Mutual Fund for Beginners
First time investors in Mutual Funds act in the face of imperfect information and often get overwhelmed by uncertainties characterizing the investment situation. But there’s more to Mutual Fund investing than market timing.
The first thing an aspiring unit holder must do is to establish what type of portfolio he wants to build. In other words, to decide the right asset allocation. Asset allocation is a method that determines how you invest your money in different investments with the proper mix of various asset classes. Remember, the type or class of security you own i.e. equity, debt or money market, is much more important than the particular security itself.
The popular thumb rule for asset allocation says that whatever the investor’s age, he should keep that percentage of his portfolio in debt instruments. For example, if an investor is 25, he should have 25% of his investments in debt instruments and the rest in equity. However, in reality, different circumstances and financial position for each individual may require different allocation. Portfolio variable is another factor that one needs to understand to practice asset allocation. These are age, occupation, number of dependants in the family. Usually the younger you are, the more riskier the investments you can hold for getting superior returns.
How to pick the right fund/s?
Next, focus on selecting the right fund/s. The key is to select the fund/s based on their investment philosophy and consistency in terms of returns. To ensure you are selecting the right type of funds that are appropriate for your needs, consider following:Determine what your financial goals are.
Are you investing for retirement? A child’s education? Or for current income?Consider your time frame. Do you need money in three months time or three years? The longer your time horizon, the more risk you may be able to take.How do you feel about risk? Are you in a position to tolerate the ups and downs of the stock market for the possibility of higher returns? It is necessary to know your own risk tolerance. It can be a guide for choosing the right schemes. Remember, regardless of the potential returns, if you are not comfortable with a particular asset class, you should consider other options.
Fund Candy Diversified equity funds Index funds Opportunity funds Mid-cap funds Equity-linked savings schemes Sector funds like Auto, Health Care, FMCG, IT, Banking etc. Balanced funds for those who are not comfortable with 100% exposure to equity
If selected properly, these equity and equity-oriented funds have the potential to deliver returns that could be far superior to other asset classes.Remember, all these factors will have a direct impact on the fund you choose and the return that you can expect to get. If you are a long-term investor with some appetite for risk and are looking for returns to beat inflation, equity funds are your best bet. MFs offer a variety of equity and equity-oriented schemes (See table ‘Fund Candy’). For a beginner, it makes sense to begin with a diversified fund and gradually have some exposure to sector and specialty funds.Investment Strategies that will help you make the best of your MF Investment and Traps that you should avoid.Keeping track..Filling up an application form and writing out a cheque is not the end of the story. It is equally important to keep an eye on how your investments are performing. While having a qualified and professional advisor helps both in terms of making the right decision as well as measuring performance, it makes sense to know how to do yourself with a little help from these sources:Fact sheets and Newsletters: MFs publish monthly fact sheets and quarterly newsletters that contain portfolio information, a report from the fund manager and performance statistics on the schemes managed by it.Websites: MF web sites provide performance statistics, daily NAVs, fund fact sheets, quarterly newsletters and press clippings etc. Besides, the Association of Mutual funds in India, AMFI, website, contains daily and historical NAVs, and other scheme.Newspapers: Newspapers have pages reporting the net asset values and the sales and redemption prices of MF schemes besides other analysis and reports.Remember, it is very important for you to be well informed. To achieve this, you need to spend a little time to understand and analyze the information to enhance the chances of success. Even if you spend one percent of the time that you spend on earning money, it’ll be a good beginning. Above all, take help of a professional advisor to select the right fund as well as the right mix of one time investment, SIP and the STP.
For more info. go to the URL: http://moneycontrol.com/backends/News/frontend/news_detail.php?autono=168248&call_section=MF
Thursday, June 23, 2005
Looking into eyes of problem
How many new and ambitious efforts would you undertake if you knew for sure that there would be no problems? And how many worthwhile achievements do you avoid because you fear that there will be problems?
