Stock Insurance

You have a lock on your house. You have a lock on your car. You have a lock on your tool shed. Do you have a lock to protect your stock market investments?

Maybe you have a safe at home for your valuables such as jewelry, rare coins, special documents and even stock certificates. Wait a minute. Is that stock certificate protected just because it is surrounded with 3 inches of steel? Not really. The problem is that its value does fluctuate every day. It is OK so long as it is increasing because that is why you bought it. The broker told you to put it away and forget about it.

I hate to tell you this, but in the last 3 years that stock you own whether in your safe deposit box or in your account at the brokerage house might be worth a lot less. Wouldn't it be nice if there were some way you could protect that investment from a big loss? You can, but you will have to pay a premium, but you can set the amount of the premium yourself.

Some stocks you don't have to worry about. Isn't that true? You know, it's good ole AT&T. Mom bought that years ago and gave it to me when it was $55 per share. She said not to worry as it will go up and be there for retirement. Huh? You just looked and it is $14.00. Can't be, but it is. Now don't you wish you had bought some of that stock investment insurance? I bet your broker didn't tell you about it. They never do because you might end up with cash and take it out of your account and he wouldn't be able to make some nice commissions.

Most folks never heard of stock insurance. It has been there for years and years. Here is how it works. Call you your broker and tell him to enter an order for this stock with a loss protection and you are willing to pay a premium of 10% (you can set the percentage amount for more or less) and you want it to stay there until you cancel it. No, you don't have to send him a check. He might be a little puzzled at first until he realizes you are talking about on Open Stop Loss Order. He can enter that for you. If you had put that in place when AT&T was selling at $55 you would have sold out at $49.50 and today you would be about $3,500 richer for each 100 shares. (P.S. Brokers don't like to do this and will try to talk you out of it.)

You can do this with any listed stock to protect from loss of your investments. When you consider that the overall market is down about 40% in the last 3 years that 10% premium looks darn good.

A stop-loss order should never be lowered and should always be raised to follow a stock price up as it increases. It is not too late to do it. Call your broker today.

(c) 2005

Al Thomas' best selling book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter to receive his market letter for 3 months at www.mutualfundmagic.com to discover why he's the man that Wall Street does not want you to know.

In The News:

