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Vivek Sukhani
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Joined: 23/Jul/2006
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   Posted: 29/Jul/2006 at 9:54am |
Gold is more of a store of wealth and cannot be construed as a kind of wealth which generates income. Stocks as well as bond reward you with some sort of income, namely dividend and interest.Investing in gold requires a very sharp eye, as gold prices jump upwards and downwards, very fast.So, you will get some peroids when returns from gold will be higher than stocks, but that peroid is generally small.
There are misconceptions associated with investment in gold. Jewellery, mind you is not gold. if you want to invest in gold, never keep it in the form of jewellery. You need to sacrifice your snob, if you want to be a real investor in gold.Gold is more like crude, that is the reason why commodity analysts track ot so closely. They move around in patches, and never moves smoothly. They move fast, or sleep down, but they never make a 5 p.c. p.a sort of consistent move, year on year.
Silver, makes more sense for a speculator though. It moves more fast than gold and also cracks very fast.So, in case you get your moves correct, they mave yoeld more than equities in the short term.
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prashantmohta
Senior Member
Joined: 23/Jul/2006
Location: India
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Posts: 1074
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Posted: 01/Sep/2006 at 8:29pm |
indian economy is growing very fast around 8%,compare to china which is at 10%.in 2001 china was trading at a PE of 40 which has now come to 15.if we grow at 10 + 5% inflation=15% it means economy as whole is doing well and almost all the sectors of the economy is doing well.so,well managed co.is expected to do well and will give definately 25% average.
our fund managers are quite smart to give phenominal returns as they have given more than 60% three year down the line.it is better to leave the job to the managers as they are quite competent to manage our money.but sure we have to be patient and must get rid of our daily charmness or activity to find infosys everyday.
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omshivaya
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Joined: 06/Sep/2006
Location: India
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Posts: 5966
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Posted: 27/Sep/2006 at 3:11am |
Mix of equity and debt:
Equity:
Reliance Vision/Growth
Magnum Contra
HDFC Prudence
Debt:
LICMF MIP-G
Pru ICICI MIP-G
Hope this helps! They are the best of the breed. Equal divisions of your money can be done in them. Just a suggestion, though I am no expert. I would stay out of sectoral funds strictly. My choice of equity funds above is based on 2 things:
1) "which funds recovered from the dot com crash fastest and which fell the least in the crash"
2) "the ones which gave returns among the top 5 funds" since 1999-2000.
Edited by omshivaya - 27/Sep/2006 at 3:17am
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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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vivekkumar_in
Senior Member
Joined: 19/Sep/2006
Location: United States
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Posts: 606
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Posted: 27/Sep/2006 at 3:42am |
Check out the site called www.mutualfundsindia.com.
It ranks all the Mutual funds Equity, Depts, Balanced,tax saving(close
ended), sectorals and you have options for sorting by performance since
inception , last 3 years etc.. You could make your decision based on
that..
Good point Om though.. when you say looking for how the fund reacted in a crash gives insight on its resilience..
Once you have done that the suggested split up is 40:30:30 between the 1st,2nd &3rd ranked funds.. This is a better approach that equal splits..
As for debt funds I don't know why anybody would want to buy Debt
funds in todays scenario.. You could rather be in cash/bullion if you
want to be in Debt funds..
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Often we forget there's a company behind every stock,and there's only one reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.
P Lynch
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omshivaya
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Joined: 06/Sep/2006
Location: India
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Posted: 28/Sep/2006 at 1:17pm |
Hi vivek, thanks for your insight. However, I feel "debt" MAY become important when markets mature(maybe 2010-2015). Deb-part is only to take care of daily expenses etc. I have chosen the funds, based on "living off my money till my old age". At that time, a bit of "risk-aversion" is needed and good.
Hope this helps!
Edited by omshivaya - 28/Sep/2006 at 1:22pm
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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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basant
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Joined: 01/Jan/2006
Location: India
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Posted: 28/Sep/2006 at 1:51pm |
Om Shivaya: I could create another hungama on this forum if I say that since equities outperform bonds should we not be 100% invested into equities. Why debt?
Joking.....
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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omshivaya
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Joined: 06/Sep/2006
Location: India
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Posted: 28/Sep/2006 at 2:06pm |
Well, always ready for anything basant ji as you know me. kiddin'
But why not? Contradicting yourself now?
The objective is this:
1) Get "least-risk returns" from a fund to manage daily expenses.
2) To grow your wealth: risk can be taken here.
Any better option than debt here? I think you suggested the same in another topic we discussed earlier. If better option than a debt fund(the debt funds I have mentioned) is there, feel free to share!
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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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basant
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Posted: 28/Sep/2006 at 2:13pm |
It is a real tough one but difficult to implement. Make a dividend yield portfolio. You could do that to have an annualised yield of 3%. That leaves you short by another 3% - which can be recovered from c apital gains or liquidating a bit in times of distress. It will pay off.
The problem is you will not get money every month but once a year.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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