Yes, in most things you undertake there will be problems. And yes, you always have what it takes to work through those problems without being overwhelmed by them.
In order to be free of problems, you do not need to avoid those problems. You can be surrounded by all sorts of complex problems, deeply involved in working through those problems, and still be free of them.
Because the problems will get to you only to the extent that you allow them to do so. You can give your time, effort and attention to the problems while at the same time keeping your precious, innermost self completely detached from them.
Success is attained not by avoiding problems. Spectacular success comes when you can thoroughly deal with the problems without letting them pull you down.
Learn to keep the inner part of you problem free. And no problem will ever be a problem for you.
-- Ralph Marston
Yes, in most things you undertake there will be problems. And yes, you always have what it takes to work through those problems without being overwhelmed by them.
In order to be free of problems, you do not need to avoid those problems. You can be surrounded by all sorts of complex problems, deeply involved in working through those problems, and still be free of them.
Because the problems will get to you only to the extent that you allow them to do so. You can give your time, effort and attention to the problems while at the same time keeping your precious, innermost self completely detached from them.
Success is attained not by avoiding problems. Spectacular success comes when you can thoroughly deal with the problems without letting them pull you down.
Learn to keep the inner part of you problem free. And no problem will ever be a problem for you.
-- Ralph Marston
Wednesday, June 22, 2005
Meditation - How to for Beginners
Meditation: “Dhyaanam Nirvishayam Manah” (Sankhya Darshan: 6/25) means “The state of mind when remains objectivitated i.e. without any thought (when the mind is away from worldly objects, but remains connected with the self), is called the ‘Dhyaan’ or Meditation”. It is clear with this Sankhya-Sutra that meditation is the state of continuous non-objectiveness of mind, which means when mind is away from all wordily things i.e. objectless.
· “Tatra Pratyayaikataanataa Dhyaanam” (Yoga-Sutra: 3/2) which mean, “Sustained concentration (Dhaarnaa*) is meditation (Dhyaan).
[*Concentration is the fixing of the Chitta (mind stuff) upon a particular object. This is ‘Dhaarnaa’. (Yoga-Sutra: 3/1)]
Meditation is of two types: First is “Samprajnaata” i.e. where the meditator is conscious of self and the act of meditation and second is “Asamparajnaata” when even this consciousness is lost and meditator Experiences only the bliss of Omnipresent God.
Meditation is a journey within, to meet our own consciousness. But to achieve higher state of consciousness, of deep silence of ‘Samaadhi’ and Meditation, one has to transcend all words and all thoughts. No language can lead us there. Therefore, talking of that state, declare Upanishads:
· “Yato Vacho Nivartante, Apaapya Manasaa Saha” means that state, where words cease to be, cannot be achieved through mind”.
Although everybody seems to be talking of Meditation these days, but few really practice it regularly and know the meaning of “Meditation”.
Beginners often start meditation with too many expectations, waiting for something to happen. When nothing happens they are disappointed and give up the practice of meditation. They imagine that by simply sitting in a straight-backed position with their eyes closed, they will reach in the state of ‘Samaadhi’. But this is not possible because most adults have a sharp sense of ego problem, which keeps them confined and restricted.
It is recommended to all new practitioners that they should start with very short sessions, not more than five or ten minutes at a time. These periods may be repeated several times and each time the attitude should be of relaxed stillness, expecting nothing, but ready for anything.
The human mind is full of thoughts – random and never ceasing. It is impossible for the average person to stop these thoughts and the only way to get some control over them is to adopt a steady watching attitude. Without this, each thought will hook itself on to another thought and another.
