Showing posts with the label Invest Maths

How to multiple your money in two simple steps ?

How to multiple your money in two simple steps ? If the Power of Compounding is the Eighth wonder of the world, then doubling your investment has become a Scam today. There are so many ponzi schemes roaming around the world today as i multiply my hard earned money. Despite the warning and awareness information coming from the Government, we need to be vigilant ourselves. We have seen the advertisement like, 'We will double your money in a few months, so that invest in our company'. If someone asked how they can double in a few months, they are telling that the money would invested in Stocks, Traded in Dollars, Buying Gold or Putting in a Real Estate. If there really was such a simple opportunity, how it could be easily available in the public ? It is the middle income people who are really caught up in the scam. These are the ones who get caught up in making money fast in the Short term. Bank Rates can fluctuate and so does Gold and Real Estate Investments. There is no word to

5 Basic Formulas for Investment - Beginners

5 Basic Formulas for Investment - Beginners Whether you are investing in a Stock(Share) or a Mutual Funds Scheme, there are certain formulas are applicable to all types of Investment avenues. Most importantly, these formulas will help those who are putting their money in Banks and Post Office Savings. Learning about a Mathematical Formula in our school days can be exhausting and a bored one for the most. But in the time of making money, we have the opportunity to learn the art of Making Money with Investing and Savings. A lot of people may not like the word, ' Money '. They may lie to hide their Financial Status. It's their Personal Obligation related to Money. But everyone likes to Counting Money, Spending More Money and Investing it to make Double, Triple, Quadruple, etc. So, it makes them lot of happy while doing this. I am not just saying these words, but the World Economy says. There are 5 Basic Mathematical Formulas especially for the Investment Area and it is just fo

EMI vs SIP - Which is best for you ?

EMI vs SIP - Which is best for you ? Suppose, i want to buy a beautiful Smart Phone. It costs around Rs. 16,000/- in the Market. The Smart phone have the various features, but the money on my hand is a little less to buy it now. Otherwise, i have to wait for my next month paycheck. Impulsive buying is a Character, it tempts to buy the Smart phone immediately. At that moment of thinking, there is an advertisement related on Smart phone. Yes, Lucky advertising. There is an offer comes by the Advertisement for the Smart phone, which i was intended to buy. What a Surprise ! I can pay just Rs. 1,000/- as an upfront payment and can take it to home. I can pay the rest of it through Monthly installment - Absolutely with Equated Monthly Installment (EMI). EMI (Equated Monthly Installment): As per Investopedia website, It is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to payoff both interest and principal each month, so that over a

How to get your free CIBIL(Credit) score report in India ?

How to get your free CIBIL(Credit) score report in India ? In the earlier decade, If we are going to ask for a loan from the bank, then the bank will ask us to submit our Pay Slips, Income Certificate, Information about the employer where we are working and details of mortgage assets if any. But now this situation has changed. After the arrival of PAN(Permanent Account Number) in India, the subsequent growth of this PAN has completely upgraded. It helps the banks to retrieve our financial data very easily. Today, the PAN Card and the link of Aadhaar details will tells the financial details of every Citizen of India. Now, if we ask for a loan in a bank , then the bank will examine our financial credit status and make funds to us accordingly. So, the borrowing of money as a loan is depending upon the basis of Merit (Credit report). Our Current income status alone is not enough to borrow a loan in banks, the eligibility of loan defines with the Credit report. Prior to this, there are so m

Monthly trading activity of FII and DII – September 2018

Monthly trading activity of FII and DII – September 2018   There is a good day for anyone in the September 2018, but for the Indian Stock market – it’s a bad weather for the entire month which the Nifty 50 and the biggest Bombay Sensex had not performed well.  The Sensex closed with the starting day of the September with 38,312 points and Nifty 50 of 11,582 points. The Nifty finally closed the month of 10,930 points and the BSE Sensex with 36,227 points.  So, it was felt down nearly (-6) percent in the month of September. The Mid and Small cap both were went down more than (-12) percent.  Globally, Dow jones and Nikkei were on the positive sides. Banking and Financial Companies and the Realty are the fallen sector in September 2018 for the Indian market, but luckily IT-Sector was earned a little on Dollar – Rupee Exchange Rate. The FII (Foreign) and DII (Domestic) market trading activity for the last month was a rough timeline. Most of the trading days, the FII was just gone outside t

