21st April 2017 | VOL 11 | ISSUE 8 Fortnightly Issue        
Special Story

Do you have a goal based approach towards investing?

Do you know anyone who puts a measuring tape around his dreams, before he dreams? Your dream could be enormous or can even be a bizarre one because you don’t always have an explanation for your dreams. There’s this young lad from Delhi who wanted to buy an awesome igloo in the Arctic region. Now, that’s quite bizarre, isn’t it? However, please note that the bizarre nature of his dream was not the main problem. The problem was that he did not give his dream a real good thought to make it come true. He thought his dream was too far-fetched and financially non-achievable given the corpus he needs to accumulate after accounting for daily expenses, bills, and other financials. The truth of the matter is that he just didn’t have an inkling of how much his dream would cost. He simply assumed that his dream to build an igloo was unachievable and let the dream die.

Expert's View

Become a Smart Investor

Money is vital to one and all. However, the fact that a few people in this world have it in abundance and a few strive extremely hard to earn it has increasingly become a stark reality. Thus, it becomes imperative for all of us to make smart investment decisions very early in our lives in order to lead a peaceful life, especially after retirement. Please note that the best time to start investing is now, irrespective of how old you are. Remember the adage ‘it is never too late to begin investing money’. Smart investing decisions would reap lucrative results, especially in the long run and would help you immensely in living your life the way you want, while covering up for phases of life where you would experience financial difficulties.

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Financial Planning

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.

Do you have a goal based approach towards investing?




Do you know anyone who puts a measuring tape around his dreams, before he dreams? Your dream could be enormous or can even be a bizarre one because you don’t always have an explanation for your dreams. There’s this young lad from Delhi who wanted to buy an awesome igloo in the Arctic region. Now, that’s quite bizarre, isn’t it? However, please note that the bizarre nature of his dream was not the main problem. The problem was that he did not give his dream a real good thought to make it come true. He thought his dream was too far-fetched and financially non-achievable given the corpus he needs to accumulate after accounting for daily expenses, bills, and other financials. The truth of the matter is that he just didn’t have an inkling of how much his dream would cost. He simply assumed that his dream to build an igloo was unachievable and let the dream die.

The big question here is that why would someone have to ever give up his or her dreams. If not as bizarre as building an igloo, you will also have big dreams such as building your own home or buying your dream car. Moreover, you would definitely want these dreams to come true. Rest assured, there’s no problem, it is time to make that happen. It is time for you to turn your dreams into goals that you can achieve. You must remember that you can convert these dreams of yours into goals only if you attach a monetary value and a time frame to them. For instance, if you can arrive at a figure of let’s say Rs.1 crore that you need to spend to achieve you dream within 20 years.

Please note that these goals become much easier for you to achieve when you carve out a financial plan as a road map to track your goals progress. A goal-based approach to financial planning is the modern method of personal investment management in the most effective manner. These goals must be SMART – Specific, Measurable, Achievable, Realistic, Timebound. Once you have SMART goals, your financial goals can always be well-planned.

Now, let’s get back to our favourite ‘igloo’ example mentioned above. Let’s actually see whether the igloo dream of the young lad from Delhi is achievable or not. Let’s assume his annual post-tax income is around Rs.20 lakhs and he has got sound saving habits. Thus, let’s assume he has managed to save around Rs.50 lakhs already. He looked up Google and found that an igloo in the Arctic is not such an expensive investment. Let’s say it currently costs around Rs.50 lakhs. Now, if he sets a time-bound plan to buy the igloo after 5 years the price would be definitely higher at around Rs.70 lakhs. After that, let’s assume he plans to rent his igloo to a timeshare company. See, after all, his igloo dream can be totally worked out provided he follows a goal-based approach.

Let’s check if his goals are SMART. His goal is SPECIFIC because he has a specific amount of Rs.70 lakhs in mind for the asset to be purchased. Placing a monetary value to your goal is very crucial for monetary planning. His plans are MEASURABLE whether you look at in pieces of small amounts or in lump sum of Rs.75 lakhs. His goals are ACHIEVABLE because he already has Rs.50 lakhs as existing savings on hand. Thus, if he falls short of funds after 5 years, he can take a housing loan to bridge the shortfall. His goal is REALISTIC because many investors prefer investing in top-notch vacation homes then why not invest in an igloo. Moreover, by renting his igloo to a timeshare holiday company he can repay the loan instalments for the loan that he would take to buy the igloo. His goal is TIMEBOUND because he is clear in his mind that he wants to invest in the igloo after 5 years. Thus, he has a 5-year horizon to achieve his goals, which means he can make out a carefully carved out investment plan for the 5-year period for strong returns to achieve his goal. Therefore, the young lad’s dream to buy an igloo in the Arctic wasn’t far-fetched by any stretch of imagination. You must note that however large or bizarre your dreams are, they aren’t impossible to achieve as long as you have converted them into SMART goals. All you need to do is to stick to your financial plan and simply follow the suggested investment routine.

