Stock Discussion - PSX

[autotranny]

OK. Thanks to both for your replies.

[autotranny]

Also, Is their any advantage of trading directly as opposed to investing via a mutual fund ?

[hamz80]

Well i prefer trading directly after conducting my own analysis.
Mutual funds are generating a decent return from blue chips specifically but nothing compares to what you can do yourself. Pertinent to highlight the darker side of it as well.

If you are salaried individual, investment in mutual funds make more sense as you would be able to get tax rebate at an average rate of your tax liability. Your call

[autotranny]

OK cool.Thanks for your reply. So from what i understand, a lay person without much knowledge of the in's and out's of the game should invest in mutual funds while for some one who has the expertise and inside knowledge, direct investment is better. Have i read that correctly ?

[hamz80]

Correct.

I believe by writing inside knowledge you are referring to financial modelling, particular operational characteristics of the investee company and nothing more.
For a newbie, it is recommended to go with Mutual Fund. What you can do is build a virtual portfolio of your own based on your own assessment. Then see how it performs after a span of say six months. This will give you some idea for sure.

[autotranny]

OK good. Great idea. Are there any softwares/tools that can help us building a virtual portfolio ?

[hamz80]

Use excel to build your virtual portfolio. Be sure to focus on the factors that in your opinion will drive the stock price up. Set your target price and duration and monitor it accordingly.

[mohsan87]

you can use following app to build up portfolio.

play.google.com

Investify Stocks Pakistan PSX

BlueInk Labs

Get quick and real-time access to Pakistan's largest bourse, the Pakistan Stock Exchange (PSX) complete with market data including fundamentals and technicals, and your personalised stocks watchlist and portfolio tracking tool in this beautifully designed app. Personalize the stocks and data that matters the most to you and access it easily.Market Data:- Live trading data of Pakistan Stock Exchange for KSE 100, KSE 30, KSE ALL & KMI 30 as well as potential indices PSX 100, PSX 30, PSX ALL, PMI 3...

Free

[autotranny]

OK thanks to both. Will try the android app and will search for a windows app too as the phone i use for internet use is a lumia.(which btw i found much better for browsing and surfing than the similarly priced android phones---these phones are underrated in my opinion).

[mohsan87]

No PSX app available for windows phones.

[Sarkaar]

Beginners and busy people can also try Mutual Stock Funds offered by many renowned banks and Asset management companies for. e.g. AKD, MCBAH, HBL, UBL, Meezan etc

• It is less risky than spending in individual company
• You don't need to do so much research and keep eyes on long/short term company events which affect stock price

[autotranny]

But i heard that the fees and other expenses charged by these funds minimize your return and profit in the long run.

[autotranny]

OK looks like i need to invest in an android phone first before starting to invest in the stock market.

[hamz80]

This is quite obvious. They manage your fund and charge fees for that.
Returns for equity market mutual funds have been impressive as the stock market has rallied since June last year. For money market mutual funds, returns are pretty low, around 5%.

[autotranny]

OK good. Any recommendations for a mutual fund. Want to invest in shariah compliant funds only.

[Cool_Stud]

Moreover adding on to it through mutual fund salaried people can avail tax credit. Meaning they can reduce the tax deduction that happens on their monthly salary.

[autotranny]

OK that's good to know.

[autotranny]

Having seen the index going up so dramatically yesterday, now is probably not the best time to invest. What time you guys think will be ideal for entering the stock market ?

[hamz80]

Yesterday was exceptional with a lot of purchase by the mutual funds.
If you are aiming for individual scrips, short list them now. Market is expected to grow from this point will every dip as an opportunity to buy.
On the other hand, for mutual fund investment you can collect their performance reports and talk to the guy managing the portfolio to get his feel.

[autotranny]

OK cool. Sound advice. Thanks. Let's say i have made up my mind about a particular mutual fund (Meezan islamic fund, most probably) what i am not sure about is whether to wait until the prices dip in the near future or invest now at this price point (which is quite high). In 2 month's time there will be another crisis after the JIT's report and one can expect a significant fall of the index at that point. True? not?