20th May 2017 | VOL 11 | ISSUE 10 Fortnightly Issue        
Special Story

SIP – your means to achieve your financial goals

Dreams play a huge role in our life in terms of motivating us and helping us reach our objectives. As they say ‘only if you dare to dream, will you work towards realising it’. As we begin our career and start earning money, we start dreaming of having our own car, own house, scintillating vacations, and much more. These dreams just get bigger by the minute. We really wish that our pay packet grows as big and fast as our dreams, but a reality check clips our wings and brings us back to mother earth.

Expert's View

Why you know your risk appetite before investment?

Best investors spread their money into different baskets rather than investing all their money into one basket. Remember what our elders told us “don’t keep all your eggs in one basket”. That said, you need to remember that you are investing your hard-earned money in different asset classes. Thus, it becomes pivotal for you to identify your ideal risk profile to mitigate markets risks while deriving the most out of your portfolio.

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Financial Planning

Investment Strategies For the Meek, Mild and Aggressive…

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.

SIP – your means to achieve your financial goals




Dreams play a huge role in our life in terms of motivating us and helping us reach our objectives. As they say ‘only if you dare to dream, will you work towards realising it’. As we begin our career and start earning money, we start dreaming of having our own car, own house, scintillating vacations, and much more. These dreams just get bigger by the minute. We really wish that our pay packet grows as big and fast as our dreams, but a reality check clips our wings and brings us back to mother earth. Moreover, our children’s career, their education, marriage, and their never-ending wish list just add to the pressure that we constantly feel today. Let me narrate a small instance here. During my childhood, when I was 7 years old, I always dreamt of having my own bicycle. I pestered my parents to no end before they finally relented and gave me one. I showed it off proudly to my friends. Similarly, as I grew older, my dreams started getting bigger. I started expecting more from life. Be it a school vacation, going trekking with friends, watching movies, group studies, my own car to show off (bicycle’s outdated by now ), own mobile phone, best tuition classes, best-in-class education, international MBA course, and it never ended.

Let me tell you guys that achieving all of the above might look like climbing Mount Everest, but in reality, it is much easier than that, you can trust me. If you realise the importance of investment and financial planning at a very early stage of your life, you will go a long way towards living your dreams and those of your children. Invest in SIP offered by top-notch mutual funds.

Systematic Investment Plan (SIP) is one such step that will help you go a long way in achieving your goals. Mutual funds offer SIPs to investors to help them build a disciplined approach towards financial planning and investment. SIP is a potent tool to plan your finances because it will help you generate wealth by investing small proportions of money on monthly basis over a period of time. Through an SIP, you can invest in numerous stocks at as low as Rs2000 per month (amount varies as per invertor’s choice). SIPs will provide you with the most needed buffer, especially when your children grow older. Further, your money multiplies faster in SIP than in a bank FD or other debt instruments. The mutual funds spread your money in different asset classes, making you reap the benefits of diversified investment. You can choose a date on which you want the MF to debit your account.

Therefore, immediately enrol yourself for SIP and remember that SIP is going to be the means to achieve your financial goals. If you are worried about picking a wrong plan, don’t worry and simply contact a professional expert who will guide you perfectly. Best time to start your SIP is now. Hurry! Remember you lose time, you lose money due to lack of compounding.

Why you know your risk appetite before investment?



Best investors spread their money into different baskets rather than investing all their money into one basket. Remember what our elders told us “don’t keep all your eggs in one basket”. That said, you need to remember that you are investing your hard-earned money in different asset classes. Thus, it becomes pivotal for you to identify your ideal risk profile to mitigate markets risks while deriving the most out of your portfolio. This becomes crucial because every individual possesses a different risk appetite.

The risk appetite that an investor possesses often decides the portfolio composition, asset weightage, investment efficiency, and potency of returns. An investor’s risk profile builds the all-important awareness of the overall risk appetite with regards to key capital investment decisions while determining the investor’s natural risk taking propensity based on current financial position. As an investor, it is very crucial for you to note that the returns on your investment are directly proportional to the risk you are willing to take to achieve those returns. Thus, higher returns would involve higher risks and vice versa.

