Category: Gains

Nifty & Sensex at all time high- is situation mein kya karein?

The stock markets are on a roll. Bech dun kya?

The Sensex and Nifty, and even Midcap and Smallcap indices have been hitting fresh highs. You track your portfolio. You are elated with huge gains. Bech dun kya? You wonder to yourself.

There is nothing wrong in booking profits if you see attractive gains in your portfolio. But, this is not an ideal approach. We at CIIS encourage you to have an ‘exit’ strategy first before you park your money with us. You don’t redeem your investments just because everyone else is doing so. Or, because you expect market correction in the coming months. Markets cannot move in one direction. It’s a cycle. It’ll go up and up and down and down. You cannot time it. What you can time, however, is your exit strategy. We tell you all about it.

How to get your exit strategy right?

Buying a stock or a mutual fund is not as difficult as deciding when to sell it. However, if you approach investments in a disciplined manner, it becomes a cakewalk. Are you aware of the most basic principle of investing? If not, then you are not alone. In fact, people who know it also ignore it. Today is your chance to learn and make the most of it. This basic principle is what defines your exit strategy. Curious? Of course, you are!

I am sure you must have heard of goal-based investing. Do you do it? Tell us in comments.

Linking a goal with your investments is the basic principle of investing. You can’t just start an SIP of Rs 5000 every month for eternity. You must have a goal in mind. This could be your imminent wedding, child’s higher education or wedding, a vacation abroad or your retirement. If you have a goal in mind, we can help you estimate exactly how much funds you need to collect to secure your goal.

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We will tell you how much monthly outgo is needed. Once we have settled that, rest assured, you will meet your goal in the timeline we have set for it.

What if the stock market performs much better than what we had expected? You’ll meet your goal sooner. If you have collected the required corpus already, you exit. As simple as that. If you have not, you don’t. The markets must be staring at a correction, but your goal is still years away. Market correction shouldn’t bother you. Assume markets do correct. It will be an opportunity to buy more stocks or units at cheaper rates. When the tide turns again you will be much richer closer to your goal.

If your goal is just a year away and you are in the middle of a bull market – as we are now – you consult your advisor. You may want to exit from equities and move your funds to a safer debt mutual fund. Your exit strategy should always revolve around your goals.

Conclusion

Follow the basic principle of investing. Every single investment that you have done or will do should be linked with a goal. Define your exit strategy by having a clear estimation of future value of your goals. Once you get it right, the highs and lows in the market shouldn’t bother you. Collecting the future value of your life goals is your aim (and our promise). We strive towards it. We befriend market moves to achieve it.

Call us (+91-8178271045) to know more about exit strategies. We at CIIS are happy to help.

Heard of P2P lending? Your gateway to earn 2X FD, PPF returns

You have a lumpsum amount to invest for the short-term, but you are not really sure which instrument to choose. The returns on FDs are too low. PPF is giving slightly higher returns but the lock-in period dissuades you. Need not worry!

There is an investment product that may fetch you double the FD and PPF returns in the short-term. This is P2P lending. All you have to do is sign up on a P2P lending platform which will connect you with a spate of borrowers. You may lend your money to a set of borrowers and earn interest on the same.

This article will cover the returns aspect of P2P pending. Read the following article to get a detailed understanding of what P2P lending is:

Attention millenials! Learn all about peer-to-peer lending

When you register with a P2P lending platform, you will find lakhs of individual or MSME borrowers. Some will have higher credit score while others on the lower side. High-credit-score borrowers get loan at a lower interest rate compared to those with lower credit score. The interest rate may range between 12-36 per cent on an average.

You may lend all your money to a single high-credit-score borrower or among a set of such borrowers. You may mix and match different categories of borrowers. Divide the lending amount among various risk profiles. This will give you better returns.