It helps if you realise that thoughts generally fall into three categories -- remembering, planning and dreaming. If you are remembering, then you are lingering uselessly in the past, which can be both repetitive and obsessive. Just let it go. Don’t get involved. If your mind is busy with planning, you are thinking of the future, your aims, desires and hopes. Dreaming is self-explanatory. Do not get involved. Let the thoughts come and go without clinging to them. Five minutes is all you are allowing yourself, so there is no expectation, no strain. The quality of meditation and not the duration is what you are interested in for the present. Meditation has been described as a mind suspended in space – a pure and complete awareness without clinging.
There are many aids to meditation. There is a Mantra, which repeated in your mind will eventually stop random thoughts. There is a candle flame or a statue or picture on which you can concentrate. Or you can simply concentrate on your breathing. All these methods are effective, but only if you take it lightly, giving only 25 per cent of your attention to them, with the remaining 75 per cent of your mind relaxed and floating in space.
The sitting posture is important since a straight spine and all the different ‘Chakras’, so that energy flows smoothly and the mind calms down and is at ease. But even here it is not necessary to go to extreme. You can sit cross-legged on a cushion. The legs can be folded easily and not rigidly in the lotus pose. You may even sit on a chair with feet flat on the ground. Whichever way you sit you should be comfortable so that you can sit for as long as necessary.
A person sitting quite and contemplating, with no purpose or aims except that of experiencing himself and his oneness with the world, is meditating. Studies by Herbert Benson, a Harvard cardiologist, show that meditation produces psychological changes which include reduced heart rate and blood pressure, as well as reduced oxygen consumption, reduced blood lactate level (associated with anxiety) and reduced respiratory rate. The body is deeply relaxed while the mind remains alert. Benson calls this ‘the relaxation response’, which counteracts state of fear, anger and anxiety.
At the psychological level, with regular meditation there is deceased anxiety, a higher level of relaxation at all levels, and progress to wards self-actualization. The meditator begins to experience in a more positive way, and a more peaceful and secure self-concept is developed. Physical dysfunctions such as lack of sleep, fatigue, headaches lesson or disappear altogether.
Regular meditation increases empathy, concern and interest in the well being of others. Today all doctors agree that stress and anxiety play a role in the development of many diseases.
In meditation alpha waves increase the state of reflecting an extremely restful, non-anxious and non-problem solving mental state. After successful meditation the person is relaxed, with a greater capacity for creativity, love and compassion.
When someone talks about ‘meditation’ it’s understood that this term is related to something that is spiritual (inner) world. It’s one hundred per cent right. Meditation means to realise/find/feel of some super-conscious thing to get peace of mind, which is always there, but because of ones ignorance and laziness one is unable to seek/search it. That is why man is always unhappy and unsatisfied in his life, even after getting all kinds of comforts in this materialistic world. Something is missing! Of course! Something is missing! But, what is that something, which is missing? In the Vedic philosophy this something is nothing but—the Bliss (Anand) of God. The term “Anand” can be defined, as the spiritual happiness of the self.
[The soul is in search of the real spiritual happiness but after coming to this beautiful and amazing wonderful materialistic world, he* forgets everything because of his limited knowledge. He (the soul) wanders after illuminated and colourful material things in this world made of Tri-attributed Prakriti. *The soul has no gender but being a sensate or Chetan thing, it can be pronounced in masculine/feminine manner.]
Mind is the most important thing and without mind’s involution one can not meditate. Meditation is nothing but to think of self-consciousness, but in philosophical point of view, Meditation is defined as a technique or an art of concentration. To control the mind is not an easy job, one needs a lot of practice, and practice makes a man perfect. One thing, here, is to be noted that mind is not a conscious thing like the soul, but it is an inert thing that cannot do anything by its own. The soul is its master and master should be alert. If/When any work is given to the mind; it will be busy and cannot wander of its own. This is one of the method by which the mind is can be controlled easily. “A will, will find a way”, so one has to practice.
Many people believe that the mind is the slave of the senses, on the contrary the mind is said to be their king (Boss), all senses are under mind’s control, and the mind is under intellect’s control. Soul is the master of our physical (inert) body and all organs are its instruments (means) to work.
