Investment – know how
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This document discusses the key differences between investment and speculation. It defines investment as sacrificing something now for prospective future gains, involving the dimensions of time, today's sacrifice, and expected returns. Speculation is described as involving gut feelings, greed, fear, a focus on profits rather than assets, and greater risk-taking. The document provides examples to illustrate how the intentions and time horizons behind different transactions can determine whether they are investments or speculations. It stresses the importance of financial goals aligning with life goals and considering constraints like liquidity, age, time horizon, and risk tolerance when making investment decisions.
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- Choosing the right asset allocation can provide 15 lacs more for education goals.
- Small decisions like investing savings of Rs. 4 lacs in FDs instead of keeping in a savings account provides 1.2 lacs more return.
- Having adequate term insurance instead of multiple
Mantras for investment
Invest your money to achieve all your financial goals by following the simple route of systematic investment plan. Go through the ppt to see how it can help attaining the goals step by step without any hassles.
Common investment mistakes
This document discusses common investment mistakes and biases that can negatively impact investment decisions. It begins by outlining several cognitive biases like overconfidence, availability bias, and loss aversion that can lead investors to make poor choices. It then provides examples of how these biases might influence decisions around individual stocks. The document concludes by discussing lessons that can be learned from successful long-term investors like Warren Buffett, including the importance of patience, understanding investments, and having a consistent strategy.
HDFC Equity Savings Fund - Better than FD ?
When you make your transition from Bank FD to a MutualFund, equity is not the right choice ! You should look for a Hybrid model, which can provide you the underline security of FD and also provide you the benefits of Equity in balanced manner.
Security Analysis And Portfolio Managment
Fundamental analysis involves analyzing macroeconomic conditions, industries, and individual companies. At the macroeconomic level, factors like GDP growth, inflation, interest rates, and fiscal/monetary policies are examined. Industry analysis evaluates the attractiveness of industries based on their growth stage, competitive environment, and sensitivity to economic cycles. Finally, company analysis assesses the financial statements, management quality, and competitive positioning of specific firms. Together, this three-tiered fundamental analysis helps investors evaluate investment opportunities.
How To Be Your Own Financial Planner?
How to be your own Financial Planner?
Think a little, Things will be easier later on.
This Presentation is to support our readers by providing them with a road map to make right choices today for achieving bigger goals tomorrow.
Introduction to investment
This presentation provides a piece of basic information about the investment. It also deals with the various aspects of investment. It also talks about saving, speculation, and gambling. It also deals with the difference between investors and speculators. The objectives, processes, and avenues of investment are also mentioned in this presentation.
INVESTMENT PATTERN ON THE BASIS OF RISK PROFILE OF INVESTORS
The document discusses investment patterns based on risk profiles of investors. It defines investment and risk, and describes different types of risk including systematic and unsystematic risk. It outlines factors that determine an investor's risk tolerance like investment goals, timeframe, liquidity needs, age, income and experience. Based on these factors, it categorizes investors into different risk profile styles from conservative to aggressive. The executive summary provides an overview of how individuals invest based on their capacity to bear risk and the relationship between investment patterns and risk tolerance. It describes the objectives and methodology of a study conducted to analyze these relationships.
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More from Rakesh K.G.
Prof simply simple futures.pptx
A futures contract allows a farmer and bread manufacturer to lock in the price of wheat for delivery in 3 months when their price expectations differ. The farmer expects prices to fall to Rs. 90 while the manufacturer expects a rise to Rs. 120. Their contract sets the price at Rs. 110. If prices instead rise to Rs. 120, the farmer loses Rs. 10 but the manufacturer gains Rs. 10. Both parties' business interests are protected from price fluctuations through this mutually beneficial futures agreement.
Time value of_money
- The document discusses the concept of time value of money, which is that a rupee today is worth more than a rupee in the future due to opportunities to invest and earn a return.
- Money provides opportunities now that may not exist in the future, and by investing money can grow over time through returns rather than sitting idle and losing value.
- The opportunity cost of choosing one investment over another is the return foregone from the alternative, so risk-adjusted returns should be compared to determine the best use of money now.
Prof. simply simple derivatives vs cash
Derivative trading involves betting on the future price movements of assets like stocks using only a small margin amount. For example, with a Rs. 100 stock, you only need Rs. 10 margin to bet on price movements of 10 shares worth Rs. 1000 in total. This means derivative trading offers high gains but also high losses. If the stock price rises 10% to Rs. 120, you gain 100% returns on your Rs. 10 investment. However, if it falls 10% to Rs. 90, you lose your entire Rs. 10 investment. In contrast, spot market trading involves investing the full asset price, so gains and losses are lower. Derivative trading allows betting on groups of assets rather than single stocks.