5 years Consumer Price Index (CPI) Historical Data Analysis (2013-2018)

5 years Consumer Price Index (CPI) Historical Data Analysis (2013-2018)   The Consumer Price Index (CPI) Inflation for the month of August 2018 went down to 3.69 Percent. Earlier it was 4.17 percent in the month of July as for the developing nation. Here I am taking the last 5 years historical data of CPI India numbers to analyze. For India after 2010, the index for inflation was changed from the Wholesale Price Index (WPI) to Consumer Price Index by the Central Bank – RBI. The Central Statistical Office (CSO) also had given the CPI with a base year 2012 = 100. However, CPI is an important factor to decide the Inflation / Deflation. There are more than 25 Index categories to analyze the prize changes in the CPI Data, especially the data split as Rural and Urban.   Finding the Inflation using CPI numbers is not a hard task, which most of the developed and upcoming nations are using scrutinized. The Lowest and Highest CPI numbers are 86.81 and 140.40 respectively .  The Last one year

Monthly trading activity of FII and DII vs Nifty - July 2018

Monthly trading activity of FII and DII vs Nifty - July 2018   Today ( 12-07-2018 ) Nifty and Sensex crossed 11000 and 36600 points respectively. Sensex also hit a record high and Reliance Industries makes a history as a 100 Billion USD Market cap after the TCS. This week stock market is moving on Global trend like Trade war between US and China, Crude movement, Upcoming Economical statistics, Dollar moving, and recent quarterly results. The Nifty points are traveling positively with a 12 percent yield to return for the past one year. The last three year YTD is at 29.50 % and the sensex gives a yield of 14.20 percent in the last 12 months average. For a long term investing, it's not just about the Fundamental analysis with the business numbers, but also looking out the trading activity is a good one. The Last 10 years of trading activity of FII and DII is a suitable one to analyse and compared with Nifty. Here, you can see the below data of the last 6 months - FII and DII vs Nif

3 Things to know for the Early Retirement Formula

3 Things to know for the Early Retirement Formula   Nowadays the word, "Trending" is becoming a trend today. In a similar fashion, 'Retire Early' is a word to get excited most of the young today. Obviously everyone in the modern life wants to live their way or like an Independent. For the early retirement, one needs a reason and stick with their personal life. The reason may become an Entrepreneur or Live as Life;Live as like. But, the numbers are different on age to the retirement determination. Generally, Retirement planning describes itself and based on some common factors to decide. The Factors are, Current Age Expecting Retirement Age Annual Income Monthly / Yearly expenses Current Savings and Investing Expected ROI (Return on Investment) Inflation Even for the early retirement one should be aware about the financial numbers they had, called Financial Assets like Cash Flow and the inflation depending upon the age of retire early. Professor, D

Important Personal Finance Ratios

Important Personal Finance Ratios   The Personal Finance position of an individual predominantly indicates the ability to manage its current and future needs and expenses. The income of an individual may getting from a Job or Business or from the Created Assets to generate a passive income. Generally, Assets created by an individual are helpful to get an income and also for the Future Capital appreciation. Assets are also used to meet the future expenses of a person or his family, if the regular income from a job or business as insufficient. So, we need a sufficient income with a efficient way like protecting our regular income, asset protection needs, prepare for the unexpected expenses. Likewise, we are looking for the Insurance planning and Retirement planning to overcome the unexpected ones. There are so many financial ratios for the personal finance, but we are here to form some of the most important financial ratios. Savings Ratio:   The Savings Ratio is a personal financial rati

Macro Economic Policy - A brief explanation

Macro Economic Policy - A brief explanation   The Economic policy is the term supported to explain the Government's policy on Budget, Taxes, the supply of money, interest rates on monetary view, Employment status of a country. The Government's purpose is to stable the inflation and need for long term economic growth. As simple, how the country manages its income and expenditure.   The Economic policy Classified into two, Micro Economics Macro Economics   Micro Economics:   It tells the economics of an individual, group or a companies. The main intention for this policy, to analyse the demand and supply for the production of an individual or a business level.   Macro Economics:   It describes the economic policy of whole or all like Gross Domestic Product (GDP), Industrial production, Inflation, Current Deficit, Employment or unemployment statistics, the import and export data.   The Macro Economic Policy:   As we know that the micro economics describe about the individ

