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Anil Poonia

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StockBasket – India’s first long-term buy and hold investment platform is changing the way, retail investors invest in stocks, and to further inculcate the habit of invest regularly it has a feature of StockBasket SIP which will help retail investors to invest in StockBasket in monthly, quarterly, six-monthly and yearly frequencies. 

StockBasket SIP which will enable investors to buy a particular StockBasket periodically and in a disciplined manner, this is similar to your SIPs in mutual funds, however, with StockBasket you will directly own shares of these companies in your demat account.

StockBasket SIP would help you to invest regularly in quality stocks via baskets thereby helping you to tackle market volatility and creating a sizable corpus with small regular investments. 

So let us see how we can start a Stockbasket SIP:

Step 1: Login to StockBasket app using your Client Id and trading password, now from the “Home page” go to “Explore Page”

Step 2: From the “Explore page” select the basket as per your financial needs

Step 3: After selecting the basket you get two options either to buy the basket lump sum i.e. “Buy Now’ or “SIP”, select “SIP

Step 4: Select the quantity of basket, select the SIP frequency, you can select the available frequencies 

  • Monthly
  • Quarterly
  • Half-yearly
  • Yearly

and Select the Start date as per your convenience.

Step 5: Click on Review SIP Order to proceed, check the details filled in.

and click on Start SIP and pat your back for a job well done.

With this, your SIP order is successfully placed. But for deducting SIP amount from your linked bank account you need to set up a mandate. To know how to set up a mandate click here

You can also watch our video on How to place SIP order on StockBasket app

For a successful SIP order, you need to also make sure that you have set up a mandate. 

So What exactly is a Mandate: A mandate is an auto-debit facility which allows us to deduct the amount from your bank account for completing your SIP order.

Generally, your SIP mandate amount is greater than your SIP amount to ensure that your SIPs are executed flawlessly even though market prices keep fluctuating.

You need to follow the below steps to set up your mandate:

Step 1: Login to StockBasket app using your Client Id and trading password, now from the Home page go to My Account.

Step 2: Click on Mandates in My Account section.

Step 3: Click on Create New Mandate.

Step 3: Select your Bank account which you want to link for the mandate and enter the Mandate amount.

Step 4: Click on Download Mandate.

Step 5: A pdf file will be generated and downloaded on your mobile, take a print and sign the document, please ensure that the signature matches with your bank signature records to avoid rejection of the mandate.

Step 6: Take a picture of the document and upload the document in the Mandate section available in My Account.

After you upload the mandate it takes approximately 3-4 weeks to verify the mandate and link with your Bank account 

In case if you face any difficulty in the process you can contact us at 022-2222 7777

Or you can also email us at support@samco.in

 You can also watch our tutorial video on How to Set up an Auto-debit Mandate on StockBasket App by clicking here

Before deep-diving into the concept of Margin of Safety, let us first see what the top investors of the world say about the idea.

Benjamin Graham – A great American Investor also known as the father of “Value Investing.” quotes in his famous book “The Intelligent Investor” chapter no. 20 “we venture the motto, MARGIN OF SAFETY.

Warren Buffett – One of the most successful investors in the world quotes “Margin of Safety are the three most important words in investing”

Lastly, Seth Klarman – is an American billionaire investor, hedge fund manager, and author quotes Margin of Safety as “A margin of safety is necessary because valuation is an imprecise art, the future is unpredictable, and investors are human and do make mistakes. It is adherence to the concept of a margin of safety that best distinguishes value investors from all others, who are not as concerned about loss.”

Definition: Margin of Safety is the principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value. 

Graham on Margin of Safety – Graham explains Margin of Safety as if a stock which is priced today at $1 can be either valued at 50 cents or 1.5$ in the future, he also says that buying at $1 is also an unnecessary risk. He believes that if we can buy the stock below its intrinsic value i.e at 50 cents, the losses will substantially decrease in comparison to buying the stock at $1, thus the margin of safety would ensure him that his losses are minimal.

Graham says that there are some risks that we are always unaware off, he used to refer those risks as “Unknown – Unknown”. These risks can be only controlled by Margin of Safety concept.

Why the Margin of Safety so important?

Stock markets are volatile (with a large upside followed by a downslide within moments in a single day) the rate of stock can skyrocket at one time and can rapidly come down in a single day. Since time immemorial, it is only a high margin of safety that can protect you from making extreme losses in this kind of market volatility. 

