Getting ready for a good opportunity

Equity markets are volatile. There should not be any doubt about that. It is the volatility which enables us to make better returns over a long period of time.

Now with the nifty almost 10% lower than its highs in dec jan 2017, it is now getting to be the right time to put more money to work.

The fall is because of many reasons.. the introduction of LTCG ( Mr finance minister , where is the money now that you were expecting from LTCG to help in the coffers?) , the trade wars that the US has started with rest of the world and of course the great pnb scam which has dropped the bank nifty like hot coal.

But it is such events that make good opportunity to make an investment.. as long as it is a long term investment. Of course the existing investments have depreciated in value and it hurts looking at the screen.. but over a period of time this would be time when investments when they get the biggest bang for the buck.

So, a few pearls of wisdom

Dont stop your SIPs. See if you can increase it

Look for a lumpsum investment now ... only for things that you can afford to be able to wait for long term.

Be patient. Dont get frightened

Riding the volatility without being frightened.. thats #simplefinancialsense

Defining long term

It seems that the FM is looking to change the definition of long term in the equity markets from one year to three years.

When one compares this to other countries, this is highly negative for the markets. This will create significant negativity into the fdi inflows into the country and also push away investors from the equity markets .

I feel this is more of a rumour than reality which will try and bring down the markets more. 

There should be in my opinion further simplification and incentive for people to invest in the stock markets

I am hoping that i dont need to say "This is definitely not simplefinancialsense by the FM"

Crown jewels available for purchase

The government of India has come out and said that they will bring out sale in three companies,  namely Nhpc, Ongc and Coal india for approximately 58000 cr Rs disinvestment.

The announcement on what is the discount that will be given and when is the date of the sale still needs to be decided. 

Out of these ratnas I would prefer to buy/ apply for two out of these three both for short term and long term.. basically ONGC and Coal India.

The first preference is to Coal India. Coal india to double its size in the next five years.. which means that revenue will double and so will the profits.
Coal india is actually the largest coal mining company in the world.

More to come when these issues come out... till then this is just a heads up

Being early... its simplefinancialsense.