HOW MIDCAP MUTUAL FUNDS BENEFICIAL TO INVEST..!

Among various category of equity Mutual fund, Mid-cap funds have their different charm of all. Mid-cap and Small-cap fund category is possibly the most exciting fund. These categories of funds have almost 60% of the asset in Mid-cap companies over the past 3years. 

Mid-cap fund is able to deliver very high return when markets are doing well. The return can be above the average return. This drastic return is what makes investor to go for this fund. But on the other hand these funds have a huge volatility when market going from a bad phase. Sometimes the difference in the fall and rise price can be very high which makes investor fail to resist on switching. But as often said market is volatile it can be good or bad. So holding the fund for longer time will give you a best out of it.

So going for the Small-cap or Mid-cap can be rewarding for your portfolio considering the returns they deliver. However, during the tank period these are the most beaten once but during the rally they fetch maximum returns so the higher the risk the bigger the reward!

Canara Bank Rebeco Emerging Equities:

Canara Rebeco Emerging Equities is the best amongst the small cap & mid cap category and it is ranked 2^nd by CRISIL. It aims to generate long term capital appreciation through investing in diversifies mid-cap stocks which have higher probability to turn into bigger corporate in the coming future.

Portfolio Analysis: As per the sectorial holdings Banking & Finance have been most favored sector for this fund as it is contributing 12.44% to the entire portfolio followed by Automotive Sector. Top Holdings and Sector Allocation for this fund are shown below.

Top 5 Holdings:

Risk Profile: The risk associated with this fund is too high because the total investment is focused on the stocks from small caps and midcaps sector. During the corrective phase or bad times this scripts do not have any lower limits to fall which can turn into capital loss. However every coin has 2 sides as these small size companies have potential to turn large which once happens can add bumper returns to your corpus. It is suitable to investors having high risk bearing ability within the age of 20-40 years.

Technical Perspective: The Daily chart of Canara Rebeco Emerging Equities shows that wave 2 looks to be complete at the recent lows of 64 levels near the channel support and now wave 3 is in course. Also 50 days EMA is providing important support near 97 levels. one can use this level as support to capture the upmove.

Investment perspective: This fund has maximum exposure to equity and as per our outlook on Indian Equity markets medium term outlook is positive. Parking through SIP route is the best option as of now.

Invest NOW in Canara Rebeco emerging Equities Fund online – Click here

CONFUSED BETWEEN GROWTH FUND AND BALANCED FUND. GET YOUR ANSWER HERE……

Growth fund and balance fund are 2 different schemes in Mutual fund sector. Both the schemes have different characteristic but are good investment option for the investors. In order to know which scheme one should choose it is necessary to understand both the scheme.

Both the Growth and Balance fund follows asset allocation approach i.e the fund manager who manages this funds invest in both equity and debt. However in growth fund large proportion of investment is made in equity, while in balance fund normally 60% of investment is made in equity and rest 40% in debt sector. However this proportion can change which depends on market condition. As in growth large amount of money is invested in equity it becomes more risky than balance fund.

There is a myth among the people of “Higher the risk, Higher the return” although this myth is busted by balance fund as in past some balance fund have given better returns than growth fund and has been able to provide high return by taking moderate risk.

So the question arises is in which fund one should invest in???

In order to get the answer one should know what is his/her risk appetite, goals, time horizon and other factors that affects investment discussion of an individual.

If a person can take high risk and wants to achieve his goals in short term period it is advisable to invest in Growth fund as this fund mainly invest in equity it as the potential to provide good return within short period of time along with high risk. However is a person what to take moderate risk and wants to achieve his investment goals in a long run then in such case it is advisable to invest in balance fund.

Both growth and balance fund is a good investment option one can start an SIP in both the fund and can gain good return. Also it is advisable to stay invested for long period say 5-7 year in order to generate good return from the investment.

