Prasad AVSS Financial Advisor

04/10/2022

04/09/2019

I Don't want to invest for last 20 Yrs because
1982 - Worst recession in 40 years, debt crisis.
1983 - Market hits record - "Market too high".
1984 - Record U.S. Federal deficits.
1985 - Economic growth slows.
1986 - Dow nears 2000 - "Market
too high"
1987 - The Crash -Black Monday.
1988 - Fear of Recession.
1989 - Junk Bond collapse.
1990 - Gulf War, worst market decline in 16 years.
1991 - Recession - "Market too high"
1992 - Elections, market flat.
1993 - Businesses continue restructuring.
1994 - Interest rates are going up.
1995 - The market is too high.
1996 - Fear of Inflation.
1997 - Irrational Exuberance.
1998 - Asia Crisis.
1999 - Y2K.
2000 - Technology Correction.
2001 - Recession, World Trade Center Attack.
2002 - Corporate Accounting Scandals.
2003 - War in Iraq.
2004 - U.S. has massive trade & budget deficits.
2005 - Record oil & gas prices.
2006 - Housing bubble bursts.
2007 - Sub-prime mortgage crisis.
2008 - Banking & Credit crisis.
2009 - Recession - "Credit Crunch"
2010 - Sovereign debt crisis.
2011 - Eurozone crisis.
2012 - U.S. fiscal cliff.
2013 - Federal Reserve to "taper"
stimulus.
2014 - Oil prices plunge.
2015 - Chinese stock market sell-off.
2016 - Brexit, U.S. presidential election.
2017 - Stocks at record highs, Bitcoin mania.
2018 - Trade Wars, rising interest rates.
2019 - India GDP at 5 %
History of DJIA says one will always find why not to invest but no one can stop Mr Market in long run.
Mr Market is above all.
We tend to agree more on
any bearish argument.
"One can create Money by investing in Bull Market but one can create Fortune by investing in Bear Market"

25/06/2019

The formula of wealth creation is - Investing Regularly + Compounding + Time = Good Return

24/06/2019

Spending 1 hour a week for 8 weeks is all you need to *organize every expense* you made over the past 12 months.

It’s crazy to think you could change your *entire financial life in just 8 hours.*

It’s even crazier to think most wont even spend 8 minutes.

To know more about *how to save more and invest better*, call your Financial Advisor today.

24/05/2019

What are liquid funds?
Funds which do not invest any part of assets in securities with a residual maturity of more than 91 days are liquid funds. Currently, the average portfolio maturity of this category ranges between four and 91 days. These funds invest in short-term debt instruments with maturities of less than one year. Investments are mostly in money market instruments, short-term corporate deposits and treasury. The maturity of instruments held is between 3 and 6 months.

Why invest in liquid funds?
These funds provide good liquidity, low interest rate risk and the prevailing yield in the market. Liquid funds have the restriction that they can only have 10 per cent or less mark-to-market component, indicating a lower interest rate risk. While liquidity is one factor of these funds, safe investments make them the preferred parking option for HNIs and corporates. Moreover, the maturity makes them relatively less sensitive to interest rate fluctuations, compared to other debt funds. For all these reasons, liquid funds are used as an alternative to short-term fix deposits. Most schemes have a lock-in period of a maximum of three days to protect against procedural (primarily banking) glitches, and offer redemption proceeds within 24 hours. The minimum investment size in a liquid fund varies from Rs 25,000 to Rs 1 lakh.

The tax advantage
Short-term capital gains tax applies on liquid funds that are held for less than a year at the income tax slab that one falls in. However, there is tax efficient strategy that you can adopt. Dividends from liquid funds are tax-free in the hands of investor, which makes them more attractive than bank fixed deposits. Consider opting for dividend reinvestment when investing in a liquid fund because dividends stripped will be reinvested as units and will be considered as fresh investments. This way the capital gain will be very low. In case you do plan to hold the investment in liquid fund for over a year; opt for the growth option to benefit from the indexation benefits.

01/05/2019

Gold vs Sensex...

Gold investing an expensive mistake

29/04/2019

SENSEX@ 40

Did you know?

The word 'Sensex' is a combination of words 'sensitive' and 'index'. The Sensex is India's first real-time index.

Sensex was launched on April 1,1986, but its base year was chosen as April 1,1979, at a value of 100. This means that though the history of the Sensex is available from 1979, it came into being only from 1986.

Looking at its history, Sensex gave a compounded annual growth rate of 16.1 per cent from 1979 to 2019. Till 1986, when the Sensex was not actually available but was traced back, the returns were 27.9 per cent CAGR. After its launch in 1986, it gave an annualised return of 13.7 per cent.

Since 1979, gold has grown 45 times (CAGR 10 per cent), but Sensex has grown 390 times (CAGR 16.1 per cent). Rs 10,000 invested in gold in 1979 would have turned Rs 4,50,620 in 2019. The same amount invested in the Sensex would have turned Rs 39,14,028.

If you had started an SIP of Rs 200 in the Sensex in 1979 and increased it by 10 per cent annually, you would have invested Rs 10.71 lakh in total and your investment value would be Rs 97.19 lakh.