Bear Phase to continue in near future

With bad news coming from left, right and centre, stock markets in India are likely to have extended bear phase.

To answer when this bear phase ends, we need to look through history of bear phases.

Though history has no certain answer when the bear phase will end, but can give clues about the period of bear phases.

We have taken the data of bear phases after 1990 which is turning point of Indian economy .

It shows that bear phase can extend to maximum of 16 monhs and minimum of 1 month.

Bear phases of more period:

First Bear phase: April 1992 to April 1993 (13 months)

Second Bear phase: Sept 1994 and Jan 1996 (16 months)

Third Bear phase: Feb 2000 to Sept 2001 ( 20 months)

Bear phases with less period:
May 2006 to June 2006 : 1 month

August 1998 to Jan 1999 : 5 Months

But one thing is sure, bear phase provides opportunity for bottom fishing. You can find good stocks at reasonable level during bear phase.

Ex: SBI is havoring around 1200-1400 price, Infosys is around 1400-1600, Satyam at 400-500 shows that it is good time for long term investors, who invest in good stocks at low price.

One thing i can say is that "DONOT LOOSE YOUR HEART, But invest in good stocks and stay invested. Think of Long term and not short term period of 1month or 6 months".

Ultimately you will be the winner in this wonder world of investments

STP : A hassle free investment model for lumpsum Investment

All of us know that Mutual funds offer Systematic Investment Plan or SIP which helps to invest regularly so that we can average the investment.

However there is one more facility offered by mutual funds is STP or Systematic Transfer Plan.

• SIP is for investors who want to invest a particular amount regularly and build portfolio for long term.
• However STP is for investors who does not invest regularly and want to invest a lumpsum amount at one go.

How STP can be done?
1. An investor who wants to invest a lumpsum amount, has to invest in any of the desired debt plan of any mutual fund 2. Inform the mutual fund to transfer a certain sum from his debt fund to designated equity or balanced funds for certain period.

Advantage

• Mutual Fund will not charge Entry load
• Regular Amt is transfered from Debt/Liquid Fund to Equity fund
• Tide over financial market volatility
• No need of committing to pay regularly

This facility is offered by Franklin Templeton, HDFC Mutual Fund, Tata MF, DSP ML MF, Fidelity and DWS MF.

For more Info please e-mail us.

Inflation to rock India growth story boat

Recently i have seen the small article on Inflation which predicts that inflation will touch 14.69% in coming weeks or months if the Inflation figures are charted in graph.

Sharing this info to make sure all are informed about the inflation.