Latest Development in Investing : Automating your Investments

Earlier when you invest, you wait for markets to fall and then buy. Similarly when you want to sell, you wait for a suitable price appreciation and then sell. Sometimes you may miss out the buying opportunity ( when markets fall ) and miss out the selling opportunity ( when markets rally ).

Now we have a solution to take care of these:

Stock Market investors ( directly in equity markets ) have not other option but to follow a disciplined strategy by themselves. But Mutual funds have over come these shortfalls by ‘AUTOMATING’ your investment plans.

• Assuming that sensex now is 12000, Now you can park your funds in Bank FD Mutual funds (that earns 7% interest). This investment doesnot have any lockin period and is ready to be invested into equity at your call.
• You can issue a “STANDING INSTRUCTION” instructing the mutual fund company to invest at 10000 or at 8000 or at both these levels. The purchase will automatically be effected when market falls.
• If market does not fall, then the bank FD remains and you earn your 7%.
• Similarly you can give selling instruction at 30% appreciation or at 50% appreciation. When markets rally, the selling is also executed automatically.
• Hence you would not miss out buying or selling opportunity. You need not keep on watching on a day to day basis to execute your buy or sell transactions. It is being taken care off automatically.
  
  We opine, this flexible, sensible feature would be of great help to investors to realize their profits and not get carried away by market fantasies.

Though this concept of trigger varies slightly, following are the list of Fund Houses that offer Trigger:

• HDFC
• ICICI Prudential
• IDFC ( discussed above )
• Reliance
• Templeton.

Probably from now on investors need to essentially add these trigger options to their existing / new investments. Contact our office executives for better clarity on this product and assistance in including the same in your investments.