History of Investments
1st Generation of an Investment – As in earlier days we use to invest lump sum money in Mutual Funds at the time when the market is lower [as per our assumption] and redeem it at certain level of the market, all the decisions were taken by us on predictions of the market scenarios but it might be wrong or right and also influenced by FEAR & GREED factor, as a result of this we could not get the benefit from the market properly. All this forced Investor to think about “2nd Generation of an Investment”.
2nd Generation of an Investment – After learning from the past a new generation Investment Mechanism is born called SIP/STP. In this mechanism we could managed market movement better than 1st Generation Investment Mechanism because in this Mechanism we invest same amount regularly which leads us to getting the rupee cost averaging.
Last downfall and sideways trend of market scenarios taught us so many things one of them is that SIP/STP also failed to get better returns. All this forced Investor to think about “3rd Generation of an Investment” in which he can get proper averaging and better returns.
By dissecting the loophole of SIP/STP we learn that in SIP/STP, we are investing the same amount on each and every time [level of the market] which is considered to be the main plus point of the mechanism [SIP/STP] is the only cause of the failure because due to this our averaging is always increasing. what we should do is buying more in lower market and buying less/nil in higher market. But when we think about market how we can decide which level is higher or lower, it may vary from person to person. How a person will react at an index of 15000, who entered at 6000, will say it is Higher market, while another person who entered in the market at 25000 will say it is Lower market.
We should also book the profit at proper level of the market which we are not doing in SIP/STP because we fail to judge the level of the market for profit booking just because of FEAR & GREED factor. All this leads Us to think about “3rd Generation of an Investment called BLTP” in which we can get proper averaging and better returns.
3rd Generation of an Investment –As a result of above requirement we have developed a new generation of an Investment mechanism called BLTP. In BLTP we have removed all the loopholes from SIP/STP, which were the main cause of the lower returns. In BLTP we have removed unnecessary buying at higher level and pumped more money at lower level of the market for this we have developed some formulae to decide which level is higher or lower. On basis of this we decide how much is to be invested. We have also decided the level to book the profit which is free from FEAR & GREED factor so we will never fails to book the profit and earn higher returns. This way we are getting more returns than SIP/STP. All the calculations are made on actual growth of folio, market and scheme all together from the inception of the folio which leads us to decide this level is higher or lower for the folio. We are not assuming nor predicting about the market so there is no chance for failure in calculation.
That’s why this mechanism is fool-proof against the market uncertainty.
EVERY INVESTOR SHOULD HAVE THIS PLAN – BLTP IN THEIR PORTFOLIO
