When I was a beginner in investment, “mutual fund” was the most heard term. But more than I was interested to invest in it, I wanted to know what is a mutual fund in first place? I could understand that, mutual fund is an investment option like stocks, real estate, gold, bonds, etc. Investment options…
When a person wants to buy a risk free investment, which is the best investment vehicle? Government bonds will be the best choice. Why? There are two reasons for it: (a) Government bonds are issued by the central government in India, (b) These bonds are regulated and managed by Reserve Bank of India (RBI). What…
Shree Cements share price has caught my attention since last 1.5 months. Its been falling steadily. Why Shree Cements? If we will prepare a list Top 100 stocks in terms of Market Capitalisation, Shree Cements will appear in this list. In fact as per my list, its Rank is #54th in the list. High Market Capitalisation…
Salaried people can afford a bit of mismanagement in finances. But financial planning for non-salaried people must be spot on. Income of salaried people are predictable. But for non salaried people (like freelancers, business men etc), income forecast can be tough. Monthly/annual income of non salaried people are irregular. What I mean by irregular? The…
How to start building an investment portfolio from scratch? This looks like a logical question for beginners, right? But even experienced investors can take clues from here. People who have not built their investment portfolio till date, how they can go about it? These are people who are busy doing 9-6 job. They do not…
One of the best investment tips for beginners in India is to follow investments consistently and with purpose. Consistently, why? Because irregular investments eventually gets spent. Purpose, why? Because goalless investments also gets spent. What is the purpose of investment? Wealth creation over time. But if the investment gets liquidated and spent, the purpose is not met. Hence for…
How to create wealth from nothing? The stress is on the word “nothing”. Why? Because if one knows how to create wealth from “nothing”, doing the same with “help of something” will be easier, right? But there is a point about wealth creation that needs understanding at the outset. What is it? Wealth creation is…
Generally, how we evaluate performance of mutual funds? By looking at their historical returns. Suppose there are two mutual funds A & B. The returns generated by these mutual funds in last 1 year has been as below: Most likely, in which mutual fund you will invest your money? Probably “A”, right? Now lets add…
GDP is measured in India by estimating GVA of “Individual sectors“. Before we proceed into further details, lets first know few basics about the following: GDP. GVA. Individual Sectors. What is GDP? Gross Domestic Product. GDP is a measure of “total value of goods and services” produced in a country. What means by total value of…
We often come across stock metrics like Face Value, Book Value, Intrinsic Value and Market Value. What does these terms mean? How important it is for us to know the difference between them? A basic question that arise here is, does these definitions help us to pick better stocks? So you can see, these terms…
These days we often hear the phrase called “taking a haircut”. What does it mean, and how it effects a common man? In simple language, taking a haircut means “agreeing to settle a deal for a loss”. Why banks would agree to accept a loss making deal? To understand this, one must first understand what…
Recently I read a document published by Income Tax Department on Presumptive Taxation. I found this document very useful. It deals with how freelancers, self-employed people like bloggers can pay income tax. Hence, I thought to write a blog on presumptive taxation specially highlighting section 44ADA. Earlier, the section 44ADA under presumptive taxation was not there. …
