Products

Smart SIP

Objective

To earn huge wealth from high growth stocks in the long run. Several leading global Institutions have projected the Indian economy to be the fastest-growing in the next decade. Thus many companies are likely to deliver mega returns in times to come. The 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, the majority of Mutual Funds are unable to outperform their benchmark indices. Apart from high operative expenses (about 2% per annum) these funds are heavily diversified and lack concentration (most Mutual Funds have no less than 50 stocks). To further add to their woes often investors act irrationally and Fund Manager is literally forced to buy and sell stocks at the wrong times.

Whereas periodic investment in about 15 select high growth stocks can deliver much better returns with reasonably good safety of capital, as amply demonstrated in this product since the start.

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 2205 as on 28 June 2019, gains of 5274% during last 16.7 years! There are scores of such growth stories like Infosys, MRF, Wipro, Eicher Motors, Maruti Suzuki, Bajaj Finance, 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 leads 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. 

Bajaj Finance

  1 Jun 10 1 Jun 11 1 Jun 12 1 Jun 13 1 Jun 14 1 Jun 15 1 Jun 16 1 Jun 17 1 Jun 18 1 Jun 19
EPS (A) 2.44 6.74 11.08 13.56 14.47 17.99 24.23 24.23 47.05 66.95
PE Ratio (B) 19 9 8 11 14 24 32 32 44 52
Price = AxB 46.36 60.66 88.64 149.16 202.58 431.76 775.36 775.36 2070.20 3469.70

Price adjusted for Bonus / Stock Split.

As the first row in the above table depicts that the EPS gained steadily during these 9 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 75 times in just 9 years!

Like Bajaj Finance 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 that 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 product works

  • We only provide you the advice. Transactions to be performed by the investor.
  • Login Username and password shall be provided to access SIP Stocks and individual research reports and the latest status.
  • Every fifth of the month (if a holiday, then previous working day) at about 12 noon the stock name to be purchased shall be informed through Mobile App (under development) notification, SMS Message, Whatsapp message, Email and Soft copy in your log-in area.
  • We maintain calculations assuming an investment of Rs 10,000/- per month. Investors can invest as per individual investment capacity.
  • At any point, there shall be about 15 stocks and more than 80% shall comprise high growth stocks.
  • On attaining max. 18 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 products, the performance of SIP stocks so far and the aggregate growth in SIP stocks' EPS we are confident of earning about 20% CAGR returns in long term 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 product was started on 5 Oct 2016. The performance so far is pretty encouraging considering the strong emphasis on the safety of capital and inclusion of Small and Midcaps. 

 

 
 

If you liked this product, you might also want to read Smart Freedom Stocks.

  • Jaisingh Rathore,

    Jodhpur

    Hats off to your vision and pro activeness.

  • Nipun Kumar Patel,

    Surat

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  • Sharad Khandelwal,

    Surat

    Yes. I am very much happy with your product Smart Freedom Stocks. Now I am rest assured that someone is taking care nicely.

  • Suresh Kumar,

    Chennai

    Thank You, Sir, for a great and awesome workshop. We were able to get a clear picture of where we have to go and how.

  • Amit Solanki,

    Rajkot

    My basic and essential knowledge about equity has been developed by you. As a newcomer, I have found a very good Guide / Guruji like you.

  • Dipak Agarwal,

    Banglore

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  • S Padam Mehta,

    Hyderabad

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  • Aditya P Singh,

    Haridwar

    Attended Seminar and Workshop in Bhavnagar Gujarat, and Delhi seminar as well. He’s a pure man of conscious and rationality.

  • Sandeep Singhal ,

    Delhi

    Your nuggets of wisdom are priceless.

  • Chetan Padhiar,

    Indore

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