Mutual Funds!

Bonjour (Hello) Folks,

It’s been very long we haven’t come up with anything for you. But here we are today with some information that can help you in making investments and make sound decision while you do investments. We are soon going to come up with something special I would term it #StayTuned :)

Today we will put up some information on MUTUAL FUNDS:
Discussing each and every bit of this segment is difficult to cover in one blog, so we are just going to start with the basics for now:

What is a Mutual Fund?

When it comes to investments it’s very difficult for beginner’s to choose where to place in their hard earned money. So here you go buoy:

Mutual Fund is an Investment Fund which is professionally managed by Fund Managers who has an expertise in fields of Investments. So what they do is, they pool money from many investors and diversify such money into buying different securities and placing money in different asset classes.

Mutual Funds are a good to place one’s hard earned money as they will help you build an investment habit and culture in your daily lives wherein investors can start Systematic Investment Plan’s (SIP’s) with as low as Rs 500/- per month. So why not go ahead and start one TODAY!

So Why Mutual Funds:
- Start investing with as low as Rs. 500/- a month with expert guidance and advice
- Build wealth in long run through investment in SIP’s and achieve your goals through investments
- Help’s in diversification as rightly said “Don’t put all your eggs in one basket”
- Less hassle and convenience to invest sitting from home within minutes.
- Less paper and documentation work
- Mutual Funds are Transparent as Fund Managers provide complete information about where the money would be placed and current Net Asset Value (NAV) of the Fund
- That’s not the end boss! In Long run Mutual Funds beat inflation and can provide much higher returns

#Stay Tuned more information to come up on this topic. “Mutual Funds Investments are subject to market risk please read the offer/scheme document carefully before investing.”
How many of you even read this? :p


Start Investments,

Imbibe Investments


[Disclaimer - All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this blog and will also not be held liable for the information provided.]

Simplification of Trading through use of Technology... Internet Trading & Mobile Trading

Hello Imbiber’s,

We are back again and today we have something very interesting on how trading is simplified over the years through use of technology.

Traditionally dealing in shares was used to be through share certificates in which the seller used to sign at the back of the share certificates and give it to the buyer. The Share certificates have the name of the company its face value and No of shares mentioned over the share certificates and then there are some other details too. We have attached a picture to show you’ll how share certificates used to look like.

Infosys Share Certificate - Source: Google Images

Today all these share certificates are first De-materialised (DEMAT) which means these are converted to electronic form for easy transmission from one party (Buyer) to another party (Seller) through a depository participant (NSDL or CDSL).

In this modern era where we start our day with applications like Whatsapp, Facebook & Instagram, the investments and trading platforms too have developed over the years. We have Internet and Mobile based trading platforms which helps us to deal with ease in capital markets or in buying and selling of shares, debts, currencies etc.

So what’s Internet Trading? It’s simple, a trading platform provided by brokers to their traders or investors who can place the buy and sell order at a market price or limit the order at a specified price (limit Orders) over internet-based proprietary trading platforms through a computer.

The Investors or Traders are given a unique Trading id (like the way we have a login id for Gmail) and a password to login into the different platforms like I-Trading or Mobile Trading platform and then place their order. Today we don’t have to call our brokers, advisors or relationship managers to trade on our behalf and we can monitor our trades any-time from anywhere in the world.

So what’s Mobile Trading? Very similar to internet trading whereas it’s a mobile based application developed to carry out dealing/trading activities over internet through use of smart phones.  Most of the basic activities which can be carried out over Internet Trading via computers can also be done over smart phones through M-Trading (Mobile Trading) such as placing orders, modifying orders, cancelling orders and a lot more.

You would require a high speed internet to get accurate prices/quotes for shares and to place orders via Mobile or Internet Trading platforms.

Many brokers have videos over their websites to show how their I-Trading and M-Trading platforms can be used to place orders since every broker has its own application developed in-house and the look and feel is different from other brokerage house trading applications.

Do you have any questions on this do let us know and we will get back to you at our earliest.

