Archive for ‘Investment’

August 30, 2015

Variables Affecting Investment Decisions

There are many variables that investors consider when making an investment decision. But two variables Expected return and market conditions are the most important in the decision-making process. The reason for the importance can be summarized as below:

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September 29, 2011

What is Rupee Cost Averaging

There are many investors who prefer to invest in lumpsum into an asset class and forget about it. And there so many investors who are not able to invest in an asset class at one go. So they do it by investing a fixed sum regularly.

When one invests in any asset in one go s/he buy the asset at prevailing price at that time. S/he is not get affected by price of asset at the buy price as her/his buying price is fixed. But one who invests a fixed sum regularly s/he buys assets at different prices.

In financial market there is always volatility. So price of assets changes. Some times the price increases and some times the prices falls. And an investor who keeps investing regularly is forced to buy the assets on the prevailing prices.

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September 28, 2011

Different Avenues of Investments

In the modern financial system there are so many investment avenues to choose from today in financial market and it has become difficult for anyone to decide about these avenues. Some of these investment avenues offer attractive returns but with high risks and some offer lower returns with very low risks. An overall analysis of these investment avenues with risk and return trade is presented in this article. These investment avenues are:

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September 27, 2011

Power of Compounding

Wherever you invest your money- stocks, mutual funds, bonds, fixed dopiest, bank saving account or any combination of these, the reason behind this is to save money for future purpose and let them an opportunity to grow over the time. A long time period is given to investments with a purpose to provide opportunity of compounding. The power of compounding is such that it converts a few pennies into millions over the time. Because of power of compounding a small sum of money gets an unimaginable size given enough time. Compounding is main reason behind any investment. Compounding helps investments to grow bigger. Compounding is the king.

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September 27, 2011

Take Care of These Rules before You Invest

Investment is an activity that requires so many things ingrained from knowledge, skills, resources and experiences. But it is known to you that it can be done without any hush-hush by taking care of some basic things and rules. Those basic roles are as below:

  • Have an investment plan and goal in place before you make investments.
  • Don’t have over expectation from any investment. Never ever think that any investment is going to give you 10 times return in few months.
  • Learn to ride on the tide. This means try to cash market fluctuations grabbing right opportunity to earn some money.
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September 24, 2011

Various Types of Risks and Measurement

Market risk is the risk of adverse deviation of the mark–to–market value of the trading portfolio, due to market movements, during the period required to liquidate the transactions. In simple words the market risk can be defined as the risk that is associated with the investment in form of realized returns being different to the expected return. The period of liquidation is critical to assess such adverse deviations. If it is longer, so do the deviations from the current market value.

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September 23, 2011

How to Choose the Right Broker

When you talk about the trading, it simply means trading of shares. So the share brokers are the very important and when you use the word broker, it refers to share broker. But it is well to everyone that in modern financial world, brokers are integral part of almost every investment in one form or another. So it is very much important to have right kind of broker on your side whether it are shares or mutual funds or something else. A right broker can make your investment experience rewarding and exciting. So while choosing a broker you need to be alert and careful regarding some standard capabilities, capacities, expertise and abilities of the broking house while serving and satisfying your investment needs. These capabilities, expertise and usefulness can be judged on some parameters that help to evaluate the performance of brokers. These parameters and criteria are as below:

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September 23, 2011

An Introduction to Finanacial Planning

All of us need money to spend today as well tomorrow so you too need money. You know how much you are earning today but are you certain that how much we will be earning tomorrow? Or are you sure how much money you will need tomorrow to satisfy some needs that will arise. You know how much you are spending today or you can spend but what about future expenditures? Do you know how much money you will be spending or you will need? And do you know where this money will come from? Is not this a question of importance?

I think this is important. Yes this is an important question for you not only you but everyone. You will have to face this question one day in your life. It is imperative for you to know what will be your financial needs as well as sources to satisfy those needs on a specified date. To achieve these two goals you need to have a financial plan because without a financial plan for maximum of people it is not possible to meet all the expenses. 

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September 23, 2011

The Advantages of Investing in Mutual Funds

The investments into mutual funds have been always beneficial to the investors irrespective of their ability to understand the market. Mutual funds are very beneficial for novice investors who are not very much aware of stock markets or the investors who don’t have enough time to track the market.

There are so many advantage of investing into the mutual funds that you can enjoy. These are explained as below

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September 23, 2011

A Vocabulary of Equities

Equities are one of the attractive investment avenues that an investor has an option to invest his/ her hard earned money. Equities provide huge returns. These returns are sometimes very high. But with these high returns the equities market is very risky and technical. There are so many terms related to the equities that you need to know as an investors that will help and guide in stint with the investments in equities.  These terms will you to understand the terminology of equity investments and market terms. These are as below:

Capital Gain (Loss): Capital gain or loss refers to the increase or decrease in the value of the shares. This is arrived at by getting the difference between the current value of the investment and invested money.

Consultation Fee: This is fee that is charged by the financial adviser upfront for rendering the consultation services. This has nothing to do with the broker or brokerage or stock exchanges.

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