Therefore, what are the key learnings from the young lad’s approach of converting his dream into a goal:
• Goal-based investing would provide you with a clear target that you can aim for
• Well-defined goal that is backed by a well thought out plan you will have found the key to unlock your dreams successfully

You can stand at your window staring at the sky and dream all day or can simply get down to business and buy not one, two, three, many be many more igloos. The choice is basically yours. If you are finding it tricky to invest your funds during the gestation period that you have decided for achieving your dreams to get stronger and steady returns, take the help of a professional financial planner. They will not only help you carve out a string financial plan to achieve your goals, but will also help you maximize your income during the gestation period through prompt investment strategies.

Become a Smart Investor



Money is vital to one and all. However, the fact that a few people in this world have it in abundance and a few strive extremely hard to earn it has increasingly become a stark reality. Thus, it becomes imperative for all of us to make smart investment decisions very early in our lives in order to lead a peaceful life, especially after retirement. Please note that the best time to start investing is now, irrespective of how old you are. Remember the adage ‘it is never too late to begin investing money’. Smart investing decisions would reap lucrative results, especially in the long run and would help you immensely in living your life the way you want, while covering up for phases of life where you would experience financial difficulties. Contingencies, uncertainties of the future, and the fact that we don’t know how the future would pan out makes investing all the more imperative. Please remember that contingencies such as accidents, diseases, health issues, and physical impairments, might critically hinder your money-earning ability through the traditional means, at a later part of your life. This is where your smart investment decisions would come in handy.

Saving money is critical and would cover you for many future expenses such as children’s education, marriage, buying new vehicles, and making house renovations. Yes, saving money gives you the cushion that you would need for the future, but it is here that you would need to understand the major difference between ‘saving money’ and ‘investing money’. Remember that you save money with the sole objective of spending money later. Therefore, your savings here would not increase or multiply your wealth. This is where investments would come into play. If you invest your money into various debt or equity avenues, it will not only help you in spending the money later in the future, it will multiply or increase your wealth as well and would thus, improve your financial position. Therefore your savings base would increase automatically, making life a much smoother ride, going forward.

Investing decisions in debt or equity would depend largely on your risk appetite, financial resources, risk profile, and investment objectives. Therefore, it is advisable that you perform an online risk profile with any prominent stockbroker or investment consultant before investing your hard earned money. This would help you know whether you are conservative, cautious, aggressive, or moderate investor. Importantly, risk profiling is a potent tool largely due to the fact each investor has a different way in which he/she would perceive risk. Once you know your risk profile and your risk appetite, it becomes easy for you to choose an appropriate asset allocation (debt or equity markets, real estate, commodities, etc) that fits your investment needs.

Asset allocation helps you diversify your portfolio effectively, especially under the expert guidance of noted stockbrokers and investment consultants. Your investment consultants could help you spread your money into different asset classes, industries, and sectors, reducing your investment risk to a large extent while making you enjoy the fruits of maximized returns through your diversified asset portfolio.

Therefore, become a ‘smart investor’, make smart investment decisions, and become aware of all the available investing opportunities. This would allow you to pick and choose the returns that your money can generate. Happy investing!

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 22.00% 31-Dec-12





NIFTY 100 25.10% 31-Dec-12





Aggressive Portfolio
Sr. No. Scrip Name Sector Weight Basket Qty Price as on 31 Mar. 2017 Total Value Portfolio Beta Return
% Return Wt. Return
1 Tata Motors Ltd Automobile 10.65% 2.00 465.85 931.70 0.18 2% 0.38%
2 ICICI Bank Banking 9.19% 3.00 276.85 830.55 0.23 11% 2.60%
3 LIC Housing Finance Ltd NBFC 6.03% 2.00 618.45 1236.90 0.11 75% 8.03%
4 VEDL Diversified 2.48% 4.00 274.95 1099.80 0.03 71% 2.42%
5 State Bank of India Banking 1.48% 3.00 293.40 880.20 0.10 24% 2.51%
6 ONGC Ltd Oil & Gas 4.67% 3.00 185.00 555.00 0.06 -35% -2.12%
7 Aditya Birla Nuvo Ltd Diversified 12.09% 2.00 1,518.45 3036.90 0.12 73% 8.80%
8 Adani Ports Port & Logistics 2.91% 3.00 339.60 1018.80 0.03 29% 0.93%
9 BHEL Capital Goods 1.99% 4.00 162.85 651.40 0.02 4% 0.07%
10 Tata Steel Ltd Metals & Mining 5.66% 2.00 482.70 965.40 0.10 37% 3.82%
11 Sun Pharmaceuticals Inds. Ltd Pharmaceuticals 9.46% 1.00 688.15 688.15 0.12 3% 0.39%
EXIT Return from Exited Stocks






18.91%

Total
100.00%

11894.80 1.30
48.24%

Dividend (Aprox.)






