Refresh your Investment methods with new technology:" VIP"

“SIP” vis-a-vis “VIP”

Dear Friends, here I am presenting you a new and superb kind of investment technology called VIP, which means “Value averaging Investment Plan”. We have been doing SIPs in the past which definitely is better form of investment method for quite some time now. While SIPs has been explained in details in my earlier blog, here I will dwell upon VIP:

VIP is slightly different form of investment which means we put higher amount of money when the markets are low and lower amount of money when markets are high. It suffices the basic tenet of investment in stock market which is “Buy low and sell high”. It takes care of the upsides and downsides by adjusting the risk percentage itself. VIP gives you better returns in comparison to SIP and the returns can be outnumbered by huge margins in times of higher volatilities which we are witnessing these days.

Methodology of Investment in VIP: Here we take a fixed amount for investment every month akin to SIP but simultaneously we add the loss value to the portfolio in case of falling market which has happened after a fixed time say a month, or decrease the amount of investment in case of rising market. To quote an example we take an investment of Rs.5000 on 1^st day of every month, in SIP we will keep on investing this Rs.5000/- every month but in VIP we will increase the investment by calculating the loss that has occurred due to falling market , lets take the value of our loss in next month is Rs.1500/-then our investment will be Rs. 6500/- (ie 5000 actual+1500 loss figure), similarly if the market goes up following month and if our investment becomes Rs. 6500/-  then we will invest only Rs. 3500/- thereby decreasing our investment.

Here the ideology of value averaging comes into play and your investment gives best returns in comparison to the benchmarks like Nifty or Sensex. You shelve the fear and see how your investment grows over a period of time. I have explained in detail by quoting a example in the following table:

Investment Analysis on SIP vis-à-vis VIP
Day	NAV	SIP Amount	SIP Units	Amout diff for VIP	VIP amount	VIP Units
01-Jan	15	5000	333.33	0.00	5000	333.33
01-Feb	12	5000	416.67	-1000.00	6000.00	500.00
01-Mar	10	5000	500.00	-1666.67	6666.67	666.67
01-Apr	9	5000	555.56	-2000.00	7000.00	777.78
01-May	7	5000	714.29	-2666.67	7666.67	1,095.24
01-Jun	9	5000	555.56	-2000.00	7000.00	777.78
01-Jul	11	5000	454.55	-1333.33	6333.33	575.76
01-Aug	12	5000	416.67	-1000.00	6000.00	500.00
01-Sep	15	5000	333.33	0.00	5000.00	333.33
01-Oct	17	5000	294.12	666.67	4333.33	254.90
01-Nov	19	5000	263.16	1333.33	3666.67	192.98
01-Dec	22	5000	227.27	2333.33	2666.67	121.21
Total		60000	5064.49		67333.3333	6,128.98
Avg Cost			11.85			10.99
CMV			111418.79			1,34,837.58
% Return			185.70			200.25

Here you can yourself see the difference in returns in both the methods. The principle of VIP is far superior than the principle of SIP. So friends don’t loose time on inaction and call your Investment Advisor to make use of this Investment Technology to your advantage.

Efforts to continue to bring new ideas and methods for your advantage.............

Thanks

Nitin Kumar

Ethical Investment Solutions Pvt. Ltd.

Investment case in current Stock Market scenario

Investment as the word discloses, is myriad of confusions and dissimilarities across times. What we are witnessing is complete chaos created by these politicians just to save their face and onslaught of public outcry. The downgrading of US has cast aspersions on debt papers too. Now biggest question which comes to mind is where to Invest ? Stocks are tumbling, properties are stagnant or receding, gambling is also fraught with peril. When I ask people of their views on stock market,  they speak in petrified emotions and are reluctant  to put single farthing in it. They fear erosion of their wealth. I witnessed same emotions in them in year 2006 and 2008 market crash.

What we generally see is aftermath of certain assumptions of big guys like FIIs or other Institutional Investors which they comprehend much before its actual arrival. So in effect markets can remain in bearish mode for quite long time. The bearishness seeps in everybody's mind and those who don't have longer outlook tend to cut their losses and repeat the same thing time and again. Human's memory is too short and those who are smart take benefit of this emotional trait. No body can time the market, barring exceptions, to make killing of sort in this market.

Making money in stocks is basically taming your emotions and overcoming your inherent fear which always holds your mind to act wisely.

Dear friends if you really want to grow rich and enjoy the fruits of market then you have to be patient and alert   as well. Go for investment in this kind of bearish market and believe me you can make a killing after certain years. The basic approach here should be Systematic Investment wherein you can buy stocks of equal value after certain time say after 30 days or 15 days. This method definitely earns handsome returns over a period of time and your lesser attention is required. Not taking decisions or delaying it will not yield you anything except frustration and lost opportunities. You commitment and time investment will earn you returns which may outnumber any other form of investment in coming years. India is a population of around 120 crore people, the story of consumption which has been in media for quite a few years still holds good and its a boon for our growing economy as well.    

Don't hesitate if you want to make money !!!  Your action alone can bring fortune to you. Happy Investing!!!

Thanks

Nitin Kumar

Investment technology by Ethical Investment

Investment Philosophy of Our organization

Dear friends here we present our method of creating wealth in stock market for our esteemed clients and would like to share with you some of them :

1) SIP: Investment in Stock Market has always baffled many Investors. We present you the most simple, lucid and hassle free way of creating wealth in stock market.