The two major factors that become vital here are your desire levels in terms of returns and your capacity to take risks to get those returns from your investments. This build relevance for Risk Profiling, which tells you whether you are a very aggressive, aggressive, moderate, or conservative investor. Very Aggressive profile suggests that as an investor, you are more willing to take higher risks to derive higher returns. Aggressive profile indicates that you are willing to take higher risks to derive higher returns, but within an acceptable limit. Moderate profile indicates that you are only willing to take moderate risk and are happy getting medium returns from your portfolio. Conservative profile suggests that as an investor, you do not want to take any kind of high or moderate risk and are very happy with lower but steady returns.

How does risk profiling help in terms of planning your portfolio?
• Very Aggressive profile – Equity heavy portfolio (around 75%) with least debt exposure
• Aggressive profile – Higher Equity exposure (around 65%) with normal debt exposure
• Moderate profile – Equally balanced debt-equity portfolio (around 50% each)
• Conservative profile – Least equity exposure (around 30%) with highest Debt exposure

Once you know your profile, you will in the best position to work out an ideal asset allocation strategy based on your risk profile across different asset classes such as Equity, Debt, Gold, and Cash. You can start aligning your portfolio allocation based on your risk profile. For instance, if you are an aggressive investor, you can go equity-heavy by investing a major chunk of your savings in equity instruments such as stocks, IPO, MF SIPs, NFOs, OFS, and Corporate FDs. You can park rest of your allocated savings in debt instruments such as bonds, debentures, and NCDs. Thus, the returns that you would derive from your portfolio will be in sync with your expectations and risk propensity. Risk profiling would help you build an efficient portfolio, which not only maximizes your returns, but also mitigates your risks largely while making you enjoy a customized investment experience that matches your financial goals and income.

Happy investing!

Investment Strategies For the Meek, Mild and Aggressive

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 per cent 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 favourite 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 rumours 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 favour 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 unfavourable 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.

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 23.20% 31-Dec-12





NIFTY 100 26.90% 31-Dec-12













Aggressive Portfolio
Sr. No. Scrip Name Sector Weight Basket Qty Price as on 31 Mar. 2017 Total Value Return
% Return Wt. Return
1 Tata Motors Ltd Automobile 10.61% 2.00 458.90 917.80 1% 0.11%
2 ICICI Bank Banking 9.16% 3.00 278.50 835.50 12% 2.72%
3 LIC Housing Finance Ltd NBFC 6.13% 2.00 668.90 1337.80 87% 9.28%
4 VEDL Diversified 2.61% 4.00 243.55 974.20 48% 1.64%
5 State Bank of India Banking 1.60% 3.00 289.75 869.25 22% 2.25%
6 ONGC Ltd Oil & Gas 4.69% 3.00 186.55 559.65 -34% -2.04%
7 Aditya Birla Nuvo Ltd Diversified 12.34% 2.00 1,660.00 3320.00 87% 10.68%
8 Adani Ports Port & Logistics 3.02% 3.00 327.70 983.10 24% 0.77%
9 BHEL Capital Goods 2.06% 4.00 175.70 702.80 13% 0.24%
10 Tata Steel Ltd Metals & Mining 5.71% 2.00 449.25 898.50 27% 2.77%
11 Sun Pharmaceuticals Inds. Ltd Pharmaceuticals 9.40% 1.00 641.95 641.95 -4% -0.49%
EXIT Return from Exited Stocks





