STEP Strategy:

• Logic:
• Many investors would like HOLDING certain companies for LONG period– be it for various reasons like high dividend yield, promotes background or rich corporate benefits like bonuses. No doubt, LONG TERM WEALTH CREATION is purely due to holding the right share for long period.
• For instance an investment of Rs.10000 in pharma company CIPLA in 1979 got allotted 100 shares of FV 100. But after series of bonuses and stock splits this 100 shares has multiplied to 36,00,000 shares ( Yes, Thirty Six Lakh Shares !) of Rs.10 Face Value (FV) over a period of 31 years. And its current market price is Rs.142 Crores !!! Beyond the market value, the dividend received on these shares per annum itself is a whooping Rs.72 Lakhs!
• For better understanding, Rs.10,000 invested over 31 years at 15% compounded returns would have resulted in just Rs.7,61,435 – without any interest payments.
• We typically keep watch on the stock which you wish to accumulate and keep advising for investing as the price goes down. Since it is for long term investment, we donot recommend or advise you on selling.

• Advantages of STEP:
• It is logical to invest more in your favorite stock when the price is low and hold them for long term.
• If this STEP strategy is applied on good corporate benefit giving stock like CIPLA etc, then the investment has Triple benefit of Capital appreciation, stock multiplication and dividend yield.
• Someone needs to keep track of the stock which you wish to accumulate. At EASY Investments, we keep track of it and keep you informed only when the price comes down. Though this may sound simple, keeping track - that too on a daily basis and communicating to you only when the price goes down is a manpower consuming job.

Suited for:

• Investors who have intention to invest as and when the stock price comes down.
• Investors who have understood the stock fully and are willing to reap the benefits of long term investing.
• Long Term investing means - not selling or booking profit in short term. One must be willing to hold the investment for life time or atlest more than 10 Years. Hence any one with investment horizon of more than 10 years only need to consider this option.
• Moreover Investor needs to be aware that his investment would get blocked, since it is not a churning portfolio.
• Investment commitment would depend upon the degree to which the stock price falls. If the fall is more, then more investments need to be made.
• AIP strategy can be used for both shares and Mutual Funds.
• STEP Strategy could be part of anyones core portfolio building process.