Tag Archives: Investment Strategies

Why should one invest?

One needs to invest to: •earn return on your idle resources •generate a specified sum of money for a specific goal in life •make a provision for an uncertain future One of the important reasons why one needs to invest wisely is to meet the cost ofInflation. Inflation is the rate at which the cost of living increases The cost of living is simply what it

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When to start Investing?

The sooner one starts investing the better. By investing early you allow your investments more time to grow, whereby the concept of compounding (as we shall see later) increases your income, by accumulating the principal and the interest or dividend earned on it, year after year. The three golden rules for all investors are: •Invest early •Invest regularly •Invest for long term and not

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What are various Long-term financial options available for investment?

Post Office Savings Schemes, Public Provident Fund, Company Fixed  Deposits, Bonds and Debentures, Mutual Funds etc. Post Office Savings: Post Office Monthly Income Scheme is a low risk saving instrument, which can be availed through any post office. It provides an interest rate of 8% per annum, which is paid monthly. Minimum amount, which can be invested, is Rs. 1,000/- and  additional investment in multiplesof

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What is meant by the Time Value of Money?

Money has time value. The idea behind time value of money is that a rupee now is worth more than rupee in the future.  The  relationship between value of a rupee today and value of a rupee in future is known as ‘Time Value of Money’.  A rupee received  now can earn interest in  future.  An amount invested today has more value than the

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Present Value of a Single Cash Flow

Present value of (PV) of the future sum (FV) to be received after a period ‘t’ for which discounting is done at an interest rate of ‘r’, is given by the equation In case of discrete discounting:  PV = FV / (1+r)t Example 1: What is the present value of Rs.5,000 payable 3 years hence, if the interest rate is 10 % p.a. PV 

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What is the work of a Stock Broker ?

A stock broker is a person or a firm that trades on its clients behalf, you tell them what you want to invest in and they will issue the buy or sell order. Some stock brokers also give out financial advice that you a charged for. It wasn’t too long ago and investing was very expensive because you had to go through a full

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How Technical Analysis is differ than Fundamental Analysis ?

Technical Analysis is a method of evaluating future security prices and market directions based on statistical analysis of variables such as trading volume, price changes, etc., to identify patterns. A stock market term – The attempt to look for numerical trends in a random function. The stock market used to be filled with technical analysts deciding what to buy and sell, until it was

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List of Index-Component Stocks

  List of Index-Component Stocks BSE Sensex ACC Ltd Bajaj Auto Bharti Tele BHEL Cipla Ltd Dr. Reddy’s Labs Grasim Inds Guj Ambuja Cemen HDFC Bank HDFC Ltd Hero Honda Hind Lever Hind Petroleum Hindalco Inds ICICI Bank Infosys Technolo ITC Ltd Larsen & Toubro Maruti Udyog ONGC Corpn Ranbaxy Labs Reliance Energy Reliance Inds Satyam Computer State Bank TATA IRON & STEE TATA

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Why should one invest?

One needs to invest to: earn return on your idle resources generate a specified sum of money for a specific goal in life make a provision for an uncertain future  


Investment Strategies

A good planning and strategy is always important to accomplish any kind of work perfectly. This is true in the case of stock investments too. You should follow somebasic investment strategies in order to manage your funds accordingly. So let us have a look at the different investment strategies in the stock market. Factors Of Investment Strategies Basically there are four main factors on which your

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