Smart Investors Limited

Code : INB0014

Year :
2011

Industry : Financial Services

Region : India

Teaching Note: Not Available

Structured Assignment :Not Available

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Mayank at Smart Investors Limited Mayank Kumar (Mayank) works as a financial advisor with Smart Investors Ltd. (SIL), an Indian firm that provides portfolio management services for its investors, with High Networth Individuals (HNI) as its target customers. SIL offers a variety of specialised investment strategies which capitalises on opportunities existing in the stock market and keeps its inventors updated by providing continuous status reports on their investments. SIL management had organised a meeting with a group of prospective investors interested in availing the firm's services. As the Financial Advisor, Mayank commenced the meeting by acknowledging that Indian capital market had gone through tough time. He quoted Warren Buffett, "Even though they are going to be net buyers of stocks for many years to come, (investors) are elated when stock prices rise and depressed when they fall... This reaction makes no sense. Only those who will be sellers in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices." He further proceeded to present few slides prepared exclusively for the meeting. The presentation showed the performance of major global indices from January 2007 till September 2009. He explained how SIL uses "market timing" to fetch optimal returns for its investors. He further encouraged them to invest when the market is low and securities are available at cheaper prices...

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