So start your investments right here and get expert advisory based on your risk ratio appropriate for your portfolio. Click HERE

Why investors should continue investing in SIPs even in a bear market

A standard pitch from investment experts and mutual fund managers is – invest through systematic investment plans (SIPs) in diversified equity funds to create a retirement corpus. The popularity of SIPs or Systematic Investment Plans has gone up in the last couple of years. The recent fall in the equity markets has seen some investors getting negative returns on the SIPs. This raises the question as to whether SIP should be discontinued during bear phases of the markets.

The philosophy behind starting a SIP with an equity scheme is to go on investing regardless of the market conditions. Investors should not stop it in downturns, but should keep the SIP running for a longer period. Otherwise, they will lose out on the chance to make money in the long term. Here’s why:

• Rupee cost averaging: The concept of rupee cost averaging lies in averaging out the cost at which you buy units of a mutual fund. The equity markets have always been volatile reflecting the ups and downs of the economy.Rupee cost averaging is an approach in which you invest a fixed amount of money at regular intervals. This in turn ensures that you buy more shares of an investment when prices are low and less when they are high.. However, this mechanism doesn’t guarantee a profit or eliminate risk, and it won’t protect you from a loss if you sell shares at a market low. Before adopting this strategy, you should consider your ability to continue investing through periods of low price levels.
• Power of compounding: .Compounding means that the money you make off an investment can be reinvested to make even more money than your initial investment.. Essentially, compounding is the process of earning income on your principal investment plus the income earned – the income also starts to earn as the same is reinvested.

In conclusion, investors shouldn’t worry about stopping SIPs when the market is declining. In fact, that is the period when an investor can accumulate more units at a cheaper cost and then benefit from the eventual up move in the markets. SIPs are done by investors to meet long-term goals and should be done for at least 5-10 years. They should not be worried about near-term volatilities or small negative returns in the near-term. Corrections are the best time to accumulate maximum numbers of units for the future. In fact investors can use this opportunity to increase SIP amount by using a top-up facility provided by the fund house.Invest NOW

If you have any query on Systematic Investment plan in mutual funds, do ask us on +91 9920922639 Click here

WHY YOU SHOULD START INVESTING EARLY?

One of the most important factors to consider while drawing a financial plan is fixing the time period, especially if you are a beginner. The thumb rule is, the earlier you start, the greater the chance of achieving your financial goals. Having the advantage to grow your investments over time, and putting your investments to work for you, will help you live the life you ultimately want to.

It is time tested that if one starts investing early, the percentage of building the corpus for one’s desired future financial goals is higher as compared to those who start very late in their life.

Investing according to financial goals.

Identify and prioritise goals:

The first step in goal based investing is identifying and prioritising goals by segregating them into needs and wants – needs are essentials and hence get precedence over wants, which are desires and aspirations. Once decided, align your needs/wants to the time horizon.​

Explore the systematic method of investing in mutual funds​

​​Investors can also benefit from the systematic plans offered by the mutual funds. For instance, a systematic-investment plan (SIP) is used for wealth accumulation. A systematic-transfer plan (STP) helps in transferring wealth from one asset to another, in safeguarding the portfolio against volatility, and in adapting to the changing risk appetite with age and increase in responsibilities. Lastly, a systematic-withdrawal plan (SWP) is useful in deriving a regular income from the created wealth created.​​​​

Power of Compounding

Young investors have an advantage in investing since the longer you stay in the market, the less risky your investment becomes and the more corpus you can generate over a period of time. This happens because of the compounding effect and the rupee cost averaging benefit you get over a long term.

Once you are done with prioritizing your financial goals of life, quantify them, that how much amount you may need to achieve those goals and based on that choose mutual fund schemes. So give wings to your dreams and start investing in something each month to achieve your goals without any burden of heavy debt on your shoulder.

Investing at any age isn’t easy, but waiting to invest for when it’s convenient isn’t the best approach (because it’s never going to be easy). Don’t fall into the I-need-a-lump-sum-of-cash-to-start-investing trap start small, with whatever you can afford to invest today because it’s most likely going to be worth more tomorrow.

