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I just checked today. Dec 15500 ATM Put option costs around 4.6% ( Rs 718/15700 ). ( for long term Put option, we won't even get the 15700 strike... the strike difference/interval is 500 points ). So, for 1 year, it will be 9+% cost roughly. That too for OTM ( 15700 spot vs 15500 Put Strike). So it is not clear from where the 5% came. Even if Cost % differs and "depends", in public channel, worst case or atleast mean case scenario should be highlighted. Not the best case scenario.
Hi Apurva Concept is unique and looks implementable *But hand holding example is required for different scenarios* Eagerly waiting for next video with all clarification. It would be great if you organise live with Q&A.
Sir please clarify with real example like if we buy today nifty bees equivalent to 1 lot and futures using nifty bees as a collateral then which strike price of put we have to buy and how many lots of dec expiry? Please upload the next part asap 🙏
@@SAMCOSecuritiesIndia Sir if possible please provide a short follow up vedio made by you on which strike price to select(including lot size)& How many lot of future we have to buy? What will be the profit % if we don't use collateral for future buying🙏
Awesome video, watched till end, and I think It could have been more longer like more 4-45 mins to carry on more intricate details of the thing ! I expect more sessions for in-depth analysis
Sir strategy me hedge kaise karna aur future kaise Lena aur hedge kaise karna clear nahi hua. Nifty ke o1 lot per Pura strategy with 5% hedge explain kijiye.
As far I use and I know, Zerodha allows you to get monthly options, yearly I haven’t seen it or unable to see it. I don’t think we can buy it for long term
Mr Apurva. Please seek a clarification whether it will be beneficial to buy monthly protection instead of yearly protection so that the gain till that month is protected and the drawdown can be minimised when there is a fall in Nifty
Dear Mr. Bhyra, controlling your costs is very important for any strategy. If you observe monthly options, they tend to be pretty costly and for an investor looking for long term hedging, December options tend to be far more value for money.
The concept is really great! Splendid job Sir!! However I guess Safety part is confusing for all including me. If it means hedging with PUT still then I don't think it will give exact delta amount of 40L when the nifty goes down from 12000 to 8000. Also buying futures of 3 months is possible. Even if we buy Far month futures(I.e. 3rd month future) then it will be little higher than current value. Also rollover cost will get added. Could you please explain the concept with all these details?
Dear Abhijit, when market goes down from 12000 to 8000, your 12000 put value will be minimum 4000 and hence the value will be protected. The premium paid to purchase the put has been considered as hedging cost (~@5% pa). Hence beyond the put premium every penny of your investment is protected in the downside. Secondly, you are right in observing that Futures will come at a premium and that is the financing cost (~@5% pa) which is considered. Other then the rollover cost there is no other cost that will be required by you to pay in buying futures. Hope this answers your question
@@finideas Thanks for the clarification; but till have not understood why we need to complicate, just buying DEC call option (assuming option premium is similar to Put option) should be equivalent to creating synthetic future and then again buying Put.
Your feedback is been noted. We'll try to incorporate this in our upcoming videos. By the time, please subscribe to our TH-cam channel for more such insightful videos.
Please clarify the protection cost part .. If the protection cost is only rollover cost , then how we get protection amount , when the market goes down ..
Please tell how to choose put Strike for buying by this investment startegy. why not sell OTM call? Please also tell detailed practical investing demo on how to do this.!
Dear Gangulyji The answers to your queries are as follows: 1. As you need protection from the level of your investment, select a strike near your investment level 2. You can definitely sell OTM calls and collect a few extra bucks but the problem is that it will limit your returns when the market rises in one direction. It is all about the objective of your investment. If you are looking for returns similar to Nifty in long run, it is better not to Sell OTM calls
Dear sir, You have to purchase futures exposure with 70 Lacs (around 9 lots of Nifty) which you can easily buy on a margin of Rs. 30 lacs. For hedge you can buy Puts on Nifty
Protection means - if you invest in market at 15000 & you invest 1 crore then if market goes to 18000 you make money, but if market goes to 12000 your 1 crore remains 1 crore. NSE provides downside protection by offering Puts on Nifty
Sir Nice and very very informative. Thanks. But I think needs further clarification. As discussed in the tutorial, if i call it so, the cost of protection is 5 pct. But when I analysed with the option chain , the Dec. expiry put is costing around 7.25 pct yearly. How we can minimise this cost to 5 pct.
