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29 Nov 2022
bizdiscuss.com investment plans
Author Rohit kushwaha Categories Finance, Invest

What is stock market & Scope in our life –

What is stock market & Scope in our life –

Meaning of Stock market – Stock Market is a combination of Stock & Market. First we will understand Stock then will understand about the market.

Stock: A bunch of shares is called stock (Capital of company is divided into a small part. Each part is

called shares).

Market: We all heard very well that market is that place where no. of buyers & sellers are exists for buy

& sell.

So, A that place where shares are BUY & SEll is called stock market.

Scope in our life: Now a day’s people wants to invest their funds in form of F.D, Mutual Fund,

Bonds, Stocks Real Estate etc. Here we are discuss about stock market.

· Basically stock market is that place where people are invested in Shares of companies, which are

Listed in Stock exchange like NSE & BSE.

· Shares prices change every time (exception in circuit) when market is opened, if people get shares in a low price & sell at a high price ,then he get profit & vice-versa he get loss.

· It makes profit very rapidly if investments are make wisely & obtaining information continuously.

Types of Trade in stock market :

· Trade for investments

· Trade for Intraday

Trade for Investments: In that case investors are invest their money in stocks for a certain

period i.e. for six months or one year or any other period a investor want and hold the stock, unless investor get profit. In that case the possibilities of gaining are much higher than trading but in that case fund will be blocked.

Trade for trading : In this case investors are invest their money for a day & tomorrow for BTST or STBT.In this case profit possibilities are low than investments but Fund will be free.

                              Components of stock market

Basically stock market has four components for Trading/Investing.

· Equity

· Future/Option

· Commodity

· Currency

Equity: Basically trading in equity i.e. trading in shares of a company for intraday or on margin or for delivery E.g Reliance Wipro TCS etc.

Future/Option: In this segment we will buy a unit of index (Nifty/Banknifty) or shares, whose price are generally at premium sometimes at discount also. These are not stocks these are basically a contract which expires on last Thursday of every month.  In this Segment risk is very high. In future/option trading required a plenty of technical knowledge as well as fundamental knowledge.

Commodity: In this segments trading in Gas Crude Oil Gold, Silver etc. In this category

 Trades take places only through futures contract.

Currency : In this segments Trading in currency whether any country currency

Merits & Demerits of share market

Merits

· It makes profit very rapidly

· Safety against inflation

· High liquidity

· Full Transparency

· Flexibility

· Ownership

· It provides Financial freedom

  • Dividend

Demerits

· It required a plenty of knowledge regarding companies & entire things e.g. like Laws Taxations which are required to trading

· It have a very high risk

· No regularity to earning profit

· Everyone become Avaricious that is harmful · Sometimes market is very volatile, everyone can’t survive in that particular volatility


27 Nov 2022
Author Rohit kushwaha Categories Finance, Invest

What is the difference between Investing & Saving

What is the difference between Investing & Saving

Investing:    First we will understand of investment prior to meaning of Investing. “Investments refers to a period where we deploy our funds for a return in that particular period“. 

Saving   :  Saving refers to that accumulated fund which is saved after all the expenses. Investment is applied in daily life by any person, his point of view he did investing.

Investing Vs Saving  –

  1. Investing is new concept, saving is old concept
  2. Investing have many opportunities but saving have less
  3. Investing manages to inflation but saving is not managed to inflation.
  4. Investing could not be done by any person but saving can be done by everyone. Because investing required knowledge but saving is not.
  5.   Investment give more return than saving
  6. Investing are varying I;e it depends on goals but in saving no variation
  7. Investment can be done by different ways e.g. Mutual fund (Tax saving fund, hybrid fund, multicap fund etc.), Stock Market, Real Estate FDs Etc.
  8. In Investing a little risk is exists buy in saving there is no risk .it gives surety to customers.

“A penny saved is a penny earned” —- Benjamin Franklin

07 Nov 2022
Author Rohit kushwaha Categories Invest

Common Mistakes an Investors make

  • 1. Lack of proper investment goals
  • 2. Hoarding cash and bonds during inflation – earning negative returns
  • 3. Buying only companies that you ‘like
  • 4. Not having an emergency fund
  • 5. Failure to diversify
  • 6. Relying solely on top performing assets :
  • 7. Lack of research
  • 8. Investing in businesses you have no idea about
27 Mar 2022
Author Rohit kushwaha Tags , Categories Finance, Invest

Category: Types Of Mutual Funds

Category: Types Of Mutual Funds

There are various types of mutual funds exist in the markets for different people. Basically there are four types of mutual funds.

  1.  EQUITY FUNDS
  2. HYBRID FUNDS
  3. DEBT FUND
  4. COMMODITY FUNDS
  1. EQUITY FUNDS :   
  • This type of investment funds deals in equities i.e. shares of Public Ltd companies.
  • These types of funds have the potential to generate much higher return than the market and highly suggested for long term investment.
  • The primary objective of these funds is to create wealth or capital appreciation
  • This funds can be sub categorized in following Funds
  • Large Cap Funds are those funds which invest in companies that are well-established and have a significant market share. These companies dominate the industry.
  • Mid Cap Funds are those funds which invest in companies in which  market cap is above Rs 5,000crore but less than Rs 20,000crore
  • Large & Mid Cap Funds is a combination of large & mid cap funds.
  • Multi Cap funds are funds that invest in mixed of large, Mid & Small companies.
  • Dividend Yield funds are those funds which invest in companies which generally pay dividend
  • FOF stands for FUND OF FUNDS, An investment strategy of holding a portfolio of someone else funds rather than invest directly in bonds securities or Stocks.
  • Focused Funds deals in limited no. of stocks & in limited no. of sectors. It doesn’t have diversified mixed or broad positions in its portfolio.
  • Index Funds are funds that invest in an index stocks like NIFTY BANK NIFTY in the proportion of the weight of the stocks.
  • Sectoral Funds are that funds which invest in one type of business for e.g. Banking Funds that invest in banking companies, Technology  Funds that is for IT Compines  FMCG Funds, Pharma Funds 
  • Small Cap Funds are those funds which invest in small companies whose market cap is less than 5000crore.
  • Flexi Cap funds is similar to Multi Cap funds but there is no restrictions of limit for investment  in small mid & Large cap funds.
  • HYBRID FUNDS :  
  • This type of investment funds not only deals in equities i.e. shares of Public Ltd companies but also in other class of assets like debt bonds & other assets depends on the objective of the schemes.
  • These funds are less risky in compare to equity funds.
  • Example of these type of funds is balance advantage fund, equity hybrid fund, Equity Saver fund, Retirement Saving Fund.
  • DEBT FUND :
  • These funds basically deals in fixed income securities like government bonds or securities commercial papers or debentures money markets instruments etc.
  • These are considered as safer investment and suitable for income generation
  • E.g. of these funds are liquid funds GILT Funds Ultra Short Duration Funds Dynamic Bond Corporate Bond Etc.
  • COMMODITY FUNDS :
  • These funds are deals with investment related to Metals, Gold, Silver, Oil & Natural Gas & Agricultural Goods Etc.
  •  E.g. of these funds are Gold Funds Gold Saving Funds Etc