World Of Finance

        World of Finance by M.Vijaya Sai Thinking to invest in Market…..??? Moreover you are a risk-averse investor and want to minimize your risk….??? There is an investment avenue for you that are bonds and debt instruments which can give you fixed returns . They yield more returns as compared to the fixed deposits and the national saving certificates . But the question is.., as an investor how do I get the information as to which are the good ones amongst them .  The answer would be to go as per the Credit rating given to the securities . After all What is credit rating…? What is its importance…?? and What does that Indicate…??? There are thousands of companies in India all of them require capital for functioning and they issue securities to get funds.        Purpose of Credit Rating Credit rating agency is set up in order to protect the interest of the small or retail investors who invest in debt securities of companies. India was the first nation amongst

        World of Finance by M.Vijaya Sai There’s a funny saying about income tax which goes like this “death comes once but income tax comes every year in a person’s life” and someone else has said that death and income taxes are inevitable. All assesses are liable to pay tax and they do a lot of work planning and investing keeping tax in mind. All of them will have read the income tax act passed in the assembly that particular year but there is every chance of them having misunderstood some of the concepts. They will have discussed with some of their friends, colleagues, relatives who would have made them more confused. Today we will be discussing some of common misconceptions and the reality.    Process of Filing Income Tax The process of filing income tax is difficult and cumbersome; most of the assessees (Tax Payers) have this misconception and especially those who have recently started paying income tax and those who do not have a proper knowledge about

        World of Finance by M.Vijaya Sai If you are a budding investor , got some spare money and thinking of investing in stock markets and for the first time you walk into broker’s office, tell your broker about your interest. The first thing that broker would be telling is “diversification or portfolio construction” . If you know the word its well and good, but if you don’t have any idea about it then you will be puzzled. You would have read that shares of your favorite company (e.g.: Infosys, Reliance or TCS) are trading well, so you tell your broker that you want to put all your money into stocks of that company. For a moment your stock broker will look at you as if you have fallen from sky, it’s because people living at the stock markets believe that if you don’t diversify then there are very less chances of you surviving in the market . Now, is it always necessary to have a diversified portfolio…..??? If yes then how much should an investor diversify? Ar

        World of Finance by M.Vijaya Sai Why does an investor put his money in the stock market? The answer would be to earn higher returns. Ask him if he is sure that he is going to earn money that he intends, we don’t think that there will be a confident answer from his side. This has been the story ever since the trading has started. There has been a continuous battle between the investors and the stock markets if you consider the history of stock market there have been some wins which have gone in favor of stock market and some in favor of investors. The investor, from the moment he invests tries to outperform the market , the billion dollar question is “Is it possible…..???”, but it cannot be said that it’s just impossible to outperform the market because there are some examples such as Warren Buffet.   The behavioral finance has proved that the tendency of investors is “to Buy the Stocks at Lower Price and Sell them at Higher Price” . How do they do th