Wednesday, August 26, 2015

24th August BLACK MONDAY for others BUT NOT FOR MY INVESTORS

The huge huge fall of 1624 points on 24th August would have smashed the spirit of even the die hard bulls to smithereens ;
 but my investors were not worried one bit.
Thats because I have ensured that every single client of mine has  a good exposure to EDELWEISS ABSOLUTE RETURN FUND and have mandated the PREPAID SIP concept.




HOW MUCH DID MY INVESTORS IN EDELWEISS ABSOLUTE RETURN MAKE ???
1 day (24th Aug)

Nifty : -5.92%
ARF : -2.81%

FYTD: ( Financial Year Till Date )

Nifty : -8.03%
ARF : -2.29%

CYTD: ( Calendar Year Till date)

Nifty : -5.72%
ARF: +3.38%

1 Year:

Nifty: -1.32%
ARF: +12.38%

3 Years :

Nifty : 44.97%
ARF : 50.08%

Adversity is the true test of character. Its the challenging situations which separates Men from Boys. Our man, Mr. Absolute (Edelweiss Absolute Return Fund ) stands tall amidst all the volatility and corrections.

To know more about Prepaid SIP concept click here...
 http://goodfundsadvisor.blogspot.in/2013/12/edelweiss-prepaid-sip-unconventional.html
 http:/http://goodfundadvisor.blogspot.in/2013/12/edelweiss-prepaid-sip-unconventional.html

Also read
 http://goodfundsadvisor.blogspot.in/2015/05/style-definitions-table.html


OTHER FEATURS TO NOTE :
 From Jan 2010 till 30th June Edelweiss Absolute Return Fund is up 88% versus the NIFTY index that is up by 60.9% in same period.

        Tax Free quarterly dividend: History for 4 years plus uninterrupted dividends (18 quarter since 2011).

        Last FY dividend rate at 9.60% on Face Value of Rs.10. Dividend yield 7.23%.
         NO DDT (Dividend Distribution Tax) on dividends.

         NIL Long Term Capital gain Tax after 12 months.

         Low volatility and controlled downside risk leads to stable returns to the investor.

        Suitable for ‘First Time’ investors in equity, can be  substitute for MIPs (Monthly Income Plans), Regular Income plans,  Capital Protection Funds , Long term FMPs and long term Debt products.

Also read  please click 



Please consult your Financial Advisor before investing.





Also visit http:/http://goodinsuranceadvisor.blogspot.in/

Monday, August 17, 2015

HOW TO MAKE USE OF LIQUID FUND

 Assuming 7% p.a.
Per day -  7 / 365 =0.019%.
Assuming Parking for 3 days a Week.
Total No.of Days= 52*3 =156 days.
So,  0.019 *156 =2.99%.
So,One Can gain around 3% for an Year On WEEKEND PARKING.

Parking Money during the Weekend & Having Money Ready in the Current Ac for the Business Transactions in Week Days.

Fantastic Option for Corporates & SME's.
Earning 3% p.a on Just Holidays,where the money would be idle in Current Ac.
lso visit http:/http://goodinsuranceadvisor.blogspot.in/

Saturday, August 15, 2015

HAVE YOU SAVED FOR YOUR RAINY DAY YET?

 What’s this “Saving for a Rainy Day” mean which you would have heard umpteenth times?


Rainy Day Fund is a Fund which you can easily access to any given point of time to handle any unforeseen unexpected expenses without an iota of remorse/guilt.
While each Financial Planner will have his own logic and reasoning for recommending any particular fund, one particular fund which EVERY single Planner will strongly recommend that you should have is the RAINY DAY FUND.
Now, this Rainy Day Fund is called by various names such as Contingency Fund, Reserve Fund, Emergency Fund, etc.
I prefer the names Rainy Day Fund and Contingency fund.
Each and every Financial Plan must compulsory with a Rainy Day Fund.
The absence of a Rainy Day Fund could rock your Financial Plan and could even land you in Debt!



