Press release from Business Wire India
Source: Wealth India Financial Services Private Ltd.
Tuesday, January 12, 2010 06:36 PM IST (01:06 PM GMT)
Editors: General: Consumer interest; Business: Banking & financial services, Business services, Financial Analyst, Stock exchanges
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FundsIndia Launches Value-Averaging Investment Plan Across Equity Schemes
Chennai, Tamil Nadu, India, Tuesday, January 12, 2010 -- (Business Wire India) -- FundsIndia.com, India's first online-only investment platform, announced today the launch of Value-averaging Investment Plan (VIP) across the spectrum of equity mutual funds. Investors will be able to avail themselves of this promising new method of investing which offers the potential of outperforming the traditional Systematic Investment Plan (SIP).
"We are constantly striving to provide value addition to our investors by leveraging our online platform," said C R Chandrasekar, Director at FundsIndia, "We were the first to offer trigger option on mutual fund investment across the spectrum of funds, first to launch Alert SIPs and portfolio level SIPs. Similarly, we are also the first to launch VIP across equity schemes. We hope our customers will find it beneficial to their portfolio".
The VIP method of investing is similar to the SIP method in that the investments are made periodically into an investment vehicle over a length of time. This method was first designed in 1988 by Michael Edelson, a Harvard University professor. The basic premise is that money is invested in periodic intervals in a portfolio in such a manner that the portfolio tries to approach a target rate of return. Since a portfolio might grow in a particular month, and shrink another month, the targeted value for the portfolio might come nearer to or recede farther from the actual value. The subsequent investment tries to compensate for this movement by investing less or more in the portfolio.
"We tested the VIP method using four equity schemes from four different fund houses, over the past five years ", said Shankar Bhatt, a financial advisor with FundsIndia, "What we found was that the average VIP investment outperformed the comparable SIP investment by an average of 1.664% CAGR."
"We have a very smart investor base on our platform, and we are enthused by the response we have received for this feature. We hope more and more investors will join in to reap the potential benefits of this new method", said Srikanth Meenakshi, Director at FundsIndia.
About FundsIndia.com
FundsIndia.com is an online value-added financial services platform created and promoted by Wealth India Financial Services Pvt Ltd., a Chennai based company. It is India's first online only investment platform, and currently offers mutual funds, corporate deposits and equity investing to its investors along with various innovative value-added services.
CONTACT DETAILS
Srikanth Meenakshi, Director, Wealth India Financial Services Private Ltd., +91 (44) 43443100, chandra@fundsindia.com
KEYWORDS
CONSUMER, BANKING, BUSINESS SERVICES, Financial Analyst, STOCK EXCHANGES
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