Smart SIP
 

Objective

To earn huge wealth from high growth stocks in long run. Leading global Institutions have projected Indian economy to be the
fastest growing in the next decade. Thus many companies are likely to deliver mega returns in times to come. Intention is to identify those high growth companies with passionate quality management and invest periodically when they offer the highest
VALUE.

 

Stock SIP vs. Mutual Fund SIP

In the long term majority of Mutual Fund schemes are unable to outperform even their benchmark indices. Apart from operative expenses these funds are heavily diversified and lack concentration. To further add to their woes often investors act irrationally and Fund Manager is literally forced to buy and sell stocks at wrong times.

Whereas periodic investment in 12 to 15 select high growth stocks can deliver much better returns with reasonably good safety of capital.

 

Why Stock SIP

Over the past few years, many growth stocks have given eye popping returns. For example, share price of HDFC Limited has grown from Rs 42.80 as on 13 Sep '02 (adjusted for 5 for 1 stock split) to Rs 1912 as on 04 May' 18, gains of 4367% during last 16 years! There are scores of such growth stories like Infosys, MRF, Wipro, Eicher Motors, Maruti Suzuki, HDFC Bank and Page Industries etc.

It is the consistency with which the companies' Earnings Per Share (EPS) grows which makes them mega baggers. Investors are ready to buy such stocks even at high PE ratio. Thus regular investment in such stocks lead to double benefit, one from growing EPS and second from rising valuations (PE ratio) and the multiplication of these two parameters
lead to magical returns.

Mathematically, Share Price = PE x EPS

This multiplier factor works wonders.

Let's understand this multiplier phenomenon with Bajaj Finance which we identified way back in 2010. Since then share price
multiplied 39 times in just 8 years!

Bajaj Finance

 

01-06-10

01-06-11

01-06-12

01-06-13

01-06-14

01-06-15

01-06-16

01-06-17

EPS (A)

2.44

6.74

11.08

13.56

14.47

17.99

24.23

34.01

PE Ratio (B)

19

9

8

11

14

24

32

39

Price = AxB

47

63

84

147

209

437

764

1327

Price adjusted for Bonus / Stock Splt

 

As the first row in above table depicts that the EPS gained steadily during these 7 years and investor confidence too gained momentum in the form of higher PE ratio. It is this multiplier effect (Share Price = EPS x PE) which resulted in price multiplication by 28 times in just 7 years!

Our research team has identified several such opportunities at pretty early stages and subscriber investors have benefited immensely. Apart from key financial parameters it is the passionate management which plays a very crucial role in expanding operations, facing competition, adopting new technology and tackling volatile business conditions at national as well as international levels.

 

How the scheme works

  • Money and stocks remain with the subscriber

  • A login username and password shall be provided to view / download the SIP portfolio status.

  • Every fifth of the month (if holiday, then previous working day) at about 12 noon the stock name to be purchased shall be informed through SMS Message, Whatsapp message, Email and Soft copy in your log-in area on our website.

  • We maintain the portfolio of SIP stocks assuming an investment of Rs 10,000/- per month. Investors can invest as per individual investment capacity.

  • At any point there are maximum 15 stocks in SIP portfolio and more than 80% are high growth stocks.

  • On attaining 15 stocks the next stock shall be advised among the existing stocks which provide the best value.

  • In case any stock story begins to fade the same shall be replaced with a promising bet.

  • Based on the returns achieved in similar kind of long term schemes, performance of SIP portfolio so far and the aggregate growth in EPS we are confident of earning about 18% to 20% CAGR returns with peace of mind. Though we cannot provide any guarantee as stock returns are subject to market risk, but in the long term predominantly it is the stock company performance which decides the gains.

Performance so far

This scheme was started on 5 Oct 2016. The performance so far is very encouraging considering the strong emphasis on safety of capital. Smart SIP Portfolio has gained 25.57% in value compared to 11.68% gains in NSE Nifty 50 during the same period assuming that same amount was invested on 5 th of every month in SIP stocks and NSE Nifty 50.

 

 

Subscribe / Subscription Charges

 

     
     
 
 
 

 

Powered by: Bit-7 Informatics