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I want to invest Rs 1 crore in stocks and mutual funds for 5 years. How should I invest?  Economic TimesYou may consider the following asset allocation: 40% in large-caps; 40% in large and mid-cap, or multi-caps; and remaining 20% in mid- and small-cap funds.
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Down, up and falling again: Is it time to bet on Tata Motors?  Economic TimesNEW DELHI: Shares of Tata Motors declined 5 per cent in morning trade on Wednesday and were on course to extend their losing streak into the third ...
Active mutual funds fail to reflect index gains  Economic TimesThe Nifty, which has hit all-time highs for the second time in April, has advanced 12% in the last one year. But these gains are yet to reflect in many mutual funds' ...
Stick to largecaps, buy financials, consumption stocks on dips: Jinesh Gopani, Axis Mutual Fund  Economic TimesStick to the few stories which are growing and be careful on the portfolio, says Gopani.
Mirae Asset launches its first equity focused mutual fund  LivemintMirae Asset Focused Fund, an open-ended equity scheme, will be investing in a maximum of 30 stocks.The fund manager has the flexibility to invest across ...
Small-cap fund from Principal MF  BusinessLinePrincipal Mutual Fund launched Principal Small Cap Fund — an open-ended equity scheme predominantly investing in small-cap stocks on Monday. The new ...
BJP’s Amit Shah has diversified stock investment portfolio; Rahul Gandhi prefers mutual funds  Economic TimesShah held shares worth Rs 17.56 cr as of March 22, while Gandhi has MFs worth Rs 5.19 cr.
Mutual funds shooting themselves in the foot?  Economic TimesWhat if banks take a leaf out of Kotak and HDFC Mutual Funds' decision to direct investors to come another day to get their money instead of paying them on the ...
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IT, bank stocks in focus as MFs raise stake in 185 companies in March quarter  Moneycontrol.comMutual funds raised stake in as many as 185 companies while reducing in 178 companies in the March quarter, according to the shareholding data declared by ...
Relief for investors as mutual funds chose SpiceJet, IndiGo over Jet Airways  LivemintFive actively managed mutual funds held shares in Jet Airways as of March 2019, as compared to 89 in IndiGo and 24 in SpiceJet.SpiceJet shares have gained ...
Mutual funds sell several blue chips stocks, buy mid-caps in March  Business StandardDomestic money managers were seen pruning their holdings in several blue-chip stocks, including Reliance Industries (RIL) and Housing Development Finance ...
Birla MF looks to parachute out of Jet Airways crashing stock  Business StandardBirla Sun Life Mutual Fund (MF) — the only fund house holding Jet Airways shares in its actively managed schemes — off-loaded Rs 13 crore worth of shares in ...
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Best ELSS funds to invest in FY 2019-20  Economic TimesHere are four ELSS schemes that are relatively new but have delivered superior risk-adjusted returns.
Top 30 stocks that fund managers bought & sold in March; do you own any?  Moneycontrol.comTop 30 stocks which witnessed strong buying according to change in value include names like NTPC, ICICI Prudential, L&T, SBI Life, SBI, Jubilant Food, Maruti, ...
Investors sent net $3.99 bln into U.S. stock mutual funds, ETFs last week -ICI  Yahoo FinanceThe move back into the U.S. stock market came amid a rally that has sent the benchmark S&P 500 up by 17% year-to-date. It has been supported by a dovish ...
Here’s a better tool to judge mutual fund performance than simple 1-year, 3-year returns  Economic TimesOne invests in mutual funds to earn potentially higher returns than those in traditional investment products, and I'm sure everyone looks at the one-year, ...
Homegrown MFs pip foreign funds to bag top slots in India  Economic TimesLarge homegrown mutual funds have pipped some longtime foreign funds as the top institutional investors in the Indian stock market. Out of the top five ...
L&T Midcap Fund: Mutual fund review  Economic TimesThe scheme is a consistent performer despite being in a highly volatile category of mid-sized companies.
Flows to equity mutual funds rebound as rally spurs risk appetite  Economic TimesStock funds took in about 118 billion rupees ($1.7 billion), the highest since October.
Common investment mistakes to avoid  LivemintRemember, time in the market is key, so don't get affected by volatile conditions.Here are some common mistakes you should avoid while investing.
Here's what millennials can do to make money from equity market  Moneycontrol.comDirect equities may not be the best option for those who are starting out; stick to mutual funds' systematic investment plans.