Keep in mind, the market goes up and down, much like our emotions, and that means sometimes your investments will fail. Still, in the long term, investing early and giving your investments time to mature will help you come out ahead.

Finally, you don’t have to be an expert to invest. Find yourself a traditional advisor like us who will do the legwork and guide you in the right direction. 

Invest NOW – Click here

How to create Investment portfolio using Mutual Funds?

I believe innovation is the key to success even in Financial and Investment domain. I thoroughly believe in application of Elliott wave that can be extended to NAV of Mutual funds as well. It provides vital information on maturity of the trend and one can accordingly make investment decision.

Following is UTI equity fund research shown on 7^th December 2016 in our Mutual fund research report by Waves Strategy Advisors

UTI Equity Fund Growth Weekly Chart (shown on 7^th December 2016)

 

UTI Equity Fund: Happened

 

Technical Perspective – Anticipated on 7^th December 2016

The Weekly Chart for UTI Equity Fund Growth shows that post retracing 38.2% of the previous up move prices bounced sharply and now it has managed to take out the previous peak high which suggests that probably a complex correction pattern is in formation and currently wave y of the same is ongoing. Once wave y completes its course the corrective leg in the form of wave 2 will end and then the bull trend should resume in this fund. Move above 114 will suggest about the completion of the same.

Happened: The NAV of the fund increased drastically and moved exactly as expected. This simply shows how one can use Elliott wave to predict the path ahead even on Mutual Funds!

Invest NOW in UTI Equity Fund Equities Fund online – Click here

We can help you in creating your portfolio of Mutual Funds. I think it is best to diversify and not only park money in stocks alone. By diversifying it across different Mutual Funds one can create a sustainable financial model with prudent mixture of both stocks portfolio and MFs. Invest in Mutual funds through us and we can assist in providing multibagger research from our research associate – Waves Strategy Advisors to create a holistic portfolio. Invest here

Nifty: Revisiting Hurst’s Time cycles with Neo wave! Why basic technicals are equally important?- By Ashish Kyal of Waves Strategy

Time cycles are different study within Technical analysis that helps to understand the overall maturity of trend along with key reversal days. It focuses on timing the market can also be used for price projections.

Like any other indicators we use Time cycles as a secondary confirmation to prices. The reason being Time is a challenging element and is more accurate capturing lows rather than tops. Nevertheless, it still gives us some sense of indication if we are within the topping zone. 

For price forecasting we rely largely on Neo wave concepts – Advanced Elliott wave. If the pattern under formation is clear then it is thrilling experience to see each and every movement as per the assumed pattern. The challenge arises when prices start deviating from the assumed pattern hinting that some other structure is probably forming. It is during this time we have to fall back upon the classical technical analysis methods and trend following systems like Bar techniques, RSI and Moving averages.

Now look at below chart for understanding Time cycles:

Nifty Neo wave plot:

 

The first chart shows bottoming Hurst’s Time cycles. This cycle has worked very well capturing important lows. We try to use this cycle to look at the tops occasionally but unless there is price confirmation capturing a top in a trending market can be tricky. Nevertheless, cycles normally enters into topping zone in their second half. This cycle has now entered into its second half zone so we are not complacent like majority but alert. This does not mean one should go on shorting the market but it is just helping us to stay aware so that there are no negative surprises.

Neo wave plot: Now this is important chart shown above which is plotted as per Neo wave. Please note the time scale is missing because the plot is different than normal Line charts or Bar charts. The internal counts are marked on this chart with Diametric pattern followed by wave x then a Zigzag again wave x (refer Fractal Nature for wave x) and now again a Diametric pattern is assumed. In case prices start deviating from the expected outcome we will then have to look at other possible patterns but until then we will assume this is the structure under formation. Also these counts are in sync with the Time cycles shown above.

