Taurus MF to launch Fixed Maturity Plan
Posted on September 30, 2008 - Filed Under Mutual Funds
Taurus MF announced the launch of a one month Fixed Maturity Plan (Series 1) with effect from 23rd of September 2008. The plan envisages investing in high quality debt instruments such as bank certificate of deposits (CD). Commenting on the launch of Taurus Fixed Maturity Plan (Series1), Mr Waqar Naqvi, CEO Taurus MF said “Our endeavour is to enable wealth creation for our investors irrespective of time horizon. This instrument takes care of the risk return requirements of a short term investor and minimizes volatility”.
The scheme is available until 25th of September 2008. Minimum subscription for retail investors is Rs 5000 and for institutions, the minimum is pegged at Rs 10 lakh. There is no entry load for this scheme. Exit load is one per cent for redemptions prior to maturity. The benchmark index for this scheme is the CRISIL liquid fund index.
Sahara Mutual Fund announces 50% Tax-Free Dividend under Sahara Midcap Fund
Posted on September 30, 2008 - Filed Under Mutual Funds
Sahara Mutual Fund has declared 50% Dividend under its Sahara Midcap Fund. The record date for the purpose of dividend payout is 28/09/2007. All such investors under dividend option of Sahara Midcap fund, whose name appear on the scheme books as on the record date, would be eligible to get dividend.
Announcing this Mr. Naresh Garg, Principal Officer, Sahara Mutual Fund said, “As always has been the policy of Sahara Mutual Fund, to act in the best interest of its investors, the Trustees are glad to announce a dividend of Rs. 5.00 per unit (50%) under Sahara Midcap Fund.”
Sahara Midcap Fund is an open-ended equity scheme incorporated with an objective to achieve long –term capital growth at medium level of risks by investing primarily in mid cap stocks. The selection of stocks in the portfolio is based upon sound financial and business fundamentals. The choice of stocks is from the mid-cap universe.
The companies, whose shares are selected for investment, are the promising high growth companies having potential to become large companies of tomorrow. These companies are in the businesses which would experience impressive growth rates as the Indian economy grows.
With the increasing investment opportunities in the economy, the growth engines would continue to run for the years to come. The investment style of the Sahara Midcap Fund is to capture this growth in its portfolio by the judicious selection of stocks with the prime objective of creating value for our investors. The construction of the portfolio is well diversified having an optimum number of quality stocks to maintain a medium risk level.
The scheme also has the facility of SIP (Systematic Investment Plan) offered to its investors to counter volatility and invest regularly to benefit from the growth.
Since its inception, the portfolio has generated impressive returns. The absolute returns generated by the scheme for different time periods.
Performance (%) of Sahara Midcap Fund
Returns as on September 21, 2007 —— NAV —— 3 Months —— 6 Months —— 1 Year —— Since inception(annualized)
Sahara Midcap Fund (Dividend Option) —— 20.4858 ——- 10.18% —— 35.64% —— 41.32% —— 36.57%
The Seven Mistakes All Novice Traders Make and How to Correct Them
Posted on July 10, 2008 - Filed Under Tips, Trading, Tutorials
The Seven Mistakes All Novice Traders Make and How to Correct Them
We learnt the following the hard way! If any of these things applies to you, don’t worry – there is an easy solution!
MISTAKE ONE
> Lack of Knowledge and No Plan
It amazes us that some people expect to trade the stock market successfully without any effort. Yet if they want to take up golf, for example, they will happily take some lessons or at least read a book before heading out onto the course.
The stock market is not the place for the ill informed. But learning what you need is straightforward – you just need someone to show you the way.
The opposite extreme of this is those traders who spend their life looking for the Holy Grail of trading! Been there, done that!
The truth is, there is no Holy Grail. But the good news is that you don’t need it. Our trading system is highly successful, easy to learn and low risk.
MISTAKE TWO
> Unrealistic Expectations
Many novice traders expect to make a gazillion dollars by next Thursday. Or they start to write out their resignation letter before they have even placed their first trade!
Now, don’t get us wrong. The stock market can be a great way to replace your current income and for creating wealth but it does require time. Not a lot, but some.
So don’t tell your boss where to put his job, just yet!
Other beginners think that trading can be 100% accurate all the time. Of course this is unrealistic. But the best thing is that with our methods you only need to get 50-60% of your trades “right” to be successful and highly profitable.
MISTAKE THREE
> Listening to Others
When traders first start out they often feel like they know nothing and that everyone else has the answers. So they listen to all the news reports and so called “experts” and get totally confused.
And they take “tips” from their buddy, who got it from some cab driver…
We will show you how you can get to know everything you need to know and so never have to listen to anyone else, ever again!
MISTAKE FOUR
> Getting in the Way
By this we mean letting your ego or your emotions get in the way of doing what you know you need to do.
When you first start to trade it is very difficult to control your emotions. Fear and greed can be overwhelming. Lack of discipline; lack of patience and over confidence are just some of the other problems that we all face.
It is critical you understand how to control this side of trading. There is also one other key that almost no one seems to talk about. But more on this another time!
MISTAKE FIVE
> Poor Money Management
It never ceases to amaze us how many traders don’t understand the critical nature of money management and the related area of risk management.
This is a critical aspect of trading. If you don’t get this right you not only won’t be successful, you won’t survive!
