Top Five Investments

At times people ask me to predict sensex in near future. " I am not an Astrologer. But an conservative investor " is normally my humble answer. Sometimes they understand, sometimes not. Even I feel, some people do get a bit angry when I say this. It seems, knowingly I am  not telling them the truth! What a petty.

I can tell you what I will do with my investments, if market moves up, goes down or remain flat for a defined period of time. I have a plan for each of these situations. But how can I predict the sensex figures? In fact, can anyone predict that? simple answer is NO. How many of experts has predicted the recent crash? I do not know any of them. Let me explain it a bit further, why it is impossible to predict the market :

We have hard a lot about SIP in the last couple of years and myth is that SIP gives better return, than lump sum payment over a long period of time.

But the reality is far from the truth. In my study, I choose 6 funds which has given more than 25% return over the period of five years on a lump sum payment and tried to match their return on SIP for the same period. The results are shocking.

Disinvestment of public sector enterprises has been one of the agenda of present government. But the debate continues, with some enthusiastically endorsing it and others expressing apprehensions and opposition. By and large, this debate has been at the ideological level. Ideology cannot be kept out of the debate, but disinvestment has other dimensions too. The modalities of disinvestment are important. So are its consequences. I present here my view of disinvestment and how can both public sector and private sector enterprises may co-exist and play their role to build this nation.

History - After independence, public sector enterprise was the only option in capital intensive industry as private sector was not big enough to finance those project. So, power, aviation, telecommunication, construction and all major infrastructure related sector was dominated by public sector enterprise. But after liberalisation, private sector companies has started growing in leaps and bounce and availability of global finances has made it possible for them to think beyond limitations.

We all know what is bank fixed deposit. In this article I will present an introduction to FMP or Fixed Income Plan, comparison between FMP and Bank Fixed Deposit and when an investor should invest in FMP.

What is FMP or Fixed Income Plans ?

FMPs are closed ended mutual fund scheme with a maturity period ranging from a few days to five years. Most of the FMP plans are debt oriented. But a few scheme may have a small equity component. At the end of the period, the scheme matures, just like a fixed deposit in a bank. FMP schemes have two options. With growth option or with dividend options.

India is facing an economic recession after a long time. Salary reductions, job cuts are the order of the day. Even those are working at present, fear has overpowered aspirations. Consumer spending are going down and companies are cutting cost at every level. After the devastating last year for investors, bank fixed deposit seems to be the only option.

But in this situation also, there are some wining investment ideas, which can make money for you, without having the fear of down under. All the below examples are generic in nature and can be implemented by any individual. All these ideas are designed to earn yield in recession also.