Wealth Management for Indians

Personal Finance Management and Investment avenues for the Indian community....

Monday, May 09, 2005

Systematic Investment Plan (SIP)

The Systematic Investment Plan is probably one of the greatest innovations in the investment and more particularly in the Mutual Funds industry. It helps you to inculcate disciplined investing habits and reduces the human emotions in decison making. As they say, the earlier you start investing, and the longer you stay invested, the more your money grows. Systematic Investment Plan simply involves investing a regular amount starting from as low as Rs 500 every month.
Suppose you start investing in a diversified equity mutual fund through a SIP at 35 years of age for Rs 5000 per month till the age of 60, you will have Rs 1,37,82,803.88 which is over 1 crore . However, if you invest the same Rs 5000 every month but start investing from the age of 40, you will have Rs 66,35,367.20 which is just over 66 lakhs. This is of course an hypothetical example but gives ample evidence of the benefits of SIP and the important rule of 'Wealth Management' i.e., to start early.

Sunday, April 24, 2005

Let's talk derivatives !!!!!

I had promised that I will be back to share some of my knowledge on 'Equity derivatives'...and so here I am....Equity derivatives is not as complex as people make it out to be....and it is a wonderful risk management instrument.....If derivatives is understood and implemented...you can make money in down as well as up markets.....As of now....suffice it to say...Equity derivatives consists of Futures and Options...and options ...in turn can be categorised into Call options and Put options....Call option is an option to BUY....and Put option is an option to SELL....Register these small definations....in your brain....and you have got it going.....I will be back sooooooon...meanwhile...leave a comment or two...if you feel like doing so....I will be going into the details of Equity derivatives as well as various investment avenues....in the Indian scenario.....Keep visiting !!!!!!!!!!!!Ciao !!!!!!!!!!!!!!!

Saturday, April 23, 2005

COMING SOON !!!

Hi everybody !! Have you ever heard about Equity derivatives ???...Well...if you havn't...you are missing out on a neat financial instrument...which could shape your future....If you are into equity...you should delve into 'Equity derivatives'...and for those of you who have not been on the equity path....probably because...you think it is a risky affair....you have all the more reason to get into Equity derivatives...Don't fret...even if you havn't heard of Equity derivatives...we are here to guide you through the maze.....We are coming soon to a computer near you.....Keep visiting....and watch this space....It will change the very meaning of Wealth Management for Indians..............Ciao...till the next time....when you will get to know more.....