Mutual funds inflow is at all time high Investors have pumped ₹1.26 lakh crores in November, 2017 driving industry assets under management to an all-time high of ₹21.8 lakh crores.
With the latest inflow, total infusion in MF schemes reached ₹3.8 lakh crore in the first eight months (April- November) of the current fiscal, latest data with Association of Mutual Funds in India (Amfi) showed.
Now with this data and good quality stocks available in the stock exchanges remaining the same what do Investors fall for given the fact the crypto currency returns are too risky to be true in the long term. The Indian Commodity Exchange (ICEX), which recently got SEBI approval to start the world’s first diamond trading bourse, will launch a systematic investment plan (SIP) for retail buyers to acquire the precious stones. This will allow Indians who thought buying high quality diamonds were beyond their means can now relax and invest in diamonds or own this luxury in the comforts of their home.
It is proposed to extend the current Systematic Investment Plan (SIP) scheme to buy mutual funds and gold funds to Diamonds too. The proposal allows SIP to be as little as ₹ 900 a month which if continued upto 21/2 years will make their dream come true.
Diamond Scheme
- Open an account with a broker on the ICEX
- Complete the know-your-client (KYC) process
- Deposit some money with the broker
- The buyer also has to tell the broker the exact date of each month when the broker should buy the diamond (in electronic form) for the buyer
- Diamond contracts will be of three different sizes — 30 cents, 50 cents and 100 cents (1 carat).
- Diamond contracts on this exchange will be traded in electronic form, popularly called demat.
- As little as one cent of the precious stone can be bought but conversion of the diamond held from demat form to physical form will be possible only after s/he accumulates at least 30 cents, 50 cents or 1 carat, on case to case basis.
- Discontinuity in SIP will not affect diamonds already credited in demat account. SIP can be resumed at the prevailing market price.
NPowersU Team Expert Opinion
Our team has noted that only consideration for above referred SIP is ‘Carats’. However value of diamond is determined based on Four C’s namely, Cut, Clarity, Colour and Carat. Further diamond price vary between periods. It is possible that the stock exchange will charge for diamond of higher quality and deliver a sub-standard quality to the gullible retail buyers. In case this is already not taken into consideration by SEBI it will lead to catastrophic results once retail buyers find the real value of the diamonds sold to them at the time of receipt thereof. It is advisable that Only High Value Certified diamonds be sold through this exchange and that too as per its price then prevailing in the market. It is also advisable that the scheme, if not already vetted by Gemmological expert, be vetted by a committee including Gemmological expert and respected names from the Gem and Jewellery Industry to achieve desired results. Trust the SEBI and Government takes necessary steps before implementing this scheme. Or else the image used in the blog will turn out to be True…..’Diamond Sticker for the price of real diamond will make a Girl outright reject proposal from a suitable Boy.”
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