investor « Indianprofits.com

June 17, 2010

Top Investment Myths

Filed under: News and Views — Tags: asset classes, contrary to popular belief, doing the rounds, extent, interest rate rise, interest rate risk, investment decisions, investments, investor, liabilities, money, mutual funds, myth, myths, nav, private companies, risk appetite, total value, understanding bonds, value increases — admin @ 4:35 am

Busting some investment myths

Experience teaches us a lot of things. And the world of investment is no exception. That said it is equally important to realize that having lost money in investment once should not be a reason to not see the opportunities that lies ahead. This holds true particularly for those people who had lost money in investments before. Let us see some of the popular investment myths which should be avoided at any cost!

1. Never do it alone

Today the markets are not as simple as they appear. They are complex in nature. Right from finding out your investment purpose, your risk appetite, the asset classes which would suit it, and predicting the market conditions at least to some extent requires a certain degree of expertise. Hence as an investor you need an expert’s advice to make the right investment decisions. While it does help to have knowledge about investments it can never substitute an expert’s advice.

(more…)

Rating: 0.0/10 (0 votes cast)

Rating: 0 (from 0 votes)

Comments (1)

January 28, 2010

How to earn money in stock markets

Filed under: Economy — Tags: arbitrage strategies, assumption, expiry, financial markets, futures contract, futures contracts, futures market, investing in the stock market, investor, investors, last thursday, likelihood, losses, market swings, price variations, principle, profits, segment, Stocks, taking the risk — admin @ 5:14 pm

Want to earn high returns from the stock market without taking the risk

Is this really possible that you can earn high returns from the stock without actually taking any risk? Well this principle is actually called arbitrage and this strategy does for work for many people. No wonder that there are a number of fund houses that have actually launched many fund schemes known as “arbitrage funds”. Advertised as risk free, apparently there is no likelihood that a person will suffer losses when investing in the stock market.

(more…)

Rating: 7.3/10 (3 votes cast)

Rating: +1 (from 1 vote)

Comments (1)

January 19, 2010

What is ASBA?

Filed under: Economy — Tags: 1 lakh, allotment, asba, initial public, investor, ipo, Ipo analysis, listed company, money, new application, new trend, payment mechanism, payment option, preference, publicity, retail investors, sebi, share holders — admin @ 3:17 am

SEBI introduced a new payment option ASBA (Application Supported by Blocked Amount) as an additional payment mechanism for the benefits of certain investors applied in IPO (Initial Public Offers). This option would be available to retail investors only. It is also an exclusively available payment option for the investors applying in right issue of shares, which means the additional shares offered to existing share holders of a listed company based on preference. According to the investors who experienced this new trend application, it is definitely a 100% success from SEBI’s new application. With this payment option the application money remains in the investors account until the shares are released. So no money is goes out from the investors account.

(more…)

Rating: 5.0/10 (1 vote cast)

Rating: 0 (from 0 votes)

Comments (0)

November 19, 2009

When to book profits or Profit Booking

Filed under: Economy — Tags: book profits, financial crisis, financial strategy, investor, investors, long periods, losses, market values, mutual fund, profit booking, risk factors, sensex, stock prices, stock trade, target price, tendencies — admin @ 4:02 pm

Over the past ten years investors had to contend with large losses and large gains due to the down and hike in the sensex. To overcome the loss of investors, the need for a financial strategy which enhances returns is very important. Profit booking is such a strategy which enhances returns.

indian rupees When to book profits or Profit Booking

Profit booking is the term that we use mostly in stock trade. Booking profit is nothing but encashing the stock when it reaches its target price or ‘gain in a share by selling it this is called profit booking, making profit by selling a share which has gone above its purchase price. It can be done by individuals or by big operators or by brokers.

(more…)

Rating: 0.0/10 (0 votes cast)

Rating: 0 (from 0 votes)

Comments (2)

November 11, 2009

What is Delisting Of Shares

Filed under: Economy — Tags: critical issue, delisting, financial sector, important factors, investments, investor, last fifteen years, lifetime, listed company, norms, premiums, promoters, retail investors, sebi, share certificates, shareholders, stock exchange, time frames — admin @ 1:09 pm

Exits are never easy, whether it’s an exit from a house where you have lived your lifetime or exiting an investment. Many of us would have faced such a state of mind when we know that the company where we had held shares for the last fifteen years would be soon delisted from the stock exchange. So what is Delisting? Delisting of a company means, a procedure in which a company’s shares are removed from the stock exchange. Delisting of shares has become a critical issue in the financial sector that causes uneasiness for the investors.

In such types of situations we would be totally confused, whether to hold shares and wait for the company to relist or encash them by selling the shares to the promoters. Over the past three years, a minimum of 50 companies have delisted from the stock exchange, due to this reason the retail investors get struck with their investments. Normally one of the main reasons for delisting is violation from the financial specifications set out by the stock exchange.