Fortunately, it is not complex to address and the simple steps we can show you will ensure that you don’t “blow up” and that you get to keep your profits.
MISTAKE SIX
> Only Trading Market in One Direction
Most new traders only learn how to trade a rising market. And very few traders know really good strategies for trading in a falling market.
If you don’t learn to trade “both” sides of the market, you are drastically limiting the number of trades you can take. And this limits the amount of money you can make.
We can show you a simple strategy that allows you to profit when stocks fall.
MISTAKE SEVEN
> Overtrading
Most traders new to trading feel they have to be in the market all the time to make any real money. And they see trading opportunities when they’re not even there (we’ve been there too).
We can show you simple techniques that ensure you only “pull the trigger” when you should. And how trading less can actually make you more!
What are Dividends and When they’re Issued?
Posted on July 10, 2008 - Filed Under Tutorials
What are Dividends and When they’re Issued?
If you’ve ever owned stocks or held certain other types of investments, you might already be familiar with the concept of dividends.
Even those people who have made investments that paid dividends may still be a little confused as to exactly what dividends are, however… after all, just because a person has received a dividend payment doesn’t mean that they fully appreciate where the payment is coming from and what its purpose is.
If you have ever found yourself wondering exactly what dividends are and why they’re issued, then the information below might just be what you’ve been looking for.
Defining the Dividend
Dividends are payments made by companies to their stockholders in order to share a portion of the profits from a particular quarter or year. The amount that any particular stockholder receives is dependent upon how many shares of stock they own and how much the total amount being divided up among the stockholders amounts to. This means that after a particularly profitable quarter a company might set aside a lump sum to be divided up amongst all of their stockholders, though each individual share might be worth only a very small amount potentially fractions of a cent, depending upon the total number of shares issued and the total amount being divided. Individuals who own large amounts of stock receive much more from the dividends than those who own only a little, but the total per-share amount is usually the same.
When Dividends Are Paid
How often dividends are paid can vary from one company to the next, but in general they are paid whenever the company reports a profit. Since most companies are required to report their profits or losses quarterly, this means that most of them have the potential to pay dividends up to four times each year. Some companies pay dividends more often than this, however, and others may pay only once per year. The more time there is between dividend payments can indicate financial and profit problems within a company, but if the company simply chooses to pay all of their dividends at once it may also lead to higher per-share payments on those dividends.
Why Dividends Are Paid
Dividends are paid by companies as a method of sharing their profitable times with the stockholders that have faith in the company, as well as a way of luring other investors into purchasing stock in the company that is paying the dividends. The more a particular company pays in dividend payments, the more likely it is to sell additional common stock… after all, if the company is well-known for high dividend payments then more people will want to get in on the action. This can actually lead to increases in stock price and additional profit for the company which can result in even more dividend payments.
Getting the Most Out of Your Dividends
In order to get the most out of the dividends that you receive on your investments, it is generally recommended that you reinvest the dividends into the companies that pay them. While this may seem as though you’re simply giving them their money back, you’re receiving additional shares of the company’s stock in exchange for the dividend. This will increase future dividend payments (since they’re based upon how much stock that you own), and can set you up to make a lot more money than the actual dividend payment was for since increases in stock prices will affect the newly-purchased stock as well.
What is a Bull Market
Posted on July 10, 2008 - Filed Under Stock Market
There are two classic market types used to characterize the general direction of the market. Bull markets are when the market is generally rising, typically the result of a strong economy. A bull market is typified by generally rising stock prices, high economic growth, and strong investor confidence in the economy. Bear markets are the opposite. A bear market is typified by falling stock prices, bad economic news, and low investor confidence in the economy.
A bull market is a financial market where prices of instruments (e.g., stocks) are, on average, trending higher. The bull market tends to be associated with rising investor confidence and expectations of further capital gains.
A market in which prices are rising. A market participant who believes prices will move higher is called a “bull”. A news item is considered bullish if it is expected to result in higher prices.An advancing trend in stock prices that usually occurs for a time period of months or years. Bull markets are generally characterized by high trading volume.
Simply put, bull markets are movements in the stock market in which prices are rising and the consensus is that prices will continue moving upward. During this time, economic production is high, jobs are plentiful and inflation is low. Bear markets are the opposite–stock prices are falling, and the view is that they will continue falling. The economy will slow down, coupled with a rise in unemployment and inflation.
A key to successful investing during a bull market is to take advantage of the rising prices. For most, this means buying securities early, watching them rise in value and then selling them when they reach a high. However, as simple as it sounds, this practice involves timing the market. Since no one knows exactly when the market will begin its climb or reach its peak, virtually no one can time the market perfectly. Investors often attempt to buy securities as they demonstrate a strong and steady rise and sell them as the market begins a strong move downward.
Portfolios with larger percentages of stocks can work well when the market is moving upward. Investors who believe in watching the market will buy and sell accordingly to change their portfolios.Speculators and risk-takers can fare relatively well in bull markets. They believe they can make profits from rising prices, so they buy stocks, options, futures and currencies they believe will gain value. Growth is what most bull investors seek.
What is a Bear Market?
The opposite of a bull market is a bear market when prices are falling in a financial market for a prolonged period of time. A bear market tends to be accompanied by widespread pessimism.A bear market is slang for when stock prices have decreased for an extended period of time. If an investor is “bearish” they are referred to as a bear because they believe a particular company, industry, sector, or market in general is going to go down.
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