Please Clarify.... how can someone get hedge at 5% for 1 year.... The PE is much more than that and in this strategy every percentage is important as it is affecting returns over long term so hedge at 5% is more theoretical than practical
hey apoorva 5% is not roll over cost. if its buying put, what is the strike price selected. is it atm? you have not mentioned anything about cash for m2m settlement
Dear sir, You can buy Nifty index in 2 ways. 1. Equity - You can purchase Nifty ETFs listed on exchange like Nifty bees etc 2. Futures- You can purchase Nifty Future ranging between 3 month or beyond using synthetic future
Mr Apurva Seth and Mr Udipth Talera Thanks for great concept ... What about M2M risk/finance and returns after Income Tax (for HNI) as FnO is taxed at 30% ...
Dear Shailendraji, 1. M2M risk can be eliminited by using Synthetic futures instead of Pure futures. 2. Taxation has been covered in next episode. Stay tuned
Hi - I have invested around 35 lac in market for long term and now I want protect it and earn some handsome monthly return . It’s possible . Pls tell me
Dear Rajeshji, It seems, the target of this Rs. 35 lacs fund is to generate short-term gains and hence this product is not right for this fund. You may think to move your long term funds, where safety is of utmost importance & you are fine with a 15-18% return, to this kind of strategy
Dear Anandji Here in the strategy we are buying futures to take advantage of interest arbitrage. Now Futures comes at a rollover premium. That rollover premium is the cost of financing, as we are not purchasing equity immediately. Rather we are borrowing the same using futures & investing our own fund in better yield generating products.
How to put hedging?can't understand. Pl. Make video in detail and explain how can we do it? How much time we have to give for ?like all aspects. As I am senior I am interested in this in detail. How can we apply?
Thank you for very good session…. In Power Booster Strategy can our Mutual Fund holding can be considered. Also, Small ticket size is available for small investors? You have taken 1 Crores in your example.
Dear Deepakji, You can use mutual Funds to run the Power booster strategy, provided they are in Demat form and can be collateralized. Smaller ticket size is possible, which is discussed in next episode. Stay tuned.
Sir if 30 lack only place instead of 1 crore , what will be the return getting from index fund , we can put total amount instead of 30 lack , even nifty will deep it not going to 0 , then for what protection is needed
Dear Anilji What you are trying to suggest is why to take protection when Nifty is not going to zero anyway but you need to consider the following points: 1. We understand that if somebody holds Nifty for 15-20 years, he is bound to generate anything beyond 14%. But this is easier said than done. All dips & interestingly all speedy rises (??) tend to get the investor out of the market and the returns of 14% are rarely actually accrued in investors' accounts. The protection ensures that you are always there in the market WITHOUT fear and hence no DIP & NO sharp rise can take you out of the market 2. Even protection in itself, will help you boost your Nifty returns by 2-3 %. How?? Whenever there is a dip, it will prevent your portfolio value from going down, & this will add to your portfolio returns whenever the market reverses. Say for example you invest Rs. 1 crore at 18000 Nifty without protection and the market goes to 12000 & comes back to 18000 your 1 crore is still 1 crore but if you invest with the protection your money may still grow (refer to the video from 23:04 minute)
How have you arrived at 5% cost of Puts. Generally the Put Cost from 3 months forward is available at arround 3.5%. The cost of Nifty Put strike 15800 Exp 28-Jul-2022 is 556 . This is 3.5% for 2.5 months. Works out to 17% p.a.
