\nYour education can also be called an investment and many times, it does help you earn a higher income. <\/span>
\nThere are three types of investments: ownership<\/b>, lending<\/b> and cash equivalents<\/b>. <\/span><\/p>\n
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Investments can also be categorised based on how it is managed as Active Investment & Passive Investment<\/b><\/p>\n Active<\/b> management<\/b><\/span> is the use of a human element, such as a single manager, co-managers or a team of managers, to actively manage a fund’s portfolio. Active managers rely on analytical research, forecasts, and their own judgment and experience in making investment decisions on what securities to buy, hold and sell to beat the market with various investing strategies and buying\/selling decisions of a portfolio’s securities.<\/p>\n Passive management is a style of management associated with mutual funds and exchange-traded funds(ETF) where a fund’s portfolio mirrors a market index.<\/p>\n Before Banking started there were no investment ideas. People use to save money for their future by storing gold\/Silver coins in a pot and keep it in a pit in their house or farm.<\/p>\n They were not in need of much money because most of the transactions were done on Barter System and Inflation was also not there at that time.<\/p>\n As per Investopedia Four<\/b> strategies are used while Mutual Fund Investment <\/b><\/p>\n This is the most common mutual-fund strategy. Basically, if your portfolio does not have a plan or a structure, then it is likely that you are employing a wing-it strategy. Most experts would agree that this strategy will have the least success because there is little to no consistency.<\/p>\n Market-Timing Strategy<\/b><\/i><\/p>\n The market timing strategy implies the ability to get into and out of sectors, assets or markets at the right time. Unfortunately, few investors buy low and sell high because investor behavior is usually driven by emotions instead of logic. The reality is most investors tend to do exactly the opposite \u2013 buy high and sell low. This leads many to believe that market timing does not work in practice.<\/b><\/p>\n Buy-and-Hold Strategy<\/b><\/p>\n This is by far the most commonly used investment strategy. The reason for this is that statistical probabilities are on your side. Markets generally go up 75% of the time and down 25% of the time. The other issue that makes this strategy the most popular is it’s easy to employ. This does not make it better or worse, it’s just easy to buy and hold.<\/p>\n Performance-Weighting Strategy<\/b> This is a widely used Strategy in Ind<\/i><\/b>ia nowadays. In this strategy investors will invest the same amount every month regardless of whatever the market is. The popularity of this Strategy is nothing but simplicity and runs systematically. This strategy looks suitable in any market but there is a problem while upward trend AVG is always going up because we are investing the same amount and while downtrend AVG is not getting down as expected because we are not investing more amount which is required to bring AVG d<\/b><\/i>own.<\/p>\n In this strategy a variable amount is invested. The amount is decided by the growth of the plan. Each month the targeted growth of the plan is tracked and a different amount will be invested. The problem with this strategy is your portfolio will not accumulate beyond the targeted value.<\/i><\/b><\/p>\n This is a dynamic strategy in this strategy portfolio is belanced between debt and equity as per the market PE. This strategy is similar to Performance-Weighting Strategy <\/b>except one thing decision taken is based on PE<\/strong> instead of portfolio valuations. This is a good Strategy but there are 2 major problems like,<\/b><\/i><\/p>\n 1 LumpSum Amount at a time<\/i><\/b>.<\/p>\n 2. Frequently profit booking from equity fund will be liable for short term taxat<\/i><\/b>ion<\/p>\n As in earlier days we used to invest LumpSum<\/b> money in MF when the market is lower (as per our assumption) and redeem at certain market scenarios. All the decisions taken by us might be influenced by the Fear & Greed factor. As a result of this we could not get desired returns.<\/p>\n Theng-It Strategy, Buy-and-Hold<\/b><\/i> Strategy and Market-Timing<\/b> Strate<\/b><\/i>gy<\/i> After learning from the past a new generation of an Investment is called SIP\/STP<\/b>. Here in this we are not trying to time the market, we are just investing the same amount regularly every month. This method is always looking good in upward trend in the market. In sideways or downtrend of the market it doesn’t seem to be profit making and also does not provide protection on an investment.<\/p>\n As a result of this we have developed a third generation of an Investment mechanism called BLTP<\/b>. In this mechanism We have removed all loopholes from SIP \/ STP due to which SIP STP fails to generate attractive profit.<\/p>\n Initially the entire fund will be parked in UST\/Liquid Fund then Funds will be shifted between the Ultra short-term fund and equity fund <\/b>based on an algorithm that will generate \u201ctechnical signals\u201d <\/b>using six parameters<\/span><\/p>\n NIFTY’s <\/b> Accordingly, the Transaction will take <\/span>place on this basis.<\/span><\/p>\n Because in Best practice you will be doing Best in the same level,<\/p>\n but in NeXT practice, you will reach NeXT level.<\/p>\n Next week we will discuss financial planning.<\/p>\n IF YOU FEEL THIS USEFUL FORWARD THIS TO YOUR OTHER CONTACTS AND SUGGESTIONS TO ME.<\/p>\n Subscribe your mail id for getting information about our post publications.<\/p>\n Call Us : 9371521221 \/ 7020210271 \/ 9339647457 \/ 9860238188<\/p>\nWhat is ‘<\/b>Active<\/b> management<\/b><\/span>‘<\/b><\/h3>\n
What is ‘Passive Management’<\/b><\/h3>\n
How the Investment Ideas Developed.<\/b><\/h3>\n
Theng-It Strategy<\/b><\/i><\/h3>\n
\nThis is somewhat of a middle ground between market timing and buy and hold. With this strategy, you will revisit your portfolio mix from time to time and make some adjustments. Let’s walk through an oversimplified example using real performance figures.<\/p>\nSome more Strategies are also popular in india<\/b><\/h2>\n
Rupee Cost Averaging (SIP)<\/b><\/i><\/h3>\n
Value Averaging(VIP)<\/b><\/i><\/h3>\n
PE based Asset Allocation<\/i><\/b><\/h3>\n
How Investment Strategies gets smarter<\/b> in Mutual Fund.<\/b><\/h3>\n
First Generation<\/b><\/h3>\n
\nthis leads us to think about the 2nd generation of aAmountn Investment<\/b>.<\/p>\nSecond Generation<\/b><\/h3>\n
Performance-Weighting Strategy, Rupee<\/b> Cost Averaging (SIP), Value Averaging(VIP) & PE based Asset Allocation<\/i><\/b><\/h4>\n
All this leads us to think about the 3rd generation of an Investment<\/b>.<\/h4>\n
Third Generation<\/b><\/h3>\n
How is the BLTP works<\/b>?<\/h3>\n
\nIndex, <\/b>
\nPE, <\/b>
\nPB, <\/b>
\nDiv <\/b>Yield, <\/b>
\nNAV of the Scheme.<\/strong>
\nEntry point<\/b> (Folio’s Inception date)<\/p>\n\n
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Focus on <\/i><\/b>NEXT<\/i><\/b><\/span> Practice rather than <\/i><\/b>BEST<\/i><\/b><\/span> Practice<\/i><\/b><\/span>
\nB<\/b><\/i><\/span>e<\/b><\/i>st Practices<\/b><\/i><\/span><\/span> look backward, providing advice that worked in the past;<\/b><\/i><\/h3>\nNext Practices<\/b><\/i><\/span> focus on what to do in the time ahead <\/b><\/i><\/h3>\n<\/blockquote>\n
Always choose NeXT instead of Best.<\/b><\/i><\/h2>\n
BLTP – NeXT Gen Investment Strategy<\/i><\/b><\/h4>\n
Remember Innovations will always bring you in the frontl<\/i><\/b>ine.<\/h3>\n