 “SIP” means Systematic Investment  Plan which says that you go on investing a fixed amount of money into the market over a longer period of time on month to month basis. Historically it has been proved that you get a handsome return of around 15-20 % average over the period of investment which may sometimes increase too. The principle of averaging helps in achieving this goal on a time scale. 

The crux of this investment lies in picking stocks for your portfolio and here our experience and expertise helps you in doing so. You can decide the pace of return depending upon your age. “Drops makes ocean” is the perfect adage which fits this kind of investment mantra. You go on saving and extracting return out of it, is left to the time that you have invested in this philosophy. Start early to retire early and wealthy to enjoy this beautiful life. You decide and we will execute it for you. 

2) Interest Earning: In this investment philosophy we practice the art of patience and perseverance to yield a decent return on your portfolio. We mix and match trading strategies which yields you a decent return of 2-5% per month depending upon the market situation. This entails identifying quality stocks and hedging it with some product available in the market. Here we advise our clients to commit certain money in their account and we design the strategies month to month which is totally free for them. We have mastered this art by doing it ourselves and we can confidently say that you will love this form of investment over a period of time. 

3) Fundamental Investment: Herein we provide you a platform where you can decide where to put your hard earned money. We dig out for you hidden gems in the market by way of our deep study and experience and try to build a decent portfolio according to your taste which can make you wealthy. Stocks are picked on the basis of actual performance of the companies and not on the prices of the companies. We believe in the theory that prices of stocks are the function of various factors which may include sentiment and outlook too. We extract the reason of its movement and then decide whether to invest it in or not. There are lot of criteria which helps in the decision making process, where we come in handy.

We strive to create and add value to your life by following certain laid down principles of our organization. We keep on analyzing the market movement and try to give best possible advice to our clients so that they can easily achieve their goal. Happy Investing folks !!!!

Warren Buffett's Stock Portfolio

Warren Buffett's Stock Portfolio

Rank	Stock	# of Shares (millions)	% Weighting of Portfolio (as of 6/30/09)
1	Coca-Cola (KO)	200.0	21.60%
2	Wells Fargo (WFC*)	320.0	19.56%
3	American Express (AXP)	151.6	12.28%
4	Procter & Gamble (PG*)	79.1	9.83%
5	Kraft Foods Inc. (KFT)	106.7	6.34%
6	Wesco Financial Corp. (WSC)	5.7	4.32%
7	Wal-Mart (WMT)	39.0	4.26%
8	US Bancorp (USB)	69.0	3.51%
9	ConocoPhillips (COP)	34.2	3.43%
10	Johnson & Johnson (JNJ)	23.9	3.06%
11	Moody's Corp. (MCO)	30.8	1.80%
12	Washington Post Co. (WPO)	1.7	1.51%
13	Nike Inc. (NKE)	7.6	1.10%
14	M&T Bank Corp. (MTB)	5.6	0.87%
15	Republic Services Inc. (RSG) Added to Position!	10.8	0.62%
16	USG Corp. (USG)	17.1	0.58%
17	Costco (COST)	4.3	0.51%
18	Nalco Holding Co. (NLC)	9.0	0.43%
19	Comcast (CMCSK)	12.0	0.42%
20	Iron Mountain Inc. (IRM) Added to Position!	7.8	0.42%
21	Ingersoll-Rand (IR)	5.6	0.39%
22	CarMax Inc. (KMX)	7.7	0.38%
23	Nestle S.A. (NSRGY.PK)	3.4	0.34%
24	Lowe's (LOW)	6.5	0.31%
25	Torchmark Corp. (TMK)	2.8	0.30%
26	Sanofi-Aventis (SNY)	3.9	0.29%
27	General Electric (GE)	7.8	0.28%
28	Becton Dickinson & Co. (BDX)Added to Position!	1.7	0.27%
29	NRG Energy, Inc. (NRG)	6.0	0.25%
30	United Parcel Service, Inc. (UPS*)	1.4	0.18%
31	Bank of America (BAC*)	5.0	0.18%
32	Home Depot (HD*)	2.8	0.18%
33	GlaxoSmithKline (GSK)	1.5	0.11%
34	Gannett Co., Inc. (GCI)	1.7	0.06%
35	Exxon Mobil (XOM)	0.4	0.06%
36	Comdisco Holding Co. Inc.(CDCO.OB)	1.5	0.03%
Acq	Burlington Northern Santa Fe(BNI)**	0.0	0.00%
Sold This Quarter:
xx	SunTrust Banks Inc. (STI)  Sold this position!	0.0	0.00%
xx	Travelers Insurance (TRV)  Sold this position!	0.0	0.00%
xx	Unitedhealth Group, Inc. (UNH) Sold this position!	0.0	0.00%
xx	WellPoint Inc. (WLP)	0.0	0.00%
Sold Last Quarter:
xx	Norfolk Southern Corp. (NSC)  Sold this position!	0.0	0.00%
xx	Union Pacific Corp. (UNP)  Sold this position!	0.0	0.00%
xx	WABCO Holdings Inc. (WBC)  Sold this position!	0.0	0.00%
xx	Eaton Corp. (ETN)  Sold this position!	0.0	0.00%
**Note that, since this 09-30-2009 filing, that Warren Buffett has moved to acquire all Burlington Northern outstanding shares to make it a fully-owned entity of Berkshire Hathaway.			100.0%

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