A promoter is an individual or company that, for a fee, helps raise money for some type of investment activity. Most often, promoters raise money for a company through offering investment vehicles other than traditional stocks and bonds, such as limited partnerships and direct investment activities. Often times, these promoters are paid in company stock or free entrance into the investment activity as compensation for their work in raising funds from others.
Showing posts with label investment. Show all posts
Showing posts with label investment. Show all posts
Friday, March 18, 2016
Saturday, November 28, 2015
Entry Load - Exit Load
Entry Load: Mutual Funds charge investors an entry load of up to 2.25% to compensate for distribution costs. It is charged at the time an investor purchases the units of a scheme.
Exit Load: The commission or charge paid when an investor exits from a mutual fund. They are basically imposed to discourage withdrawals.
Exit Load: The commission or charge paid when an investor exits from a mutual fund. They are basically imposed to discourage withdrawals.
Wednesday, November 18, 2015
Warren Buffett
Warren Edward Buffett (born August 30, 1930) is an American business magnate, investor and philanthropist. He is the most successful investor of the 20th century. Buffett is the chairman, CEO and largest shareholder of Berkshire Hathaway, and consistently ranked among the world's wealthiest people. He was ranked as the world's wealthiest person in 2008 and as the third wealthiest in 2015. In 2012 Time named Buffett one of the world's most influential people.
Buffett is often referred to as the "Wizard of Omaha" or "Oracle of Omaha," or the "Sage of Omaha," and is noted for his adherence to value investing and for his personal frugality despite his immense wealth. Buffett is a notable philanthropist, having pledged to give away 99 percent of his fortune to philanthropic causes, primarily via the Gates Foundation. On April 11, 2012, he was diagnosed with prostate cancer, for which he successfully completed treatment in September 201.
Thursday, November 5, 2015
Stocks to Invest: Maruti Suzuki
Company: Maruti Suzuki India Limited
Type: Public
Traded as: BSE: 532500, NSE: MARUTI
Industry: Automotive
Founded: 1981
Number of employees: 12,900(2015,Sept.)
Slogan: Way of Life!
Type: Public
Traded as: BSE: 532500, NSE: MARUTI
Industry: Automotive
Founded: 1981
Number of employees: 12,900(2015,Sept.)
Slogan: Way of Life!
Current Models:
Omni - 1984 - Minivan
Gypsy - 1985 - SUV
WagonR - 1999 - Hatchback
Swift - 2005 - Hatchback
Grand Vitara - 2007 - Mini SUV
DZire - 2008 - Sedan
Ritz - 2009 - Hatchback
Eeco - 2009 - Hatchback
Alto K10 - 2010 - Hatchback
Ertiga - 2012 - Mini MPV
Alto 800 - 2012 - Hatchback
Stingray - 2013 - Hatchback
Celerio - 2014 - Hatchback
Ciaz - 2014 - Sedan
Monday, November 2, 2015
Foreign Investors
Qualified foreign investors (QFIs) can now invest directly in Indian equities. A QFI is an individual, an association or a group from a foreign country complaint with standards mandated by the Financial Action Task Force, an inter-governmental body that formulates policies to combat money laundering and terrorist financing. Foreign institutional investors (FIIs) and foreign venture capital investments do not come under the QFI category.
An individual QFI can invest up to 5 per cent of the paid-up capital of a listed company. Total investment by QFIs in a listed company cannot exceed 10per cent of its paid-up capital. Foreign investors will also be allowed to acquire equity shares by way of rights issue, bonus shares or equity shares on account of stock split, amalgamation, demerger or such corporate action.
The QFI investment limits will be over and above the ceilings set for FII and non-resident Indians under the Portfolio Investment Scheme for foreign investment in India.
An individual QFI can invest up to 5 per cent of the paid-up capital of a listed company. Total investment by QFIs in a listed company cannot exceed 10per cent of its paid-up capital. Foreign investors will also be allowed to acquire equity shares by way of rights issue, bonus shares or equity shares on account of stock split, amalgamation, demerger or such corporate action.
The QFI investment limits will be over and above the ceilings set for FII and non-resident Indians under the Portfolio Investment Scheme for foreign investment in India.
Friday, October 23, 2015
Stocks to Invest: Hindustan Unilever
Industry: Consumer goods
Founded: 1932
Headquarters: Mumbai, Maharashtra, India
Products: Foods, beverages, cleaning agents personal care products and water purifiers.
Revenue: Rs 30,170 crores (2014-15)
Net income: Rs 4,315 crores (2014-15)
No. of employees: 18,000
Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its products are available in over 6.4 million outlets in the country. As per Nielsen market research data, two out of three Indians use HUL products.
