Month of December and Markets

December has been a month when foreign investors pull out money to adjust their profit and loss account for their yearly closures. This obviously brings Sensex down.

Also December is the month when most of us have to start declaring our actual tax savings under 80C. So I see a good opportunity to cash in falling markets to meet this declaration burden. Gear up if you have lost the best opportunity to invest during august-September and want to join the Indian Sensex bandwagon now.

The instrument that I’m suggesting here is ELSS (Equity linked savings scheme) scheme of mutual funds. Though there are many investment products that are eligible for tax deductions under 80C, ELSS gives you the opportunity to earn maximum return and has the shortest lock-in period of 3 years amongst all such investment options. However, it comes with an inherit risk of investing in equity markets.

There are several ELSS funds available. Following two are recommended:
1. SBI magnum Tax Gain Scheme
2. HDFC Tax-Saver
These schemes come with different flavors like dividend, growth, dividend reinvestments. I would recommend growth scheme as it takes care of our long term wealth building plan.

Now the main point: How to utilize the December factors if you have missed to log on through Systematic investment plan?

Markets will remain hugely volatile in the month of December fluctuating between 17500 (most pessimistic) – 20500 (most optimistic). I recommend you to follow the steps below:

1. Set aside the sum you want to invest in ELSS
2. Divide it in 3 chunks
3. Invest first chunk when market closes below 19000
4. Invest second when market goes down and closes below 18400.
5. Now wait for the third chunk to be invested around last week of December at whatever level the market is.

You will have to be really swift and track the market closing on a day-to-day basis. This strategy might give you little more return than putting whole of your money at once. Also it would need you to online trading account. If you don’t have it then get in touch with someone of these banks and invest your whole sum at around 18.5K level at once.

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Regular Stock ideas: Buy DLF at around 850-875, Reliance at current level and on dips

If only!

excerpts from the play... "If only the dream had been true it would have been a motivating and energetic world. It is one thing to say that all that happens is for good and it is quite different to experience it. It does not die down so easily. Dreams shattered leads to a complete disillusionment… to re-shape the dreams is no mean task. When things are lost which you aspired for all your life, the world comes to an end. The base to build your life is lost and future looks bleak. You need complete disconnect which again leads to more pain."

Life o life… why are so as you are!

Wo.. ho… every time I open my gmail these days, I get a marriage invitation from one of my friend. I’m not exaggerating… even I’m surprised by the pace. Though I would like to attend all, it becomes impossible given the time pressure and cost involved. But good… I bless them all with whatever capability I have.

I want to make it big one day… big in what field in still not decided :). I’m sure with the company I’ve, it will not be a big wait. Hmmm…. If only I had more guts!

Wokay… enough confusing you my blog… stay cosy!

PS: My hand is better and i guess putting a brace was not a wise decision. Doctors got to be more intuitive than mechanical.