HOW SIP WORK ?

Every now & then we heard about SIP Investment in Mutual Fund,But millinoare dollar question how to go about it, so answer lies here:-

A thumb rule of investment is that one must not take too much risk & still get inflation beating return. One way of ensuring this is Systematic investment plans (SIPs), in which a person can invest in a disciplined manner at regular intervals without being too adventurous.

Everyone has financial Goals such as buying a House or Car, Children's Marriage and Education and building a Retirement Corpus. You can allocate different amounts towards these based on the time you have for meeting these Goals. If you want to invest for your retirement, go for an equity fund. Invest in equities for any Goal which is five years plus  to seven years away. For example your child's education, go for a Equity Large-Cap Fund or an Multicap Fund. If the goal is immediate, such as buying a car or house, you can choose a less Risky & Volatile option such as a Hybrid Fund.

"In volatile markets, it is always good to go on a SIP mode as it helps one get the benefit of cost averaging over time. As markets keep rising and falling all the time, the cost of buying units is averaged out over time as the investor gets more units when markets are down.

BENEFITS OF SIP :-

Ensures Disciplined Investing:- There will always be times when the urge to splurge is high. This makes it difficult to contribute towards creation of a large corpus over a long period. SIPs enable you to do this by the discipline they impose. Since the amount gets invested automatically at fixed intervals, the chances of you continuing the investment for a long period are higher.

First decide the allocation, that is, how much money will go into what type of funds. Focus on three types:- Large Cap/Small Cap/MidCap Funds and Debt funds. "A typical allocation should be 50% in Large Cap Funds, 20-30 % in Small Midcap Funds and the rest in Multicap funds," he says.

Second decide the number of schemes in your portfolio. Given that we have three prime Asset classes, the portfolio should have at least three schemes," he says. An ideal number is five to four Equity and one Debt. Thereafter, one should choose the schemes based on the advice of the financial planner or after research that takes into account risk-adjusted returns over a period.

Riding Through Volatility:- If you are among those who are nervous about investing in equity funds because of market ups and downs, SIP will work best for you. It not only minimises the risk of losses due to fall in equity markets but also saves you the hassle of timing the markets, i.e. investing when they are trading lower and exiting when they are rising.

In the last five years, the broader market, the BSE Sensex, has moved from 18,000 levels to 26,000, albeit with huge volatility. Now, let us assume you invested Rs 10,000 every month into an Index Exchange Traded Fund (ETF) between September 2010 and September 2015. Your investment of Rs. 6 lakh would have grown to Rs. 8.04 lakh today with 11 %  Compounded Annual Growth Rate (CAGR). The Lump Sum Investment would have grown at 8% CAGR. The higher SIP return is due to the fact that you bought at various levels, both when the market was rising as well as when it was falling, averaging your cost. The average SIP return of large-cap diversified equity funds during the period was 14 %. Diversified Equity Funds are actively managed and hence are able to deliver superior returns.

"We recommend SIP to retail investors whose time frame is not less than 7 to 10 years to avoid ill-timing the market. This is because there have been instances of negative point-to-point returns over Seven to Eight years .

Power of Compounding:- A SIP allows you to gain from the power of compounding if you are investing for goals that are some years away. An amount of Rs. 10,000 invested every month for 10 years will grow to Rs. 23 lakh at a modest CAGR of 12 %. Everyone has financial goals such as buying a house or car, children's marriage and education and building a retirement corpus. You can allocate different amounts towards these based on the time you have for meeting these goals. If you want to invest for your retirement, go for an equity fund. Invest in equities for any goal which is five to seven years away, says Gaurav Mashruwala, Certified Financial Planner. For your Child's Education, go for a Large-Cap Fund or an Index fund. If the goal is immediate, such as buying a car or house, you can choose a less risky option such as a Hybrid Fund.