Trading Activity of FII and DII - January 2018 - Indian Stock Market

Trading Activity of FII and DII - January 2018 - Indian Stock Market   The Scary of tax for the Long term capital gains is the concern in the Indian Stock market and the expectation of rate hike in the US Federal cause a bit of noise globally. Recently, the RBI's (Reserve Bank of India) projected inflation at 5.1 % for the Jan - Mar 2018 and unchanged in the Bank Repo rate. Then the IIP (Index of Industrial Production) for the December 2017 slipped to 7.1 % . The IIP for the last november 2017 had at 8.4 % which was a 25 months high. But, still we are worry with some expectation how the market will move now. Here you can see, how the Indian stock market was moved in the January 2018 by the trading activity of FII (Foreign Institutional Investment) / FPI (Foreign Portfolio Investment) and DII (Domestic Institutional Investors)... FII and DII Trading activity for the month - Jan 2018:   ( Data Courtesy: Moneycontrol ) Open a Free Demat and Trading Account Online ! The Gross Pur

Long Term Capital Gains Tax - Equity - Explained 2018

  Long Term Capital Gains Tax - Equity - Explained 2018   Budget India 2018 reported by the Finance minister Mr. Arun jaitley last week (1st Feb, 2018) that everyone was expected on Income Tax slab changes and related on Tax saving things. But, nothing has done on these expectations. The Budget proposed to tax for the equity on Long term Capital Gains (LTCG), and this unseen destined the investors in the market on same day. They started the Long term Capital Gains for equity taxed at 10 % without indexation, if the capital gains exceeding more than 1 lakh rupee. This is applicable too for equity oriented mutual funds. This proposed tax is not a new thing, but before the Former Finance minister Mr. Chidambaram revamping it in the budget 2004-05, proposed to abolish the tax on long term capital gains for equity and recommend to levy a small tax called, 'Securities Transaction Tax (STT) ". Now, Mr. Arun Jaitley brought back this with tax at 10 %, but not removing the Securities

Inflation India - Data - 10 Years (2008-2017)

Inflation India - Data - 10 Years (2008-2017)   ' Inflation ' - the word is much more concern anywhere in the world. As a part of the economy, the inflation decides the price of any good or services. It predominantly needs for the government with their production and correlated with the Gross Domestic production (GDP). In our country, the inflation has ups and downs and with an average of 6 - 7 % for the last few years. So, while we are planning for our Financial goals like Education, Retirement planning - it's so important to move for the future. Financial Goals are stick with the inflation and that is the reason for entering the stock market to reach our goals at good. Recently, the Reserve Bank of India (RBI) also keenly watching the inflation data or statistics according to Interest Rate cuts. The Bank interest also down in the recent, as inflation matters. Today's 100 rupee is not a worth it be in the next year or after 10 years. So, we just given the inflation da

My Portfolio - Stocks - Updated on Nov - 2017

My Portfolio - Stocks - Updated on Nov - 2017 " My Portfolio " - I am preferring to buy the stocks through Value Investing (Fundamental Analysis). Here-now, i wish to report my portfolio - Stocks which is updated on November, 2017     You can notify that, my investment goes in different sector like Banks, Pharmaceuticals, IT - Technology, Automobiles. I have been heavily invested in Technology about 40 percent with the shares - HCL and Infosys (Infy) and the lowest in Paints with Berger Paints - 1.75 % I am also looking to invest in Energy, but not now with the current valuation. Result Session:   As on November 30, 2017 - My Portfolio (Stocks) returns with 10.22 %  (2017-18) Past three years (Financial) returns are: 10.43 % (2015-16), 12.51 % (2016-17), 10.22 % (2017-18). Currently, 8 of 10 stocks are Advanced (Profit) and 2 stocks are declined (Loss). On my stock portfolio, NALCO performed with the highest returns of  ( 106 % ) on my investment and the