Stay Invested,

Imbibe Investments

[Disclaimer - All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this blog and will also not be held liable for the information provided.]

How Ten Thousand rupees gets turned into Crores a perfect example !!

Hi Folks,

Just found this and felt worth sharing with all of you out there :)

How Rs 10,000 investment turned to more than 650 crores in three decades. The information provided below is only up to year 2010 and over the next 5 years the company still paid out dividends to its shareholders.

Mr. Mohammed Anwar Ahmed bought 100 shares of Wipro at a face value of Rs 100 in the year 1980 located at Amalner, Jalgaon district, Maharashtra. The place has its own story as Wipro’s first plant was setup in Jalgaon. 

Mr. Mohammed Anwar Ahmed had invested in 100 shares of Wipro at a face value of Rs.100 in 1980 and hence his initial investment was Rs.10,000 (100x100).

Let us now look how initial investment of Rs.10,000 was turned into a massive amount of more than 650 crores over the decades:

In 1981, the company declared a 1:1 bonus. So Mr. Mohammed Anwar Ahmed now had 200 shares.

In 1985, the company declared 1:1 bonus. He therefore had 400 shares.

In 1986, the company split the share face value from 100 to Rs.10. He thus had 4000 shares.

In 1987, the company declared 1:1 bonus. He hence had 8000 shares.

In 1989, the company announced a 1:1 bonus. Now he had 16,000 shares.

In 1992, the company declared a 1:1 bonus. By now he had 32,000 shares.

In 1995, the company declared a 1:1 bonus. He then had 64,000 shares.

In 1997, the company declared 2:1 bonus. He now held 1,92,000 shares.

In 1999, the company split the face value of the share to Rs.2. He now had 9,60,000 shares.

In 2004, the company declared a 2:1 bonus. He thus had 28,80,000 shares.

In 2005, the company declared a 1:1 bonus. He came to have 57,60,000 shares.

In 2010, the company declared 2:3 bonus. He now had 96,00,000 shares.

The last closing market price is Rs.586 per share. The shares are valued at more than 550 Crores if Mr. Mohammed Anwar Ahmed still holds them.. that’s not it folks keep reading: D

Over the past 35 years, the company regularly paid out dividends and increased them almost every year. Cumulatively he would have received more than Rs.120 crores as dividend over the past 35 years. Thus by investing Rs.10,000, Mohammed gained over more than 670 crores.

He is now retired and donates freely to charity from the dividends he receives. His children often advice him to sell the shares but he has kept his vow of not selling a single share till Mr.Azim Premji is the working Chairman.

This is the sole reason why we stress on investing in Equities and as Warren Buffets quotes – “If a business does well the stock eventually follows”

Do you have any questions do post your queries below and we will get back to you as soon as possible.

So are you imbibing investments in your daily routine?

Start Investing!!

Imbibe Investments

[Disclaimer - All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this blog and will also not be held liable for the information provided.]

How to Open an Demat & Trading Account !!

Hi There,

This is our first post from Imbibe Investments and we are here to help you start investing and make you learn about different investment opportunities in the market.

Let us start with the basics first on how to open a Demat & Trading account:

Anybody who wants to start investing or to starting trading in Capital Markets needs to hold a Demat (De-materialisation) to keep the holdings and a Trading account with any broker (to purchase and sell Equities).

At the time of account opening keep the below things handy:

• A person needs to be over 18 years of age and 2 photographs 
• Need to hold a valid PAN (Permanent Account Number) No 
• One Address proof is required as per KYC norms 
• A cancelled check from bank 
• Last 3 months Banks statement or photocopies of latest transaction of passbook which holds the same address as mentioned in the address proof 
• And an account opening form with approx 60 signatures. 

These are very basic things the brokers/sub-brokers and banks asks customers while opening a Demat and Trading account. There may be any further information required depending on the type of account being opened.

Do you have any questions, do post them back and we will try and revert back to you at earliest.

Cheers !

Imbibe Investments

[Disclaimer - All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this blog and will also not be held liable for the information provided.]