Systematic investment plan how it works?
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Systematic Investment plan is like Dollar Cost Averaging.\nYou invest the exact same amount each month, no matter what the price per share of a mutual fund is.\n\nFinding value of your portfolio in the future is not possible. However, you can find a hypothetical value. All you need right now is a hypothetical interest rate (say around 10%) and see what you can get in 3 years.\n\nI would invest in aggressive growth funds.. particularly Legg Mason Partners Aggressive Growth Fund (formerly known as Smith Barney Aggressive Growth).
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Mutual fund schemes may be classified on the basis of its structure and its investment objective. \n\nBy Structure: \n\nOpen-ended Funds An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity.\n\nClosed-ended Funds A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor.\n\nInterval Funds Interval funds combine the features of open-ended and close-ended schemes. They are open for sale or redemption during pre-determined intervals at NAV related prices.\n\nBy Investment Objective:\n\nGrowth Funds The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a majority of their corpus in equities. It has been proven that returns from stocks, have outperformed most other kind of investments held over the long term. Growth schemes are ideal for investors having a long-term outlook seeking growth over a period of time.\n\nIncome Funds The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures and Government securities. Income Funds are ideal for capital stability and regular income.\n\nBalanced Funds The aim of balanced funds is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents. In a rising stock market, the NAV of these schemes may not normally keep pace, or fall equally when the market falls. These are ideal for investors looking for a combination of income and moderate growth.\n\nMoney Market Funds The aim of money market funds is to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on these schemes may fluctuate depending upon the interest rates prevailing in the market. These are ideal for Corporate and individual investors as a means to park their surplus funds for short periods.\n\nLoad Funds A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or sell units in the fund, a commission will be payable. Typically entry and exit loads range from 1% to 2%. It could be worth paying the load, if the fund has a good performance history.\n\nNo-Load Funds A No-Load Fund is one that does not charge a commission for entry or exit. That is, no commission is payable on purchase or sale of units in the fund. The advantage of a no load fund is that the entire corpus is put to work.\n\nOther Schemes: \n\nTax Saving Schemes These schemes offer tax rebates to the investors under specific provisions of the Indian Income Tax laws as the Government offers tax incentives for investment in specified avenues. Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961. The Act also provides opportunities to investors to save capital gains u/s 54EA and 54EB by investing in Mutual Funds, provided the capital asset has been sold prior to April 1, 2000 and the amount is in
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here is an article which will help you know how to get started\n\n"Speculation is an effort, probably unsuccessful, to turn a little money into a lot. Investment is an effort, which should be successful, to prevent a lot of money from becoming a little."\n--Fred Schwed, from the book "Where Are the Customer's Yachts?" 1940\n\nAs a stockbroker years ago, I saw hundreds of individual investors doing dumb things with their money. At first, when I was certain what they wanted to do was dumb, I'd try to talk them out of it. But I quickly learned that once someone has his mind made up, it's hard to change it. It occurred to me that an educational guide on How To Get Started Investing is what many new investors could benefit from.\n\nWhile I didn't particularly enjoy being a broker, I did learn many lessons. The lessons can be boiled down to two truisms: everyone thinks differently about money . . . and people would rather be proven right than make money.\n\nNext as a head trader, I saw the dumb things Wall Streeters do. I learned that most financial types in Manhattan don't know how to invest either. Most are actually WORSE investors than individual investors. Their primary concern is not successful investing, but extracting their cut from the customer.\n\nThen as a head of research, I saw the "sham" of brokerage research. Most research departments exist only to come up with material that helps their brokerage employer look good; their aim is not to do, well, actual research.\n\nIt was only by working for an independent research outfit that I was finally able to crunch some numbers about what really works on Wall Street...\n\nThe Four Paths Taken by Investors\n\nUltimately, there are two conscious approaches that people take when they get started investing. Let's call them: 1) the "GET RICH QUICK" investing approach, and 2) the "GET RICH SLOW" investing approach.\n\nAnd while people don't realize it, there are two other approaches as well: 3) the "GET POOR SLOW" approach, and the dreaded 4) "GET POOR QUICK" investing approach.