Monday, October 29, 2018

Correction is temporary.. Growth is permanent..Part 2

In this volatile times, when *Market* are down non stop, and no big local positive news happening where do we get conviction to stay invested in equity.

Conviction comes from quality of management and business.

Think....

Has maruti stopped making new cars and expansion of volumes ...?:car:

Has hpcl, bpcl,.... shutdown even one single pump due to high crude prices ...? :fuelpump:

Has jubiliant foods stop making dominos pizza...?:pizza:

Have school going children stopped buying bata shoes...?:mans_shoe:

Have ITC stop making cigarettes...?:smoking:

Did any bank send you back home saying, sorry sir no cash available today...?:moneybag:

Have people stopped taking baths and washing clothes with HUL products...?:ok_woman:🏻♂

Is any flight of indigo flying empty...?:airplane:

If answer to all above question is a big *NO* .... then why do we worry.


Prices of shares and NAVs of many good funds are available at lower
than demonitisation phase value of dec 2016

After demonitisation 2017 was a non stop dream run.:chart_with_upwards_trend:

So logically the seeds of next bull run are silently being sowed by smart investors.:seedling:

Finally 3 important things.

*1. If you are already fully invested, dont panic just hang on.

*2. If you have room for further investment, get brave and invest wisely in equity.

*3. If you are doing equity SIP you are already part of savvy investor.

Read my previous article Correction is temporary.. Growth is permanent

Tuesday, October 9, 2018

Topup your SIP NOW..

Nifty down from 11700 to 10300 in a very short period.

*What to do now??*

A lot of investors have started calling me to ask whether they should invest more at this time.
My answer is *Yes* provided you have a long term view of at least five years to stay invested.
If you looking for making some Quick Money by investing at this point of time, then My Answer is *NO*

The very nature of the market is to remain *Volatile*... and it is going to remain *Volatile* forever. Every fall in the market is followed by bounce back.

Historically, market falls are temporary and rise are gradual and permanent.

👉 *1) Harshad Mehta Scam (1992):* Sensex corrected by 54% in 1 year, it jumped 127% post that in 1 ½ years

👉 *2) 1996 Crisis: Sensex plunged 40% in over a 4 year period*, it jumped by 115% post that in little over 1 year

👉 *3) IT Bubble burst (2000): Sensex crashed by 56% in 1 ½ years*, it jumped 138% in 2 ½ years

👉 *4) Lehman Crisis (2008): Sensex crashed by 61% in 1 year*, it jumped by 157% in 1 ½ years post that

👉 *5) 2010: Sensex corrected by 28% in 1 year*, it jumped by 96% in 3 years post that

👉 *6) 2015: Sensex has corrected by 23% in 1 year,* and got handsome returns after that.

👉 *7) 2018: markets already 10 to 15% corrected from its peak*....Now what is NEXT ????

Now coming to another data..

*Year*     *Sensex*

1980           150
1990         1500
2000         6000
2010       21000
2018       38000

Think of year 2020, 2030, 2040 and beyond... You will be able to keep the noise out of your mind.

At this point of time, it reminds me the Golden lines of legendary investor Warren Buffett;
*Be greedy,*
        *when others are fearful..*
*Be fearful,*
         *when others are greedy.*

We firmly believe that *Wealth Creation* is a long term process. It will take time. There is no short cut to Wealth Creation.

*Three Golden Rules of Investing:*
1) Invest Early
2) Invest Regularly
3) Invest for Long Term

*In a nut shell,
What you should do now is,
Double up your SIPs or top up with Lump Sum investment... It is always beneficial to buy at discount.*

https://g.co/kgs/ziGTSA

Saturday, October 6, 2018

Correction is temporary.. Growth is permanent

Worth evaluating

*********************************
👉 *1) Harshad Mehta Scam (1992):* Sensex corrected by 54% in 1 year, it jumped 127% post that in 1 ½ years

👉 *2) 1996 Crisis: Sensex plunged 40% in over a 4 year period*, it jumped by 115% post that in little over 1 year

👉 *3) IT Bubble burst (2000): Sensex crashed by 56% in 1 ½ years*, it jumped 138% in 2 ½ years

👉 *4) Lehman Crisis (2008): Sensex crashed by 61% in 1 year*, it jumped by 157% in 1 ½ years post that

👉 *5) 2010: Sensex corrected by 28% in 1 year*, it jumped by 96% in 3 years post that

👉 *6) 2015: Sensex has corrected by 23% in 1 year,* and got handsome returns after that.

👉 *7) 2018: markets already 10 to 15% corrected from its peak*....Now what is NEXT ????

Those who continued their SIPs during falling market benefited the most. Markets never give an indication before bouncing back!!

Friday, August 3, 2018

Different Types of Wills :

Will is termed as the legal declaration of a person’s intention that he wishes to be performed after his death. When once the Will is made by the testator it will be revoked during his lifetime. A person cannot offer his ancestors property in the form of a Will. But he will be able to make a Will only of his Self-Acquired property.

One can define WILL as...