P2P lending platforms give you two options to build your lending portfolio. Either you can select the borrowers on your own or you allow the system to generate a customised portfolio for you. While the platform does provide you detailed profiles of borrowers, analysing them all could be cumbersome. So far as system is concerned, it allows you to put up return expectations and accordingly build a diversified portfolio for you.

For example, if you wish to earn 13-14 per cent, it will pick up moderate risk profiles. However, if return expectations are more than 20 per cent, the borrowers’ profile will turn riskier. One may choose the return expectations as per one’s risk appetite.

Difference between RoI and net returns

You do not earn the full interest rate on which the borrower is lent the money. The P2P platforms charge nearly 2 per cent commission on the same. RoI is overall return that your investment generates, while net returns are calculated after subtracting the platform charges. You may need to check with respective platforms if the portfolio return visible in your account is RoI or net return. What you should focus on is net returns – not RoI.

Conclusion

Wondering what if the borrowers do not return money? Default risk indeed exists. This is why a well-diversified portfolio among various risk profiles is advisable. If you have Rs 1 lakh to lend, instead of lending 20,000 to five borrowers, you should lend Rs 2000 to 50 borrowers. Even if 4-5 borrowers do not return your money, you may still earn nearly 9-10 per cent net returns. The more money you will have, the wider could be your diversification. The crux lies in customising your portfolio. This is where our role comes. On no extra charge, we help you with creating a diversified portfolio. Give us a call to know more about the product @ 8178271045

Attention millenials! Learn all about peer-to-peer lending.

Hunting for newer investment avenues?

Any luck beyond equities, debt and low-yield small savings schemes?

Bitcoins, you say! But don’t you fear volatility? Can you digest 20-30 per cent freefall just every other day?

Most of you cannot. Let us introduce you to a product that has become a rage among millenials!

Peer-to-peer lending, or P2P lending, is a short-term investment avenue that may give you double digit returns in a year or two. Unlike Bitcoins (another popular millennial investment), P2P lending is regulated by the Reserve Bank of India (RBI). The central bank gives licences to P2P platforms that facilitate P2P lending.

Let’s get going.

What is P2P lending?

There are salaried professionals who may need extra cash for emergencies, a gadget purchase or just to survive the last few days of the month before the next month’s salary gets credited. There are small businesses which may need some working capital to get their cashflow intact. Their borrowing needs will  not be so much that they approach a bank. Why don’t you be the bank? You can be a lender to borrowers.

Here comes the role of P2P platforms. Such platforms connect the borrowers with lenders. Borrowers easily get the required funding and lenders get to earn decent returns on their lending amount. These platforms are licensed by the RBI, and are called NBFC-P2P.

When did it start in India?

P2P players have been in existence since 2012, when the first platform – i-Lend – was launched. Initially, there was hardly any regulatory oversight. Seeing the potential of the evolving technology and growth of lending to the underserved, the RBI came out with guidelines in September 2017, to convert P2P players into NBFCs by issuing NBFC-P2P licences. It issued fresh guidelines in 2019.

There are around 30 P2P players in the country of which 21 have got the NBFC-P2P licences as of January 2021.

What are the regulations?

Going by the RBI guidelines, one can invest up to Rs 50 lakh across P2P platforms. The minimum amount is Rs 25,000. The central bank has specified that the tenure of a single loan cannot be more than three years and exposure to a single borrower cannot go above Rs 50,000. Besides, different P2P players may fix their lending limits and loan tenures within the RBI prescribed limits.

How to start investment?

You may sign up on one of the P2P platforms and start your journey. Or, you can connect with us. On no extra charge we will take care of your investments and queries. Call us on 8178271045.

Why choose us?

P2P lending is a road less travelled by! Not many people understand the risks involved. With any lending comes the default risk. But if you diversify well across borrowers and platforms, you may control your default risk to a great extent. We help you do that. Not only do we take care of the operational aspect of it, but also the expertise side of it. We emphasise again – no servicing charge! Better to come with us than walk alone.