ABC of Investment

Value Investing ·          There are two types of fundamental approach or style while investing in stock or equity. ·          Value Investing is one of the two fundamental styles of investment. ·          Value Investing was introduced by Benjamin Graham who was mentor of the legendary investor Warren Buffett. ·     Value Investors buy Value Stocks, which could be under-priced and ignored by investors but have a potential for appreciation. ·            Value  stocks have potential to bounce back in time when its true value is recognised by other investors. ·            Value  stocks usually have above-average dividend yields. ·          Value stocks are less volatile in price fluctuation and mor...

Growth Investing ·   There are two types of fundamental approach or style while investing in stock or equity. ·   Growth Investing is one of the two fundamental styles of investment. ·   Growth Investors buy Growth Stocks, which are expected to grow at a faster rate than other stocks in stock market. ·   Growth stocks are supposed to have a considerable growth in near future. ·   Expansion or growth of growth stocks are supposed to beat inflation. ·   Growth investing is not a static concept, i.e. a growth stock seizes to be a growth stock when it stops growing. ·   Growth stocks have low dividend yield and above-average valuation as measured by ratios like Price-to Earning, Market Cap-to-Sales and Price-to-Book Value.  ·   These stocks may perform best in a growing stock market. But these stocks may be punished first in a cooling stock market.  ·   Example of growth stock in Indian market now ……… M...

A pretty girl, who wants to marry a rich guy, has expressed her desire like this…….. “   What should  I do to marry a crorepati ? I'm going to be honest of what I'm going to say here. I'm 25 this year. I'm very pretty, have style and good taste. I wish to marry a guy with 100 crore annual salary or above. You might say that I'm greedy, but an annual salary 2 crore is considered only as middle class now days. My requirement is not high. Is there anyone in this forum who has an income of 100 crore annual salary? Are you all married? I wanted to ask ….what should I do to marry rich persons like you? Among those I've dated, the richest is 50 crore annual income, and it seems that this is my upper limit. If someone is going to move into high cost residential area on the west of New York City Garden, 50 crore annual income is not enough. I'm here humbly to ask a few questions:  1) Where do most rich bachelors hang out? Please list down ...

SIP: It is known as Systematic investment Plan. A fixed amount of money is invested in a financial instrument in regular intervals. It is a smart financial tool for creating wealth. Mutual Fund in SIP form gives best return for long term. Small savings can also be invested in SIP. Investment or market timing is irrelevant in SIP. SIP enables rupee-cost averaging by investing systematically. Huge benefit comes from the Power of Compounding.  Few points to check before buying Mutual Fund in SIP form Star rating of the mutual Fund should be high and 5-star is preferable. Net asset of the Fund should be high and not less than 500 Crore. Expense ratio of the Fund should be low and not more than 2.5. Annual Return of the Mutual Fund should be high as per your financial target. Avoid investing in Thematic and Sector Fund. Happy Investing !!! ##   Common Investors may collect ebook from the followi...

Bharat -22 - ETF (Exchange Traded Fund) It is an Exchange Traded Fund and a NFO (New Fund Offer) from ICICI PRU AMC. It will invest in S&P BSE Bharat 22 index. It is a well-diversified open fund investing in six sectors, namely, Basic Materials (5.13%); Energy (18%); Finance (18.67%); FMCG (14.26%); Industrials (22.52%) and Utilities (20.63%). It is a part of disinvestment program by Govt of India and it comprises of 22 bluechip companies from six diversified sectors. ICICI PRU AMC has been apponted by Govt of India to create, launch amd manage this fund. The appointed fund Manger for this scheme is Mr. Kayzad Eghlim. The portfolio of Bharat-22-ETF comprises of 22 companies from India's Largest Public and Private companies like.......National Aluminium, ONGC, IOC, BPCL, CIL, SBI, Axis Bk, BOB, REC, PFC, Indian Bk, ITC, L&T, BEL, EIL, NBCC, Power Grid, NTPC, GAIL, NHPC, NLC India and SJVN. NFO period for non-anchor investor ...

National Pension System (NPS ) –   at  a glance : NPS is an easily accessible, low-cost, tax-efficient and flexible retirement account. This scheme is the best option for citizens not covered under any pension scheme as the returns are attractive with low risk and low cost. The primary objective is enabling systematic savings during working life of the investor. The final objective is to provide retirees with an option to achieve financial stability during their golden time. Any Indian citizen aged between 18 – 60 years can join NPS. NPS for every Indian citizen was introduced  by the Pension Fund Regulatory and Development Authority (PFRDA) from May 1, 2009 as an initiative to provide the elder with old age pension security. The main intention of this account is to allow elders to enjoy a reasonable market based returns over a long period of time. A subscriber is one who joins NPS, under which each subscriber will have one account with Centra...

Sukanya Samriddhi Yojana: It is a girl child prosperity scheme under ‘ beti bachao, beti padhao’ program of Prime Minister Narendra Modi. This Yojana is to facilitate girl child for proper education and marriage afterwards. The account can be opened by the natural or legal guardian in the name of a girl child from the birth of the girl child till she attains the age of 10 years. A depositor can open and operate only one account in the name of a girl child under the scheme rules. Natural or legal guardian of a girl child can be allowed to open the account for two girl children only. The third account in the name of the girl child can be opened  in the event of birth of twin girls, as second birth or if the first birth itself results into three girl children. Attractive interest rate of 8.3% is provided at present. Interest rate is regulated by Ministry of Finance from time to time. Minimum Rs. 1,000 can be inv...