[Mynameis]

Originally Posted by SnS_12

Coming to the question, whether Vodafone will stick around or shut shop then you have to see their approach towards the AGR issue. Unlike Airtel they are no longer contesting the amount of AGR been calculated and are asking for 15 year period to pay it and have already paid around 8k crore of the total dues pending till date. As per my thinking, a company which had plans to shut shop would have never made such a payment in the first place.

Thanks a lot @SnS_12. You explained it very neatly and in detail.

Hope the hearing does not get extended after 10th august and a final deal is reached.

Do you think averaging down the buying price will be a good idea at current scenario or shall wait till next hearing? I bought at 10.05/ share.

[SnS_12]

Originally Posted by Mynameis

Thanks a lot @SnS_12. You explained it very neatly and in detail.

Hope the hearing does not get extended after 10th august and a final deal is reached.

Do you think averaging down the buying price will be a good idea at current scenario or shall wait till next hearing? I bought at 10.05/ share.

Well, its currently trading at a little over 8 levels, which is still lower then the face value.

Your buying pattern should depend on what is your ultimate target. If you are planning to exit early say by waiting for a favourable verdict and making a 50% profit by exiting at 15 levels you can accumulate more.

No one can say with certainty what will actually happen tomorrow and you always have to take a calculated risk. So you have to be patient and ultimately believe in what you’re doing and not just go on basis what someone suggests as its your money.

As I have mentioned a few posts back on this thread, I try to do my resarch on every stock I invest in but ultimately its a gamble and I am investing a sum of my saving with a mindset that even if the investment goes down to zero if will not affect me financially or mentally as its just another form of gambling at the end of the day

[jetsetgo08]

The recovery from the low-level scare on 29th March to now has been rather quick unlike the landslide predicted by many. I guess many have made a lot of money.

Originally Posted by graaja

With the complete economy slowed down, I have a feeling this bull market is because of many people who don't want to miss the boat investing in (could be some other factors as well). The real situation will emerge as companies start announcing their earnings, and the real state of economy is revealed. So, you may still get that opportunity in the near future.

Require your expert opinion sir, is the valuation of sensex at realistic levels as on today?

[graaja]

Originally Posted by jetsetgo08

Require your expert opinion sir, is the valuation of sensex at realistic levels as on today?

I am not an expert on this. But one thing I learnt was there is no way to correctly judge the market or time it. So, I have started following asset re-allocation method (thanks to SmartCat for this). I have set myself a split of 50% equity and 50% debt and once in 3 months re-balance my portfolio to reset to this split. With this method, I just don't worry if the market is undervalued or overvalued.

[jetsetgo08]

Originally Posted by graaja

I am not an expert on this. But one thing I learnt was there is no way to correctly judge the market or time it. So, I have started following asset re-allocation method (thanks to SmartCat for this). I have set myself a split of 50% equity and 50% debt and once in 3 months re-balance my portfolio to reset to this split. With this method, I just don't worry if the market is undervalued or overvalued.

Another noob question, assest re-allocation, does it mean higher percentage allotted to debt when the stock prices are high and vice-versa when the stock prices are low?

It would be great if someone can guide me to the relevant post by SmartCat which has more information on asset reallocation.

[graaja]

Originally Posted by jetsetgo08

Another noob question, assest re-allocation, does it mean higher percentage allotted to debt when the stock prices are high and vice-versa when the stock prices are low?

It would be great if someone can guide me to the relevant post by SmartCat which has more information on asset reallocation.

It does not mean changing the allocation % based on market value. But maintaining the same allocation irrespective of market value.

Here is the post by SmartCat on asset balancing.

https://www.team-bhp.com/forum/shift...ml#post4802345 (The Mutual Funds Thread)

His post explains the situation where one invests every month. In case you already have a corpus and are not doing any SIPs, you would re-balance by redeeming units from one category and investing in the other.

[greenoval]

Originally Posted by carboy

If anyone in planning to invest in RBI's Sovereign Gold Bonds - check out buying from the secondary market rather than buying directly from RBI. The older bonds usually trade at a discount to whatever rate the current RBI bonds are offering.

The Sovereign Gold Bond Scheme 2020-21-Series V will be opened for subscription from August 3-7, 2020 and the issue price has been fixed at Rs 5,334 per gram. I missed out on subscribing to the IV series at a lower issue price! I'll investing in the upcoming series but before that wanted to understand more about buying them from the secondary market. Are older bonds traded? Thought there is a lock in period!

