World Of Finance

  What is Estate Planning? Estate planning is the process of organizing and preparing for the distribution of your assets and property after you pass away. It is an important step in ensuring that your loved ones are taken care of and that your wishes are carried out according to your desires. One of the first steps in estate planning is to create a will. A will is a legal document that outlines how you want your assets to be distributed after you pass away. It is important to have a will in place, as it can help to avoid any potential disputes or legal issues that may arise. Another important aspect of estate planning is setting up trusts. A trust is a legal entity that holds assets on behalf of beneficiaries. Trusts can be set up for a variety of reasons, such as to provide for a child’s education or to protect assets from creditors. Another step to consider is creating a power of attorney. A power of attorney is a legal document that gives someone else the authori

        World of Finance by M.Vijaya Sai With the macro environment being tippy these days markets worldwide are behaving very volatile. In this situation how can one position safe and be assured good returns. This can be tackled skilfully through various investment product’s. One of those products is Company Deposits or Company Fixed Deposits. One famous quote tells us -"The reason saving comes before investing is that you need to have seed before you can sow it in anticipation of a harvest." truly one need to save well, as your money should turn out to be a good yielding crop with high return. How can we make it happen? We know banks tend to give lower rate of return on our regular savings account. While the Gold reaching tall peaks making it not affordable for common man. Investing in equity market and mutual funds seems to be very risky because of high volatility. Further, although Fixed deposit's give good return they have long lock in period attached w

        World of Finance by M.Vijaya Sai Every Business entrepreneur would like to estimate his/her business profits from time to time and work hard to achieve those targets. Here we will learn to use a powerful tool that estimates Business profits. How a business's profits change as the sales volumes change as well as break even points. Although the  purpose of every business may be different but the success of the business is measured in terms of Profitability. The business analyst must  accesses:                            "What is the Break even point?"                              "What should be the Sales turnover for the period?"                            "How to cut down on costs and increase profitability?" The   break-even point  (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain , and one has " broken even ." Using this tool  one can estimate margin of safety and find what sh

Portfolio Portfolio-Management is used to select a portfolio products that help in maximize the profitability or value of the portfolio and to provide balance. Before we go in detail about portfolio management we first need to understand what exactly portfolio means. Portfolio is a grouping of financial assets such as stocks, bonds and cash equivalents, as well as their mutual exchange-traded and closed-ended fund counterparts. Investors should construct an investment portfolio in accordance with risk tolerance and return requirements. Imagine a pie that is divided into pieces of varying sizes, investment portfolios are just the same representing a variety of asset classes or types of investments to accomplish an appropriate risk-return portfolio allocation. Portfolio Management Now that we know about Portfolio, it can be said that portfolio management is the art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation f

Arbitrage Arbitrage is the process where there is simultaneous purchase and sale of an asset in order to profit from a difference in the price of the similar financial instruments , on different markets or in different forms. A person who engages in this type of trading is called an arbitrageur. The term is applied to trading in financial instruments, such as bonds, stocks, derivatives, commodities and also currencies. Just an act of buying a product in one market and selling it in another for a higher price at some later time is not arbitrage. Arbitrage is when the transactions occur simultaneously to avoid exposure to market risk, or the risk assumed that prices may change in one market before both transactions are complete. In practical terms, this is only possible with securities and financial products which can be traded electronically.  For example; this type of price arbitrage is very common, but it ignores the cost of transport, storage, risk, and other factors. "True&