Weekend musings

Yesterday I bought Business Today(BT) as is is publishing one of my favorite articles: Tax saving ELSS funds. I bought the book and skimmed through the investment articles of BT. First article is about ELSS tax saving funds, i saw some of my favorite players(FIDELITY) suggested in the top 5 of BT. Even though i didn't open an account yet on any of my investment portfolio still . I thought of starting some ELSS through SIP which is best option for the low risk takers and middle class who are not able to invest at a stretch. Then there is another article which gives the difference between the Money back insurance policies and ULIP schemes. now i know some difference between the two. BT suggested some 20 companies to watch in the coming financial year for high risk takers (i.e direct equity investing). I took a note of those companies which i am going to follow from now on.

Bulding Wealth - Stock Market Info

Hi All, Today i was just browsing some of the miscellaneous links which i will usually do whenever i am free. I was just stuck by some info about Stock Marketing Trading. I am thinking of starting my investments. I haven't started yet, but i have a thought of doing so in the future. In order to understand the Stock Market and economics, I was searching for some books. One of the fellow Blogger have suggested some interesting Stock Market books and Sites.

Stock market Trading Books

The following books are a “must read” for those investing or trading in the stock markets. These books contain valuable lessons which will both help minimise risk as well as increase returns. If I’ve left out any book do add it as a comment. (Books listed in a random order)
1) Drummond Geometry-Charles Drummond
2) Elliot Wave Theory for Short Term and Intraday
3) Trading-Stephen Poser
4) Intelligent Investor-Benjamin Graham
5) The Day Trader’s Bible-Richard D. Wyckoff
6) How To Think Like Benjamin Graham and Invest like Warren Buffett-Mcgraw-Hill
7) Swing Trading-Oliver Velez
8) Elliott Wave Principle-Robert Prechter
9) Reminiscences of a Stock Operator-Edwin LeFevre
10) Entire "Rich Dad Poor Dad" Series - Robert T. Kiyosaki

Some of the Brokerage Firms for the Online Share Trading in India
Reliance Money
Geojit
Sharekhan
Kotak Securities
ICICI Direct

Start Investing as early as possible

Yesterday is Diwali. I went to home and had celebrated it with my family. It was nice with lots of sweets and new dresses. I have booked return tickes the very day to come to office on Thursday. I skimmed through some RD books which i have subscribed. The Subscription is valid only upto october month, i have to renew it for next year. In one of the edition i came across the article 'Invest Now' which is very informative for youngsters like me who are on the verge of starting the investments. So far i haven't entered into investment arena, for tax saving purposes i have invested a small sum of Rs 5000 in PPF and NSCs. My adventure in the capital markets is yet to commence. I am also looking for a good start. May be i will enter into that next month. Some of the products i am having a close look are:

a) Mutual Funds: MFs according to me are the products designed for low risk takers. There are many types of MFs. I am especillay concentrating on Tax Saving Purpose. SIP is important feature provided by Mutual Fund Mgmt Company, which will allow you to invest small amounts periodically. For e.g If i am taking a SIP with premium amount of Rs 500/-, i can invest Rs 500/- monthly for a certain months based on the fund i prefer.

b) Index Funds: These funds are also designed for Low risk takers (Acc to me, because i prefer low risk). Index funds are nothing but funds which will invest in companies which decides the Market Index.
For e.g. In india we have 2 indices - NSE Nifty and BSE Sensex.
NSE Index: NSE index is a composite of top 50 companies stcoks listed on NSE (NSE is the 4th Largest Stock Exchange in the world in terms of Trades in Capital Market.)
BSE Index: It is based on the 30 Selected companies traded on Bombay Stock Exchange.
Some of the Index funds are treated like stocks in the exchange, Those funds are called Exchange Traded Funds (ETFs).

"Most Investors, Both Institutional and Individual, will find that the best way to own Common Stocks is through as index fund that charges minimal fees" - Warren Buffet

Some of the index funds which i will prefer are
1) Nifty Junior BeEs
2) Banking BeEs
3) Other than these individual fund houses are providing Index Funds. For e.e Franklin India Index BSE Sensex, Franklin India Index NSE Nifty etc.

In the next blog we will meet with more description about ETFs, which will be helpful for Young investors like me.

Thanks,

Soma

ELSS Schemes for Tax savers

This month I got the salary for July, along with the regular salary I got the some training fee. I planned to invest in the Mutual Fund. My Preferences would be Fidelity Tax Advantage Fund or SBI Magnum Tax Saver. I thought of investing in the Fidelity Tax Advantage Fund as the NAV of the fund is lower. It is 14.5 right now, the all time high is 15.2 and all time low is 13. This I found in the AMFI site. It is very helpful as it enables the investors to see the details about all the schemes at a single door step.

I found some of the ELSS Schemes from various MF Vendors in the AMFI Site.

Some of the links that will help you regarding MFs are:

1) AMFI India - Association of Mutual Funds in India
http://www.amfiindia.com - this site will give you details about the norms and conditions of Mutual fund organizers and provides certifications for MF intermediaries. You can also see the latest NAVs of all the schemes in this site.

2) Value Research Online
www.valueresearchonline.com - this site will help the beginners and it has some tools which enables the investors a better understanding of the market.

Some words i come across today:

1) Intermezzo – A short musical performance performed between the main performances.
2) Lacquered (V) - Coat with lacquer (a kind of Varnish)
3) Take by Storm (V) – To Capture by force
To rapidly gain popularity in a place
4) Clairvoyant(N) – Someone who has the power of Clairvoyance (Apparent power to perceive things that are not present to the senses)

My aim to become a skilled investor

Ground Rules for Investing

http://www.valueresearchonline.com/story/storyview.asp?str=10055

1) Develop a Plan
a.Short Term goals – Cash and Short term bonds
b.Long Term goals – equities
2) Keep it simple
a.Diversified equity fund
b.Index fund
c.Floating rate bond
3) Ignore the hot stocks and funds
4) Invest Regularly
5) Buy and Hold
6) Start Early

Research Investments -> Remember your goals -> Re examine the risk

Words I come across today
1) Vouch - guarantee
E.g. Our Customers will often vouch for this.
2) Tenet – religious doctrine that is proclaimed as truth without proof, dogma
E.g. our associates have indeed woven this customer centric tenet into their work ethic.
3) Reveler (Reveller) – merrymaker, A celebrant who shares in a noisy party
E.g. A reveler, from New Zealand, leaps from the Saint Cecilia fountain into the arms of the crowd below
4) Banderilla – A decorated dart that is implanted in the neck of the bull during the bullfight.
E.g. A fighter nails a banderilla while riding his horse in front of the charging bull.
5) Heist – the act of stealing, robbery at gunpoint.
E.g. Heist movie CASH