(more…)

Rating: 0.0/10 (0 votes cast)

Rating: 0 (from 0 votes)

Comments (0)

September 20, 2009

When Should I Sell A Stock

Filed under: Stocks — Tags: better tomorrow, bull phase, business model, company fundamentals, good company, investor, investors, profits, revival, right decision, sectors, share markets, stock, Stocks — admin @ 10:18 am

When Should I Sell A Stock

As a trader nor as an investor this question would have been in your mind from the very first day you started your trading. When people normally see a bull phase in the market they start asking Should I Sell? You would very well know that how volatile the share markets were performing this year and you have seen the bottom and now you have also seen the revival coming back in but when its the time to make right decision we would always struggle for a right decision.

(more…)

Rating: 10.0/10 (1 vote cast)

Rating: 0 (from 0 votes)

Comments (1)

July 16, 2009

How To Calculate Your Risk Appetite

Filed under: Stocks — Tags: asset allocation, asset classes, assets, bank risk, boundaries, downslide, fortune, health factor, investing in shares, investor, nationalised bank, personal preferences, personality, provision, risk appetite, risk profile, risk stocks, rule of thumb, safer side, social factors — admin @ 7:26 am

Investing in shares shows a persons risk appetite. There is no specific formula to define the quantity of risk taken. But there are some factors that influence the investor. If the investor is riding his luck and getting high returns on high risk stocks he will invest all his assets and no one can prevent him from doing so. At the same time a person who has invested and lost a fortune during the downslide will be more comfortable with a low yielding fixed deposit in a nationalised bank.

Risk appetite mainly comprises of factors such as income level, ones ability to handle stress, previous experience, percentage of money invested compared to wealth, social factors, age and dependants, health factor and finally personality. These unquantifiable factors which vary in uncorrelated manner make it difficult to estimate ones risk appetite.

Risk profile which is totally different from risk appetite can be estimated with high accuracy. The preferred rule of thumb is cent percent of your savings should be in equity. To be on the safer side it can be 80% making a provision of 20% for other expenses in the future. If you have pension then percentage for investment can still be increased.

Since risk profile can give you a percentage exposure to high, medium and low risk asset classes but does not take into account your risk appetite, the best way to arrive at a personal asset allocation is to ascertain one’s risk profile and then increase or decrease it based on personal preferences.

The most important part about determining one’s risk profile is investing according to it, re-balancing to keep within the boundaries and above all resolving not to get distracted by the outside world.

(more…)

Rating: 0.0/10 (0 votes cast)

Rating: 0 (from 0 votes)

Comments (0)

June 5, 2009

Long Term investments

Filed under: Economy — Tags: angle view, benefit, bet, big mistake, decision making process, inflation risk, investment cycle, investment planning, investor, long term investment, periods, retirement plan, risk liquidity, sustainability, term investments, time frame — admin @ 5:30 am

Getting a decision about your investment cycle is a tough decision making process. The challenge would be higher when going in for long term investment planning. There are a number of factors that are to be considered while planning for a long term investment, like inflation, risk, liquidity, and sustainability. The decision making would become worse if you have a time frame less than ten years. Thinking about your retirement plan at the early stages of life is the best decision you can make, rather than getting to work your retirement plan when you are nearing your age of retirement.

(more…)

Rating: 0.0/10 (0 votes cast)

Rating: 0 (from 0 votes)

Comments (2)

May 30, 2009

Reliance Capital IPO

Filed under: Economy — Tags: allianz, bajaj allianz, four months, india, initial public offer, insurance, insurance arm, insurance company, investor, ipo, life insurance business, market share, private insurance companies, reliance capital, Reliance Capital IPO, subsidiary, third position, time frame — admin @ 9:18 am

Reliance Capital is planning to make the first ever IPO (initial public offer) by an insurance company in India. Reliance Capital IPO is planning to take its subsidiary Reliance Life Insurance public. The company plans to divest 26% in its insurance arm through an IPO. Relaince capital Ipo is looking to divest 10-26%. This would be done through a strategic investor or by the selling of its shares to the public. The funds will be injected to Reliance capital and its life insurance business. The process is expected to complete in the next three to four months time frame.

(more…)

Rating: 0.0/10 (0 votes cast)

Rating: 0 (from 0 votes)

Comments (0)

May 27, 2009

Top Dividend Paying Companies

Filed under: Stocks — Tags: boos, business models, business profit, clariant chemicals, cr, dividend paying companies, dividend payout, dividends, earnings, eid, fears, fertilizers, important point, india, investments, investor, investors, profits, sulzer, term portfolio — admin @ 8:54 am

314 nota watering tree 300x253 Top Dividend Paying Companies

The companies have increased the dividend payout to its investors erasing fears that they would tighten with the dividends. There are a good number of companies who have increased their dividend. Of the total data available for 377 companies nearly 131 have made increase with their dividend for the year March 2009. The list is said to include the companies that have closed their books on Dec 2008 and Sep 2008 or June 2008. This move would put some relief to the investors who have been burned by the fall of the Sensex last year.

(more…)

Rating: 6.9/10 (9 votes cast)

Rating: -2 (from 2 votes)

Comments (1)

Older Posts »