\n\nUnfortunately, a great percentage of investors, probably most of them, actually end up using approach number four...\n\nThe goal of these Investment U E-Letters is to show you how to get started investing and/or how to become a better investor. Obviously, I can't cover everything in a single e-mail . . . but I can mention some of the things that have consistently proven themselves to be part of the "GET POOR QUICK" approach.\n\nHow To Get Started Investing: First, Avoid These Six Mistakes Made by "Get Poor Quick Investors"\n\n1. Buying and selling options as a "novice." Getting lucky and hitting a big winner in options is the worst thing for an options trader who has just started investing. That almost ensures that he'll eventually lose everything by going back for more, always looking for that big score, until all his money is gone. Options can be traded successfully - with the right tools, the right knowledge and the right advice.\n\n2. Buying and selling futures. Same story as options.\n\n3. Buying an expensive computer trading program and trading with it blindly. (If someone truly figured out the Holy Grail, why would they sell it to anyone who wanted it for just $2,000?)\n\n4. Putting all your eggs in one risky basket. Like options, if you were to happen to get lucky once, and make a zillion dollars, you'd lose it the second time around (or the third). Eventually, it will all be gone.\n\n5. Throwing good money after bad, and buying more as the price falls...definitely belongs on the "what not do do" on our How To Get Started Investing guide. This is nearly always what investors do after the stock they've put all their eggs in starts to go down. Instead of getting out - or lowering their risk - they mortgage the house, the car, the family cat, whatever
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The answer is by using simple mathematics.\n\nFirst you need to decide how much of each stock you are going to buy - since not all stocks are priced equally some would be $20, other $400 and some 0.05 cents.\n\n$100,000 over ten stocks... Decide what ratio you will hold of each stock. E.g. 6:3:4:1:9:4:3:7:9:2\n\nSo totalling the ratio is 48. Now you can use a combination of the ratios and fractions to find out how much stock you can hold with your $100,000.\n\nI may have left you out on a limb there - but this calculation is uneccessary. Why don't you just buy your stock one by one until you run out of money? :P\n\nOK Lets try the example with 2 stocks and $100K\nyou want the weighting to be 3:4\nso you want \n3/7ths of your money to go to 1 stock\n4/7ths of your money to go to 1 stock\n\n3/7*100K=$42857.14\n4/7*100K=$57142.85\n\nNow say stock ZXC was $5 each and stock ABC was $67\n\nNow you go:\n$57142.85/$67=852.88 Stocks\n$42857.14/$5=8571.43 Stocks\n\nThere you go. Now do the similar calculation with your ten stocks! Haha!\n\nGood Luck!
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I suggest stocks, mutual funds and ETFs.\n\nDrop me a line if you need more detailed information.
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SIP (Systematic Investment Plan)\nSuppose you start investing 5000 rupees  at the age of 35 years and stop it at 60, the amount invested will be 15 lacs altogether but you can end up getting more than 1 crore!!!\n.....trust me no joke
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A mutual fund is a collection of some kind of investment, usually stocks. They’re extremely popular. Your parents own at least one mutual fund if they’ve ever worked at a company. Mutual funds work like this: You pick a fund you like (e.g., growth, value, technology, international…), buy shares of the fund, and let a money manager pick the stocks he thinks will yield the best return. In exchange for this diversification and his expertise, you pay an annual fee. \n\nAdvantages: Hands-off approach means an expert money manager makes investment decisions for you. Mutual fund (ostensibly) holds many varied stocks, so if one company tanks, your fund doesn’t go down with it (i.e., it’s “diversified”).\n\nDisadvantages: Annual fees can equal tens of thousands of dollars or more (!) over the lifetime of an investment. If you invest in two mutual funds, they may overlap in investments, yielding a less-diversified portfolio than you really think. In other words, if both funds hold Microsoft and Microsoft tanks, you get hit twice. Although you’re paying an expert to manage your money, they rarely beat the market—the mutual fund industry’s dirty secret!\n\nMuch more clear info in the link below :)
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Cost basis starts with how much you paid -- total cost plus any related expenses (commissions, fees, etc.).  Next you must add in any costs related to holding the asset in question.  Add those up and you have your cost basis.\n\nYour question is very vague and difficult to answer.  I'm not sure if you're asking about some stocks that you purchased or if you're determining basis for a company that you own or are disposing of.\n\nIn the instance of an investment.  Multiply the # of shares * the price of those shares and add in any commissions.  That's your starting point (and probably your finishing point).
