Mumbai, October 6: You may have heard about goal-based investment in the Mutual Funds (MFs) in the form of Systematic Investment Plan (SIP). But have you come across A similar investment in equities taking direct exposure? It is possible now. Mumbai-based Samco Securities, country’s leading discount broking firm, has come out with a product called StockBasket, a one time-one click, long term equity investment product for retail investors.
This product is a ready-made, low cost, fast moving equity product (FMEP), saving cum investment product for retail investors across India. Samco Securities launched StockBasket in Mumbai last Friday.
What is StockBasket?
StockBasket is for everyone as it is an investment platform and not a trading one. Each basket consists of 7 to 12 well diversified stocks (of high-quality wealth-creating companies from top 500 list), which are designed with a minimum recommended holding period of 5 years. With the badket comprising of diversified stocks, the risk also gets diversified and imparts safety to the capital invested. It is a very-well focused, goal-based investment, where baskets are branded as, “International Vacation Basket”, “Leaders of Tomorrow”, “India’s Biggest Brands”, “Retire in 2040”, “4x (times) target in 10 years.”
Jimeet Modi, Founder & CEO, Samco Securities said, “There are 400-500 million people waiting to become equity investors but don’t know where to invest. There are another 40-50 million investors waiting to generate returns but somehow don’t know how to generate superior returns. When people invest in such long term focused readymade investment solutions, they are bound to make superior returns which will truly bring in all-round prosperity and a more sustained wealth in the hands of retail investors.”
Umesh Mehta, Head of Research, Samco Securities said, “When the Investors are (hand-held) airlifted in an ecosystem wherein they are asked to invest in a portfolio of great companies for a minimum period of 5 years, they can make superior returns consistently. StockBasket is an effort to solve the problem of investor losing money in absence of availability of adequate expertise.”
According to financial planners we spoke to, such innovative products from the equity segment is need of the hour in the falling interest rate regime. Such products (StockBasket and similar ones) can be equally useful to both millennials as well as senior citizens who have retired with a hefty amount and will continue with a regular income in the form of pension (retired senior Government servants).
Experts feel such products can be a fitting alternatives to fixed deposits (FDs) of longer tenure (three to five years) offered by the Banks.