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Mirae Asset India Equity Fund to be reclassified as large cap - What should investors do?  LivemintMirae Asset's flagship equity scheme, the ₹10,560-crore Mirae Asset India Equity fund is being reclassified from multi-cap to large-cap and will be known as ...
Consumer Stocks Could Be Good Bet Against Mutual Fund Crowd, Strategist Says  Barron'sGoing against the wisdom of the crowd, Savita Subramanian tells investors to build up sectors that haven't attracted as much hedge and mutual fund interest.
75% midcap, smallcap funds outperformed their benchmarks in 2018  Economic TimesDespite broader market facing challenging environment in 2018, around 75 per cent actively managed midcap and smallcap equity funds outpaced their ...
Closed-end funds trading at a discount now may offer 5-15% more at maturity  Economic TimesLooking for bargains in highly-charged, expensive bull market? There may not be many options except in a small corner of the equity mutual fund industry.
Stock market investing: Gerry Frigon reveals his most valuable picks  Business InsiderGerry Frigon, the lead manager of the Taylor Frigon Core Growth Fund, shares his unique approach to filling out a stock portfolio — one that leads to his buying ...
3 mutual fund trends to show what FY19 meant for investors  LivemintFinancial year 2018-19 has been a complicated mixed bag for mutual fund investors.One important takeaway (from the trends) is that some debt categories ...
Closing Bell: Nifty ends below 11,600, Sensex falls 495 pts; IT stocks gain  Moneycontrol.comThe Sensex was down 495.10 points at 38645.18, while Nifty was down 158.30 points at 11594.50.
Paytm Money Gets Approval For Stock Trading; Will This App Disrupt $2.3 Trillion Stock Market?  Trak.inPaytm Money has got the approval from SEBI to launch stock market trading on its platform; Mutual funds is already sold via Paytm Money.
Cannabis stocks take a breather as Jefferies reiterates CannTrust is a conviction buy  MarketWatchCannabis stocks were mostly lower Tuesday, as investors took a breather after Monday's gains to lock in profits and await the next developments in the sector.
Investors’ widely held beliefs about ETFs and index funds may be wrong  MarketWatchLow-cost funds may be fixing the wrong problem, new data suggest.
Volatility, elections and rise in ETFs may cloud the environment for AMCs  LivemintAsset management companies (AMCs) would wish their fortunes were not linked to the ebbs and flows of the market. In the past few months, inflows into mutual ...
7 Best Small-Cap Funds to Buy and Hold  U.S News & World Report MoneySmall-cap mutual funds or exchange-traded funds come with risks, but can produce higher returns.
‘How is this possible?’ Analysts puzzle over stock market’s rally amid equity-fund exodus  MarketWatchU.S. stocks at the end of March posted their best quarter in nearly a decade, but they did so without help from investors in U.S. stock mutual funds and ...
This overlooked group of stocks can give you better returns with less risk over time  MarketWatchWill Muggia of Westfield Capital Management discusses Lululemon, Palo Alto Networks and other mid-cap stocks.
Sebi comes up with system audit framework for AMCs/MFs, asks to form technology committee  Economic TimesNew Delhi: Markets regulator Sebi Thursday came out with revised guidelines for system audit to be conducted by mutual funds and asset management ...
Why Are Wealth Management Stocks Under Pressure?  Motley FoolOne of our Industry Focus: Financials listeners recently asked why wealth management firms like BlackRock (NYSE: BK) have been such lousy performers ...
450 fund schemes own this priciest lender & red flag is up on valuation  Economic TimesThe stock is favourites among both funds managers and market analysts.
Sensex ends FY19 with the biggest gain in 4 fiscal years  LivemintMumbai: Indian equities outperformed other asset classes in Fiscal Year 2018-19, the last trading session of which was on Friday. Gaining 17.30% in FY19, ...
Stocks in the news: Tata Motors, NBCC, Vedanta, MT Educare and Bank of Baroda  Economic TimesS&P said it had downgraded its credit rating on JLR, and its owner Tata Motors.
7 No-Load Mutual Funds to Buy  Investorplace.comA mutual fund load is real nuisance because it goes to compensate a middleman These no-load mutual funds let you keep more of your money.
4 Top BlackRock Mutual Funds for Striking Gains  Zacks.comBelow we share with you four top-ranked BlackRock funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy)
Stocks plunge 498 points to hit three-year low  DAWN.comKARACHI: Stocks tumbled on Tuesday and extended the earlier day's decline as the investors' faith in the prevailing economic situation hit rock bottom, taking its ...
Why Tesla is such a battleground stock  CNBCElon Musk's Tesla is a classic battleground stock involving Wall Street hedge fund shorts; long-term investors; traditional, rich industries like autos and oil that ...