Price and Time confirmation is the key to trading success! Majority of the traders try to pre-empt the moves even before confirmation and then they point towards inefficiency of the theory. Please understand when the structure is unfolding we are assuming and identifying it with a pattern that looks probable. Therefore we have to wait for break of support or resistance levels along with Moving averages and Bar techniques before finally pulling the trigger on the short or long side. Detailed discussion on key reversal areas with levels that will determine the medium term trend are mentioned in our daily research report – The Financial Waves short term update

Training on Gann / Hurst’s Time cycles, Neo wave combined with basic Technical analysis – Attend the two days workshop on 18^th and 19^th March 2017 that will focus on how to derive trades based on above techniques. This training will initiate you towards different aspects of Technical analysis methods along with practical charts across time frames. Post the training get access to Free research reports to ensure the learning is ongoing with ability to share across charts on our Discussion forum and closed groups. Limited seats left.. This can be one of the most prudent investments! Enroll for Most Advanced Technical analysis training.

Indian Equity markets path ahead, Deteriorating breadth a concern!

Indian Equity markets path ahead, Deteriorating breadth a concern!

 

The below is English Transcript of the interview published in Economic Times of Navbharat Times by Ashish Kyal, CMT

Indian Equity markets have continued to rise after it formed an important low on the Union Budget held in February 2016. Sensex touched the low of 22494 on 29^th February 2016 post which the entire trend reversed sharply higher. We have seen a rise of nearly 30% in less than 7 months providing promising returns to investors. Sensex closed the previous week at 28800 levels. 

Midcap and Smallcap indices have been a strong outperformer in the entire uptrend. A few stocks have reached very expensive valuations and therefore stock selection is going to be very important both for traders and investors.

Deteriorating breadth: A concerning sign during this entire rally that started in early 2016 is that the Advance decline line has been moving lower. This simple indicator measures if there are more number of advancing stocks than declining. A falling line indicates that during the rise there have been lesser number of stocks that are moving higher and more number of stocks that are falling. During such times one should be cautious and invest only in those stocks that have lower Price to Earnings multiple and good growth potential.

Technical perspective: One of the basic methods that investors can use to understand the trend is to see the low of previous month. As long as prices do not break previous month’s low trend will remain positive. The low of prior month on Sensex is now near 27600. In the entire rise of 2016 we have not see a single negative monthly close. So investor can follow this simple method to stay in the trend.

Sector performance: Banking, Infra and Auto had been the strong sectors that helped Sensex touch 17 months high whereas defensive sectors like IT and Pharma had been the major laggards. From long term perspective we can expect Consumer discretionary, Automobile sector to outperform given the fact that increase in disposable income along with falling interest rates will result into consumer spending.

Outlook on Gold: Gold had shown strong rise in 2016 so far. Prices rose from near 25000 levels and moved towards 32000 few weeks back. Gold can continue to see stable rise for the rest of the year with important support coming near the zone of 30,000. As long as Gold manages to sustain above this level we can expect uptrend to continue. 

Week Ahead: Sensex can show some consolidation or range bound action in coming week within the zone of 29200 on upside and support near 28400 levels. Decisive break above the level of 29200 will take Indian markets towards new highs. Traders and investors should use proper stoploss levels and evaluate risk reward ratio before investing as volatility can increase going forward! 

For detailed research and advisory on Stock and Nifty, please visit www.wavesstrategy.com or Contact Us Here

TRAINING ON ELLIOTT WAVE, NEO WAVE AND HURSTS TIME CYCLES FOR STOCK SELECTION, PRACTICAL EXAMPLES AND TRADE SETUPS – BY ASHISH KYAL OF WAVES STRATEGY

Elliott Wave, Neo Wave and Time Cycles are one of the most advanced concepts of technical analysis.

Many believe that keeping it simple is the key to trading success which is probably true but we think it applies from Risk management and money management perspective. However, with respect to timing the market and knowing when to enter the trade, simple strategy no longer gives the desired outcome given that Indian equity markets are moving in complex formations. To cater to the changing market environment it is prudent to apply the best of the tools available to increase trading success.

Time is the essence for everything. It is applicable not only to our day to day life but for freely traded markets as well. A good trade setup if not timed properly can still result into a serious loss. There are very few technical analysis studies that focus on Time since most of the techniques are driven by Price alone!

