Money ControlMoney ControlWell, like most folks, I have been through job switches in my Career . Most jobs were really OK and have helped me gain the experience to negotiate a pretty nice salary package for myself. But I don't have much of savings from any of my earlier jobs 
Articles
3 Things All New Investors Should Know And Follow
2007-07-16 20:30:00 With markets being 'Bullish' in nature around the world, there is an increasing in the number of people who are investing in equities. "It's okay, because there is no way I can lose my investment" is the general sentiment. But in any market investment, you stand a chance of losing your principal. Remember this before you even think of investing. This brings us to the first rule. Only invest money you can afford to lose. While it may sound obvious, it's ignored or missed by a lot of people and these are the people who suffer the most when they lose in the markets.It is important that you research the stocks you wish to invest in thoroughly. You need to "dig in" and really examine the facts before investing. Also, never go on press releases by the companies, they might just be to create a hype.Ignore all tips about 'hot stocks'. There are people who spend all of their time promoting certain stocks (they have their money invested in the same stocks), Once the price rises, they... More About: Things , Investors
The wonder of compounding
2007-07-15 18:41:00 "Compound interest is the eighth wonder of the world" - Benjamin Franklin"Compound interest is the world's greatest discovery"- Albert EinsteinYes, two of the greatest men in history calling Compound Interest great, wonder why? because it is great. I once worked as a sales guy for an Insurance Firm and during the training sessions on Endowment Insurance plans which are a very agreeable combination of Investment and Insurance Cover, our instructor told us a story. It went like this: There was this farmer not so long ago in rural India, a very intelligent one at that. One day, the kings daughter was passing close to the farm. Her wagon had an accident because of her chariot's wheel breaking loose. She was hurt badly and the farmer rushed to her and the charioteer's aid. This eventually saved her life. The King was very pleased and asked the farmer to make an wish he pleased. The king promised that it will be fulfilled. So, the farmer...
Indian's Economic outlook very good!!
2007-07-14 08:48:00 With the sensex smashing the 15,000 mark, inflation easing, interest rates being at the same level for quite some time, we Indians are very positive about our future with most thinking that things will only get better. Great news indeed!! More About: Outlook , Economic , Good
Greed = Loss at the stock market
2007-07-13 13:58:00 With the Mumbai Sensex breaking one record after another and even crossing the 'really magical' figure of 15,000 recently and most of us having heard stories of rags to riches in the Stock Market , we yearn to have a piece of the action. In fact, all of us who have had a taste of gambling would at least have at times thought of how cool it be to be Day Trader in the Stock Markets, a Day Traders are people who buy/sell stocks during the day and square up their positions at the end of the day. But as Amit K puts it on the finance page of the Rediff's Finance page, Greed = Loss at the stock market. It is a story of Riches to rags or at least riches to no riches. This killed any aspirations in me to be a Day Trader and may it stop you from becoming one as well :)
What are Mutual Funds?
2007-07-12 19:43:00 A mutual fund is an intermediary which allows a group of investors to pool their money together with a predetermined investment objective. The fund will have a fund manager who invests the pooled money into specific securities (stocks or bonds). When one invests in a mutual fund, one is buying shares (called units) of the mutual fund and becomes a shareholder of the fund.Mutu al Funds also give out dividends like Companies to their shareholders. The profits that the Fund makes by virtue of capital gains (going long or short on stocks) is reflected in the price of each unit of the Mutual Fund. You can then sell the units of the fund back to Mutual Fund houses as Fund houses are always willing to buy back their units.The advantage of investing in a Mutual Fund as opposed to investing in shares directly are:Fund Managers are people who have great expertise and experience of trading in the Equity Markets. These are the people who eat, sleep and drink shares. This is best for folks who do...
Investments don't have to be risky and they can do your taxes as well.
2007-07-12 16:49:00 A penny saved... is a penny earned is what I was told by my favorite English teacher in middle school. We know that the way to safeguard my savings from inflation is to put it in the bank or invest it somewhere. This way we earn at a rate of interest higher than inflation. If you invest, you invest your money in some asset that will earn you returns. Be they shares, debentures, bonds, gold or even real estate. All of these investments have rags to riches and riches to rags stories associated with them . Investments are risky in reality, when you invest your savings, they take the form of 'Risk Capital'. Don't let that term scare you. You could put your money in a government bond, PPF, (Public Pension Fund) NSC, ELSS, (Equity Linked Savings Scheme) Infrastructure Funds etc and that would qualify as almost a zero risk investment. (What's more is that you get Tax benefits under section 80c as well!!) It seems as if the Finance Minister wants us to invest instead of save and go for ... More About: Taxes , Well
Interest Compensates Inflation
2007-07-12 10:56:00 Interestingly, all of us keep switching roles from Saver to Borrower or even Investor.Let us just take stock of the things we know so far:Saving :- It is postponing consumption for a rainy day when you might not have earnings for food and other needs.Borrowing :- Is the opposite of Saving, one borrows to consume now in hopes that he/she will have enough later to give back the sum borrowed and surplus for consumption at the time.Investing :- Investor is the one who takes the big bets. He invests his money in businesses that are essential to us all and hopes to sell his products year after year. We also know that the 'Purchasing Power Of Money' declines with time because of a monster called Inflation and Investing is a good way to offset or 'hedge inflation'The picture is of course incomplete here because Inflation seems to hit savers the most and then it seems too absurd to save any money at all. So, here's 'Interest' to complete the picture.Let us assume that I have Rs 400,00... More About: Interest , Flat , Eres
Purchasing Power of Money
More articles from this author:2007-07-12 09:23:00 We have all heard stories from our elders while growing up about how cheap things were when they were young. When I was in school, my father would tell me that he used to get 25 paisa as pocket money in his school days and the loads of things that it could get him. But all I could get in 25 paisa was some candy. Just imagine that a 3bhk flat in Bombay cost around 5-10 Lakh 20-25 years ago. What is happening here? Why does the price of things rise? Or to put it another way, why does the purchasing power of money go down? (Purchasing Power of money in economics is the amount of merchandise a unit of money (say 1$) can buy)This is the phenomena we call “inflation” which refers to a persistent rise in the general price level, as measured against a standard level of purchasing power. Of course things like Demand, Supply and Desirability also factor in to the rise of price of certain assets like housing. (Every body wants to house on a sea shore so, the price there is higher) Mangoes,... More About: Money 1, 2, 3, 4 |
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