16th October 2017 | VOL 11 | ISSUE 20 Fortnightly Issue        
Special Story

Brighten up this Diwali by investing in mutual funds

Diwali is a festival of lights that helps us transition from the shackles of darkness towards the prosperity and success. We consider Diwali a highly auspicious day for investing money, since that investment will invoke the blessings of Goddess Laxmi, bringing wealth and prosperity to the investor. Thus, why not look to invest in mutual funds this Diwali and invoke the blessings of Goddess Laxmi.

Expert's View

5 simple reasons to consider CFDs as your next investment asset class

Corporate fixed deposits (CFDs) are an investment asset class that is fast-gaining popularity in the past few quarters primarily owing to the returns it provides on investment coupled with other interesting propositions. With interest rates touching 8.25%, flexible deposit tenures, high ‘AAA’ ratings signifying their degree of safety as an investment class, it is recommended that you consider adding CFDs to your existing portfolio. This will not only provide you with stronger and stable returns, but will also help you diversify your portfolio effectively.

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From MD's Desk

What's your Investment Strategy?

Deena Mehta
Mrs. Deena Mehta
Managing Director, ACMIIL

How open are we to take risks? A simple experiment would suffice to yield revealing answers.

Equity SIP Model Portfolio
Conceptually, an Investment Advisory is a service that provides investment advice and designs a strategy to manage a certain sum of funds.
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Disclaimer: This InvestorFirst Magazine of Asit C. Mehta Investment Interrmediates Limited is meant to educate its recipients only. The news and views herein do not constitute investment advice or an offer to sell, or a solicitation of an offer to purchase or subscribe for any investment. The information herein is derived from sources believed to be reliable and is subject to change without notice.

Brighten up this Diwali by investing in mutual funds




Diwali is a festival of lights that helps us transition from the shackles of darkness towards the prosperity and success. We consider Diwali a highly auspicious day for investing money, since that investment will invoke the blessings of Goddess Laxmi, bringing wealth and prosperity to the investor. Thus, why not look to invest in mutual funds this Diwali and invoke the blessings of Goddess Laxmi.

Generally, for most of us, investing has been saving money in fixed deposits, buying gold, or investing money in real estate. That said, we voluntarily or involuntarily ignore another very good form of investment – Mutual Funds.

Let’s try to understand what a mutual fund is and how it’s beneficial for investors. ‘Mutual’ refers to many individuals coming together and ‘Fund’ is nothing but money. Thus, mutual fund is a set up where many individuals come together and pool-in money for a common purpose. The purpose here is to benefit from the capital markets. One needs to note that these individuals neither have the required knowledge nor the time to manage these pools. However, they are very clear in their objective, which is to benefit from the capital market. Therefore, an Asset Management Company (AMC) appoints a fund manager to take care of this pool.

The fund manager is a knowledgeable professional who monitors the market continuously and buys corporate/government bonds, treasury bills, stocks, and various kinds of deposits to satisfy the investment objective of this fund. Investment objectives can be many, but one mutual fund will be driven normally by one investment objective. Therefore, for each of those objectives, which depends upon your risk-taking capacity and the time horizon you have for your investment, a mutual fund option will be available. You should invest in that kind of mutual fund, which matches your objectives.

Mutual funds are broadly divided into three categories – Equity, Debt, and Balanced funds. Equity funds are for those who want to invest only into equities to get maximum benefits from the stock market. Debt funds are for those who want to invest only into debt. Balanced funds are for those who want to invest in a mix of both, equity as well as debt.

ACMIIL has great news for you this Diwali. We have introduced state-of-the-art Investmentz App, which makes investing in mutual funds easy, secure, and effective. The app allows you to self-invest or seek expert advice. The best part is that the app helps you create your financial plan by setting your financial goals based on your risk propensity and time horizon requirement. The app will be your financial planner on-the-go. It will help you plan your mutual fund strategy, invest in mutual funds, and track the progress of your mutual fund portfolio real-time. This helps you in making timely changes to your portfolio to stay on track in terms of your financial objectives.

Happy Diwali!

5 simple reasons to consider CFDs as your next investment asset class



Corporate fixed deposits (CFDs) are an investment asset class that is fast-gaining popularity in the past few quarters primarily owing to the returns it provides on investment coupled with other interesting propositions. With interest rates touching 8.25%, flexible deposit tenures, high ‘AAA’ ratings signifying their degree of safety as an investment class, it is recommended that you consider adding CFDs to your existing portfolio. This will not only provide you with stronger and stable returns, but will also help you diversify your portfolio effectively.

Here are 5 simple reasons that would help you consider CFDs as your next investment asset class:

Annual interest rate of up to 8.25%
Investing in CFDs can help you earn up to 8.25% interest rate annually, which is a lot higher than the bank FDs. Moreover, senior citizens get the added benefit of 0.25% for their investment in CFD as returns.