18.91%

Total
100.00%

12040.55
48.36%










Benchmark Return From





NIFTY 200 29.40% 16-Dec-13













Moderate Portfolio
Sr. No. Scrip Name Sector Weight Basket Qty Price as on 31 Mar. 2017 Total Value Return
% Return Wt. Return
1 HDFC Bank Banking 10.39% 1.00 1,546.50 1546.50 67% 5.85%
2 M&M Financial Services Ltd NBFC 4.68% 2.00 337.20 674.40 23% 1.34%
3 VEDL Diversified 2.71% 5.00 243.55 1217.75 43% 2.26%
4 Ambuja Cement Ltd Cement 3.90% 3.00 245.90 737.70 31% 1.23%
5 ITC Ltd FMCG 6.44% 2.00 278.00 556.00 -12% -0.76%
6 Infosys Ltd IT services 2.30% 1.00 918.95 918.95 -14% -0.27%
7 Zee Entertainment Ent. Ltd Media 6.49% 2.00 526.85 1053.70 53% 3.55%
8 Hindalco Inds. Ltd Metals & Mining 3.10% 3.00 199.35 598.05 59% 2.89%
9 Reliance Inds. Ltd Oil & Gas 9.52% 1.00 1,395.20 1395.20 50% 4.30%
10 Biocon Ltd Pharmaceuticals 9.66% 2.00 1,103.70 2207.40 116% 8.33%
11 Bharti Airtel Ltd Telecom 7.89% 2.00 355.50 711.00 7% 0.44%
EXIT Return from Exited Stocks





22.08%

Total
100.00%

11616.65
52.74%










Benchmark Return From





NIFTY 200 29.40% 16-Dec-13













Defensive Portfolio
Sr. No. Scrip Name Sector Weight Basket Qty Price as on 31 Mar. 2017 Total Value Return
% Return Wt. Return
1 Glenmark Pharma Pharmaceuticals 3.59% 1.00 894.95 894.95 0% 0.01%
2 HDFC Bank Banking 9.23% 1.00 1,546.50 1546.50 67% 5.20%
3 Cummins India Ltd Capital Goods 6.63% 1.00 997.00 997.00 37% 1.98%
4 Dabur India Ltd FMCG 5.84% 2.00 286.75 573.50 30% 1.34%
5 Tech Mahindra IT services 2.43% 1.00 416.95 416.95 -22% -0.52%
6 TCS Ltd IT services 20.51% 1.00 2,273.15 2273.15 1% 0.11%
7 Hind. Unilever FMCG 3.44% 1.00 934.95 934.95 9% 0.24%
8 Coal India Mining 1.20% 2.00 276.65 553.30 -11% -0.11%
9 Lupin Ltd Pharmaceuticals 12.08% 1.00 1,338.35 1338.35 1% 0.06%
10 Pidilite Ind Specialty Chemicals 1.30% 1.00 719.80 719.80 7% 0.07%
EXIT Return from Exited Stocks





28.48%

Total
100.00%

10248.45
38.35%










Benchmark Return From





NIFTY Midcap 40.00% 16-Dec-13













Mid Cap Portfolio
Sr. No. Scrip Name Sector Weight Basket Qty Price as on 31 Mar. 2017 Total Value Return
% Return Wt. Return
1 Motherson Sumi Systems Ltd Auto Ancillaries 8.10% 3.00 401.25 1203.75 128% 16.37%
2 Kalpataru Power Power Transmission 4.24% 3.00 352.20 1056.60 45% 1.65%
3 Va Tech Wabag Ltd Capital Goods 17.10% 2.00 672.60 1345.20 40% 5.01%
4 PFS NBFC 2.81% 15.00 46.15 692.25 16% 0.51%
5 Gateway Distriparks Logistic 4.67% 2.00 266.50 533.00 -13% -0.48%
6 Aia Engineering Ltd Capital Goods 9.41% 1.00 1,507.00 1507.00 42% 1.10%
7 Apollo Tyre Auto Ancillaries 3.54% 4.00 244.00 976.00 38% 1.55%
8 Camlin Fine Chemical 1.68% 6.00 91.90 551.40 -9% -0.15%
9 JK Cement Ltd Cement 6.70% 1.00 974.75 974.75 84% 5.67%
10 DHFL NBFC 5.26% 4.00 426.75 1707.00 76% 7.17%
11 Majesco Ltd* IT 5.06% 2.00 360.10 720.20 -10% -0.87%
12 Return from Exited Stocks





14.85%

Total
100.00%

11267.15
53.89%

 

 

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