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Investment in Bond Market

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One golden rule of investing is that your portfolio should always include fixed-income products, no matter what your age is or how interest rates are moving. Debt funds, which invest in a range of debt and fixed-income securities of different maturities and credit quality, protect you from equity market volatility and offer decent returns. INTEREST RATES AND BOND PRICES Interest rates and bond prices share an inverse relationship. When RBI increases rates, bond prices fall as bank deposit rates become more attractive than the interest rates on bonds. So, many investors sell bonds in the secondary market and go for the risk-free bank deposits, leading to a fall in bond prices. Let us consider a bond issued by XYZ Corporation with a face value of Rs 100. Assume that it promises 6 per cent annual interest, called the coupon rate, till maturity. In the secondary market, the bond is available for Rs 101. For someone who buys the bond from the secondary market, the current yield on t...
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DERIVATIVES OPTION TERMINOLOGY

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  To start your investment just tap on the following link.   indicator.nivesh              PROFITMART                UPSTOX               +91-77381 33055 - Indicator Nivesh® - Proprietor - Pratik Marathe, MBA, CFA
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Overview of Capital Market

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  To start your investment just tap on the following link.   indicator.nivesh              PROFITMART                UPSTOX               +91-77381 33055 - Indicator Nivesh® - Proprietor - Pratik Marathe, MBA, CFA
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Tips for Mutual Fund Investment

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Investing in mutual funds calls for deciding between active or passive management, choosing where to buy funds, understanding fees and sticking to a plan. Mutual funds are nothing but pool money from investors to purchase stocks, bonds and other assets to create a diversified portfolio beyond what the average investor can build on their own: Rather than buy individual securities, professional fund managers do it for you. Why invest in mutual funds? According to the Investment Company Institute. Retail investors are drawn to mutual funds because of their simplicity, affordability and instant diversification these funds offer. Rather than build a portfolio one stock or bond at a time, professional managers behind each mutual fund do it for you. Also, mutual funds also are highly liquid, meaning they are easy to buy or sell. How mutual funds make you money When you invest in a mutual fund, cash or value can increase from three sources: Dividend payments: When a fund receives dividends or...
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"Adding Value To The Investment"

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"I made my first investment at age eleven. I was wasting my life until then" - Mr. Warren Buffett, Investment Guru Let’s start with the basics! Why do we invest money? A simple answer is to make profit or provisions for future. If investing wasn’t meant to make profit, it wouldn’t make sense. Average investors are often seen investing money in companies which they have no idea about. Investing is not just about buying facility at cheap price and selling them at higher price. Mr. Buffett mentions the clearer difference between Price and Value. Investors must buy stocks which hold quality with regards to long period of time you are invested.The value is often seen in the companies with excellent management and business with a good pattern of growth in the long run. Patience is value investor’s key identity. In the financial term its just "time value of money" There is always a entry point in each & every condition of the market. Investing in value is a long term i...
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Worried about falling rates of bank fixed deposits? Shift to debt funds.

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Hey, falling rates of bank fixed deposits have raised many retail investors worries about generating higher returns? No worries at all, debt fund / bonds are the alternative for you. Recently, debt funds / bonds have gained significant traction among retail investors over the last few years due to higher return. Investors who know for sure that they won't need the money for defined time should go for FDs. However, those who want flexibility, higher return and liquidity should stick with debt funds. Debt funds can be redeemed on any business day while breaking a fixed deposit typically entails an interest rate penalty of 1%. It is very important to choose a fund with high credit quality to avoid any credit risk. Credit risk refers to the probability of default in principal and/or interest repayments by issuers of debt securities. Investors can reduce this risk by investing in debt funds having maximum exposure to sovereign/quasi-sovereign debt papers and/or to the highest-rated corp...
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How to make wise Investment decisions?

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Investment decisions are perhaps the most important of all the financial decisions aa the outcome of these decisions determine the amount of cash flow for the future period. Investment decisions in this context refer to both short and long-term allocation of funds. Short-term investment decisions include the level of current assets (cash, bank account) which is necessary for day-to-day operations; whereas long-term investment decisions refer to purchase of fixed assets, Insurance, Mutual fund, Land, etc. A major aspect of the long-term investment decisions is the allocation of capital to investment proposals that will realize benefits in the future. Investment proposals necessarily involve risk, because future benefits are uncertain. Consequently, investment proposals should be evaluated on the basis of their expected returns and the level of risk involved.  Make wise Investment decisions by just three steps : Have a Plan } To start is very important. Do not procrastinate....
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