Higher flexibility investment tenure
With CFDs, you can enjoy higher flexibility in terms of investment tenure and interest payment option. This makes it a more comfortable investment option.

CFD’s have credit ratings that make them a safe investment
Choosing ‘AAA’ rated CFDs as an investor will help you ensure a higher degree of safety of your investment.

CFDs can be used as collateral for loan
One of the best features of CFDs is that you can use them as an effective collateral to procure a personal loan.

Insulated from the stock market
With CFDs, you can enjoy insulation from stock market volatility, which is one of the major benefits of investing in them.

Happy Investing!

What's your Investment Strategy?

Deena Mehta
 
Mrs. Deena Mehta
Managing Director, ACMIIL
 
How open are we to take risks? A simple experiment would suffice to yield revealing answers. If we were to ask same-sex twins the same question -- “If they had to decide between a sure win of Rs 30, a 20 per cent chance of winning Rs 500 or a 50% chance of winning Rs 100, What would they choose?” - their answers could be very different. Any two people's approach to risk-taking is different even if they happened to be siblings. The appetite for risk differs significantly from person to person and from time to time. One has access to much more information today - many websites help assess one's risk profile - and therefore we do tend to change our minds more often.

Your risk appetite determines the type of companies you select for investment. Your investment strategy is largely dictated by your attitude towards risk. Are you a conservative, a moderate or an aggressive investor? We propose to discuss various strategies for stock selection based on your perception of risk.

There are those who are extremely risk-averse and would like to go for near fixed returns investments. These investors constantly look for strategies where the downside of risk is minimal, they would opt for high-dividend paying companies or companies with large payout ratios. They would go in for companies with a good record of profitability so that there is regular payment of income, as with fixed-income bonds. Safety-conscious people also prefer companies whose book value is greater than the share price. They view these shares as cheap since they get more value than the price they paid. Stocks with low price earnings are also seen as a steal since there is lot of room to grow.

The moderates look for good companies that have a track record of growth in terms of sales, assets and profitability. These companies are well managed and follow good governance practices. They look for growth within all financial parameters, and not necessarily dividends alone. They look at rewards from the share market in terms of price appreciation rather than payments from the company. This group also tracks the shares of good companies, and if a sudden drop in the market brings down the price of their favorite share disproportionately, then the share becomes a good buy. They will purchase more at low prices to reduce their average holding cost if they already have stocks in their portfolio. Small and mid cap stories are also of interest to this group since they are looking for Reliance in the making.

The aggressive are those who want to be on the fast track. They are with the momentum of stocks. They spend a lot of time ascertaining the high and low of the dominant market players and try to ride the wave emerging out of sentiment-driven activities. They are looking for low-priced stocks where nominal investments would give large returns. This group of investors is on the lookout for early news on developments and material information on companies, in their case even rumors could influence the share price.

Somewhere between these three groups are those who believe in a more passive investment strategy, who regard equity investments is must in their portfolio. They buy what they believe to be good company shares and then do not do very much with them.

Each strategy has its pros and cons. A company may appeal to one investor in some aspects, but not to another investor. A high-dividend paying company, a plus point in a conservative buyer's eyes, would not find favor with someone who believes that the company should be reinvesting and growing rather than giving away cash to shareholders. He would look at the share market to give him returns on his investment in the form of appreciation in share price. Similarly, momentum of stocks would appear too risky to the conservative investor.

Irrespective of your attitude to risk, there are certain simple rules that should be observed when selecting stocks. After all, if we take pains over relatively simple purchases, such as a television set or washing machine, then the companies in which we want to invest too deserve careful scanning. You could list them according to ``fastest growing'', ``highest dividend-paying' or momentum stocks. Many websites provide such information for virtually no cost. Once this list is prepared, apply the general rules for stock selection. Look for good fundamentals, such as growth in sales, assets and profits. Corporate governance and good management are a must. A three to five year history of survival provides reasonable confidence in its staying power, unless you are a venture capitalist. Thorough research on the target company goes a long way for even if your basic assumptions are belied and you have to hang on to your holding for a long time, your investment does not become worthless.

In the short run, it is the collective psychology of the market participants that drives the prices of shares. Very often, good results bring down the share price since the market too was expecting this, and discounts it when it does occur. A new story would impact the price to go up or down. When unfavorable news is expected, that leads to a price rise since the worst is over and better things can now happen to the company. Unbelievable as it may sound, each investor's perception drives the market collectively.

Often, the man on the street finds the market very confusing. My suggestion is to follow your instincts. Basic common sense is the best approach to investments. Do not buy a share that does not appeal to your intellect and good sense. Nobody, obviously, puts all his or her money into one company. Naturally, we do not put the school fees or the money from which the next meal will come in any market. Let's try and keep investing a happy, safe and profitable exercise.