Value Averaging Plan:- Under VIP, the investor sets a target for monthly growth and adjusts the invested amount according to the performance of his fund. Take a person who invests Rs. 5,000 in a fund and sets a 12 % growth target every year. Therefore, he expects his fund to return one per cent every month. This means his investment should become Rs. 5,050 by the end of the one-month period. However,  if his investment grows only to Rs. 5,025 . Next month he will increase the amount to Rs5,025. If it grows by Rs. 100 to Rs. 5,100,  he will invest only Rs. 4,900 instead of Rs. 5,000.  This means the person deploys more money when markets are down and less when they are up. Hence, he buys more units on dips. "However, the downside is that your savings rate remains volatile.

DOES SIP ALWAYS WORK?

SIPs underperform in a consistently rising market as its main advantage of cost averaging is not realised in such a case. You end up investing at higher prices and keep getting fewer units. Take the period from 2004 to 2008, when the Nifty moved up from 2,000 to 6,000 levels. During this period, had you invested Rs. 5,000 a month from January 2004 until December 2007 (before the financial meltdown), your investment would have been worth Rs. 5.75 lakh until then.

In comparison, if you had invested Rs. 2.4 lakh (Rs5,000x48 months) as a Lump Sum in January 2004, your money would have grown to Rs. 7.8 lakh. Subsequent events, however, would have negated all the gains. In 2008, the Nifty fell from 6,000-odd levels to 2,500. Anyone who invested a lump sum would have had all his gains wiped out in a single year..

"Anytime is a good time to start a SIP provided its link to your Financial Goals”.

Products Offered by Value Wealth Advisory Services

Value Wealth Advisory Services Aapke Shubhchintak

FINANCIAL WELL-BEING CAMPS

Financial Wellbeing is the state of being wherein a person is making the most efficient use of financial resources, is in a position to absorb any financial shocks, is on track for meeting current & future financial goals, and has a feeling of peace & satisfaction about financial life. Financial Wellbeing can be achieved by any individual / family irrespective of their income level or wealth level.

Financial Wellbeing Camps are a 2-3 Hour educational & interactive programs by personal finance experts & independent trainers organized in companies, housing societies, clubs, associations & colleges to educate the participants on achieving financial wellbeing and help them get started with basic tasks to manage their personal finances better, guide them towards creating wealth and fulfill life’s financial goals & dreams.

We, Value Wealth Advisory Services have conducted many such Financial –Wellbeing Seminars in Reputed Companies & Institutes covering Professionals and housewives, Teachers and many more.

We have Conducted Financial Well-being camps at the following companies & institutes:-

·       Bisleri International Pvt Ltd

·       MD India Health Care Pvt Ltd

·       Gokhale Institute

·       Sophia College

·       2 Open House

·       My Dentist

·       Power Grid Corporation Of India

Look What our Clients are Saying

My experience with Value Wealth Advisory Services was awesome.   If you need an investment advisor or financial planner who is ethical, detailed, basic, and Professional, Value Wealth Advisory Services is the place to go. Their Process is thorough and they do not settle for average. For, Value Wealth Advisory Services, My Goals were top priority and they continue to help me every step of the way. Cheers to Vinay and his team.

– Jairaj Awasthi, Mumbai

Value Wealth Advisory Services is a very professional firm. Their financial plan is very comprehensive and the level of detailing they go into is Truly Commendable. Their cash flow management calculations and the consequent recommendations take into account all the requirements of a family and offer complete clarity as to the way forward. Vinay and his team have excellent knowledge and approach the planning exercise in a professional manner. The exercise itself takes time and we had to discuss many times before the final plan was out. The effort we put in was well worth it. I highly recommend Value Wealth Advisory Services to anyone who really wants a financial blueprint in life.