Food brands:
- Annapurna salt and atta
- Bru coffee
- Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea
- Kissan squashes, ketchups, juices and jams
- Lipton tea
- Knorr soups & meal makers and soupy noodles
- Kwality Wall's frozen dessert
- Modern Bread
- Magnum
Homecare Brands:
- Active Wheel detergent
- Cif Cream Cleaner
- Comfort fabric softeners
- Domex disinfectant/toilet cleaner
- Rin detergents and bleach
- Sunlight detergent and colour care
- Surf Excel detergent and gentle wash
- Vim dishwash
- Magic – Water Saver
Personal Care Brands:
- Aviance Beauty Solutions
- Axe deodorant and aftershaving lotion and soap
- LEVER Ayush Therapy ayurvedic health care and personal care products
- Breeze beauty soap
- Clear anti-dandruff hair products
- Clinic Plus shampoo and oil
- Close Up toothpaste
- Dove skin cleansing & hair care range: bar, lotions, creams and anti-perspirant deodorants
- Denim shaving products
- Fair & Lovely skin-lightening products
- Hamam
- Lakmé beauty products and salons
- Lifebuoy soaps and handwash range
- Liril 2000 soap
- Lux soap, body wash and deodorant
- Pears soap
- Pepsodent toothpaste
- Pond's talcs and creams
- Rexona soap
- Sunsilk shampoo
- Sure anti-perspirant
- Vaseline petroleum jelly, skin care lotions
- TRESemmé
- TIGI
Water Purifier Brand:
- Pureit Water Purifier
Thursday, October 15, 2015
Yo-Yo Market
Very volatile market is known as Yo-Yo Market. It will
have no distinguishing features of either an up or down market, taking
on characteristics of both. Security prices in a yo-yo market will swing
very high to low over a given period of time, making it difficult for
buy and hold investors to profit.
Yo-yo markets can, however, be profitable environments for astute traders who are able to recognize buy and sell points and make trades before the market reverses. The name comes from the movements of a yo-yo, where security prices continually go up and down; a yo-yo market moves like its toy namesake.
Yo-yo markets can, however, be profitable environments for astute traders who are able to recognize buy and sell points and make trades before the market reverses. The name comes from the movements of a yo-yo, where security prices continually go up and down; a yo-yo market moves like its toy namesake.
Friday, October 9, 2015
Obligation
In the financial world, obligation refers to an outstanding debt that a
party must still repay - and if they do not pay, they default on the
debt. Obligation
is a facility which supports selling of shares on the next trading day after they are purchased in delivery, by allowing you to sell the
shares that you have purchased in delivery even before those shares are
credited to your Demat account.
Suppose, you have purchased a specific share on Monday, it will take two trading days for those shares to be credited to your demat account i.e. you will receive those shares on Wednesday evening. This is known as T+2 settlement of shares. During these two days when the settlement is still under process these shares will remain in obligation. Thus giving you the liberty to sell those shares even before the settlement cycle is completed.
Suppose, you have purchased a specific share on Monday, it will take two trading days for those shares to be credited to your demat account i.e. you will receive those shares on Wednesday evening. This is known as T+2 settlement of shares. During these two days when the settlement is still under process these shares will remain in obligation. Thus giving you the liberty to sell those shares even before the settlement cycle is completed.
Thursday, August 27, 2015
China Impact
By now we all can see the Chinese economy is falling apart. Will that affect us? Yes, What happens in China will have a massive impact on economies around
the world, which means most stocks will get hit. We have to remember China is not Greece.
The China has continued to build high-end real estate in order to show GDP growth, but very few people live in these so-called ghost cities. (Same can be said about India in few years, if we realized it on time and learn from China now.) The Chinese government has also banned short selling, temporarily halted IPOs, pressured state-owned banks to make loans to struggling businesses, allowed pension funds to invest up to 30% of their net assets in stocks, and temporarily banned company shareholders with stakes of more than 5% from selling. If these aren't desperate measures, what is?
If the Chinese stock market crashes, it means that the investors do not believe in a bright future for China's economy. As people see their portfolios shrink, they might start selling stocks. That may trigger more selling. Another thing the Chinese might sell is gold. And if gold prices fall significantly, there is a good chance panic would come to India as well because the Indians traditionally are holding onto a lot of gold.
But there are other views too, which elaborates Indian economy much stronger to survive such external stock. And we all should believe that but just trade cautiously. Having said that there is no need to get panicked either, rather it can be seen great opportunity to invest in companies which we use and hear about everyday. These are companies will be there for long time.