Fears of US economic recession: How your investments are likely to be impacted  Economic TimesThere are signs that the US economy is heading for a recession. Find out how this will affect your investments.
7 stocks most favoured by mutual funds over last one year  Economic TimesAs the markets hit a speed bump, stocks favoured by mutual funds appear to be safer bets.
The dangers of survivorship bias, Canada’s most hated stock, and an argument against dividend stocks  The Globe and MailSurvivorship bias is a psychological tendency that not only warps perspective for investors, but people in all walks of life. It must be guarded against. Hollywood ...
Can mutual funds give multibagger returns like stocks?  Economic TimesStocks can be multibaggers. They can offer extraordinary returns in a very short period. Can mutual funds ever do that? This was a question thrown at Rajeev ...
A contrarian argues against building wealth and creating income through dividend stocks  The Globe and MailPortfolio manager Benjamin Felix explains why he thinks investing for dividend income is one of the most romanticized ideas in personal finance.
Govt tweaks rules, increases limit to disclose investment in stocks, mutual funds for employees  Economic TimesNew Delhi: The Centre has increased the over 26-year-old monetary limit on disclosure of investment in shares and mutual funds by employees to six months of ...
Mutual funds bet big on these 30 stocks in November; do you own any?  Moneycontrol.comThe Indian equity market rose about 5 percent in November but what was more heartening to see was inflows into mutual funds. Investors pumped Rs 1.4 lakh ...
Check out what top five mutual funds bought & sold during October selloff  Economic TimesNEW DELHI: Mutual funds stood resilient as industry's asset base increased to Rs 22.23 lakh crore in October in spite of a heavy correction in the domestic ...
What top 5 money managers bought and sold in February  Economic TimesFebruary was the fourth consecutive month of decline in net investment into equity mutual funds.
How stocks picked by mutual funds over 2014 to 2017 have performed  Economic TimesWhile the most wanted stocks of 2014 and 2015 have done well, the recent picks have disappointed.
Mutual Funds increase holding in ‘attractively valued’ oil & gas stocks  Economic TimesMUMBAI: Mutual funds have been adding shares of oil and gas companies such as GAIL, HPCL, BPCL and ONGC over the last few months, encouraged by ...
Mutual funds may need smart bets on smallcap stocks to beat ETF show  Economic TimesSmallcap stocks could see up to ₹1 lakh cr inflow as fund managers look for potential winners: Analysts.
Here are 30 stocks that fund managers bought & sold in February  Moneycontrol.comEven the month of February witnessed the lowest inflow in equity mutual funds in the last 2 years. Only Rs 5122 crore of *fresh* inflows took place in equity funds.
What top mutual funds bought and sold last month  LivemintMumbai: Inflows into Indian equity mutual funds in January were the smallest in two years as heightened market volatility and political uncertainty cooled ...
Why it is a bad idea to always look for outperformers while investing in mutual funds  Economic TimesOne of the most important features that any investor, wealth adviser or anyone in the financial media looks for in an investment product is its track record in ...
Three large mutual funds opposed to L&T’s takeover of Mindtree  Economic TimesMUMBAI: Three large mutual funds holding shares of Mindtree are opposed to L&T's hostile takeover attempt of the mid-sized software company.
Quantum Mutual Fund uses cash pile to buy stocks cheap  Economic TimesQuantum Long Term Equity Value Fund, where value investing is the pronounced fund allocation theme, has brought down the level of cash at its plan to the ...
Mutual funds' exposure to banks hits 3-month low of Rs 1.88 lakh crore in Sept  Economic TimesMutual funds' holding of banking stocks declined by over Rs 21,600 crore to Rs 1.88 lakh crore in September, driven by the correction in equity markets.
When should you sell your mutual fund schemes? - Stocks and equity mutual funds are different  Economic TimesInvesting in an individual stock and equity mutual fund scheme is different. You must look at various parameters like key ratios while investing in a stock. Hence ...
Fund managers ready to go shopping after sharp correction in stocks  Moneycontrol.comDomestic fund managers are capitalising on the market fall and buying shares as they feel the valuations have become attractive after a sharp correction in the ...
How income from stocks and mutual funds are taxed for an individual  Moneycontrol.comCapital gains from transfer of unlisted share are considered as STCG where period of holding is less than or equal to 24 months, and LTCG when holding period ...
Is it a good time to invest in small-cap mutual fund schemes?  Economic TimesDespite the slide in the Nifty Smallcap100 index, fund houses seem to be placing faith in small-cap funds again. Should investors take the cue?
