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(The
above video is in Hindi language and if you are not familiar with Hindi
language, then read this post to understand the video content.)
Hey
welcome back!
This article will answer the question, How to do smart Mutual fund sip with Zerodha's Coin platform where you can buy commission free mutual funds.
Today is 10th December 2020 and you will get the video tomorrow that is on 11th December 2020 @ 8 O'clock in the morning. we are ready with this month's Smart Mutual Fund
SIP.
1st of
all, Let's check the valuation of the stock market.
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P/E
Price to Earnings Valuation of Sensex on 10th December 2021 |
BSE - Sensex - 45959
PE (Price to Earning) – 32.84
Price to Book
Value – 3.05
Dividend
Yield - 0.88
Right now stock market valuation is at 32.84PE (Price to Earning) means for earning one rupee we have to give 32.84 rupees right now, which is expensive deal as it is delivering just 3.04% return, and right now bank saving accounts are offering 3.5% to 4% interest rate and hence the expected return is much less than the bank saving account. Bank saving account offers risk free return of 3.5% to 4% return then why the hell we will take risk of investing the money in stock market for 3.04% returns expectations.
So, we will not infuse new money
in stock market right now and instead we will wait for either earnings of the
companies to pick up to justify the valuation or vice versa. We don’t have any
problem buying the markets at higher level, but we will only buy it after we
get valuation justification. Till then we will park the money in debt fund
especially, in GILT Fund.
The Fund
that we are investing is, Nippon India Gilt Securities Fund.
SIP
AMOUNT - 5000
NAV - 32.7961
No. of
Units allotted - 152.45
and this
is the current status of stock market portfolio
Total
money invested - 847553
Market
Value of Investment - 11,94,588
Change – 3,47,035(40.94552%)
Happy Investing,
Have lots of fun.