The mind functions the way we want. For desired results in any sphere of activity, the mind needs to be focused. Thus, an individual must have control over it and its cravings. Striving to fulfil each desire leads to even more desires. All endeavours, all efforts and struggles must be directed towards strive to attain this goal—of keeping the mind in control—rather than seeking the fulfilment of every desire.
· “Tatra Pratyayaikataanataa Dhyaanam” (Yoga-Sutra: 3/2) which mean, “Sustained concentration (Dhaarnaa*) is meditation (Dhyaan).
[*Concentration is the fixing of the Chitta (mind stuff) upon a particular object. This is ‘Dhaarnaa’. (Yoga-Sutra: 3/1)]
Meditation is of two types: First is “Samprajnaata” i.e. where the meditator is conscious of self and the act of meditation and second is “Asamparajnaata” when even this consciousness is lost and meditator Experiences only the bliss of Omnipresent God.
Meditation is a journey within, to meet our own consciousness. But to achieve higher state of consciousness, of deep silence of ‘Samaadhi’ and Meditation, one has to transcend all words and all thoughts. No language can lead us there. Therefore, talking of that state, declare Upanishads:
· “Yato Vacho Nivartante, Apaapya Manasaa Saha” means that state, where words cease to be, cannot be achieved through mind”.
Although everybody seems to be talking of Meditation these days, but few really practice it regularly and know the meaning of “Meditation”.
Beginners often start meditation with too many expectations, waiting for something to happen. When nothing happens they are disappointed and give up the practice of meditation. They imagine that by simply sitting in a straight-backed position with their eyes closed, they will reach in the state of ‘Samaadhi’. But this is not possible because most adults have a sharp sense of ego problem, which keeps them confined and restricted.
It is recommended to all new practitioners that they should start with very short sessions, not more than five or ten minutes at a time. These periods may be repeated several times and each time the attitude should be of relaxed stillness, expecting nothing, but ready for anything.
The human mind is full of thoughts – random and never ceasing. It is impossible for the average person to stop these thoughts and the only way to get some control over them is to adopt a steady watching attitude. Without this, each thought will hook itself on to another thought and another.
It helps if you realise that thoughts generally fall into three categories -- remembering, planning and dreaming. If you are remembering, then you are lingering uselessly in the past, which can be both repetitive and obsessive. Just let it go. Don’t get involved. If your mind is busy with planning, you are thinking of the future, your aims, desires and hopes. Dreaming is self-explanatory. Do not get involved. Let the thoughts come and go without clinging to them. Five minutes is all you are allowing yourself, so there is no expectation, no strain. The quality of meditation and not the duration is what you are interested in for the present. Meditation has been described as a mind suspended in space – a pure and complete awareness without clinging.
There are many aids to meditation. There is a Mantra, which repeated in your mind will eventually stop random thoughts. There is a candle flame or a statue or picture on which you can concentrate. Or you can simply concentrate on your breathing. All these methods are effective, but only if you take it lightly, giving only 25 per cent of your attention to them, with the remaining 75 per cent of your mind relaxed and floating in space.
The sitting posture is important since a straight spine and all the different ‘Chakras’, so that energy flows smoothly and the mind calms down and is at ease. But even here it is not necessary to go to extreme. You can sit cross-legged on a cushion. The legs can be folded easily and not rigidly in the lotus pose. You may even sit on a chair with feet flat on the ground. Whichever way you sit you should be comfortable so that you can sit for as long as necessary.
A person sitting quite and contemplating, with no purpose or aims except that of experiencing himself and his oneness with the world, is meditating. Studies by Herbert Benson, a Harvard cardiologist, show that meditation produces psychological changes which include reduced heart rate and blood pressure, as well as reduced oxygen consumption, reduced blood lactate level (associated with anxiety) and reduced respiratory rate. The body is deeply relaxed while the mind remains alert. Benson calls this ‘the relaxation response’, which counteracts state of fear, anger and anxiety.
