Showing posts from October, 2019

What does Stock Delivery Percentage ?

What does Stock Delivery Percentage ? The Stock Market acts as a factor to reveal the gap between the Day Traders and Long Term Investors, in the name of Share Distribution. It can be referred as Stock or Share Delivery Percentage. Every trading must be completed in the same day for the Day Traders (Intra day), otherwise it would be square off. Likewise for the Short term (Swing) traders and Long Term investors, the shares cannot be sell in the same day and it would be add into their Demat account. Both Short term and Long term investors are not going to sell their shares on the day they are bought. So, it is called as Delivery of Shares in the Stock Exchange. They simply took that Shares to their account. The Price of a particular share traded in the market is subject to volatility, where the price reacts with low and high on the same day. At the end of the day, it will close in a certain price, called as Closing Price for the Stock. These details will be published by the Stock Exchan

How to repay your Home Loan Smartly ?

How to repay your Home Loan Smartly ? If buying a Home is a dream, then getting a Home loan and paying the EMI(Equated Monthly Installment) for the next 30 Years is a disturbing moment. A Home that you bought through loan is not an Immediate Asset. Until you get into the loan of 30 years, it's a Liability - but not as an Asset. It is good to have a single home on Needs. It is not good while trying to buy 2 or 3 houses, buying a home for Tax Savings through EMI. Don't forget that it can also lead to a Debt Trap. If you have too much money on cash and planning to enter into the Real Estate business - Buying and Selling Property, Rental Property for generating higher Passive Income, then it's your choice. The Majority of the Middle class people are in Financial trouble, due to their loans, which is more than 50 Percent of their Regular Income. Home Loan, Personal Loans, Car Loan are long listed. However we should get out of the Debt soon. Here, we can take an example about how

What is a Debt Funds and how it works ?

What is a Debt Funds and how it works ? Debt Funds are referred as Bond Funds, it is a Mutual Fund Scheme which invests the money in Fixed Income Securities like Government and Corporate Bonds, Treasury Bills. Generally, it comes with Short term and Long term Bonds. Those who do not wish to invest in Equity related Funds which is said as High Risk (Volatility), can choose these Debt Funds, which is seen as Low Risk Investment Avenue. This means in the Medium to Long term, one can get better returns than Bank Deposits and benefited to Tax Indexation. Debt Funds is a Duration based Schemes, there is a maturity on every purchase of Bonds, so that an investor can get the varied returns in a period. There are Seven Duration based Schemes available in Debt Funds through Mutual Funds route. Overnight Fund: It comes with a maturity period of one or Less than One day. The money will be invested in Overnight Securities, it is an open ended scheme in Mutual Funds. So, there is less impact on I

Has the Corporate Tax cut for Companies increased its Profitability ?

Has the Corporate Tax cut for Companies increased its Profitability ? There are two changes were made in the last month on behalf of the Ministry of Finance - Corporate Tax Cut and Reduced on GST rates on several products. As a result of the above, the Indian Stock Market had rose for two days with more than 1 Percent on Index. The measures were said to boost the Economy and raise the Investments. Now, the Tax rates for the Companies went down to 22 Percent from the earlier 30 Percent. In few sectors, there is a weak demand consumption and increased in Products led to a Slow down recently. And also this affected the sales of Large Companies. Weak Demand Consumption in  a developing Country like India, is not a favorable one for the Capital Market. The Current economy needs its real demand and investments. Employment created through Subsidies by the Government is not a real growth, as it needs the own path to Create Jobs and Earnings. Tax Reductions, Changes in Government policies and L

CPI Retail Inflation rises to 3.99 Percent - September 2019

CPI Retail Inflation rises to 3.99 Percent - September 2019 India's Retail Inflation (Consumer Price Index) rises to 3.99 Percent in the month of September 2019. It was seen as the highest Percent in the last 14 Months. In the month of July 2019, the CPI Inflation for India stood at 3.28 Percent. The Current said Retail Inflation is slightly higher than the Forecast of 3.7 Percent for the September 2019. The CPI Inflation of 3.99 Percent had increased in the last month due to rising Food Prices. Food Prices rose 5.11 Percent in the last month which was seen as the highest in the last three years. Vegetables prices rose by 15.40 Percent, Meat and Egg by 10.29 Percent and Pulses & Products by 8.40 Percent. Where the Sugar and Confectionery items fell by 0.35 Percent. Housing Inflation increased by 4.75 Percent, Clothing and Footwear by 0.96 Percent. But the Fuel and Light Prices fell by 2.18 Percent. Rural Inflation is said to 3.24 Percent and Urban Retail Inflation at 4.78 Perce

How to utilize Mutual Funds instead of Bank Deposits ?

