Well now I am going to give you an over all review of the Indian Equity Market. Indian economy is going through a rapid growth and rapid transformation. Thus, the industries with growth prospects are no longer certain to continue to be in that category tomorrow. As of 1999 year-end, major Indian Stock exchanges had over 6400 shares listed. The market capitalization of all listed stocks now exceeds Rs.70, 00,000 crores and often approaches Rs.10 Lakh crores. There are a large number of indices also available, from BSE 30 share index to S&P CNX Nifty 50 index.
The Equity Markets in India regularly go through cycles and phases – both bullish and bearish. However, in the ultimate analysis, carefully planned investment in Indian Equity has always proved more profitable than in Real Estate, Gold, Bonds and Bank Deposits etc. Equity Markets are both despised and esteemed because of “changing trends”. However, trends change with sufficient notice.
Factors like inflation, foreign exchange reserves, budget and fiscal deficits, direct and indirect revenue collections and targets – all tend to affect the markets differently at different points of time in a year. Monsoon plays a key role. Moreover, for the last five years or so the role played by the FIIs has become a very important factor. Ratings by foreign agencies often determine the trends as well. Imagine a situation when inflation was high, foreign exchange reserves low and we were still attaching attractive valuations to much scrip. Now when inflation is down, foreign exchange reserves booming, external factors like war threats and terrorist actions tend to affect the market trends violently.
Tuesday, September 9, 2008
Saturday, September 6, 2008
Equity Investment..
You might have heard of the term equity investment used everywhere. Well do you know what it means.
''Equity investment'' generally refers to the buying and holding of shares of stock on a stock market by individuals and funds in anticipation of income from dividends and capital gain as the value of the stock rises. It also sometimes refers to the acquisition of equity (ownership) participation in a private (unlisted) company or a startup (a company being created or newly created). When the investment is in infant companies, it is referred to as venture capital investing and is generally understood to be higher risk than investment in listed going-concern situations
Normally companies raise their capital through the issue of equity shares. For this prospectus are issued by the companies inviting the public to buy their shares and contribute to the company’s capital. Equity shareholders are the owners of the company and they bear all risks. The shareholders get dividend on the shares purchased and other incentives from the company such as bonus shares, right shares etc. On an average, an investment in equities in India has a return of 25%.Good portfolio management; precise timing may ensure a return of 40% or more
''Equity investment'' generally refers to the buying and holding of shares of stock on a stock market by individuals and funds in anticipation of income from dividends and capital gain as the value of the stock rises. It also sometimes refers to the acquisition of equity (ownership) participation in a private (unlisted) company or a startup (a company being created or newly created). When the investment is in infant companies, it is referred to as venture capital investing and is generally understood to be higher risk than investment in listed going-concern situations
Normally companies raise their capital through the issue of equity shares. For this prospectus are issued by the companies inviting the public to buy their shares and contribute to the company’s capital. Equity shareholders are the owners of the company and they bear all risks. The shareholders get dividend on the shares purchased and other incentives from the company such as bonus shares, right shares etc. On an average, an investment in equities in India has a return of 25%.Good portfolio management; precise timing may ensure a return of 40% or more
Tuesday, September 2, 2008
Life Insurance.
Everyone in this world would have heard about Insurance. Let me explain to you about various types of insurance.
What is Life Insurance?
Life insurance is a policy that people buy to insure them against a breadwinner's death. Life insurance is insurance for you and your family's peace of mind. Life insurance is a policy that people buy from a life insurance company, which can be the basis of protection and financial stability after one's death. Its function is to help beneficiaries financially after the owner of the policy dies.
It can also be a form of savings in the long run if you purchase a plan, which offers the option of contributing regularly. Additionally, a little known function of life insurance is that it can be tied in with a person's pension plan. A person can make contributions to a pension that is funded by a life insurance company. These are considered private pension arrangements.
In addition, you should also make a list of what you feel needs to be protected in your family's way of life. With a life insurance policy in place, you can:
1) provide security for your family
2) protect your home mortgage
3) take care of your estate planning needs
4) look at other retirement savings/income vehicles
What is Life Insurance?
Life insurance is a policy that people buy to insure them against a breadwinner's death. Life insurance is insurance for you and your family's peace of mind. Life insurance is a policy that people buy from a life insurance company, which can be the basis of protection and financial stability after one's death. Its function is to help beneficiaries financially after the owner of the policy dies.
It can also be a form of savings in the long run if you purchase a plan, which offers the option of contributing regularly. Additionally, a little known function of life insurance is that it can be tied in with a person's pension plan. A person can make contributions to a pension that is funded by a life insurance company. These are considered private pension arrangements.
In addition, you should also make a list of what you feel needs to be protected in your family's way of life. With a life insurance policy in place, you can:
1) provide security for your family
2) protect your home mortgage
3) take care of your estate planning needs
4) look at other retirement savings/income vehicles
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