At the psychological level, with regular meditation there is deceased anxiety, a higher level of relaxation at all levels, and progress to wards self-actualization. The meditator begins to experience in a more positive way, and a more peaceful and secure self-concept is developed. Physical dysfunctions such as lack of sleep, fatigue, headaches lesson or disappear altogether.
Regular meditation increases empathy, concern and interest in the well being of others. Today all doctors agree that stress and anxiety play a role in the development of many diseases.
In meditation alpha waves increase the state of reflecting an extremely restful, non-anxious and non-problem solving mental state. After successful meditation the person is relaxed, with a greater capacity for creativity, love and compassion.
When someone talks about ‘meditation’ it’s understood that this term is related to something that is spiritual (inner) world. It’s one hundred per cent right. Meditation means to realise/find/feel of some super-conscious thing to get peace of mind, which is always there, but because of ones ignorance and laziness one is unable to seek/search it. That is why man is always unhappy and unsatisfied in his life, even after getting all kinds of comforts in this materialistic world. Something is missing! Of course! Something is missing! But, what is that something, which is missing? In the Vedic philosophy this something is nothing but—the Bliss (Anand) of God. The term “Anand” can be defined, as the spiritual happiness of the self.
[The soul is in search of the real spiritual happiness but after coming to this beautiful and amazing wonderful materialistic world, he* forgets everything because of his limited knowledge. He (the soul) wanders after illuminated and colourful material things in this world made of Tri-attributed Prakriti. *The soul has no gender but being a sensate or Chetan thing, it can be pronounced in masculine/feminine manner.]
Mind is the most important thing and without mind’s involution one can not meditate. Meditation is nothing but to think of self-consciousness, but in philosophical point of view, Meditation is defined as a technique or an art of concentration. To control the mind is not an easy job, one needs a lot of practice, and practice makes a man perfect. One thing, here, is to be noted that mind is not a conscious thing like the soul, but it is an inert thing that cannot do anything by its own. The soul is its master and master should be alert. If/When any work is given to the mind; it will be busy and cannot wander of its own. This is one of the method by which the mind is can be controlled easily. “A will, will find a way”, so one has to practice.
Many people believe that the mind is the slave of the senses, on the contrary the mind is said to be their king (Boss), all senses are under mind’s control, and the mind is under intellect’s control. Soul is the master of our physical (inert) body and all organs are its instruments (means) to work.
The mind functions the way we want. For desired results in any sphere of activity, the mind needs to be focused. Thus, an individual must have control over it and its cravings. Striving to fulfil each desire leads to even more desires. All endeavours, all efforts and struggles must be directed towards strive to attain this goal—of keeping the mind in control—rather than seeking the fulfilment of every desire.
Satsang - 1
Here is the summary of our first Satsang held on 17th June 2005 Friday
1. During conducting any meeting, always let others speak first and dont give your judgement before hand
2. Quality decision making is important and it should be quick and not hasty !!
3. Never underestimate anybody and keep your antennas open. Ego is one which can block the antennas
4. Dont be mechanical in doing things, live each and every moment. Be alert.
5. Nevery apply constraints/assumptions while doing things as it blocks creativity .
6.All qualities are essential for any human being but they should be in proper proportions(SAMTVA)
7. You dont know when and from whom you would get your advice from.
1. During conducting any meeting, always let others speak first and dont give your judgement before hand
2. Quality decision making is important and it should be quick and not hasty !!
3. Never underestimate anybody and keep your antennas open. Ego is one which can block the antennas
4. Dont be mechanical in doing things, live each and every moment. Be alert.
5. Nevery apply constraints/assumptions while doing things as it blocks creativity .
6.All qualities are essential for any human being but they should be in proper proportions(SAMTVA)
7. You dont know when and from whom you would get your advice from.
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