How to utilize Mutual Funds instead of Bank Deposits ? At the last Monetary Policy Committee (MPC), the Repo rate for for Banks was reduced by 25 Basis Points. Currently, the REPO rate is at 5.15 Percent. It is noteworthy that the REPO rate has been reduced five times this year. Usually, when the interest rate decreases, the bond yield increases. Similarly when the interest rate increases, then the Bond rates will decrease. So if one consider this situation and invests it, can get significant income. SBI (State Bank of India) had also cut its savings rate for its customers to 3.25 Percent, earlier it was 3.5 Percent. Interest rates for Bank Deposits are also below 7 Percent for One year term and below 9 Percent for a period of Five years. Mutual Funds Schemes can be used as an Alternative for Bank Savings and Deposits. For Cash related transactions like Salary, Money Transfer, Paying EMI, one may rely on a bank savings account. But investing in Mutual Funds Schemes that offer slightly

The Secret of the Rich and Poor

The Secret of the Rich and Poor The Secrets of the roads are that Short distance Travelers go fast and Long destination Travelers are generally going Slow & Relax We can keep a single home for our basic needs and convenience. With more than one house, it is not said to be an asset, if we had not generate any income. Instead, we have to pay the House tax, Insurance and other maintenance costs for Non-generated income house. There is no great or better difference between the Rich and Poor. With the money you have earned, what you are doing now with that is important. Self Control is very important to being Rich, you don't have to make anything to be as Poor. When we approach for the Personal Finance, mostly his financial habits determine whether he is poor or rich. If you have a Property or Asset, then it should be create a Regular Cash Flow or Income, Otherwise it will be considered as Liability. Most of us are not willing to take time to learn about Personal Finance and related

Interest rates for Small Savings Schemes - October 2019

Interest rates for Small Savings Schemes - October 2019 The Small Savings Scheme interest rate for Banks and Postal have been announced. While Interest rates for Small savings Schemes are low, still the interest rates for Provident Fund, Sukanya Samriddhi and Senior Citizen Savings were good in the face of Low Inflation. There is no change in the interest rate for the Period between October and December 2019. However in the current economic situation, the interest rate for small savings scheme seems Reasonable. The said rates for the July - September 2019 is to be followed in the current Quarter (October to December 2019) also. Generally, when the interest rate decreases, the Bond yield will increase. Similarly, if the interest rate increases, then the bond yield will decrease. In the Current Scenario, the Bank Repo rate seems low and Rate cut is also happening. One can use the Debt Funds through Mutual Funds in this Situation. The interest rate for small savings scheme has been slight

FII and DII Trading activity – September 2019

FII and DII Trading activity – September 2019 The Indian Stock Market has seen a huge upswing in the two trading days of last September. The Market boom was done due to the announcement of Corporate Tax cut by the Finance Minister. However the contribution of Foreign Investors remains low as economic factors have not yet returned to the Growth Side. In September 2019, the FII had bought shares of worth Rs. 1.03 Lakh Crore and Sold shares of worth Rs. 1.10 Lakh Crore. So, the Net Sales turned into Rs. 6,624 Crore for the Foreign Investors at the end of Last month. At the same time, the Domestic Investors had bought shares of Rs. 84,873 Crore and Sold shares of worth Rs. 72,382 Crore. The DII's Net Purchase stood at Rs. 12,490 Crore. There were 19 Trading days in the said period. Among these the FII had sold shares for 14 Days. On the other side, the Domestic investors had bought shares for 17 Days, which is seen as positive for the Indian Stock Market. The Foreign Institutional Inve