Also, in case if an investor misjudges the value of a company, a high margin of safety would always protect him from huge losses. 

Warren Buffett has a very simple analogy to explain the very concept. He refers to Margin of Safety concept with the concept of a bridge. Whenever we construct a bridge the engineers would always consider various factors of safety; it should be strong enough to bear the load of a 30-tonne truck even though we know that trucks of 10 tonnes would only be running on it. This is what Margin of Safety is all about it provides a cushion while investing since the process of investing involves various risks and imperfect information. Buffett himself says that it is impossible to get it all right when you are talking about the future. This is where the concept of margin of safety comes in handy.

Essentially, a higher margin of safety will always reduce your investment risk. But the risk will always exist and managing this gap is what smart investing is all about.

With the StockBasket research team to look after your investment throughout your tenure of investment. You must be wondering about the huge fees StockBasket must be charging, you will be surprised to hear how affordable StockBasket fees are!

There are 3 types of fees:

  1. Buying a StockBasket is absolutely free!
  2. Transaction Fee: At the time of buying these expert-curated baskets, the transaction fees are ZERO. That means no fees are charged when you buy any StockBasket! However, there is an exit fee associated when you sell the StockBasket and if you sell it before completion of your 5-year tenure then the exit fee is doubled, this is done so that retail investors should think before selling the basket and enjoy the long-term wealth compounding. 
  3. Subscription Fee: StockBasket research team constantly monitors your basket and if it needs any kind of updates or rebalancing of stocks then it pushes out a notification for the same. Subscription fees are debited from your account on a quarterly basis. 

StockBasket pricing in comparison to other assets

  1. StockBasket vs Mutual Funds: StockBasket is 50% cheaper than Mutual Fund pricing.
  2. StockBasket vs PMS service provider: StockBasket is 70% cheaper than PMS service provider.
  3. StockBasket vs Research/Broker service provider: StockBasket is 80% cheaper than Research/Broker service provider.

StockBasket brings you a wide range of basket pricing!

You must be wondering that such exquisite quality of service will only be provided when the basket prices are skyrocketing. Let me tell you StockBasket pricing of baskets begins with as low as 3000 INR to 15 Lakh INR. This means you get to select a wide variety of baskets between this pricing as per your investment amount and risk appetite.  

The stock market is undoubtedly one of the best investment options where one can grow wealth substantially over a longer period of time. Many investors know this & hence invest in the stock market.

But investors hardly know the risk associated with the investment thought process they follow. Here we will cover all the wrong investment thought process investors follow & what they can do to avoid it.

 Problems with Retail Investors

  1. Not picking the Right stock: Due to a lack of research of stocks, many investors pick the wrong stocks. 
  2. Short-term investing: Investors invest for the short-term & miss the benefit of compounding that is an essential ingredient towards building their wealth. 
  3. Over-Diversification: Investors tend to invest in too many stocks and mistakenly believe it to be optimum diversification. Over-diversification leads to suppressed returns due to the high probability of incurring both profits and losses in it.
  4. Under-Diversification: Heavily investing in a few stocks can put your investments at more risk. If you incur a loss in your investment then the loss will be tremendous.

With such a misleading thought process, one can never build wealth but the question is still upfront of how to generate good returns in your investment.

Presenting to you All-in-one solution

Samco Securities introduces StockBasket, India’s first long term buy and hold investing platform to tackle all the problems of retail investors. A platform handled by the expert research team to help you start on your wealth creation journey. 

Why StockBasket?

StockBasket, as the name implies, is a carefully expert-selected basket of stocks & is one of the easiest ways of investing with just one click.

StockBasket, with its authentic research, selects a set of stocks from Top Indian Companies, Market Leaders, etc. Your portfolio will eventually grow with the growth of these companies.

With a minimum of 5 years of investment-oriented baskets of stocks created for you to enjoy the benefits of compounding & investing in value-based companies, there is much less risk associated with your investing.

It’s high time to choose the best

With such quality service right at your fingertips so that you don’t lose your hard-earned money. So what are you waiting for?

Choose the best investment platform: StockBasket and guide yourself on the path of “The Better Investment“.

StockBasket is an expert-curated basket of stocks to help investors grow their wealth in the long term period.

With one-click go integrated application making you buy and sell StockBasket at much ease

Here are 3 simple steps to follow to start on your journey of wealth generation.

  1. Download StockBasket from PlayStore or AppStore and login with your StockNote ID & Password.
  2. Go to the Explore page and select a StockBasket that suits your investment needs.
  3. Click on Invest & input the quantity you want to buy, and pat your back for a job well done.