[SmartCat]

Originally Posted by greenoval

Are older bonds traded? Thought there is a lock in period!

All bonds (government bonds, corporate bonds, gold bonds) have a fixed tenure (Eg: 5 years, 10 years, 20 years etc), but they can also be traded like stocks. When you buy a bond of fixed tenure and trade it like a stock, the price you get depends on demand and supply for that security at the time.

In case of sovereign gold bonds, think of it as a 7 year product - because liquidity for trading it (like a stock) will be poor.

[Simhi]

Originally Posted by greenoval

Are older bonds traded? Thought there is a lock in period!

If you are referring to SGB, then yes they are traded. For a snapshot of old SGB prices on NSE, you can refer to
https://www1.nseindia.com/live_marke...ch.htm?cat=SGB

[greenoval]

Originally Posted by SmartCat

All bonds (government bonds, corporate bonds, gold bonds) have a fixed tenure (Eg: 5 years, 10 years, 20 year

In case of sovereign gold bonds, think of it as a 7 year product - because liquidity for trading it (like a stock) will be poor.

Thanks for clarifying. Also, wanted your opinion on the type of gold investment best suited for those with a longer investment horizon (6-8 years) - gold bonds, gold ETFs or gold mutual funds?

[SmartCat]

Originally Posted by greenoval

Thanks for clarifying. Also, wanted your opinion on the type of gold investment best suited for those with a longer investment horizon (6-8 years) - gold bonds, gold ETFs or gold mutual funds?

If you have a such a long horizon, there is no contest - SGB wins hands down. You get 2.5% pa interest and exemption from paying long term capital gains tax. Remember that you need to pay long term capital gains tax on Gold MFs, ETFs and physical gold

Originally Posted by graaja

It does not mean changing the allocation % based on market value. But maintaining the same allocation irrespective of market value. Here is the post by SmartCat on asset balancing.

I'm tentatively and slowly adding Gold to the mix too.

If we go just by history: a 33% Equity, 33% gsec funds and 33% gold allocation has offered the best risk adjusted return. Long term returns are in high teens, with very little portfolio drawdown (fall in value). That's because whenever equities crash, gold goes up. When equities shoot up, gold does not fall much.

But the only problem with allocating serious amount of capital to Gold is that we don't know the fair value of Gold. Also, if we look at history, Gold has been stuck in a broad range for up to a decade, before moving up again. So its a tricky investment. Experts suggest 10% allocation to Gold though.

[greenoval]

Originally Posted by Simhi

If you are referring to SGB, then yes they are traded. For a snapshot of old SGB prices on NSE, you can refer to
https://www1.nseindia.com/live_marke...ch.htm?cat=SGB

Thanks for link. Had a cursory look, the old SGB prices are lower than the price fixed by RBI for the upcoming series. Now in two minds, should I buy from the secondary market (also, gives me the chance to wait for any minor correction) or just go ahead and subscribe to the new one!

[Simhi]

Originally Posted by greenoval

Now in two minds, should I buy from the secondary market

Liquidity is an issue in secondary market. If you are patient enough, you can buy at corrections.

[anandhsub]

Originally Posted by greenoval

The Sovereign Gold Bond Scheme 2020-21-Series V will be opened for subscription from August 3-7, 2020 and the issue price has been fixed at Rs 5,334 per gram. I missed out on subscribing to the IV series at a lower issue price! I'll investing in the upcoming series but before that wanted to understand more about buying them from the secondary market. Are older bonds traded? Thought there is a lock in period!

Do note that the 2.5% interest rate is on the "face value". What this means is that if the original price of the gold bond was say 3000 Rs then the annual interest you get will be 2.5% on Rs 3000 while when you buy a new bond at say Rs 5300 then it will be 2.5% on 5300.

This explains the small difference in price of old bonds and new bonds. But if you are not concerned about the interest and only want the gold price appreciation then you can go for it but there is no "arbitrage".

[ValarMorghulis]

Originally Posted by SmartCat

If you have a such a long horizon, there is no contest - SGB wins hands down. You get 2.5% pa interest and exemption from paying long term capital gains tax...

Originally Posted by anandhsub

Do note that the 2.5% interest rate is on the "face value"...

OK, am I missing something?
2.5% pa interest rate is even lower than current FDs. So what's the reason for investing in SGBs?
PS; Not very literate in SGBs.