Stocks for the long and short term portfolio

[jamit_05]

Re: Entry.

May I know which stocks you're referring to??

http://www.traderji.com/fundamental...-long-short-term-portfolio-22.html#post926681

 

[jamit_05]

Its write time to enter IT and Pharma...or shall i wait...to accumulate...?

They are still expensive. Don't buy. If they end up correcting sharply, by 30% or so, you'll be in trouble.

 

[jamit_05]

Gold, buy or sell?

Why I think Gold could be a good SIP now.

1) Gold has made new highs since the age of time and now it has corrected over 20% from top.

2) Dollar is getting beaten and Gold (in international markets) too has corrected. Some day, both will reverse back-up. This will give a kick to my investment. And both possibilities are not too distant.

I will make a staggered purchase. For ex. have bought GoldBees at 2550 now. Will buy more at each fall. Or after 15 days, if price consolidates.

GoldBees has 1% expense ratio. It being a Fund, I think they deduct it from the CMP at a fixed time each year. I really prefer HDFCMFGetF, but it has a wide spread of 13 points; GoldBees, less than 2.

 

[NUT]

Hi Jamit,

I am a newbie here and interested in medium to long term value picks. So is there any thread on this forum other than this, which discusses more such stocks?

Thanks.

 

[timepass]

Re: Gold, buy or sell?

Why I think Gold could be a good SIP now.
GoldBees has 1% expense ratio. It being a Fund, I think they deduct it from the CMP at a fixed time each year. I really prefer HDFCMFGetF, but it has a wide spread of 13 points; GoldBees, less than 2.

If it's a SIP and for a longer term, then the spread should not make a significant difference. How is the dividend comparable among these two ? Is there any annual/periodical dividend ?

 

[jamit_05]

Re: Gold, buy or sell?

If it's a SIP and for a longer term, then the spread should not make a significant difference. How is the dividend comparable among these two ? Is there any annual/periodical dividend ?

No dividend nothing. Instead 1% Expense

 

[timepass]

Re: Gold, buy or sell?

No dividend nothing. Instead 1% Expense

So why would one buy such a scrip ? Why not buy physical gold and keep it in a bank locker, the cost would be the same and it would be instantly liquid ??

 

[jamit_05]

Re: Gold, buy or sell?

So why would one buy such a scrip ? Why not buy physical gold and keep it in a bank locker, the cost would be the same and it would be instantly liquid ??

Physical Gold is probably better. In principle, investment in Gold is done for securing ones wealth in case the electronic/the paper monetary systems go kaput. It is the ultimate avenue.

Gold ETFs are only convenient in transaction and there is no fear of theft. But, for the long haul physical gold is best.

Finally, Physical gold attracts taxes on purchase and sale, which ETF doesn't. If you plan on selling a portion when prices go up, then buying that much ETF is sensible. While the rest should be in Physical.

Nice Point TP.

 

[timepass]

Re: Gold, buy or sell?

Physical Gold is probably better. In principle, investment in Gold is done for securing ones wealth in case the electronic/the paper monetary systems go kaput. It is the ultimate avenue.

Gold ETFs are only convenient in transaction and there is no fear of theft. But, for the long haul physical gold is best.

Finally, Physical gold attracts taxes on purchase and sale, which ETF doesn't. If you plan on selling a portion when prices go up, then buying that much ETF is sensible. While the rest should be in Physical.

Nice Point TP.

and I thought that ETFs were dividend paying instruments

So what if one wants to invest in the indices (like Niftybees, bankbees etc).. Will be an annual charge for those too or do these pay dividends ?

One thing about ETFs, the brokers may give good margins against them. Just today there is a news item that the co-op banks are reducing loan on physical gold to 75% instead of earlier 90%.

 

[jamit_05]

Re: Gold, buy or sell?

and I thought that ETFs were dividend paying instruments

So what if one wants to invest in the indices (like Niftybees, bankbees etc).. Will be an annual charge for those too or do these pay dividends ?

One thing about ETFs, the brokers may give good margins against them. Just today there is a news item that the co-op banks are reducing loan on physical gold to 75% instead of earlier 90%.

All ETFs are institution managed, so they will attract a varying % of expense. Thats for sure. The Equity ETFs do give dividends.

It is nice that ETF will provided around 50% margin at least. It doesn't makes sense why the "Dhiran" has to be reduced, probably cuz they are expecting a sharp fall. But, that should be temporary.