Happy Investing !!!

Equity SIP Model Portfolio

Conceptually, an Investment Advisory is a service that provides investment advice and designs a strategy to manage a certain sum of funds. Here, we have provided an investment strategy in the form of Equity SIP model portfolios. With the basic understanding that investors can be broadly classified as high, medium and low risk takers, we designed Aggressive, Moderate and Defensive Portfolios respectively, as on January 2013. Each portfolio basket requires an investment of aproximately Rs.10,000 per month and is a good way of accumulating fundamentally sound stocks for a long term horizon. These portfolios will be reviewed half yearly and any changes will be communicated accordingly.


Benchmark Return From






Nifty 26.40% 31/12/2012






NIFTY 100 29.60% 31/12/2012





Aggressive Portfolio
Sr. No. Scrip Name Sector Weight Basket Qty Price as on 29 Sep, 2017 Total Value Portfolio Beta Return
% Return Wt. Return
1 Tata Motors Ltd Automobile 10.46% 2 401.50 803 0.18 -12% -2.12%
2 ICICI Bank Banking 9.04% 3 276.60 829.8 0.23 10% 2.41%
3 LIC Housing Finance Ltd NBFC 6.60% 2 627.35 1254.7 0.11 65% 6.97%
4 VEDL Diversified 3.22% 4 314.25 1257 0.03 77% 2.61%
5 State Bank of India Banking 2.17% 3 253.85 761.55 0.10 4% 0.39%
6 ONGC Ltd Oil & Gas 4.81% 3 170.95 512.85 0.06 -36% -2.20%
7 Grasim Industries Ltd Diversified 13.06% 2 1133.95 2267.9 0.13 83% 10.86%
8 Adani Ports Port & Logistics 3.51% 3 376.75 1130.25 0.03 41% 1.31%
9 BHEL Capital Goods 2.35% 4 83.95 335.8 0.02 -44% -0.81%
10 Tata Steel Ltd Metals & Mining 5.95% 2 652.55 1305.1 0.10 81% 8.35%
11 Sun Pharmaceuticals Inds. Ltd Pharmaceuticals 9.18% 1 503.25 503.25 0.12 -25% -3.11%
EXIT Return from Exited Stocks






18.91%

Total
100.00%

10961.2 1.30
45.08%

Dividend (Aprox.)






1.50%

Total

















Benchmark Return From






NIFTY 200 31.40% 16/12/2013





Moderate Portfolio
Sr. No. Scrip Name Sector Weight Basket Qty Price as on 29 Sep, 2017 Total Value Portfolio Beta Return
% Return Wt. Return
1 HDFC Bank Banking 10.54% 1 1805.70 1805.70 0.09 90% 8.03%
2 M&M Financial Services Ltd NBFC 4.80% 2 412.35 824.70 0.06 49% 2.90%
3 VEDL Diversified 3.50% 5 314.25 1571.25 0.07 70% 4.78%
4 Ambuja Cement Ltd Cement 4.12% 3 266.45 799.35 0.04 40% 1.67%
5 ITC Ltd FMCG 6.28% 2 258.3 516.60 0.06 -16% -1.02%
6 Infosys Ltd IT services 2.97% 1 899.9 899.90 0.03 -13% -0.35%
7 Zee Entertainment Ent. Ltd Media 6.73% 2 520.1 1040.20 0.07 47% 3.24%
8 Hindalco Inds. Ltd Metals & Mining 3.29% 3 240.6 721.80 0.05 84% 4.36%
9 Reliance Inds. Ltd Oil & Gas 9.57% 1 780.9 780.90 0.09 -17% -1.45%
10 Biocon Ltd Pharmaceuticals 10.43% 2 332.15 664.30 0.08 -40% -3.08%
11 Bharti Airtel Ltd Telecom 7.77% 2 389.45 778.90 0.06 18% 1.08%
EXIT Return from Exited Stocks






22.08%

Total
100.00%

10403.60 0.79
43.74%

Dividend (Aprox.)






