What exactly is Value Averaging Investment?

M

manalisharma12

Member
#2
#2
Hi Suchi,

Well to start off, Value Averaging Investment is a new theory which is gaining favour with wealth managers and mutual funds. Also some say that it might replace the conventional systematic investment plans (SIP) strategy.

Value averaging investment (VAI), the technique allows investors to determine the size of the investment needed (at the time of investing) to get desired returns. Value averaging works much like rupee cost averaging, which forms the basis of systematic investment plans.

In value averaging, the investor sets a target growth rate or amount for his portfolio each month, and then adjusts the next months contribution, according to the relative gain or shortfall made on the original asset base.

You may try reading this article...its really helpful http://economictimes.indiatimes.com/personal-finance/mutual-funds/mf-news/Value-averaging-investment-may-replace-old-plans-one-SIP-at-a-time/articleshow/5118080.cms :thumb:
 
A

amit_dangi

Active Member
#3
#3
manalisharma12 said:
Hi Suchi,

Well to start off, Value Averaging Investment is a new theory which is gaining favour with wealth managers and mutual funds. Also some say that it might replace the conventional systematic investment plans (SIP) strategy.

Value averaging investment (VAI), the technique allows investors to determine the size of the investment needed (at the time of investing) to get desired returns. Value averaging works much like rupee cost averaging, which forms the basis of systematic investment plans.

In value averaging, the investor sets a target growth rate or amount for his portfolio each month, and then adjusts the next months contribution, according to the relative gain or shortfall made on the original asset base.

You may try reading this article...its really helpful http://economictimes.indiatimes.com/personal-finance/mutual-funds/mf-news/Value-averaging-investment-may-replace-old-plans-one-SIP-at-a-time/articleshow/5118080.cms :thumb:
Click to expand...
What is the best way to determine the value of a script or a fund ?

Its a big question to be asked >

You say by your title --- averaging the investment --- can be the one way

You mean to judge the actual profitability of a fund by calculating its
Active investment & negative Sum

So comparison between over all charges paid with over all fund positions by
all require indicators can provide very near by informations :)
 
S

simranlalia1

New Member
#4
#4
manalisharma12 said:
Hi Suchi,

Well to start off, Value Averaging Investment is a new theory which is gaining favour with wealth managers and mutual funds. Also some say that it might replace the conventional systematic investment plans (SIP) strategy.

Value averaging investment (VAI), the technique allows investors to determine the size of the investment needed (at the time of investing) to get desired returns. Value averaging works much like rupee cost averaging, which forms the basis of systematic investment plans.

In value averaging, the investor sets a target growth rate or amount for his portfolio each month, and then adjusts the next months contribution, according to the relative gain or shortfall made on the original asset base.

You may try reading this article...its really helpful http://economictimes.indiatimes.com/personal-finance/mutual-funds/mf-news/Value-averaging-investment-may-replace-old-plans-one-SIP-at-a-time/articleshow/5118080.cms :thumb:
Click to expand...
Hey that surely is a nice read..thanx :thumb:
 
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