The China has continued to build high-end real estate in order to show GDP growth, but very few people live in these so-called ghost cities. (Same can be said about India in few years, if we realized it on time and learn from China now.) The Chinese government has also banned short selling, temporarily halted IPOs, pressured state-owned banks to make loans to struggling businesses, allowed pension funds to invest up to 30% of their net assets in stocks, and temporarily banned company shareholders with stakes of more than 5% from selling. If these aren't desperate measures, what is?
If the Chinese stock market crashes, it means that the investors do not believe in a bright future for China's economy. As people see their portfolios shrink, they might start selling stocks. That may trigger more selling. Another thing the Chinese might sell is gold. And if gold prices fall significantly, there is a good chance panic would come to India as well because the Indians traditionally are holding onto a lot of gold.
But there are other views too, which elaborates Indian economy much stronger to survive such external stock. And we all should believe that but just trade cautiously. Having said that there is no need to get panicked either, rather it can be seen great opportunity to invest in companies which we use and hear about everyday. These are companies will be there for long time.
Thursday, August 20, 2015
BLUE-CHIP STOCK
Blue-chip Stock can be defined as stock of a large, well-established and financially sound company that
has operated for many years. A blue-chip stock typically has a market
capitalization in the billions, is generally the market leader or among
the top three companies in its sector. You will invariably find that is to be a household name. Most blue-chips have a record of
paying stable or rising dividends for years. The term is
believed to have been derived from poker, where blue chips are the most
expensive chips.
Monday, August 3, 2015
Why Diversification?
Diversification is one of the central concepts in investments. Theoretically your money should not be locked in any one asset. It
should be split to buy different types of assets like land,
shares/mutual funds, gold, FD’s etc. The reason is no particular asset can keep delivering profits year after year consistently. There will be
exceptional growth in some years and then it will be followed by
sluggishness. This phenomenon is true in almost every and any assets class. So,
if your investment is in a single asset, you make money only if that
asset increases in value and at the same time, you also miss the chance
to participate in any other asset boom. Hence, the risk you take is
high.
Thursday, July 9, 2015
NCDEX
NCDEX - National Commodity & Derivatives Exchange Markets Limited, is
the leading National Spot Exchange in India. It works with domain
experts and offers trading platforms for trading in a host of
commodities, both agricultural and non-agricultural to various market
participants, primary producers including farmers, traders, processors
etc. These trading platforms combine technological efficiency and market
friendly trading features in a transparent atmosphere to make trading a
rich and rewarding experience.
NCDEX e Markets Limited provides a complete solution to its customers including trade-facilitation, collateral management, logistics and supply chain management and clearing and settlement.
NCDEX e Markets Limited provides a complete solution to its customers including trade-facilitation, collateral management, logistics and supply chain management and clearing and settlement.
Tuesday, July 7, 2015
MCX INDIA
Multi Commodity Exchange of India Ltd (MCX) is an independent commodity exchange based in India. It was established in 2003 and is based in Mumbai. MCX offers futures trading in bullion, ferrous and non-ferrous metals, energy, and a number of agricultural commodities such as mentha oil, cardamom, potatoes, palm oil and others.
- MCX is India's No. 1 commodity exchange with 83% market share in 2009
- The exchange's main competitor is National Commodity & Derivatives Exchange Ltd.
- Globally, MCX ranks no. 1 in silver, no. 2 in natural gas, no. 3 in crude oil and gold in futures trading.
- The highest traded item is gold.
- MCX has several strategic alliances with leading exchanges across the globe.
- MCX now reaches out to about 800 cities and towns in India with the help of about 126,000 trading terminals
- MCX COMDEX is India's first and only composite commodity futures price index.
Tuesday, June 23, 2015
Stocks to Invest: SBI
The ‘SBI (State Bank of INDIA) group’ which consists of many subsidiaries and joint ventures both from banking and non banking sectors is the largest loan provider for people and business in India. According to the SBI’s website the bank has 4713 branches in India, operates 21,000 ATMs and has 180 offices in 34 countries as on June 30th 2011. Logically, the bank holds high amount of Current Account Savings Account deposits which carries lower interest liability. This has helped the bank to give loans at the most competitive rates in India.
With many subsidiaries and a variety of financial services such as insurance, mutual funds, merchant banking, credit cards, factoring, stock broking, pension fund management etc and with spreading business in every nook and corner of India, it would be hard to beat this bank in terms of revenues. Also Government of India’s has holding of approximately 60% in the bank. SBI always stands in an advantageous position with the government being its main promoter.