I am a little disappointed that you are not asking basic questions to clarify for the audiance like Vivek Bajaj does in Face to Face. For example how the investment is protested is nowhere mentioned and is left to individuals judgement..
Dear Muneeshji Protection of investment will be done using PUts which has been covered in episode at 21:35 seconds. May be listening to that part again may clarify your doubt
Hi Dileepjji, Sorry for inconvenience. If you are not able to follow the language of video, you can read the whole strategy at www.finideas.com/ilts/details/
It's not about the return only. It's about the drawdown also. For that you have to study risk adjusted return as you are only looking into absolute return.
Sir, I am a student. Please guide me for a minimum investment Plan with Protection with examples. Sir, students, and persons with Low Investments would be benefitted from your Plan.
Concept is not clear by you 1. 5% premium depend on vix if vix is s high it's cost approx 10% 2. Nifty future ka price nifty se 0.5% jyada hota h every month. So apne iska calculation add nhi Kiya, please share answer
I don't see any benefit in this product... ot gives less return when market is Up. And gives low loss when market goes down... overall it's same in long term... I do t get it... what's the use of this product ? Why would I buy it ?
Dear Poonam, You are right in observing that it will give you lower returns against the market when the market goes up but when the market goes down it will boost your returns as your capital is always protected. For comparison and advantage over naked Nifty buying, you can refer to the video from 44:00 minute
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Buy puts man Positional. Everywhere 5% value of the total invested amount that should be premium and it should cover your investment vaue as hedge So that position sizing you need to do.
@@fernandotorres122 okkay,, Thanks . And how many times in a year? And secondly Sir does it really works the way the guy CA Udipth Ji is explaining? If you may kindly reply. And let say my investment in niftybees is 50 Lacs so much amount of premium for put buying sir?
@@jaganimeet Dear Meetji, Nifty is the only product in NSE that can be bought for the next 5 years in one go. So you don't need to buy puts every month - You can buy it for 1 year at one go as well.
Dear AN, You are right in pointing out that you will be losing 1.5 % dividend yield, but that dividend yield will be received by you in Index ETFs as they hold actual shares. And as far as future goes, higher the dividend yield, lower the future rollover cost and hence effectively that advantage is also received by you over time.
Dear Rakeshji, absolutely correct. If you cant see the risk then there is a very high risk you are taking. That is why the strategy emphasizes understanding the risk & then takes action to reduce or control the risk in bearable bounds
Why do you need buy the protection if in any case you wish to continue SIP for the next 10 years? Also although Index investing looks good on paper but there are some facts associated which an Investor must consider. There are great apples in Nifty, a lot of duds as well ( ONGC, NTPC, M&M) which have done nothing for decades And ofcourse bad apples of Nifty such as Yes Bank types. Now either Nifty is late by 6 months to kick them out or the new entrants also do not perform for longer time once added. Some examples are Shree Cement and hdfc life. This is coz all the upside is well priced nn when they were smaller companies.
Dear Deepesh, You have raised 2 points 1. Index investing vs stock picking? 2. Why should I hedge, if I am investing for ten years only with SIP? Q1. Index investing vs stock picking? Ans. Your understanding is correct that the index will have late entrants and you may pick and select various scrips which might (theoretically?) give you returns beating the index. If you have an excellent knack (& time) for catching tops and bottoms in all your scrips in your portfolio then you can very well generate higher returns. Otherwise, historically, on a 10-year scale, it is difficult for any managed portfolio (MF, PMS, etc.) to beat the index, and even if that happens they beat by a 2-3% margin (statistically only 20% beat the index and that too the name of managed portfolio keeps on changing). So, for an investor to beat the index, he has to be holding the same MF which be beating the index in the next 2 years. If that is not happening you actually end up with around (mostly below) index performance and if that is happening better invest in Index Q2. Why should I hedge, if I am investing for ten years only with SIP? Ans. Theoretically, when an inventory enters the equity market he says he will remain invested for 10 years but ends up exiting in just 10 days. The reason is when you are investing for ten years, you are getting upside as well as the downside of the index which can be as high as 50%+ in this 10-year tenure (many a time not bearable by an average investor). If you add protection to your index, what happens is that your downside is restricted to 4-5% ( far more bearable) & secondly, it will add to your return by 2-3% over 10 years as when the market goes up your money grows and when the market goes down your money is protected.