– Mahesh Agarwal, Kanpur

Value Wealth Advisory Services has really helped me access my financial credibility. A Little Skeptical at First I thoroughly enjoyed the entire process from filling a exhausting data gathering sheet to managing my monthly cash flows and understanding the various aspects of financial planning.Vinay makes financial planning really innovative and Involves the client in each and every step of the planning. I must say that I found a friend in my financial planner. I Will Happily Recommend Value Wealth Advisory Services to skeptics like me, because it truly changes your life.

– Jigar Shah, Bhavnagar

Having Value Wealth Advisory Services as our financial planner has helped us a lot. Mainly, it has made us realize the importance of having a goal-based approach to planning our finances. It has instilled some discipline in us, when it comes to prioritizing our goals and ensuring that the necessary amounts are put away in order to meet those goals. All this has ensured that our money works harder for us.

– Chaitanya Balakrishnan, Tamil Nadu

ESTATE PLANNING

There are 2 reasons why we work hard & earn money. Firstly, money is a means to an end. We need money for our everyday survival and goal fulfillment & secondly, we want wealth for ourselves & our loved ones. We want to leave behind our legacy, our wealth, our estate. So, we earn money, intake it, invest the remaining, with the aim that the hence accumulated wealth will become a legacy that you leave behind for your parents, spouse and kids & grand kids.

But have you ever thought what if the Wealth created by you does not go to the assigned person? Yes, the laws of succession in India are complex. If you die, without a will i.e. Intestate, your property & estate will not be automatically given to your spouse & kids, if not specified it will be divided according to the Indian succession & Hindu act. So, all this wealth, taken years to build might go in the wrong hands.

Estate Planning or Succession Planning simply means planning for your estate so that the designated asset goes to the designated person. Estate Planning is often understood by people as “creating a Will”. Estate Planning is much more than creating a will.

Writing a will is easy. You can write it yourself on any A4 Size paper or even orally stated will is a valid will. But it is recommended that to avoid family conflicts, it is necessary to get a will written & notarized.

BENEFITS OF ESTATE PLANNING

Value Wealth Advisory Service’s Financial Planning emphasizes on proper “Estate Planning” & guides you by hand in the entire Estate Planning Process. 

WEALTH MANAGEMENT

Rome wasn’t built in a day & neither will your wealth. There is no magic formula for doubling your wealth in 2 days or 2 weeks or even 2 months. It is rightly said, that creating wealth should be like watching grass grow, if one wants excitement, one should go to Las Vegas. So, when someone tells you invest in this, you will get double or triple in 2 months, its non-sense and most certainly bogus.

Wealth needs work, patience & dedication. There are no shortcuts & no magic beans. Wealth management is integrated processes for helping clients manage their wealth. It involves huge a wide range of services and the services depend upon each investor & include Investment Management, financial planning, retirement, Estate planning, tax planning, debt management and cash flow.

Value Wealth Advisory Services provides all-round-360-degree Wealth Management. Grow your Wealth with Value "Wealth" Advisory Services!! 

RETIREMENT PLANNING

RETIREMENT PLANNING

In a recent article published by a leading daily, it read “India is one of the Worst Places to Retire”. This is indeed true, India has no Social Security measures, no Health Care for the elderly, one in 3 elders are orphaned and there is no Loan given for Retirement.

“The goal of retirement planning is to create a plan. It feels silly to come out and say that, but from what I’ve seen, most investors never actually take the step of creating a concrete plan. Instead, they read a few articles about various retirement planning topics and they leave it at that. (And many investors don’t even do that much.) The more specifically you’ve planned how you’ll manage your portfolio — and your finances in general — the less likely it is that you’ll have to go back to work or dramatically reduce your spending later on in retirement.”

Think it over, your Child can take an “Education Loan”, you can take a “personal Loan” for daughter’s marriage but there is absolutely No Loan being given for Retirement. So, basically after retirement you are left to your own. No parent wants to be a burden on their kids and we all want to lead a Luxurious life after Retirement. 

