Comments on Shyam's Column: The safe way to invest in the stock market

Harish - must be. talk to your customer service re...

2009-04-21T17:38:35.003+05:30

Harish - must be. talk to your customer service rep.

Dear Shyam Can NIFTY BEES be purchased or sold if...

2009-04-19T17:22:04.703+05:30

Dear Shyam

Can NIFTY BEES be purchased or sold if one has a trading account with say HDFC securities?

Best regards
Harish Jaisingh

Saravanan, I agree there are some mutual funds tha...

2009-01-28T15:33:09.774+05:30

Saravanan, I agree there are some mutual funds that have performed well over the long term - better than NIFTY. But the problem is that part of this performance is attributable to fund managers who are likely to change. this could have an impact on performance. Secondly these days there is such a proliferation of funds, that you cannot really take a look at the "star rating" that is given based on recent performance and put your money in a scheme. e.g. Principal PNB had a fund that was a Super Star rated fund in the bull market upto Jan 2008. But due to their excessive exposure in mid-cap stocks, today they are in bottom quartile of performance having incurred deep losses (more than other funds or the NIFTY). So there could be a lot of variance in performance of the funds and one cannot really predict with 100% confidence that the fund will continue to outperform the market 5 yrs into the future. The NIFTY BEES relieves you from this uncertainity by cutting through the clutter & offering a single clear and simple alternative to reap modest but above average gains in the equity markets. Over the long term I think you'll be happy having reaped 600-700 basis points above fixed desposit returns, rather than shooting for 1000 basis points with a star mutual fund that may or may not pan out. NOTE: although the capital gain (after 1yr minimum holding period) at the time of selling your ETF investments such as NIFTY BEES is tax free, you do not qualify for tax deduction under 80c , for the invested amount. If you are seeking annual tax deduction on your invested amount, then you may have to choose a qualified ELSS mutual fund anyway.

Hello sir,Your Columns are very much useful to me....

2009-01-27T15:03:03.678+05:30

Hello sir,

Your Columns are very much useful to me. I have a question to ask you. You recommend to invest in 'NiftyBeES'. But, other mutual funds have shown a better performance than Nifty over the years. So, I am not clear whether investing in NiftyBeEs is better than a star rated Mutual fund.

Please clarify.

Regards,

T G Saravanan
saravanan_t_g_s@yahoo.com

Why you have not quoted about Gold ETFs?> This pie...

2008-12-31T14:55:29.520+05:30

Why you have not quoted about Gold ETFs?

> This piece is an extension of the previous article and the scope was restricted to investing in the "stock market"

> I believe that the safety of your investment in ANY ASSET is determined by the PRICE you pay for acquiring that asset - Although Gold may be a known as a capital protector, 2 reasons why I would not invest in 'gold' today:

1. If you look at the last 20 yr data, gold prices peak when the stock prices hit bottom. Long term (10+yrs)Average returns from equity markets> returns from Gold.

2. The rush to safety - from stocks, has created a craze for 'gold' which has basically lead to run-up in gold prices.

Although 'Gold' is still a 'valuable' commodity, by paying extraordinary price to buy it - investors are setting themselves up for failure again.

check out this link: 'Swiss mines can't make enough Gold to satiate the surge in demand'
http://www.reuters.com/article/companyNewsAndPR/idUSLI46181820081217

Investors have rarely made MONEY by buying 'something' that's engulfed in euphoria. Too much euphoria leads to a 'bubble' & a bubble to a 'burst'

Why you have mentioned only Benchmark Nifty Index Funds?

> The Benchmark Nifty has the lowest tracking error (i.e. deviation from the actual Nifty Index) and also the lowest fee.

Check this link for a comparison of all Index Funds:

http://ajayshahblog.blogspot.com/2008/08/choosing-nifty-index-fund.html#links

Hi Shyam,That's a good one!! It would definitely h...

2008-12-31T12:40:53.275+05:30

Hi Shyam,

That's a good one!! It would definitely help the investors. But, i have couple of questions. Why you have not quoted about Gold ETFs. In today's market tatz the one which give hedging over the inflation. Why you have mentioned only Benchmark Nifty Index Funds. There are Nifty funds availale from peers like UTI, Tata, HDFC etc.,