Thursday, October 21, 2010

What is Good is not always popular : VIP : Value Investment Plan

"What is Good is not always popular and
What is popular is not always good."

This is a popular saying in common sense and it holds absolutely true in investments too.

The benefits of SIP is getting increasingly accepted, rather realized, after the recent fall of 2008 and subsequent recovery. No doubt, many Mutual fund companies are hunting for SIP's. SIP is far far better than one time investment whenever market is at a peak and is followed by crash and a subsequent recovery.

But there has been yet another investment method called VIP which has delivered far better return than SIP.

In the table below, we have compared the result of various investment strategy : One time, SIP and VIP. You would agree that SIP is far ahead of One time and VIP deliveres 70% higher return than an SIP.

Looks interesting - but still not clear. Do call our office and our Investment Advisors can explain you how to benefit out of this investment startegy. After all, the return on investment in MF is not purely dependent on the fund manager and his team. Our Investment strategy does matter - and we at EASY Investments are here to assist you in choosing the best investment strategy.

At the end a good investment is one in which,
(1) you invest with less risk
(2) get maximum return
(3) by investing lesser money
(4) in the same duration (time)

And VIP is an ideal investment strategy in which you get maximum return on investment, by investing less money in the same time frame.


Note: VIP Strategy is based on the book "Value Averaging: The Safe and Easy Strategy for Higher Investment Returns" written by Michael E. Edleson, who is a Managing Director of Morgan Stanley and oversees the firm′s equity risk globally. Prior to that, he was Chief Economist of NASDAQ and a finance professor at Harvard Business School. Edleson earned his PhD at MIT.



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