Sunday, December 2, 2012

VIP Strategy - For investing in Volatile Market:

    • Logic:
      • Markets are unpredictable and volatile. For those investors who are often caught in a dilemma of weather to invest now or wait, VIP is the best investment strategy.
      • Typically VIP invests MORE when price is low and invest LESS when price is high and not invest at all when price is too high.
      • By adopting a calculated approach, you would be able to make the desired investments.
      • VIP theory was originally formulated at Havard University as “Safe and Easy Strategy for Higher Investment Returns”.

    • Advantage of VIP:
      • So far investors knew that they need to invest when price falls. But they did not have a tool to calculate how much to invest at various price. Hence they were investing ‘FLAT’ amount so far through concepts like SIP.
      • For the first time, we have this tool called VIP which precisely calculates the EXACT amount to invest as the specific price.
      • The out performance of VIP over other investment strategy is amazing. For an investment made since Jan 2011 an one time investment in a bluechip fund would have delivered a doubt digit negative return. Where as VIP Investments delivered double digit positive returns in the same period.
      • Being engineered at EASY Investments, we have systems in place to track the market and maximize the investment returns through VIP. We have been practising VIP since 2009.

    • Suited for :
      • Anyone who has an investment horizon of three years+.
      • Though profit can be booked when the desired growth has happened, ideally VIP should be used to create a good long term portfolio. It does not make sense to cut a tree which you have grown another plant in the same place.
      • A Basic model of VIP would require Rs.3.5 Lakhs and an inflation adjusted VIP would require 5 Lakhs.


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