Why was StockBasket created?

Problems pave way for invention. Similarly, StockBasket was introduced to eradicate several problems of investors. Before trying to know why StockBasket was created, let’s dive into the major problems associated with investing. 

Problems of investors:

  1. Wealth destruction strategy: Many investors are unaware of the fact that only less than 20% of stocks are good quality stocks and the rest accounting around 80% stocks don’t beat the expected returns. Here is the study of  the StockBasket research team: 

Many investors fall prey to investing in wrong stocks due to lack of knowledge or inadequate research and hence they walk on the path that ultimately leads to wealth destruction.

2. Churning of portfolio: It has been found out that investors churn their portfolio way too much. The average holding time for investors is just 2 years! Due to this, investors don’t benefit from the power of compounding. 

Introducing StockBasket

SAMCO presents StockBasket – India’s first buy and hold investment platform with an objective to create long-term wealth.  

StockBasket research team has handpicked excellent quality stocks with its authentic research based on its proprietary framework of over 25 parameters of evaluating stocks.

StockBasket is a basket of expert-curated stocks designed for long-term wealth creation. With reasonable diversification of stocks of around 6-20 good quality stocks in one basket to produce optimum returns for you.

StockBasket is designed with a minimum investment horizon of 5 years so that retail investors don’t churn their portfolio and enjoy the benefit of compounding in the long-run of investment. 

Who should invest in StockBasket?

There are many retail investors investing in quite an unorganized way. They ultimately fall prey to investing in wrong stocks that can potentially harm their wealth creation. Also, such investors churn their portfolio too much and hence they miss the benefits of long-term wealth creation

StockBasket is created with a principle that every investor whether he’s big or small, should have access to wealth creation via the Stock market and invest in an organized way so that they don’t lose wealth. Enlisted below are the profiles of our retail investors and their needs:

·       A long-term investor, who knows wealth can only be created by staying invested in quality stocks for a long period

·       A student, who wants to make an investment for the first time.

·       A salaried professional, who started working a few months or years back and has saved up some money to invest in a good and safe asset class.

·       A seasoned investor, who has created some wealth in equity markets and understands the nitty-gritty of the stock market.

·       A senior management professional, who does not have the time to track markets but wants to create wealth in the stock market.

So basically, StockBasket is for anyone and everyone who wants to invest money for the long-term and create wealth.

What if a one-in-a-million chance strikes you and you fail to achieve the target corpus in 5 of your tenure of investment? All the constant monitoring and rebalancing of the StockBasket research team will all be in vain and so will be your subscription fees needed to constantly look after the performance of your basket.  

StockBasket works on the principle of “We Don’t Make Money, If You Don’t”. This simply means that all your Subscription fees will be refunded to you if you fail to make the target corpus for a tenure of 5 years as specified in the StockBasket.

StockBasket is meticulously made by its research expert team that evaluates around 4500 stocks with their proprietary framework and research.

From this, the research experts team identifies the top companies that have the potential to outperform in the coming years. The universe of StockBasket is selected with the philosophy of buy and forget. They pass the 5-year Bond test. This test gauges how the businesses would perform and make money if the markets were to shut down and we came back after 5 years.

StockBasket includes these top companies stocks in their minimum 5 years of horizon basket which helps retail investors to gain considerable wealth and enjoy the long-term compounding associated with it. 

Types of StockBaskets:

StockBasket has been designed keeping in mind of retail investors like you. It is built based on these following 4 variables in mind. 

  1. Financial goals
  2. Long-term theme
  3. Risk appetite
  4. Time horizon
  1. Financial goals: If you have a certain goal like planning an International Vacation with your family then the International Vacation Basket can be the best-suited investment option for you. Our research team has kept in mind all such goals and designed baskets as per these goals.
  2. Long-term theme: If you think a particular sector like healthcare will benefit in the coming years then you can invest in Health and Wellness Basket.
  3. Risk appetite: Our research team has taken into consideration the investor’s bandwidth of risk appetite from low-risk to high-risk and have created baskets: 5-Year Low-Risk Basket and 5-Year High-Risk Basket accordingly.
  4. Time horizon: We have created baskets with a minimum of 5-year investment horizon to help you gain the benefit of compounding. However, if you wish to stay invested for longer periods like 10 years then 4x Target in 10 Years – Lite can be the best option for you. 
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  • support@samco.in
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