Sunday, December 2, 2012

"Trigger" Strategy:

    • Logic
      • It is usual for investors to make adhoc investment and book profit at later stage. But the problem is keeping watch of the portfolio and booking profits.
      • Though at the time of investment investors expect a basic minimum return, many of us turn greedy and stay invested hoping for huge returns. And ultimately when the market collapses, all the accumulated profit gets washed away and sometimes even we incur capital loss.
      • Hence we have a simple solution of fixing a trigger price / profit trigger percentage. Once the investment grows and hits this trigger, investments are redeemed either in part or in full as per the investors instruction and the profit gets credited to bank account.

    • Advantages of Trigger based investments:
      • Trigger can be set for both investing (switching into equity) and booking profit.
      • At the time of investment itself we set this trigger. Hence human emotions donot disturb while booking profit. It is the best way to realize profits – without watching it everyday.

    • Suited for :
      • Vast Majority of investors - who make adhoc, one time investments.
      • Investors who want to book partial profit can also consider these triggers.
      • At EASY Investments, we assist you in setting these triggers and encash your profits.

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