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Showing posts from June, 2020

How should a new Investor Enter Market?

Many people tend to come to Market for investments mainly because they might have heard others speaking about the profit they got after investing in the market.These stories are true but as a coin has both sides investing in the market also has got both sides.What i mean is that there are pros and cons of investing in mutual funds. The investment pattern of many new investors are such that they tend to go behind the past returns a fund gives and invests in those funds which is giving the highest return.They are hoping that the fund will perform in a similar manner for the coming years.This can be dangerous without understanding the fundamentals. As a new investor who wants to invest in the market they should first study about the different kinds of funds available in the market and what they offer.For example there are different classes of funds under the equity portfolio like Large Cap,Multi cap,Madcap,Small cap etc.One should choose funds under these categories according to the goal ...

What are Mutual Funds??

You might have heard of this word "Mutual Fund" many times on a daily basis.Still some people have some doubts or unaware of want it really means.I want to keep it very simple by giving some examples along the way. Before going into the discussion i would like you to have a look at  Financial Freedom  which is kind of a prerequisite to this topic. You might have heard of Stocks.Stock is a fundamental unit of mutual fund.Stocks are basically the companies which are listed in different Indices and these are being traded on a day to day basis.Based on this their valuation will change. You can get more information on Stocks here . What is a Mutual Fund? Mutual Funds as such you can imagine as a collection of Stocks.There can be different stocks belonging to different domain such as Finance,IT,Banks etc in a mutual fund.Fund Managers of the Mutual Fund house decides what stocks to buy and sell on a day to day basis.The variations in the NAV (Net Asset Value) of the mutual fund pur...

FINANCIAL FREEDOM - New Buzz Word. Understand All About It

Hi Friends, Today planning to talk about Financial Freedom.What it is and How to move towards it.Especially in this generation among the working class this is a buzzword. What is Financial Freedom? As its word suggests it means literally to be financially free that means one will be able to survive and pursue the passion or the lifestyle he/she wants without having to do the routine tasks that he/she used to do to meet financial needs.This means that one can quit his full time job and live with the money he has accumulated over years and follow his/her passion. How to Achieve Financial Freedom? This can be achieved in mainly two ways like: Investing the money during active days into right asset classes. Generating Passive Income. These are the most common ways to achieve Financial Independence.Lets take one by one. Investing is generally misunderstood by some people as saving.Some people used to save the money they don't require in the savings bank.Actually that is not investing ta...