Dear Rajatji I understand this strategy may not be practical to use for many. It will be great if you can share the reason for the same, so that many can benefit from it.
Dear JKJ Your strategy matches our belief that - "Index he to badhega hi". Your strategy may suit investors who have very deep pockets and are mentally prepared for heavy drawdowns. The strategy discussed in the video - Index Long Term Strategy, suits that fund, where the investor doesn't want to take heavy risk & is happy with a 15%-19% return with downside protection. So, both of our strategies have a different play and this strategy may suit you for funds where you want to take a limited risk like your retirement fund or fund kept for your kids' education.
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Never seen anything like this in Investment !! Kya Gazab Strategy hai. Exellent!
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Best video thanks apurva Seth and udipth talera sir .bhoot Mazza aaya video mayy
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I just checked today. Dec 15500 ATM Put option costs around 4.6% ( Rs 718/15700 ). ( for long term Put option, we won't even get the 15700 strike... the strike difference/interval is 500 points ). So, for 1 year, it will be 9+% cost roughly. That too for OTM ( 15700 spot vs 15500 Put Strike). So it is not clear from where the 5% came. Even if Cost % differs and "depends", in public channel, worst case or atleast mean case scenario should be highlighted. Not the best case scenario.
Excellent work for retail investors.
Thanks Apoorvaji
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Great, great, great presentation. God bless you. And samco all team.
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Hi Apurva
Concept is unique and looks implementable
*But hand holding example is required for different scenarios*
Eagerly waiting for next video with all clarification.
It would be great if you organise live with Q&A.
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This one is indeed enlightening. Got to know about a lot of things. Thanks for sharing such insights.
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Sir please clarify with real example like if we buy today nifty bees equivalent to 1 lot and futures using nifty bees as a collateral then which strike price of put we have to buy and how many lots of dec expiry?
Please upload the next part asap 🙏
we'll be publishing our next episode on this Saturday at 11am.
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@@SAMCOSecuritiesIndia Sir if possible please provide a short follow up vedio made by you on which strike price to select(including lot size)& How many lot of future we have to buy?
What will be the profit % if we don't use collateral for future buying🙏
Very good useful content . Thanks
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Thank you Sir for sharing your knowledge
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Should it be synthetic future?
It's a majic for retail investors and beginners
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Awesome video, watched till end, and I think It could have been more longer like more 4-45 mins to carry on more intricate details of the thing ! I expect more sessions for in-depth analysis
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Great idea really, THANQ
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Sir strategy me hedge kaise karna aur future kaise Lena aur hedge kaise karna clear nahi hua. Nifty ke o1 lot per Pura strategy with 5% hedge explain kijiye.
Dear Ghanshyamji
This strategy can be done in a smaller size. This has been explained in the next episode. Kindly stay tuned
Very Interesting concept. Kindly guide ke yearly put options kaise buy karne hai. Zerodha me long term put buy karne ka option nahi hai.
Put buy karna hai yaa future buy karna hai apne investment amount ko jyada girne se?
NSE allows members to buy long term options. You need to connect with a NSE broker who allows investing in long term options
@@murlidudhal9327 You need to buy Put options to protect downside of your investment and still keep your upside intact.
As far I use and I know, Zerodha allows you to get monthly options, yearly I haven’t seen it or unable to see it. I don’t think we can buy it for long term
You are doing great job. Aapki bhalaa ho
Thank you for your feedback.