Friday, June 19, 2015
Support & Resistence
Support is the price level at which demand is thought to be strong
enough to prevent the price from declining further. The logic is that,
when the price declines, there will be more demand for the particular
share. By the time the price reaches a particular level, it is believed that demand will overcome supply and prevent the
price from falling below support.
Resistance is just the opposite of ‘support’. A Resistance is the price level at which selling is thought to be strong enough to prevent the price from rising further. The logic behind the theory is that , as the price advances , sellers become more inclined to sell and buyers become less inclined to buy. By the time the price reaches a particular level it is believed that supply will overcome demand and prevent the price from rising above resistance.
Resistance is just the opposite of ‘support’. A Resistance is the price level at which selling is thought to be strong enough to prevent the price from rising further. The logic behind the theory is that , as the price advances , sellers become more inclined to sell and buyers become less inclined to buy. By the time the price reaches a particular level it is believed that supply will overcome demand and prevent the price from rising above resistance.
Monday, June 15, 2015
Bonus Share
Bonus shares are additional shares given to the shareholders without any additional cost, based upon the number of shares that a shareholder owns. These are company's accumulated earnings which are not given out in the form of dividends, but are converted into free shares. The basic principle behind bonus shares is that the total number of shares increases with a constant ratio of number of shares held to the number of shares outstanding. For instance, if Investor A holds 200 shares of a company and a company declares 4:1 bonus, that is for every one share, he gets 4 shares for free. That is total 800 shares for free and his total holding will increase to 1000 shares.
Companies issue bonus shares to encourage retail participation and increase their equity base. When price per share of a company is high, it becomes difficult for new investors to buy shares of that particular company. Increase in the number of shares reduces the price per share. But the overall capital remains the same even if bonus shares are declared.
Wednesday, June 10, 2015
Chart Analysis
- Chart analysis is the technique of using patterns formed on a chart to get an idea about the price movement of a share.
- There are two types of chart patterns: reversal and continuation.
- A continuation pattern suggests that the prior trend will continue upon completion of the pattern.
- A reversal pattern suggests that the prior trend will reverse upon completion of the pattern.
Monday, June 8, 2015
RULE OF 72
A rule stating that in order to find the number of years required to double your money at a given interest rate, you divide the compound return into 72. The result is the approximate number of years that it will take for your investment to double.
For example, if you want to know how long it will take to double your money at 12% interest, divide 12 into 72 and you get six years.
For example, if you want to know how long it will take to double your money at 12% interest, divide 12 into 72 and you get six years.
Friday, June 5, 2015
How to Avoid Claim Rejection of Term Insurance Plan
1) Provide correct details in the health declaration as hiding past history of diseases and essential health related information could lead to claim rejection.
2) Stop agent from filling wrong details or better still fill the form yourself.
3) Don't opt for the single premium plan even though a discount is offered as thanks to the uncertainties of life you may or may not need to pay the premium for the whole term. The premium doesn't increase each year.
4) Inform the nominee you have appointed about the term policy you have purchased.
5) Don't fall for mis selling offers of insurance agents that you will get back the entire amount you have invested, so the cost is zero. The money will be back upon death and the inflation cost as well as opportunity cost of money should be looked at from 15-20 years perspective.
2) Stop agent from filling wrong details or better still fill the form yourself.
3) Don't opt for the single premium plan even though a discount is offered as thanks to the uncertainties of life you may or may not need to pay the premium for the whole term. The premium doesn't increase each year.
4) Inform the nominee you have appointed about the term policy you have purchased.
5) Don't fall for mis selling offers of insurance agents that you will get back the entire amount you have invested, so the cost is zero. The money will be back upon death and the inflation cost as well as opportunity cost of money should be looked at from 15-20 years perspective.
Monday, June 1, 2015
Stocks to Invest : L&T Ltd
The company is well poised to capitalise on the upcoming business opportunities, particularly in the infrastructure, power and defence sectors, which are likely to benefit from the government's thrust.
The management expects about Rs 150000 crore of orders in the next couple of quarters to come for bidding. These include orders from airports, metros, dedicated freight corridors, urban infrastructure, power generation, including nuclear power plants, T&D, etc.
Larsen & Tourbo
The management expects about Rs 150000 crore of orders in the next couple of quarters to come for bidding. These include orders from airports, metros, dedicated freight corridors, urban infrastructure, power generation, including nuclear power plants, T&D, etc.
Larsen & Tourbo
Target Price: 2123
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