Many perceive retirement as a “Low” priority goal but this should be your top goal. As and when you start earning, you keep aside 5% of your monthly income for retirement. Trust us, your EPF & VPF will not cover your Retirement. With Life expectancy & Medical costs rising day-by-day, planning for Independent-Retirement was never more.

Retirement should be Fun & world tours should be taken and monetary-independence must be enjoyed. But we don’t expect you to plan out your own retirement, No, Everyone needs help & it’s okay to not-know.

If you are confused about your retirement and are finding it difficult to think in advance then consult Value Wealth Advisory Services today. Under the assistance of our finest personals, we promise in solving all of your retirement related worries instantly. 

NRI Planning

India is “THE” growing economy in the world today & everyone wants to place its bet on India. With a strong Government at helm, India’s chances of becoming the biggest Economy in Asia is not too distant a dream. India is currently at the epicenter of Financial Economy with everyone running to Invest in Indian Markets. These are Interesting times for India and you too can become a part of its Success story.

Value Wealth Advisory Services has been catering to NRI Crowd for the past decade and has provided unbiased-financial advise across the globe from Singapore to United Kingdom to Dubai. Value Wealth Advisory services has created a niche for NRI Investing. 

There are certainly attractive avenues in India, where NRIs obtain the freedom of investing into diversified asset allocation and significantly build up their investment portfolio. NRI’s can now invest in various assets & instruments like: 

Take Advantage of Value Wealth Advisory Service’s round-globe investment Advisory Knowledge & experience. Be a part of India’s Success Story. Plan with Value Wealth Advisory Services today. 

Insurance Planning

We all have numerous Traditional Insurances and Insurances where we pay Rs. 50 – 60 Thousand annually for a cover of Rs. 10 Lakhs. It takes no genius to tell you that this is a bad deal. Insurance is not a kind of Savings option. It is not for your child’s higher education, marriage etc. Insurance is a pure – life-cover! Don’t think you will get 10-12% returns, but understand that you will get the peace of mind that your family’s wellbeing is protected even after you. So, in totality you only need 5 types of cover.

This is all the coverage you need, don’t fall a victim of the traditional-policy-returns. The returns are fake. It’s not true. Get a term Insurance for yourself & earning spouse – health insurance for family & parents – Disability & critical illness cover for deadly diseases & Property Insurance for your assets.

Value Wealth Advisory Services assists you in selecting the best Insurance Cover that matches your Needs not someone’s Commissions. Ensure your Family’s well-being even after you with Value Wealth Advisory Services.

TAX PLANNING

Only two things are certain in Life, Death & Taxes – Benjamin Franklin

We all wait till the last week of return filing & rush to our CA’s for advice. CA’s are knowledgeable in accounts, they cannot guide you on how to make proper Investments year-around to get the Tax Benefit. This is something a Financial Planner plans with you.

                           

You should sit in front of our Financial Planner on 1st April of the Financial Year and discuss how your Investments will help you in saving taxes. There are hoards of products that can help you save tax apart from EPF & PPF.

We bet you didn’t take tax benefits of all these Investments. This is the difference between a CA & a Financial Planner. A CA will only tell you how much tax to pay, a Planner will tell you how to “legally” save taxes.

Taxes are tough but we make them simple for you. Our Team of Tax Advisory makes it a priority to ensure that your Tax Planning is done swiftly, efficiently, on time & help to save taxes. 

Investment Planning

Give a man a bow and arrow and tell him to, “SHOOT!” and his first response would be, “At what?”  When there is no target there is no purpose for shooting. But give him a target and challenge him to hit the bulls- eye & everything changes.

You now gave him something to aim at, something to challenge his skills against, something to measure his progress with, and something that gives all of his efforts a purpose. Simply by adding a target! This is what a goal does to a person.

They say, “A goal properly set is halfway reached”. It’s true. Children are able to do their homework regularly because it is written in their diary and majority adults do not achieve what they want because they do not write it down. Writing is a must. Write on a napkin, your desk, bus ticket but write down your goal. 