Why stock market volatility is beneficial for mutual fund SIP investors  Economic TimesWhile investing through systematic investment plans, you make more money precisely because the markets are facing volatility.
Why your core equity portfolio should be in index mutual funds  Economic TimesInvestors flock to the performing fund “after” it has beaten the index. Fund selection is not an exact science, and there will be hits and misses.
27-year-old rule changed: Disclosure limit on MF, stock investment up for bureaucrats  Economic TimesGroup A and B officials had to intimate government if total transaction in shares or MFs exceeded Rs 50K.
How to handle death inside a joint investment account  MoneySenseQ. My father had two investment accounts open at a major bank, both non-registered, and held jointly with rights of survivorship (JWROS) by him, my mom and ...
Why stopping mutual fund SIPs when stock market falls can jeopardise your financial goals  Economic TimesThe 806-point drop in the Sensex on Oct 4 was the fifth biggest single day loss in the past five years.
Mutual funds garner over Rs 65,000 crore in Jan  Economic TimesMUMBAI: The mutual fund industry added assets worth Rs 65,439 crore in January 2019, taking total assets under management to Rs 23.37 lakh crore.
Shall I buy the HDFC AMC stock or mutual fund?  LivemintThe HDFC Asset Management Co. Ltd stock closed 65% up on the first day of listing over its IPO price of ₹ 1,100 per share. Investors who sold on day one, saw ...
Should you shift from large-cap mutual funds to index funds?  Economic TimesThe index fund category of mutual fund schemes is slowly gaining traction among investors. The fortunes of index funds are changing as not only are they being ...
What India's top three MFs bought and sold in January  Economic TimesStock funds took in a net Rs 6160 crore, the least since January 2017.
Sebi seeks to make mutual funds' valuation process fairer  Economic TimesThe Sebi board approved easing of norms for raising of funds through instruments like real estate and infrastructure investment trusts.
Gold, mutual funds, equity - where to invest in 2019?  Moneycontrol.comAs we enter 2019, the question on everyone's mind is: can we say goodbye to market volatility that 2018 unleashed upon us? The answer may not be that simple ...
Quant-based mutual fund schemes are coming. Should you invest?  Economic TimesMany mutual fund advisors believe quant-based mutual funds are the future of the Indian mutual fund industry.
How your mutual funds played the balancing act during stocks crash  Economic TimesAs with market cap allocations, equity funds seem to be maintaining their sectoral exposures.
Are mid and small-cap mutual funds holding too many illiquid stocks?  Economic TimesIf your fund has too many illiquid stocks in its portfolio, it could really leave you in a spot.
Sebi issues new format for mutual funds' monthly report  Economic TimesFrom April 2019 onwards, AMCs will have to submit the MCR to Sebi in the new format by the third working day of each month.
10 small equity mutual funds that have given very good risk-adjusted returns  Economic TimesMany small-sized funds have delivered handsome risk-adjusted returns. Find out why you should not ignore them.
Best small cap mutual funds to invest in 2019  Economic TimesHere is the monthly update on our recommended small cap mutual fund schemes. We are happy to inform you that there are no changes in the recommendation ...
Is it time to invest in mid cap and small cap mutual fund schemes?  Economic TimesMany market pundits believe this is the right time to enter in small cap and mid cap segments.
Mutual fund investing for the conservative: Should you stick to largecap funds only?  Moneycontrol.comFinancial planners advocate investing in equity mutual funds to beat inflation and build a corpus that will cater to one's future needs, even if one is a conservative ...
Why HDFC Bank stock is among the top picks of mutual funds  Business TodayPrivate sector lender HDFC Bank, the third-largest Indian firm by market capitalisation, is among the favourite stocks in the portfolios of mutual funds. Despite ...
The dangers of high mutual fund inflows  LivemintMutual funds have put ₹2.4 trillion into markets in the last two years.Equity mutual funds receive ₹8000 crore monthly through SIPs.
Top fund houses are busy lapping up PSUs; what’s behind this new-found love  Economic TimesNEW DELHI: India's top three mutual funds, which manage over Rs 9 lakh crore in debt and equity assets, added a number of PSU stocks to their schemes in ...
Hot and Cold Stocks of Mutual Funds in November 2018  MoneylifeIn November 2018, Axis Bank and ICICI Bank were the most preferred stocks of Indian mutual funds.
Mutual fund houses push sell button on auto and construction sectors  BusinessLineBut stock up on IT scrips amid redemption pressure.

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