The course is designed to aim at the following aspects of trading:
1. Best Trade setups to enter the market
2. How to make the most of the position by timing the exit
3. Know when not to trade – A key to trading success
4. Applying other techniques along with Elliott wave for high conviction trade setups
5. Time cycles – A very important element to help reduce the number of probable scenarios to nearly one!
6. How to keep the profits intact after a winning streak…

Ashish Kyal, CMT will be conducting Most Advanced Technical Analysis Training – Neo wave and Time Cycles in Mumbai on 23rd-24th July 2016.

Ashish Kyal declared winner on ET NOW- Buy Now Sell Now. The training will also focus on the techniques he followed during the ET Trade show to generate exceptional returns in just a week’s time.

The stock selection based on Neo wave and Elliott wave techniques helped to deliver exceptional return of 9.11% in just over a week.

Ashish carries vast experience of analyzing World Equity, Currency and Commodity markets using techniques like Elliott Waves, Neo wave, Time Cycles, and momentum tools. He is a frequent speaker on business channels like ET Now, Zee Business, CNBC TV18, Bloomberg TV.

Ashish also speaks at financial seminars like Market Technicians Association (MTA – USA), Association of Technical Market Analysts (ATMA), National Institute of Bank Management (NIBM), Sydenham Management College. He is on the selection panel of GDPI for premiere B- Schools and invited by Somaiya Institute of Management Studies and Research to speak on Entrepreneurship. He has also been invited as a guest speaker at National Stock Exchange of India (NSE) for the Post Graduate Certificate Program in Financial Economics.

Training Details:

This training would cover Advanced Technical Analysis Concepts – Elliott Wave, Neo Wave and Time Cycles. Practical application of these advanced tools on Equity, Commodity, Forex and Global Markets.

Contents:
1. Overview of Elliott Wave
2. Neo Wave
3. Two stage confirmations
4. Diametric Pattern
5. Newly discovered patterns
6. Different Rules and guidelines
7. Cycle Analysis: Time the market with accuracy using Time cycles
8. Trade setups, Application of the concepts on charts
9. Momentum Stock selection for Intraday trades with exit strategies

SCOPE
The training is ideal for those who want to analyze and understand Equity / Commodity / Forex markets in detail. Traders or investors who want to learn on how to build their investment portfolios or do trading for living. The course is designed for anyone and everyone keen to learn systematic way of trading using scientific approach. The only pre-requisite is passion for learning objective method of trading.

WHO SHOULD ATTEND?
§ Members of Equity, Commodity, Currency exchanges
§ Brokers / Traders / Dealers
§ Research analysts in Equity, Commodity and Currency markets
§ Students who aspire to pursue career in Financial Markets
§ Treasury dealers of Banks and Corporate

Where and when is the course?
The training is at Hotel Grand Sarovar Premiere, Goregoan, Mumbai. This belongs to 5 star category having chain of international hotels and the fees are including Tea / Coffee and Lunch.

Dates: 23rd and 24th July 2016
Training Duration: 16 hours (8 hours per day)

Registration Fee:
The charges for the Training are Rs. 23000 + 15% Service tax. Register before 15th June 2016 to avail Early Bird Offer and confirm your seat today!
If registered after 15th June 2016 charges would be Rs. 26000 +15% Service Tax

Registration is on first come first basis as there are limited seats.
Refer a friend and get 10% discount

After the course :
1. One Month of free Nifty Neo wave research report to understand the practical application on realtime basis
2. Instant interaction on Discussion Forum at www.wavesstrategy.com
3. All participants will be entitled for 20% Discount on any of our research products after the course for 1 month subscription

How to Enroll?
To register for the training using either Credit Card or Netbanking visit http://www.wavesstrategy.com/Payment.aspx and mention Product as “Neo wave Training” and period as “1”
For any other details call us on +91 22 28831358 / +91 9920422202 or write to us at helpdesk@wavesstrategy.com