1.50%

Total


















Benchmark Return From






NIFTY 200 31.40% 16/12/2013





Defensive Portfolio
Sr. No. Scrip Name Sector Weight Basket Qty Price as on 29 Sep, 2017 Total Value Portfolio Beta Return
% Return Wt. Return
1 Glenmark Pharma Pharmaceuticals 4.01% 1 598.30 598.30 0.04 -33% -1.22%
2 HDFC Bank Banking 9.46% 1 1805.70 1805.70 0.08 90% 7.21%
3 Cummins India Ltd Capital Goods 6.74% 1 924.35 924.35 0.05 26% 1.42%
4 Dabur India Ltd FMCG 5.84% 2 305.00 610.00 0.04 36% 1.59%
5 Tech Mahindra IT services 2.63% 1 457.85 457.85 0.03 -13% -0.33%
6 TCS Ltd IT services 20.72% 1 2435.95 2435.95 0.17 8% 1.34%
7 Hind. Unilever FMCG 3.84% 1 1173.90 1173.90 0.03 38% 1.09%
8 Coal India Mining 1.60% 2 270.85 541.70 0.01 -13% -0.17%
9 Lupin Ltd Pharmaceuticals 12.33% 1 1014.00 1014.00 0.11 -25% -2.62%
10 Pidilite Ind Specialty Chemicals 1.71% 1 794.50 794.50 0.01 19% 0.27%
EXIT Return from Exited Stocks






28.48%

Total
100.00%

10356.25 0.60
38.56%

Dividend (Aprox.)




0.84
1.50%











Benchmark Return From






NIFTY Midcap 34.30% 16/12/2013





Mid Cap Portfolio
Sr. No. Scrip Name Sector Weight Basket Qty Price as on 29 Sep, 2017 Total Value Portfolio Beta Return
% Return Wt. Return
1 Motherson Sumi Systems Ltd Auto Ancillaries 11.12% 3 336.40 1009.20 0.18 71% 12.49%
2 Kalpataru Power Power Transmission 2.26% 3 368.10 1104.30 0.02 284% 5.60%
3 Va Tech Wabag Ltd Capital Goods 7.00% 2 589.80 1179.60 0.05 266% 13.55%
4 PFS NBFC 28.63% 15 37.05 555.75 0.32 -87% -27.81%
5 Gateway Distriparks Logistic 1.60% 2 228.15 456.30 0.01 182% 2.25%
6 Aia Engineering Ltd Capital Goods 1.54% 1 1328.70 1328.70 0.00 880% 3.80%
7 Apollo Tyre Auto Ancillaries 2.86% 4 245.75 983.00 0.03 138% 4.57%
8 Camlin Fine Chemical 2.31% 6 81.35 488.10 0.02 -7% -0.17%
9 JK Cement Ltd Cement 1.42% 1 954.00 954.00 0.01 958% 13.74%
10 DHFL NBFC 3.45% 4 549.65 2198.60 0.06 374% 23.01%
11 Majesco Ltd* IT 1.54% 2 427.95 855.90 0.03 371% 9.69%
12 Return from Exited Stocks






14.85%

Total
100.00%

11113.45 0.96
77.07%

Dividend (Aprox.)




1.09
1.50%


About Us

Company History & Background
Established in the year 1986, Asit C. Mehta Investment Interrmediates Ltd. (ACMIIL) is one of the most trusted and reputed brokerage houses known for providing investment related services in the capital market, money market and depository services in India. The company has been jointly promoted by noted stock market professionals, Mr. Asit C. Mehta and Mrs. Deena A. Mehta and is a part of Mumbai-based Nucleus Group of Companies. The other group companies are engaged in commodity, derivatives, development of databases, back-office applications for banks, corporate document management solutions and Geographical Information Systems (GIS).
Corporate Purpose
Envisioned to be a "Trusted Financial Intermediary", the group has etched out a very specific corporate purpose - "To reach appropriate financial products, services and solutions to every Indian entity."
Our Beliefs

  • That every household can, should and will need to participate in the financial markets directly or indirectly to protect their financial interests.
  • That regulatory/legal compliance ensures economic sustainability.
  • That transparency and fairness are the cornerstones of all dealings.
  • That knowledge rather than capital is the key driver of this business.
  • That product, process and technology led innovations are necessary preconditions for continuously adding value to all our constituents.
  • That given the environment every person will realize her/ his potential.
  • That people are driven by causes.
The FIRSTS to our Credit
  • One of the First limited liability Companies to acquire membership on Bombay Stock Exchange (BSE).
  • One of the First multiple seat holders and multiple exchange members.
  • One of the First private VSAT network users.
  • First to utilize the franchisee business model for Associates.
  • First to achieve the ISO quality certification for business processes from SGS. Currently we are a "ISO 9001:2008" certified company.
  • Company Managing Director Mrs. Deena A. Mehta was the first woman to be elected to the governing board of the BSE and the first and only woman to be the President of BSE (post corporatization).

Contact Us

Asit C Mehta Investment Interrmediates Ltd.
Nucleus House, Saki-Vihar Road,
Andheri (E), Mumbai 400 072.
Maharashtra. India.
Telephone : 91-22-28583333,66798315,28577898
Fax : 91-22-28577647
Email : helpdesk@acm.co.in
For corporate level general communication, you need to email at acmiil@acm.co.in
Toll Free Number