You must be wondering why in “Investment Planning” we are talking about Goal setting. Simply because these two are inter-derived & inter-dependent. The basic is to invest by having your goals conscious in your mind, that’s it.

We have always adopted a prudent and disciplined investment strategy with a strong focus on quality rather than speculation, and therefore our advice and strategies are designed to ride through all market cycles, the good and the bad, and remain intact over the lifetime of our clients. 

Our investment philosophy is based upon high caliber research performed completely independently of banks, insurance companies and finance houses. We also have our own in-house investment committee to analyse and act on the information we receive to ensure it is consistent with your needs.

Any Investment you make must ensure that it follows the below “circle of Investment Planning”

We work hard to earn money to fulfill our personal & family goals. So, what is the use of working 10-12 hours a day when you are unable to fulfill your goals?

“Give your Goals wings to fly & your money a chance to grow”

When you work hard to earn lots of money then why not give a chance to let money your work for you? Invest your hard earned money today and receive an absolute peace of mind along with receiving an absolute rise in your overall wealth management immediately with Value Wealth Advisory Services, We leave no stone unturned in assisting you to fulfill your Life Goals.

Scope of Financial Planning - What Happens in Financial Planning???

Magic! We’re kidding. Nothing weird-and-life-altering-stars falling-from-the-sky happens when you embark on a Financial Planning journey. It is a simple, sweet and straight-forward process which focuses on 4 key aspects of your Finances. Finances when divided on a basic level consist of 4 key departments. Each department needs to be properly evaluated & problems if any must be corrected. This simple diagram explains the building blocks of Financial Planning.

BLOCK 1: - RETIREMENT PLANNING

The longest of journeys start with a single step. We are not sure who said that, but we think it most aptly describes what retirement planning is all about. Planning for retirement is one long journey but a resolute and systematic step-by-step approach makes it a lot less laborious. This laborious part of life can be made easy by understanding the below retirement pyramid.

BLOCK 2: - INSURANCE PLANNING

Yes we all have numerous Traditional Insurances and Insurances where we pay Rs. 50 – 60 Thousand annually for a cover of Rs. 10 Lakhs. It takes no genius to tell you that this is a bad deal. Insurance is not a kind of Savings option. It is not for your child’s higher education, marriage etc. Insurance is a pure – life-cover! Don’t think you will get 10-12% returns, but understand that you will get the peace of mind that your family’s wellbeing is protected even after you. So, in totality you only need 5 types of cover.

 

This is all the coverage you need, don’t fall a victim of the traditional-policy-returns. The returns are fake. It’s not true. Get a term Insurance for yourself & earning spouse – health insurance for family & parents – Disability & critical illness cover for deadly diseases & Property Insurance for your assets.

       BLOCK 3: - INVESTMENT PLANNING

Why do we invest? Of course to save money and earn returns! But why do you want money? to achieve your goals & your family’s dreams. If asked to elaborate, I am sure you will find it difficult to list down five things for which you are saving money. There is no use of saving 90% of your salary, if you have not aligned these investments with goals. The right type of investment product is very important to help your money grow and in achieving your goals.

So this is where investment planning comes in place. Investments of your hard earned money should always be done considering your goals and the time frame in which you want to achieve your goals. This forms the base of your investments. To make the task simpler, you can break down your goals into three different sections:

    BLOCK 4: - CONTINGENCY PLANNING

Also known as emergency planning. It has been emphasized time and again that a contingency plan or an emergency plan has to be in place before starting to plan for other goals. Why? Emergencies can come anytime or anyplace especially when we least expect it. We cannot predict it or even prevent it but what we can do is buffer ourselves against it so that our life does not go for a toss due to the emergency. It is basically saving for a rainy day. So once that you have planned for any untoward or unpredicted eventualities, you can safely move ahead to the next level of the financial plan. A minimum of 6 months of compulsory home expenses must be kept in the contingency fund.