Thanks for another strategy
Welcome JKJ. Samco thrives with a mission to introduce as many strategies as possible which can create wealth for investors as a whole.
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Keep it up sir.
Very good approach. Really appreciate
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Mr Apurva. Please seek a clarification whether it will be beneficial to buy monthly protection instead of yearly protection so that the gain till that month is protected and the drawdown can be minimised when there is a fall in Nifty
Dear Mr. Bhyra, controlling your costs is very important for any strategy. If you observe monthly options, they tend to be pretty costly and for an investor looking for long term hedging, December options tend to be far more value for money.
The concept is really great! Splendid job Sir!! However I guess Safety part is confusing for all including me. If it means hedging with PUT still then I don't think it will give exact delta amount of 40L when the nifty goes down from 12000 to 8000. Also buying futures of 3 months is possible. Even if we buy Far month futures(I.e. 3rd month future) then it will be little higher than current value. Also rollover cost will get added. Could you please explain the concept with all these details?
Dear Abhijit, when market goes down from 12000 to 8000, your 12000 put value will be minimum 4000 and hence the value will be protected. The premium paid to purchase the put has been considered as hedging cost (~@5% pa). Hence beyond the put premium every penny of your investment is protected in the downside.
Secondly, you are right in observing that Futures will come at a premium and that is the financing cost (~@5% pa) which is considered. Other then the rollover cost there is no other cost that will be required by you to pay in buying futures.
Hope this answers your question
@@finideas Thanks for the clarification; but till have not understood why we need to complicate, just buying DEC call option (assuming option premium is similar to Put option) should be equivalent to creating synthetic future and then again buying Put.
Is finidea sell this product for retailer also .if they available how much cost &how subscribe +minimum investment how much.. answer plz????
Answers provided in next video. Stay tuned
Please explain what is protection and how to do that sine he has used this word all the time where to buy protection from
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Please clarify the protection cost part .. If the protection cost is only rollover cost , then how we get protection amount , when the market goes down ..
Protection cost is NOT rollover cost, Protection cost is the premium of Puts that you purchase to protect your portfolio.
Please tell how to choose put Strike for buying by this investment startegy. why not sell OTM call?
Please also tell detailed practical investing demo on how to do this.!
Dear Gangulyji
The answers to your queries are as follows:
1. As you need protection from the level of your investment, select a strike near your investment level
2. You can definitely sell OTM calls and collect a few extra bucks but the problem is that it will limit your returns when the market rises in one direction. It is all about the objective of your investment. If you are looking for returns similar to Nifty in long run, it is better not to Sell OTM calls
When will the second part be aired? It's better to show both the parts on consecutive days or together so that the understanding is full
Second part is going to be published tomorrow at 11am. Please subscribe to our TH-cam channel to get notified.
Not clear. How can one get to buy futures worth 70 lacs against a collateral of 30 lacs.?where and what is the hedge???
Dear sir,
You have to purchase futures exposure with 70 Lacs (around 9 lots of Nifty) which you can easily buy on a margin of Rs. 30 lacs.
For hedge you can buy Puts on Nifty
No we need atleast 50 percent cash so
@@finideas so do we have to buy 9 lots of atm put and for which expiry?
Protection kya hai. Kindly explain in Hindi. And give some links to read which exchanges are giving what kind of protection?
Protection means - if you invest in market at 15000 & you invest 1 crore then if market goes to 18000 you make money, but if market goes to 12000 your 1 crore remains 1 crore.
NSE provides downside protection by offering Puts on Nifty
Super interview
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eagerly waiting for next video sir!
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Very useful information....can you also take a session on how the protection option with practical examples
you have explained verygood on therotical side but make session on case studay
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How can I get hand holding for starting this strategy
Really wonderful.
Sir
Nice and very very informative. Thanks. But I think needs further clarification.
As discussed in the tutorial, if i call it so, the cost of protection is 5 pct. But when I analysed with the option chain , the Dec. expiry put is costing around 7.25 pct yearly.
