Saturday, May 2, 2009

NFO - TATA SMART INVESTMENT PLAN - 1


(A 36 months close ended hybrid scheme)
What is Tata Smart Investment Plan - 1?

Tata Smart Investment plan is a 36 months close end hybrid scheme that gives you the
advantage of investing in debt and equity. To start with the scheme will be invested in debt
and over the next 12 months (Scheme A) to 24months (Scheme B) the investment amount
will be moved to equity on a monthly basis in a systematic manner. So it gives the investor
the advantage of debt, equity and systematic investing all packaged in one product.
What is the difference between Tata Smart Investment Plan – 1 and a regular SIP?
Regular SIP plans normally offer investors the facility of post dated cheques or auto debit at
time of investment. However in the Tata Smart Investment Plan you will have to make a one
time investment during the NFO period.
The second difference is that the money that lies in debt would also fetch returns whereas in
the case of a regular SIP the money before being invested in all likelihood would generate
returns that of a savings account.

What are the benefits of investing in Tata Smart Investment Plan - 1?

The benefits of investing in Tata Smart Investment Plan – 1 are
1) Getting multiple advantages of investment in debt and equity at a time when the
market conditions are suitable.
2) Getting the advantage of systematic investing style which would be helpful in a
volatile market.
3) One time investing and yet getting the advantage of systematic style of investment.
4) liquidity as the scheme would be listed on stock exchange
5) Tax efficiencies upon remaining invested until maturity
What are the advantages of systematic style of investing?
Rupee cost averaging
By investing a fixed sum at fixed intervals we can:
Buy fewer shares when the price is higher, more shares when the price is lower
It brings down the average cost per unit; this is called Rupee Cost Averaging.
SIP takes care that your average price works out to be lower than the price you would have paid
at the market peak. However in a one way movement, the SIP strategy may not benefit investors

To Apply

Call: 9818269396
investorspleaselisten@in.com
www.investorspleaselisten.blogspot.com

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