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Investing

Sector funds

These are equity mutual funds that gives you access to a very small part of the overall market; they majorly invest in particular type of business, industry or a sector of the economy. It can be any sector such as Education sector, Automobile sector, Health care sector, IT sector, FMCG sector etc.

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Investing in turnaround stocks

Every business, whether it is big or small, follows a business cycle consisting of growth, maturity, and decline phases. The company in the growth phase performs well, which makes it stock prices higher, whereas the company in decline phase always have stocks dipping down in price. So, when a company reaches the decline phase, then, there are just two chances- either it will become bankrupt or it will turnaround itself and bounce back. The turnaround shares refer to those companieswhich are underperforming currently but are expected to rebound. Smart analysis of such stocks that are near the bottom can fetch ample gains to investors if they bounce. Such stocks are usually not preferred by the stock market for some reason or the other.

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Do political biases affect the investors?

We all live in a world of perceptions. Our perceptions about the outside world lead us to our beliefs, which in turn shape our behaviour and actions. Here, are a few examples which justify how biases affect our lives.

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Sukanya Samridhi Yojana

Sukanya Samridhi Yojana (SSY) is a government scheme that was introduced by the finance ministry and launched by our honourable Prime Minister Narendra Modi on 22nd January 2015 in Panipat, Haryana. The scheme is targeted at the parents of a girl child and has been launched to promote the welfare of the girl child.

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Sovereign Gold Bond Schemes

Sovereign Gold Bond is an initiative by the Government of India that was started in November 2015. It is a scheme that was started under the Gold Monetization initiative by the government. The sovereign gold bonds are an excellent substitute for investment in the real physical gold. RBI issues these bonds on behalf of the government of India. There are plenty of advantages you get by investing in this scheme.

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What is PF and PPF?

Provident Fund (PF) is a savings scheme started by the government of India for retired salaried people of India. As per the part of this scheme, a group of people come together to invest money in an account which is later given back to the individual when he retires.

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What is Top up and Step up, SIP in mutual funds?

A Systematic investment plan refers to investing a fixed amount of money at fixed intervals like monthly, weekly, or quarterly. If the investor can earn more while still invested in SIP, then he can either start a new SIP or can top-up the current SIP to invest more. Top-up SIP is a feature in which an investor has an option to raise the systematic instalment value by a fixed amount. This feature is provided by many mutual funds. This enables the investor to invest a higher amount of money during the tenure of SIP.

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What is algo trading?

Algo trading is algorithmic or automated trading, which refers o automated trading done by a computer without any human interference.Imagine! How much science and technology has progressed that even trading can happen using computers. Algo trading is free of any human emotional or impulsive bias for buying and selling shares. Algo trading is usually used for High-frequency trading (HFT), where multiple orders are placed across varied markets by giving pre-programmed instructions. Using algo trading, the market reach gets expanded, and the possibility of earning profit increases manyfold.

Investing

Efficiency Ratios Analysis

As an investor, you need to determine how productively your company is managing its assets and liabilities to maximize profits.Revenue turnover, profits or assets; all these figures may tell you, how big an enterprice is . However, these figures cannot give you an idea whether the business is efficient or not.

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Exchange Traded Fund

ETFs are mutual funds which are listed and traded on stock exchanges like shares. ETFs are listed on a recognized exchange and their units can be bought and sold directly on the exchange through a stockbroker during the trading hours.An ETF is a basket of stocks that reflects the composition of an Index, like S&P CNX Nifty or BSE Sensex. It can contain many types of investments, including stocks, commodities, bonds, or a mixture of investment types. This is unlike mutual funds, which are not traded on an exchange, and traded only once per day after the markets closes.

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What are Robo advisors?

Robo advisors are not robots who will suggest you where to invest in. These are kind of online portals or automated tools where one can provide individual’s personal details and according to that system will share an investment plan.

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Cadila healthcare- Company Scan

Cadila Healthcare is a 65 year old pharmaceutical company with its presence in India, Europe, Africa, Middle East, Mexico, Brazil and most importantly, USA. Headquartered in Ahmedabad, the company has over 35 manufacturing facilities and over 23500 employees.The company has its presence across the pharmaceutical value chain of research, development, manufacturing, marketing and selling of finished dosage human formulations (generics, branded generics and specialty formulations, including biosimilars and vaccines), active pharmaceutical ingredients (‘APIs’), animal healthcare products and consumer wellness products.The Company is also engaged in research and development activities focused across the value chain of API process development, generics development, biologics, vaccines, and New Chemical Entities (‘NCE’). What is Good?

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National Savings Certificate

The national savings certificate is an initiative started by the Government of India. NSC is a fixed income investment scheme that can be opened with any post office. The target market for this scheme is small to middle-income investors who are provided an opportunity to save money while saving on income tax. This scheme is a secured scheme that has a very low risk in it just like Public Provident Fund scheme.

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Right Issue

A rights issue is an invitation to existing shareholders to purchase additional new shares in the company (in proportion to their existing shareholding) at a specified price (generally at a discount) and time. The company gives right to its existing shareholders to subscribe the newly issued shares in proportion to their existing holdings. For instance, 1:1 rights issue means existing shareholders can buy one extra share for every one share already owned by him/her.

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DCB Bank – Company Scan

DCB bank has a 90 year old history formed by the merger of two co-operative banks, to form the Development Co-operative Bank. The bank went on to obtain a scheduled bank license from the RBI in the year 1995 changing its name to Development Credit Bank. The bank raised its IPO in the year 2006. Later, in the year 2014, the bank’s changed its name to DCB Bank Ltd.

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How to overcome the fear of investing in the stock market ?

If you are risk averse to money, then probably you would never have tried investing in stocks. Of course, most people like you refrain from investing in stocks because of the fear of losing money. To those who know nothing about stock investment, stock investment looks confusing and scary.

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5 ways in which a student can build a good credit

In current times, as young students we all want to be financially independent. There are so many courses or activities that we wish to pursue, but gets limited by our financial constraints.

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Mental Biases

Mental biases refer to having a biased perspective in seeing things around. Such psychological biases influence our thought process profoundly as our thoughts are based on our perception. Moreover, It is our thoughts which shape up our beliefs and our behaviour in our day to day lives.

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How to set your personalized financial goals before starting to invest?

The moment you read a success story on paper about how somebody has earned millions of rupees by investing in stocks, you feel goosebumps in the tummy as you have discovered the roadmap to becoming rich overnight. It is great to have such zeal and vigour to invest in stocks, but there has to have a solid strategy for becoming a millionaire through stock investment.

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What are hedge funds?

A hedge fund is popularly called as alternative investment fund (AIF) in India. Going by the meaning of the word ‘hedge’ which means ‘to avoid,’ so hedge funds talk about avoiding the risk of investment. Though hedge funds are mistakenly taken as similar to mutual funds but there is a great deal of difference in the two.

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What are bonus share?

Bonus shares are the company’s accumulated earnings which are converted into free/additional shares which are passed on to the current shareholders by the stake held by each of them without charging any additional cost.

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