How we can minimise this cost to 5 pct.
Sir, please tell in details means Buy Put every month or which strike ???
Dear Vijayji
As we are investing for the long term, Puts are to be bought for December expiry and NOT month on month.
We must learn zero loss strategy thanks
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Please Clarify.... how can someone get hedge at 5% for 1 year.... The PE is much more than that and in this strategy every percentage is important as it is affecting returns over long term so hedge at 5% is more theoretical than practical
Long term put options
5 to 6 percent is enough to hedge
hey apoorva 5% is not roll over cost. if its buying put, what is the strike price selected. is it atm? you have not mentioned anything about cash for m2m settlement
Hi Sir, please allow us some time.
He to buy nifty index .. ? Please clarify ?.. Did you mean investing in mutual funds ?
Dear sir,
You can buy Nifty index in 2 ways.
1. Equity - You can purchase Nifty ETFs listed on exchange like Nifty bees etc
2. Futures- You can purchase Nifty Future ranging between 3 month or beyond using synthetic future
Mr Apurva Seth and Mr Udipth Talera Thanks for great concept ... What about M2M risk/finance and returns after Income Tax (for HNI) as FnO is taxed at 30% ...
Dear Shailendraji,
1. M2M risk can be eliminited by using Synthetic futures instead of Pure futures.
2. Taxation has been covered in next episode. Stay tuned
Hi - I have invested around 35 lac in market for long term and now I want protect it and earn some handsome monthly return . It’s possible . Pls tell me
Dear Rajeshji,
It seems, the target of this Rs. 35 lacs fund is to generate short-term gains and hence this product is not right for this fund.
You may think to move your long term funds, where safety is of utmost importance & you are fine with a 15-18% return, to this kind of strategy
Hedging here is put option buy, that's clear which is 5%. I didn't understand the finance component.. what exactly is that??
Dear Anandji
Here in the strategy we are buying futures to take advantage of interest arbitrage. Now Futures comes at a rollover premium. That rollover premium is the cost of financing, as we are not purchasing equity immediately. Rather we are borrowing the same using futures & investing our own fund in better yield generating products.
Very good concept. 👍
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How to put hedging?can't understand. Pl. Make video in detail and explain how can we do it? How much time we have to give for ?like all aspects. As I am senior I am interested in this in detail. How can we apply?
Dear Sudha Madam,
For more information on the strategy, kindly refer www.finideas.com/ilts/
Good one
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Thank you for very good session…. In Power Booster Strategy can our Mutual Fund holding can be considered. Also, Small ticket size is available for small investors? You have taken 1 Crores in your example.
Dear Deepakji,
You can use mutual Funds to run the Power booster strategy, provided they are in Demat form and can be collateralized. Smaller ticket size is possible, which is discussed in next episode. Stay tuned.
How to invest
Sir if 30 lack only place instead of 1 crore , what will be the return getting from index fund , we can put total amount instead of 30 lack , even nifty will deep it not going to 0 , then for what protection is needed
Dear Anilji
What you are trying to suggest is why to take protection when Nifty is not going to zero anyway but you need to consider the following points:
1. We understand that if somebody holds Nifty for 15-20 years, he is bound to generate anything beyond 14%. But this is easier said than done. All dips & interestingly all speedy rises (??) tend to get the investor out of the market and the returns of 14% are rarely actually accrued in investors' accounts. The protection ensures that you are always there in the market WITHOUT fear and hence no DIP & NO sharp rise can take you out of the market
2. Even protection in itself, will help you boost your Nifty returns by 2-3 %. How?? Whenever there is a dip, it will prevent your portfolio value from going down, & this will add to your portfolio returns whenever the market reverses. Say for example you invest Rs. 1 crore at 18000 Nifty without protection and the market goes to 12000 & comes back to 18000 your 1 crore is still 1 crore but if you invest with the protection your money may still grow (refer to the video from 23:04 minute)
Apurva sir Rakesh pujara sir ki monthely weekly option strategy per aur one video banaye sir.
i request mr.rajesh pujara to make it in english. I m following his weekly strategy. thank u
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How have you arrived at 5% cost of Puts. Generally the Put Cost from 3 months forward is available at arround 3.5%. The cost of Nifty Put strike 15800 Exp 28-Jul-2022 is 556 . This is 3.5% for 2.5 months. Works out to 17% p.a.
