONAL SIP / STP |
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|
Action |
Result |
Solution |
| [SIP/STP] Buying for same amount on every SIP/STP date for doing Cost Averaging | Poor averaging – Due to buying at higher market also. | We should buy Less or Nil at higher and more & more in Lower Market |
| [SIP/STP] We are buying all the time – [No Profit Booking] | because of Fear and Greed factor We miss the opportunity as there is no alert for profit booking | We should book the profit at higher market |
| [SIP/STP] Long term Wealth Creation | Growth accumulation is also poor due to poor handling of Higher & Lower market condition | By managing Higher and Lower market we can achieve Growth Accumulation Better. |
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PE RATIO BASED PORTFOLIO REBALANCING |
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|
Action |
Result |
Solution |
| [PORTFOLIO REBALANCING]
Full Investment done at starting |
Poor Rate of Returns in long span | We should invest smartly step by step.it should not be burdon |
| [PORTFOLIO REBALANCING]
Rebalancing On change in PE slab |
Generating Short Term Capital Gain. | We should not book profit unnecessarily without considering Taxation |
| [PORTFOLIO REBALANCING]
Rebalancing On change in PE slab |
Accounting will be complicated | Accounting should be neat and clean and should be TAX efficient |
All the above things shows that any traditional mechanism is failed to manage the market movement properly because all the traditional mechanisms cannot judge the upper and lower market difference because it is variable for each and every person who is entered in different market levels.
We have derived the solution and developed new mechanism called BLTP.
“Look at stock market fluctuations as your friend rather than your enemy- profit from folly rather than participate in it.” – Warren Buffet
EVERY INVESTOR SHOULD HAVE THIS PLAN – BLTP IN THEIR PORTFOLIO