1.50%










Benchmark Return From






NIFTY 200 24.60% 16-Dec-13





Moderate Portfolio
Sr. No. Scrip Name Sector Weight Basket Qty Price as on 31 Mar. 2017 Total Value Portfolio Beta Return
% Return Wt. Return
1 HDFC Bank Banking 10.36% 1.00 1,442.55 1442.55 0.09 56% 4.93%
2 M&M Financial Services Ltd NBFC 4.65% 2.00 314.90 629.80 0.06 15% 0.88%
3 VEDL Diversified 2.54% 5.00 274.95 1374.75 0.05 65% 3.21%
4 Ambuja Cement Ltd Cement 3.85% 3.00 236.65 709.95 0.04 27% 1.05%
5 ITC Ltd FMCG 6.47% 2.00 280.30 560.60 0.07 -11% -0.75%
6 Infosys Ltd IT services 2.15% 1.00 1,022.25 1022.25 0.02 -5% -0.09%
7 Zee Entertainment Ent. Ltd Media 6.44% 2.00 535.55 1071.10 0.07 57% 3.76%
8 Hindalco Inds. Ltd Metals & Mining 3.05% 3.00 195.05 585.15 0.05 58% 2.76%
9 Reliance Inds. Ltd Oil & Gas 9.51% 1.00 1,320.90 1320.90 0.09 42% 3.62%
10 Biocon Ltd Pharmaceuticals 9.49% 2.00 1,132.30 2264.60 0.07 125% 8.84%
11 Bharti Airtel Ltd Telecom 7.92% 2.00 350.05 700.10 0.06 5% 0.34%
EXIT Return from Exited Stocks






22.08%

Total
100.00%

11681.75 0.79
52.12%

Dividend (Aprox.)






1.50%










Benchmark Return From






NIFTY 200 24.60% 16-Dec-13





Defensive Portfolio
Sr. No. Scrip Name Sector Weight Basket Qty Price as on 31 Mar. 2017 Total Value Portfolio Beta Return
% Return Wt. Return
1 Glenmark Pharma Pharmaceuticals 3.49% 1.00 852.10 852.10 0.03 -5% -0.15%
2 HDFC Bank Banking 9.18% 1.00 1,442.55 1442.55 0.08 56% 4.37%
3 Cummins India Ltd Capital Goods 6.60% 1.00 949.45 949.45 0.05 30% 1.63%
4 Dabur India Ltd FMCG 5.84% 2.00 277.35 554.70 0.04 27% 1.17%
5 Tech Mahindra IT services 2.39% 1.00 459.15 459.15 0.02 -15% -0.34%
6 TCS Ltd IT services 20.46% 1.00 2,431.80 2431.80 0.17 8% 1.31%
7 Hind. Unilever FMCG 3.35% 1.00 911.75 911.75 0.03 7% 0.16%
8 Coal India Mining 1.11% 2.00 292.65 585.30 0.01 -6% -0.06%
9 Lupin Ltd Pharmaceuticals 12.02% 1.00 1,445.20 1445.20 0.10 9% 0.92%
10 Pidilite Ind Specialty Chemicals 1.20% 1.00 699.15 699.15 0.01 3% 0.03%
EXIT Return from Exited Stocks






28.48%

Total
100.00%

10331.15 0.60
39.03%

Dividend (Aprox.)




0.840269
1.50%





















Benchmark Return From






NIFTY Midcap 33.40% 16-Dec-13





Mid Cap Portfolio
Sr. No. Scrip Name Sector Weight Basket Qty Price as on 31 Mar. 2017 Total Value Portfolio Beta Return
% Return Wt. Return
1 Motherson Sumi Systems Ltd Auto Ancillaries 8.04% 3.00 371.90 1115.70 0.13 114% 14.49%
2 Kalpataru Power Power Transmission 4.15% 3.00 322.70 968.10 0.04 33% 1.18%
3 Va Tech Wabag Ltd Capital Goods 17.24% 2.00 681.35 1362.70 0.13 42% 5.29%
4 PFS NBFC 2.72% 15.00 41.55 623.25 0.03 5% 0.14%
5 Gateway Distriparks Logistic 4.65% 2.00 252.80 505.60 0.04 -18% -0.66%
6 Aia Engineering Ltd Capital Goods 9.28% 1.00 1,587.85 1587.85 0.03 50% 1.31%
7 Apollo Tyre Auto Ancillaries 3.42% 4.00 208.70 834.80 0.04 18% 0.73%
8 Camlin Fine Chemical 1.56% 6.00 89.50 537.00 0.02 -11% -0.17%
9 JK Cement Ltd Cement 6.67% 1.00 934.95 934.95 0.07 78% 5.23%
10 DHFL NBFC 5.12% 4.00 367.15 1468.60 0.09 52% 4.77%
11 Majesco Ltd* IT 4.97% 2.00 332.60 665.20 0.08 -17% -1.43%
12 Return from Exited Stocks






14.85%

Total
100.00%

10603.75 0.96
47.24%

Dividend (Aprox.)




1.090
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