Wednesday, April 28, 2010

What to look for before making an investment decision

1. understand the basic nature of a particular asset class and the principles of investment that should form the basis of their investment decisions.

2. have good assessment of your risk appetite

3. investment in real estate is a local subject and its prices are influenced more by local factors than general economic conditions

Planning your investment

Wednesday, April 21, 2010

Investing in stock

In this article I am going to give information about the "stock".

As a beginner you should first understand the stock market. A stock market is the public market where company stock and its derivatives are traded at agreed price.

Now question arises what is stock/share? The stock is divided in share. Every share has a face value you can understand it as value per share. A share of stock is the smallest unit of ownership in a company. If you own a share of a company’s stock, you are a part owner of the company.

Stock is divided in two categories:

1. Preferred stock, and
2. Common stock.

Preferred stock holder don’t have voting rights whereas common stock holder got voting right they can influence the corporation (objectives and policy, stock splits, and electing the company's board of director) .

No fixed dividend is paid out to the common stock holder, but in case of preferred stock fixed dividend is paid out.

Tuesday, April 20, 2010

RBI’s monetary policy 2010

The RBI, in a report released on Monday, said monetary management in the current fiscal will be dominated by the challenge of moderating inflation which is the highest among Group of 20 nations, while remaining supportive of growth impulses. And that is what came through in today’s policy.
RBI’s monetary policy 2010

Monday, April 19, 2010

Investment Avenues in India

When i started thinking of investment the most common option used to get was "stocks"
But stock is not the only option available for investment. Once, you have clarified your vision you should choose the right investment option that suits your vision. In India the investment option available to us are:
stocks,
mutual funds,
bonds,
real estate,
gold and precious metal,
bank fixed deposits,
national saving certificate,
ULIP,
SIP, and
PPF

depending upon your vision and returns you are looking for you can opt for any of the option that are available to you. But before you invest you should also check the risk associated with that investment and what is your risk appetite.

Importance of investment...

Invest money to get money. Most of us neglect the importance of investment, may be lack of knowledge what all about investment planning means. Is it buying and selling of shares? Buying an insurance policy? I don't say that they are not the investment option, but a proper investment is that when you have precise and ample knowledge about your investment avenue you have opt to go for to reach your financial goals i.e you should have vision for your investment.