Mf quotient
The document provides an overview of mutual funds, including their history starting in Belgium in 1822 and popularization in the US in 1920 with great growth post-1980. It describes mutual funds as a pooling of money from like-minded individuals with a common investment goal, managed professionally to provide benefits like diversification, management, and opportunities. It outlines different types of mutual funds and discusses expenses, risks, the investment process, valuation techniques, and benefits of systematic investment plans for long-term growth.
Markets & structures
The document discusses different types of markets, including public and private markets, and historical and trade markets. It also discusses different styles of markets, including call markets where market makers provide quotes, and continuous markets which function like a business auction. The document provides examples of different businesses for sale, including their requirements, costs, and potential returns. It emphasizes choosing the right business to maximize profits within the given parameters.
Investment – risk & return
This document discusses risk and return in investments. It defines return as the profits earned from an investment through dividends and capital appreciation. It then discusses different ways to calculate returns for single and multi-period investments. It also distinguishes between ex-post returns that have already occurred and ex-ante expected returns. The document goes on to define risk as the deviation from expected returns and discusses how standard deviation and variance are commonly used to measure risk. It also covers the benefits of diversification and how portfolio risk can be reduced through diversifying investments.
Introduction
The document outlines the modules and objectives of an investment course. The course will cover topics such as the basics of financial markets, different investment avenues and their risks/returns, sources of financial information, derivatives, market regulations, and equity trading mechanisms. Students will learn concepts through case studies and assignments. Their performance will be evaluated through group presentations, tests throughout the course, and a final exam assessing their theoretical, practical and case study skills. The overall aim is to help students understand investments and develop into successful investors.
Global markets
The document discusses stock exchanges and their functions. It notes that stock exchanges are organized markets recognized by SEBI for transacting in financial instruments and other tangible assets. All recognized exchanges in India have been demutualized and now operate as public or private limited companies. The key functions of stock exchanges include providing liquidity, safety of funds, a supply of long-term funds, and capital flows. Recent developments in stock exchanges include the entry of foreign institutional investors, listing of foreign stocks, expansion of stock indexes, and requirements such as companies having 25% of issued capital held by the public.
Equity trading methods
The document discusses the stock market and how it functions. It explains that the stock market is simply an organized place for trading shares and debentures, similar to local markets. It then outlines the various participants in the stock market like brokers, members, and sub-brokers. It also discusses how to open a trading account and the various costs associated with trading like brokerage fees, taxes, and charges. The document concludes by providing some tips for investors like investing for the long term, doing research, and following the overall economy.
Equity concepts
The document discusses equity as a form of financing for businesses. It notes that equity shareholders are owners of the business who enjoy residual profits, have liability restricted to their share capital contribution, and provide permanent capital. Equity shareholders also have voting rights and can decide major changes to the business. The document also provides a breakdown of the estimated costs for a project totaling Rs. 4,079 lakhs, including costs for land development, buildings, plant and machinery, other fixed assets, working capital, and contingencies.
All about money
This document discusses the history of money, including the use of gold and silver coins by ancient kings. It then covers the Bretton Woods system and how the US dollar was backed by gold reserves. The document also examines gold as the oldest form of money and a precious metal with spiritual value. Additionally, it explores concepts related to interest rates like opportunity cost, inflation, and the time value of money in compounding simple interest calculations over time.
Security market indicators
The document discusses security market indices and their role as indicators and barometers of economic performance and behavior. It notes that ideal indices should represent changes in value of all listed stocks and typical price movements. Factors in determining indices include selecting representative share samples, determining each share's relative importance, and averaging into a single reliable measure. The document also prompts the reader to identify products that impact their daily lives and pinch their budgets the most due to price changes.
Primary market
This document discusses the differences between new issues and stock exchanges. It covers the functional difference in how they operate, the organizational differences in their structure, and the nature of their contribution to industrial finance. The overall purpose is to explain why new issues and stock exchanges are both needed elements in the financial system.