Dear Ace
Using near month options will be costly. We use December options to hedge and there the cost is pretty within bounds
I am a little disappointed that you are not asking basic questions to clarify for the audiance like Vivek Bajaj does in Face to Face. For example how the investment is protested is nowhere mentioned and is left to individuals judgement..
Dear Muneeshji
Protection of investment will be done using PUts which has been covered in episode at 21:35 seconds. May be listening to that part again may clarify your doubt
Protection kaise karna hai
For protection you can purchase Puts from exchange
What about taxation when your protection money shows a profit?
Taxation has been discussed in the next episode. Kindly stay tuned
wow nice
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Apurva sir, could you please provide subtitles in English. Not able to follow the strategy completely.
Hi Dileepjji, Sorry for inconvenience. If you are not able to follow the language of video, you can read the whole strategy at www.finideas.com/ilts/details/
It's a bouncer for us...Hopefully he would explain in much better way
Dear Vadlamudiji,
If the presentation is not clear to you, you can read the detailed explanation here (www.finideas.com/ilts/details/)
Please explain in simple words Sir
Summary.
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Well this shows a cagr of 18% while nifty alpha is generating above 21% so why wouldnt i just buy that etf. If i can handle volatility ?
When we just buy etf it is our own pocket money. Etf buy karke collateral Rakhial ke futures buy karne se you make 18% on double the amount.
It's not about the return only. It's about the drawdown also. For that you have to study risk adjusted return as you are only looking into absolute return.
Which AMC has nifty alpha ETF? Kotak? Or any other is also there?
@@merwan5015 futures buying or put buying sir?
@@merwan5015 Bruh Derivatives dangerous,
He looks like Vivek Bajaj!!!
Thanks 🙏
Sir, I am a student. Please guide me for a minimum investment Plan with Protection with examples. Sir, students, and persons with Low Investments would be benefitted from your Plan.
Dear Rahul
Stay tuned for the next episode. It will answer your question
Concept is not clear by you
1. 5% premium depend on vix if vix is s high it's cost approx 10%
2. Nifty future ka price nifty se 0.5% jyada hota h every month. So apne iska calculation add nhi Kiya, please share answer
Hi Nishchint, this topic was discussed in detail in our previous episode. Here's the link - th-cam.com/video/Jh3HD9cFPyg/w-d-xo.html .
Know some more about this product,
For more information, stay tuned for the next episode
I don't see any benefit in this product... ot gives less return when market is Up. And gives low loss when market goes down... overall it's same in long term...
I do t get it... what's the use of this product ? Why would I buy it ?
Dear Poonam,
You are right in observing that it will give you lower returns against the market when the market goes up but when the market goes down it will boost your returns as your capital is always protected. For comparison and advantage over naked Nifty buying, you can refer to the video from 44:00 minute
not clear. method should be simple to explain. Here execution part of 70 lakhs (from where, how) is totally missed.
you have explained verygood on therotical side but make session with case studay
Your feedback is been noted. We'll try to incorporate this in our upcoming videos. By the time, please subscribe to our TH-cam channel for more such insightful videos.
Nothing is clear.. Explain in a better way. What is""Hedging @5% per annum""?
Buy puts man Positional. Everywhere 5% value of the total invested amount that should be premium and it should cover your investment vaue as hedge So that position sizing you need to do.
@@fernandotorres122 PUT can be bought formax3 months. So in a year we need to buy puts 4 times. Am i correct?