Set your own Budget Planning

Set your own Budget Planning   Hi, welcome to - "How is my Budget Planning today ? " We all have a Budget or may not :)  But, we have an expense and less over savings or investing. We often like to watch the Government's Union Budget and finding the pros and cons for ourselves. If someone asking you, what's your budget planning today ? Then, it seems a different for us, even we ask ourselves. How many of us have a personal budget planning today ? A Question with triumph ! Of course, most of us don't have the plan to initiate for the Personal opinion, on Budget Planning and also we haven't experience that on results. We are always discussing or gossiping about the Government's fiscal deficit and how we can see our self debt on finance ? Self Financial analysis also an important one and it should be primary than any other, to make Financial planning and be Financially free.   Why i need Budget Planning ?   Track our Daily Income / Expense . Track our N

Adjusted Returns on Investment

Adjusted Returns on Investment   If someone asking you,  What is your monthly pay check or Salary ? Then, we are hesitated to tell or show the exact numbers on salary, even after our deduction from salary :) . We are thinking about that we are protecting our income numbers ! That's not a matter, either showing the pay slip or not. But, on our Investment info, we have to be careful about the returns on numbers we earned it. We just enjoying to show this much returns i had on my investments or I had a profit of XXXXX from my investments. But, do you know what is your real returns received on your hand ? Returns on Investment can by type of: Inflation Adjusted Tax Adjusted Risk Adjusted From the previous article, we have seen that about the difference between Real Rate and Nominal Rate of Return. It clearly indicates that we must aware about the Inflation, it hurts our retirement planning and Goal based investments. For Example,  If our Return is 10 % from the investment amo

Investment Returns - Real Rate vs Nominate Rate ?

Investment Returns - Real Rate vs Nominate Rate ? Which one is better for my investment, Real Rate or Nominate Rate ? Basically, the return on an investment defined on a Nominal Rate . So, we have to know, what is a Nominal Rate of Return : A Bank Fixed deposit gives you a 10 % interest (per annum) for your investment. Then, the nominal rate is also 10 % as it reflects the same. So, there is no need for any deduction from the interest bank pays you. When the Nominal rate is adjusted with the inflation rate is known as, " Real Rate of Return ". The Real Rate of return helps the investor(s) to adjust with the inflation and getting to know the exact returns on your hand. Let us see the example, A Bank FD gives you a 10 % interest (p.a) and the inflation rate is at 4 %, then the approximate real rate is: Nominal rate of return (or) Interest Rate - Inflation Rate 10 % - 4 % = 6 %  (An approximate real rate on easy calculation) Effects of Real Rate of  Return: Usually, the Nomi

How to Calculate Annualized Return on Investments

How to Calculate Annualized Return on Investments ? Previously, we had discussed about the Absolute Return on Investment , to calculate how our Invested money performing and seen how it differ from in terms of rupees as Absolute. Here, we can see to calculate the Annualized Returns on our Investments. Annualized Return can be computed as Percent (% p.a) per Annum. We can measure the returns by these method, is the better and accepted way to measuring the Investment Return. The basic purpose of Annualized Return is to standardize the investment period as though each investment was made only for One year. It helps to ease comparison of investments across Time periods. Annualized Returns can be denoted as [ % p.a ], otherwise, it is usually an Absolute Non-annualized return.  Annualized Return on Investment: (Return on Investment / Original Investment) X 100 X (1 / Holding period of investment in years) Or in simple terms,  ((End value - Beginning value) / Beginning value)  X 100 X (1 / H

How to Calculate Absolute Return on Investment

How to Calculate Absolute Return on Investment ? Return on an Investment is a calculation to assess how the investment is performing. As every investment have a group of Inflows and Outflows. The Comparison of the inflows and outflows is the Return for the investor from making the investment. Returns may be Positive (+) or Negative (-) . A Positive denotes the profit on an investment and Negative gives the loss. For eg:   Akhil bought a Real estate property for Rs. 30 lakhs and sold it to Rs. 40 lakhs Suresh bought a 100 shares of XYZ Company with the amount of Rs. 20,000/- and sold all the stocks for Rs. 15,000/- The above example tells that Akhil had a profit of Rs. 10 lakhs i.e the return on investment is Rs. 10 lakhs. Suresh had a loss of Rs. 5,000/- from his stocks. So, it denotes the Negative Return on his investment. Measuring Investment Returns: Returns can be measured by comparing the amount of Inflows and Outflows for the investment made in Absolute Rupee Terms. R