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There's always friends and family as some initial seed capital or your own money.  The risk is that you lose the money and your friends.\n\nThe other more traditional ways include angel investors and venture capital.  These require a solid business plan and something that shows good potential to make back the initial investment quickly.  It's a bit tough to get money from these sources because so many people submit plans.  They also take a significant portion of the company as payment.  The good side is that they have more access to resources to help your business succeed but it comes at a financial cost.
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Pardon, the system seems to have produced a glitch in your text, such that your full question is not visible.\n\nIt seems, however, that you are looking to learn more about investing.\n\nIf you will look up each of your terms in question at this site:\n\nhttp://www.investopedia.com/terms/p/premium.asp\n\nI believe you will be able to obtain the information you need.\n\nBest wishes.
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Your investment is in an IRA so there won't be a taxable distribution (unless you pull the money out of the investment).  Sometimes there can be account closure fees that mutual funds may charge or the financial institution you are working with.  If you are in a bad investment, it can be worth any fee to move into a stronger investment.  Look for long-term results rather than just the past 3 or 5 years.  Good Luck.
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if you can remember \n\n1. vertical analysis (aka 100% analysis) where sales is 100% and the rest are expressed as a percentage of sales, done on a year by year basis, then interpret the relationship of each account to the total sales;\n\n2. horizontal analysis using the first year as the base year and computing for the percentage increase/decrease on the succeeding years, in amount and percentage, then interpret the increase/decrease, maybe the causes and implications;\n\n3. ratio analysis by computing the financial ratios each period then interpret these ratios relating to the operational, financial or investing activities.\n\ngood luck.
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(1) Normally, the financial firm will tell you that. \n\n(2) You can track every transaction by yourself---add all the shares and costs of purchases in the excel spreadsheet. \n\nI like the second method better because it normally can give you a lower short-term capital gain and higher long-term capital gain when you eventually sell the mutual fund.
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I am interested in investing in it what is the returns to be expected out of it. What is the investment likely to be
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You need a business plan.  Investors and lenders will want to know how you intend to make money.  They will want to see all the details, from where you will be located, how much rent you will pay, how many employees you will have, how much will you pay them, how much will employee benefits and insurance cost, where will you get the raw materials for your widgets, how much will the raw materials cost, what are your projected sales, projected cost of goods sold, tax liabilities, interest expense, return on investement, marketing plan, etc.\n\nIf you can prepare a 5-year plan, working out all the details and showing that you know how you will make money and how much money based on projected sales, then people may have the confidence in you to invest.
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it is a ulip policy catering insuance and investment \n\nbut \nbest way is to do it sepratly \nbuy any balance mutual fund and a term plan so that u will get better cover and higher return
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This very basic formula is :\n\n100 - your age = % of portfolio in equities.  \n\nTake you age, and that's the percentage you have in safer investments i.e. fixed income.  As you get older, a greater portion of your portfolio gets allocated to fixed income.\n\nThis is a very quick and dirty way to start with an asset allocation.  You can tweak according to your own risk preferences, add an international component (5-15% of a portfolio), or increase exposure to small caps (again about 10% of a portfolio).\n\nDepending on your age I would look at Government bond funds, or investment grade corporate bonds for the fixed income side.  Some plans offer a fixed account which may be paying 4-6%, with no principal fluctuation, that would be a good thing to add some of your safe money to.  High yield funds are junk bond funds and can behave more like an equity investment than a fixed income investment, investing in them may give you a higher dividend, but you may not be diversifying your risk.\n\nAlso, your plan might offer a "Lifestyle" portfolio, which essentially picks your asset allocation for you based on the year you plan on retiring in.  It gets more conservative automatically as time goes on.\n\nHope that helps!