Ipo & stock market
The document discusses the allotment prices and listing day prices of four companies: Macrohard, Woodpecker, Rotten Apple, and Sukro. It then provides updates on their stock prices over four quarters which were influenced by various news events for each company, such as a virus affecting Macrohard's operating system and Woodpecker losing its international license. By the fourth quarter, Macrohard has become the new market leader in operating systems, while the other companies have also grown but to a lesser extent due to their responses to challenges discussed in prior quarters.
IIQ
Itcheeban's Investment Quotient is an investment advisory company established in 2009 by an engineer and CFA to help citizens participate in India's economic growth. The company provides tailor-made investment management and tax services with the goal of sustaining and growing long-term wealth for individuals and families. It aims to become an investment bank that serves every individual in the country and helps eradicate poverty.
More from Rakesh K.G. (15)
Investment – know how
- 1. By, Rakesh Murthy K G, CFA
- 2. What is Investment ? Is it Savings ? Or something more ?? What do you think ???
- 3. Investment It is the process of, ‘Sacrificing something now for the prospect of gaining something later’ 3 Dimensions Time Today’s Sacrifice Prospective gains
- 4. Few Transactions 1. In order to settle down, a young couple buys a house for Rs. 30 lacs in Bangalore 2. A wealthy farmer pays Rs. 1 lac for a piece of land in his village 3. A cricket fan bets Rs. 1000 on the outcome of a test match in New Zealand 4. A college professor buys, in anticipation of good returns, 10 shares of RIL for Rs. 9500 5. A clerk deposits Rs. 5000 in postal savings account 6. Based on a rumor that the ongoing IPO of ‘DAMAKA Software ltd.’ will fetch astounding gains, Suntachari applies for 600 shares
- 5. Investment Vs Speculation
- 6. What is Speculation ? There’s an element of Speculation involved in all Investment Decision Speculations are : Not so thought out decisions – Gut Feelings Out of Greed & Fear Not Asset but Profit Risk Taker
- 7. Are all Investments Speculative? Well Investments can be Separated on the following grounds Planning Horizon Risk Disposition Return Expectation Basics of Decisions Leverage
- 8. Positioning • Striking the Right Chord Your Intention makes the difference In the above example – Professor Investing in RIL is for a long term. On the Contrary, if he’s investing for the Day? Life Gyan Everyone have everything, your Thinking makes the difference
- 9. Objectives Financial Goals are Life Goals
- 10. Goals in Life Financial Goals are Life goals Based on : Time Importance
- 11. Near Term High Priority Buying Car Buying House Long term High Priority Retirement Planning Children Education Low Priority Vacation Charity Money Making Goals Increase Wealth Buy Businesses
- 13. Need to Consider Liquidity Age Time Horizon Need for Regular Income Risk Tolerance Tax Liability
- 14. What makes you Buy ?!?!?!
- 15. Fundamental Approach Invest at their Intrinsic Value Sooner or later the Market price falls in line with Intrinsic Value Buying undervalued items
- 16. Psychological Approach Greed & Fear Guided by Emotions Emotions out weigh the Intrinsic Value Technical Analysis
- 17. Academic Approach Theories of all the Academicians They correspond to Fundamental Approach Market Price = Intrinsic Value
- 18. Eclectic Approach Diverse Approach Combination of all the above It’s a mix - Fundamental shows what & Technical's states when
- 19. Thoda Financial Markets, Thoda Others
- 21. Fixed Income Instruments Gilt Postal Deposits Bank Deposits Corporate Debentures Corporate FD’s CD’s & CP’s PPF
- 22. Gilt Securities Debt Securities issued by Govt. & semi Govt. They are the Public borrowings Largest Public Debt Country????
- 23. Treasury Bills Issued by RBI MATURITY 91 Days 364 Days Sold at auction End of Maturity, Receives Face Value
- 24. Govt. Dated Securities Maturity Period over 1 yr Interest is payable Semi Annually Security can be Stock Certificate or Promissory Note All the FI’s need to invest certain portion
- 25. Find the list of Bank FD’s & choose the best one to be invested.
- 26. Hum Honge kaamiyaab !!!
- 27. Common Errors Inadequate comprehension of Risk & Return Vaguely Formulated Investment Policy Past Experiences Hurry burry, Sue's the curry Love for cheap stocks Over / Under Diversification Wrong Attitudes towards Losses Tendency to Time the Market
- 28. Successful Investing Contrary Thinking Out of the Box Patience Composure Flexibility Decisiveness Invest never Speculate Avoid Derivatives
- 30. “Be the change you want to see in this world” - Mahathma Gandhi