@@fernandotorres122 okkay,, Thanks . And how many times in a year? And secondly Sir does it really works the way the guy CA Udipth Ji is explaining? If you may kindly reply. And let say my investment in niftybees is 50 Lacs so much amount of premium for put buying sir?
@@jaganimeet Dear Meetji, Nifty is the only product in NSE that can be bought for the next 5 years in one go. So you don't need to buy puts every month - You can buy it for 1 year at one go as well.
5 percent nhi 7.5 percent kyonki 1.5 percent dividend nhi milega
Dear AN,
You are right in pointing out that you will be losing 1.5 % dividend yield, but that dividend yield will be received by you in Index ETFs as they hold actual shares. And as far as future goes, higher the dividend yield, lower the future rollover cost and hence effectively that advantage is also received by you over time.
There are no free lunches, be careful
Dear Rakeshji, absolutely correct. If you cant see the risk then there is a very high risk you are taking. That is why the strategy emphasizes understanding the risk & then takes action to reduce or control the risk in bearable bounds
Why do you need buy the protection if in any case you wish to continue SIP for the next 10 years? Also although Index investing looks good on paper but there are some facts associated which an Investor must consider. There are great apples in Nifty, a lot of duds as well ( ONGC, NTPC, M&M) which have done nothing for decades
And ofcourse bad apples of Nifty such as Yes Bank types. Now either Nifty is late by 6 months to kick them out or the new entrants also do not perform for longer time once added. Some examples are Shree Cement and hdfc life. This is coz all the upside is well priced nn when they were smaller companies.
Dear Deepesh,
You have raised 2 points
1. Index investing vs stock picking?
2. Why should I hedge, if I am investing for ten years only with SIP?
Q1. Index investing vs stock picking?
Ans. Your understanding is correct that the index will have late entrants and you may pick and select various scrips which might (theoretically?) give you returns beating the index. If you have an excellent knack (& time) for catching tops and bottoms in all your scrips in your portfolio then you can very well generate higher returns. Otherwise, historically, on a 10-year scale, it is difficult for any managed portfolio (MF, PMS, etc.) to beat the index, and even if that happens they beat by a 2-3% margin (statistically only 20% beat the index and that too the name of managed portfolio keeps on changing). So, for an investor to beat the index, he has to be holding the same MF which be beating the index in the next 2 years. If that is not happening you actually end up with around (mostly below) index performance and if that is happening better invest in Index
Q2. Why should I hedge, if I am investing for ten years only with SIP?
Ans. Theoretically, when an inventory enters the equity market he says he will remain invested for 10 years but ends up exiting in just 10 days. The reason is when you are investing for ten years, you are getting upside as well as the downside of the index which can be as high as 50%+ in this 10-year tenure (many a time not bearable by an average investor). If you add protection to your index, what happens is that your downside is restricted to 4-5% ( far more bearable) & secondly, it will add to your return by 2-3% over 10 years as when the market goes up your money grows and when the market goes down your money is protected.
@@finideas What is the minimum ticket size you guys deal in ?
Not practical for us.
Dear Rajatji
I understand this strategy may not be practical to use for many. It will be great if you can share the reason for the same, so that many can benefit from it.
extremely complex and unclear explanation sadly
WHEN NIFTY CRASH , THEN DOUBLE THE INVESTMENT IN EVERY 20 PERCENT DROP ,
MK JAIN STRATEGY ..
SO IT WILL COVER THE RISK OF CRASH
Dear JKJ
Your strategy matches our belief that - "Index he to badhega hi". Your strategy may suit investors who have very deep pockets and are mentally prepared for heavy drawdowns. The strategy discussed in the video - Index Long Term Strategy, suits that fund, where the investor doesn't want to take heavy risk & is happy with a 15%-19% return with downside protection. So, both of our strategies have a different play and this strategy may suit you for funds where you want to take a limited risk like your retirement fund or fund kept for your kids' education.
Excellent Content and channel
Thank you for your feedback.