WHY THE NEED FOR THIS RAINY DAY FUND?
We live in an era where joint family is a endangered species and thus you are left to fend for yourself even in a emergency financial situation.
In a Contingency Situation, the options for you could vary from selling your prized processions to selling your Blue chips shares/Mutual funds to taking a Credit Card loan or even borrowing from your friend or the next door moneylender.
But, this could lead to potentially rock your Financial Plan.
The presence of this Rainy day Fund thus ensures that your Assets are protected

WHAT ARE THESE EMERGENCIES????
Upgrading from a Maruti 800 to a Mercedes Benz is NOT an Emergency!!!
A sudden Medical Complication in the family fits in as the Best example of an Emergency.
True, a health Insurance will be there and should cover the bill, but Mediclaim does NOT cover everything and sometimes, during these medical emergencies, not many will have neither the patience nor the time to go through the procedure of following up the Health insurance companies.
Job losses have become a common part of our daily life.  Losing your job without a notice period is another case of an emergency.
Even a Sudden House Repair (due to Earthquake or a Huge Rainfall following which Water creeping into your home and damaging interiors)  too comes under the category of a Contingency.
So, at the cost of sounding repetitive, let me reiterate, Any Unforeseen Expense which is capable of upsetting your Financial Plan is a fit case for linking to a Contingency Fund.


HOW MUCH FUND SHOULD BE KEPT FOR EMERGENCIES???

Unless the situation actually occurs or arises, one can never be sure of the amount you require in a Contingency Fund.

But, to be absolutely safe and secure, Financial Planners, normally recommend that you need to have 4 to 6 months of your monthly expenses kept aside as Contingency Fund. Since, not many are comfortable with this big chunk of money kept blocked, I normally recommend anywhere between minimum of 2 to 4 months of Monthly expenses as Contingency Fund.

This amount of Contingency Fund could vary depending on our job profile, your Family structure (joint/nuclear).


WHERE TO KEEP THE CONTINGENCY FUND?
The Contingency Fund should be easily accessible. It is encouraged that your Spouse/Life Partner knows about these funds and how to access these funds.

Contingency Fund could be parked in form of Savings Bank Account, Bank Overdraft facility, Liquid Funds with Mutual Funds.
The Primary purpose of a Contingency Fund is the Preservation of Capital and returns should be treated as Bonus, nothing else!

I would recommend that you split your Contingency Fund into
30% in SB Account
30% in Flexi Deposits
30% in Liquid Mutual Funds
10% in Arbitrage Fund (yes, I know, I am creating a bit of controversy here.......).

Why Arbitrage Fund?

Yes, it is quite unlikely that you will be using your entire 6 months of Contingency fund in one go.

And,  even if yes,  the Contingency could be either 1 month away or even 10 years away (or if you very lucky), could never happen!.
 And, emergencies come in all forms and there are some kind of emergencies which allows you the luxury of arranging funds after a few days.


But, do remember, having a Contingency Fund, is purely for a Contingency and if you earning anything out it, it should be treated as a Bonus only!

And, please, for God's sake DO NOT CONSIDER YOUR CREDIT CARD AS YOUR CONTINGENCY FUND!!!
That’s why it is called a Rainy Day fund and not a Reserve or a Pocket Fund!


HOW TO GO ABOUT CREATING A EMERGENCY FUND?
It is not that you should keep 4-6 months of your Monthly Expenses in Contingency Fund at one go. Go about it slowly. Start with 15 days of expenses, then 1 month and gradually scale up.





FINALLY,
Keep your Contingency Fund untouched. Remember it is for CONTINGENCY and not a Reserve Fund for you to dip into every now and then.
I have seen many Investors dipping into Contingency Fund of make up for shortfall in some other goal (mostly short term), which is very unhealthy.
Contingency Fund acts as a Shock Absorber of a Financial Plan. Absence of it can make a Financial Plan turbulent

Most importantly, do not forget to have your Contingency Fund backed by Adequate Insurance.  Do remember, a Contingency Fund goes hand in hand with a Term Plan Cover and a Health and Accident Insurance Cover.


So, with a Contingency Fund in place which acts as a cushion in case of a Financial Emergency, you can now concentrate on your building your Financial Moat.
Best of luck,
Srikanth Matrubai




Also visit http:/http://goodinsuranceadvisor.blogspot.in/

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