Written document (testament) by which a person (the testator) directs how his or her assets (estate) are to be distributed upon death. Among other provisions, a will may appoint executors to administer the estate, name guardian for a child, and/or make arrangement for payment of obligations. Commonly, the law requires that the testator must have testamentary capacity when making the will, and that it be witnessed by two or more credible witnesses. It is not always necessary, however, that the will bears the signature of the testator. Someone else may sign it on behalf of, and in the presence of, the testator and a required number of witnesses.

Types of will :

Unprivileged Will

A Will which is created by a person who is not a soldier employed in an expedition or has engaged in actual warfare or a mariner at sea is known as an unprivileged Will. For an unprivileged Will to be valid, it is compulsory in satisfying certain conditions. The person who creates the Will need to sign or affix his/her mark in the Will.

Privileged Wills

Privileged Wills are those Wills that will be in writing from or has been made by word of mouth by those in active services like a soldier, airman or sailor. The validity of a privileged Will in terms of legal terms has been reduced to allow certain persons to quickly make a Will.

Sham Wills

Sham Wills are those wills that are executed purporting to be a Will, but will be invalid as the testator does not have the intention to execute his/her wishes. As per the Indian Succession Act, a Will that is made by fraud or by taking away the free agency of the testator is considered invalid.

Joint Wills

A Joint Will is an instrument in which two or more persons agree to make a conjoint Will. When a Will is joint and is intended to take the effect after the death of both, it will not be enforceable during the life time of either. Joint Wills need revocable at any time by either of the testators during their joint lives, or after the death of one, by the survivor.

Duplicate Wills

A testator, for the sake of safety, may make a Will in duplicate, one to be kept by him and the other to be deposited in the safe safekeeping with a bank or executor or trustee. If the testator mutilates or destroys the one which is in his custody it is revocation of both.

Conditional or Contingent Wills

A Will is expressed to take the effect only in the event of the happening of some contingency or condition. If the contingency will not happen or the conditions will fail, then the Will is not legally enforceable.

Concurrent Wills

Normally, a man has to leave only one Will at the time of his death. But for the sake of convenience, a testator need to dispose of properties in one country by one Will and the other properties in another country by the separate will. They are concurrent Wills.

Mutual Wills

For a Mutual Will, the testators will be consulting each other reciprocal benefits. A mutual Will has to be executed by the husband and wife, in their lifetime for passing all benefits to the other person during their lifetime.

Holograph Wills


A holographic will is a will that has been entirely handwritten and signed by the testator. A will need to be signed by the witnesses attesting for the validity of the testator's signature and intent. But in most of the jurisdictions, holographic wills, it will not be witnessed are treated equally to witnessed wills and need only to meet the minimal requirements which is to be probated.Written document (testament) by which a person (the testator) directs how his or her assets (estate) are to be distributed upon death. Among other provisions, a will may appoint executors to administer the estate, name guardian for a child, and/or make arrangement for payment of obligations. Commonly, the law requires that the testator must have testamentary capacity when making the will, and that it be witnessed by two or more credible witnesses. It is not always necessary, however, that the will bears the signature of the testator. Someone else may sign it on behalf of, and in the presence of, the testator and a required number of witnesses.

Source : Forwaded

Sunday, June 17, 2018

Believe in india's growth story..

Fwd as received on Whatsapp :

Dear Investor

India, as an Investor, has just learned to invest in Equity and Mutual Fund. But, I always find that we, Indian Investors, are very skeptical of our country's progress. With slight negative news or by few percentage market decline, we start worrying about our Investment.

That is one of the reason, foreigners have made tons of money from our stock market and and lot lot more than Indian Investors. They are very confident of our country's growth prospects.

Let's look at Multinational Companies Investment in India.

Amazon has spent most out of Rs. 35000 crores earmarked for India, has also announced to spend additional 12000 crores to defy competition. Amazon's spending in India caused Amazon USA to report losses in USA. Amazon has such a high conviction in India story.

Walmart, seeing Amazon's growth, trying to buy major stake in Flipkart, that will result in to Investment of close to Rs. 70000- 80000 crores in India story.

Japan's SoftBank declared in 2014 that it will invest close to Rs. 65000 crores in Indian market by 2024. In April 2018, SoftBank said it has already invested Rs. 52000 crores in India now and will complete target by 2022 instead of 2024.

Global Hotel chain Marriott has now highest rooms in India. Marriott has now 22000 rooms in India, 2nd highest Taj has 14000 rooms. If you go through plan of another foreign hotel chain The Hilton group, they too want to expand furiously in next couple of years.

HDFC Bank declared result last week. It posted massive Rs. 4799 crore profit for Jan - March quarter and Rs. 17486 crore profit for last financial year. But, who benefits from HDFC Bank's success story, Indians? Absolutely not. We don't trust our companies. Foreigners own 74% of HDFC bank. They benefitted from success of HDFC bank. They are consistently owing 74% for last many years now.

Our entire focus is on one Nirav Modi and one Vijay Malya and we choose to miss whole India story. While foreigners, too, take note of Nirav Modi and Malya but they don't take their eye off big India story, which will continue to play for many years to come.

Other very successful Companies,Paytm and Makemytrip are owned by foreigners, Indians have just minor stake in it.

Message is just sit on your investment in Equity and Mutual Fund. whole world is coming here to invest. And, they are not foolish. They have studied opportunity very well. They have benefitted earlier from other such developing markets hence they know size of the opportunity.

*Stay Invested.*

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