Finance

How can Diversification Help you?

Diversification is an important mean to manage risk. But, it does not guarantee against a loss. The key is to identify investments that perform different under various market conditions. It will be diversified between bonds, stocks and cash alternatives. How diversification works For an instance, say a stock portfolio included a mechanics company, a car manufacturer and a diesel service firm. Here, even though the portfolio has spread risks it may not be considered as a good diversified portfolio as all of them are connected to one Mechanical industry. So, switch to different portfolios such as a mechanics company, a computer company and a drug manufacturer. The concept of diversification is one reason as to why mutual funds are so popular among the investors. Ways to diversify your invest...

Retirement Income & the Conventional Portfolio

Experiencing negative returns early in retirement could deplete your portfolio quickly. For this, you might want a couple of strategies to help mitigate this concern. LIQUID ASSETS It is required to have a pool of very liquid assets to fund two-to-three years of retirement spending which could help you from selling long term assets at an inopportune time. Through time, and depending on market conditions, you might have the opportunity to replenish this cash reserve using gains from your retirement portfolio ANNUITIES Another complementary strategy is to integrate annuities. This could help you to shift the risk of market volatility off your shoulders. The guarantees of an annuity contract depend on the issuing company’s claims-paying ability. Annuities have contract limitations, charges &a...

Plan well for your Child’s Education

In earlier 90’s the fee for children’s education was in thousands and today it’s not the same. The fee structure for children’s education is so high that it could make you worry for your child’s educational future. Planning now for your child’s education can reduce the anxiety you will face when time comes to dish out the money. It would be your little ones dream to get educated in institutions of their choice & also pursue higher level degrees, but making sure they can afford the education is your job. Your planning shall be all according to the following things below-  Today, the fees is near to 2 lakhs for a B.com degree, above 10 lakhs for engineering etc. 10-15 years from now the educational fee will be much more higher. Let’s have a look on some approximate costs of a few of repu...

Your Emergency Fund- Is It enough?

Have you ever experienced one of those days wherein the water heater stops heating, dishwasher stops washing & your family ends up on a first-name basis with the nurse at urgent care. Then, as you are driving to work you see smoke seeping out from under your hood. Bad things happen to the best of us, & instead of spacing themselves out, they almost always come in waves. It is important to have a financial life preserver, in form of an emergency cash fund. Many people know that an emergency fund is an important resource but at the same time they area nit sure about how much to save or where to keep the money. Others wonder how they can find any extra cash to sock away. HOW MUCH MONEY? How much is enough to set a target amount for starting an emergency fund?  Unfortunately, there is ...

Mistakes You Should Avoid To Help Your Money Grow Through S I P

A Systematic Investment Plan allows investments (small amounts) at regular intervals to yield high returns over a long period of time. SIPs help you build your wealth gradually without hurting your financial commitments rather than just investing a lump sum amount. It has the power of averaging and compounding which makes it a smart investment option- There are some common mistakes investors make:-   Deciding huge amount for investing Investors make a mistake on not calculating their present and future financial capabilities before committing high investment amount. + What to do? Set a realistic amount for monthly SIP investments by evaluating your financial condition such as present and future salaries, expenses and contingencies. Investing for one year It is an extremely small durat...

How Do You Choose The Right Mutual Fund?

  Saving and Investment for future security is at most important for each and every individual. For several people, busy lifestyle and lack of proper information might create a problem in selecting the right investment product. Mutual funds help you to get out of this hindrance. Mutual funds provide skilled investment management for people at a reasonable value. Here are a few tips for selecting mutual funds: Fund house: You need to choose a fund house on which you’ve got enough faith to invest your money and not adjust in a scheme of your choice. Identify fund houses that have a powerful presence within the financial world and provide funds that have consistent record.   Achieve goals of investment: Investments are made in such a way that it makes sure your savings enhance your ...

Reasons Why Investing in Mutual Funds In Nothing Like Gambling

  Very often, we come across peers and friends who believe that investing in mutual funds is likely to be gambling. Let’s have a look on the differences between investing and gambling. TIME SENSITIVE: Gambling like betting over a sports match or a casino lasts only as long as the event does. You cannot recover your money you lost during the respected event. On other hand, investing is a long term process where you have chances of making profits over the years over your initial investment. DIVERSIFICATION: While in gambling, there is no such risk-mitigation strategies applied. Whereas, mutual funds’ investments help you diversify your money. RECOVERY: If at gambling you lose money with an unlucky hand, you lose all of it at once which has no recovery option. Whereas when mutual funds a...

Start Small and Grow Big

Dream Big, Start Small, Stay Focused and Keep Going Forward Ever thought of saving from your salary? Ever managed to do it? If not, here is a plan for you to develop the habit of saving and investment – SAVE INSURE INVEST !! Let’s start small – Rs.500 It is an amount you can save easily and get started with investing. Rs.500 is the minimum amount to start an SIP(systematic investment plan). Start investing Start investing in an SIP with a debt mutual fund as it let’s you withdraw the amount at a day’s notice and also provides better returns if the money is left dol in your savings account. Stay invested regularly Set a fixed date for an SIP every month so that you don’t end up spending money. Keep the process on for about 6 months to 1 year and later sta...

Inflation And Its Effects On Investments

A penny saved is a penny earned. But thanks to inflation, over time, the value of the penny saved could be much less than when it was earned. One cannot ignore the corrosive impact of rising prices on investments. Understanding inflation is crucial to investing because inflation can reduce the value of investment returns. Inflation affects all aspects of the economy, from consumer spending, business investment and employment rates to government programs, tax policies, and interest rates. WHAT IS INFLATION? Inflation is a sustained rise in overall price levels. Moderate inflation is associated with economic growth, while high inflation can signal an overheated economy. HOW DOES INFLATION AFFECT INVESTMENT RETURNS?  Inflation poses a “stealth” threat to investors because it chips away at rea...

Reasons Why You Should Start Planning For Your Personal Finance

Personal finance includes all the financial decisions and activities of an individual or household, including budgeting, insurance, mortgage planning, savings and retirement planning. It is basically application of principles of various monetary decisions of an individual or family unit. For planning your personal finance, you need to know what importance it plays in building wealth. UNDERSTANDING THE BASICS OF PERSONAL FINANCE: Balancing your checkbook, making of personal budget, investment techniques and creation of emergency funds, these all makes up your personal finance basics and you need it to master it all.  BANDING TOGETHER YOUR GOALS WITH YOUR PERSONAL FINANCE PLANS: Planning your finance in such a way that it collaborates with your goals. Personal financial planning is made out ...

How To Keep The Bull Market Healthy

A bull market is a financial market of a group of securities in which prices are rising or are expected to rise. The term “bull market” is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, currencies and commodities. A level and direction of interest rate are important to dedicate to healthy bull market low and a rising rates indicate the growth of the market and also states as to how good a market is high dollar as an “outlier” requiring close monitoring given its disruptive role in the commodity market crash in 2014 while believing that we are in a “Commodity super cycle bear market.” Profit being the pulse of the market is erratic and must be regained.  Avoiding small caps for 2 weeks and select...

  • 1
  • 2
  • 4

Lost Password

Register

Please wait...

Get Latest Updates

Get the latest news to stay on top of shifting global markets