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Friday, June 17, 2016

Basics of investment is must for Single Mothers

Women usually get scared with the idea of handling money and remain indecisive - often turns out to be a problem if for some reasons they are forced to live on their own and this problem becomes more ugly if they gave children with them and they have to secure the financial future of all of them having zero knowledge about finance and investing.

First few steps to start managing their investments:
# Never give management of your money to a relative
# Open a fixed deposit account as your first investment in a good bank and keep money in it
# Must educate yourself with the basics of finance and investing
# To gain experience of investment start with a small amount from the money kept in your FD ( fixed deposit)
# Understand financial planning and if needed get in  touch with a financial planner for a fee
# Choose your planner by relying on strong references
# Financial planner must have a minimum 2-3 years of experience
# For a good long term investing experience you have to have a disciplined approach to saving and investing
# Keep calm during markets short term volatile phases
# Trust SIPs for investing in mutual funds. SIPs average out costs, neutralise negative impact of volatility.

Tuesday, June 14, 2016

Biggest Deal is going between Microsoft and Linkedln

Microsoft Corp. has agreed to buy Linkedln Corp. for $26.2 billion in its biggest ever deal combining the software giant's fast growing cloud services business with an online network of 433 million professionals.
The offer of $196 a share represents a premium of 49.5 percent to Linkedln's closing price on Friday. Linkedln's shares soared 48 percent to $194 a piece in early New York Stock Exchange trading while Microsoft's shares were down 4 percent.
Jeff Weiner will remain the chief executive of Linkedln, reporting to Nadella ( Microsoft CEO Satya Nadella )
Microsoft is looking to combine Linkedln services to make workers more productive by revealing connections and data that might otherwise take additional step to find. That could increase the value of Microsoft Office to customers.

Monday, June 13, 2016

Dr. Reddy's Laboratories, India's second largest drug maker, has agreed to buy eight generic drugs from Teva Pharmaceutical Industries and Allergan Plc for $350 million in cash to bolster its US business.
Teva Pharmaceutical needs to divest the drugs to win US antitrust clearance for its $40.5bn buyout of Allergan's generic portfolio. The deal includes drugs awaiting US nod and some that are in market, including complex generic products across diverse dosage forms.

Thursday, April 28, 2016

Correlation

In one of my earlier I had mentioned about Correlation to avoid market risk. Correlation is nothing but the relation between any two entities. For example there can be correlation between gold prices and stock conditions or monsoon and rural consumption.
Correlation is measured by the correlation co-efficient. A positive correlation coefficient indicates that both values move in same direction, while a negative indicates it moves in opposite direction.
The maximum absolute value of correlation is 1. A value closer to 1 indicates strong correlation while value closer to 0 shows weak. +1 shows that the value move in perfect tangent, while -1 shows that the values move in exactly the opposite direction by equal amounts.
Correlation is the key to effective diversification. It is better to have a good set of 10-20 companies at max in your portfolio. It is important to not only diversify in stocks, but also in asset classes.

Tuesday, April 19, 2016

Know the risks in your investment

Risks in investment are of two types- namely market risk ( also called systematic risk) and company - specific risk ( called unsystematic risk ). Market risk is induces by market forces, which are external to the company.
Company specific risks are induced by factors internal to the company.
In short, systematic risk affects all businesses in that particular sector while company specific risk affects only the company in question.
Market risk are too difficult to predict but it can be possible to diversify the company specific risk and allocate the investment across various other companies. Allocations will help reduce the risk that parking all the investment in one company or a small set of companies induces. This is to ensure that prices of all the companies do not move up or down at the same time. It can be done by only one way and that's called "Correlation".

Sunday, March 20, 2016

Basics of Finance investment for Single Mothers

Women usually get scared with the idea of handling money and remain indecisive - often turns out to be a problem if for some reasons they are forced to live on their own and this problem becomes more ugly if they gave children with them and they have to secure the financial future of all of them having zero knowledge about finance and investing.

First few steps to start managing their investments:
# Never give management of your money to a relative
# Open a fixed deposit account as your first investment in a good bank and keep money in it
# Must educate yourself with the basics of finance and investing
# To gain experience of investment start with a small amount from the money kept in your FD ( fixed deposit)
# Understand financial planning and if needed get in  touch with a financial planner for a fee
# Choose your planner by relying on strong references
# Financial planner must have a minimum 2-3 years of experience
# For a good long term investing experience you have to have a disciplined approach to saving and investing
# Keep calm during markets short term volatile phases
# Trust SIPs for investing in mutual funds. SIPs average out costs, neutralise negative impact of volatility.

Monday, December 14, 2015

World's largest oil recovery programme

Cairn India is about to launch the world's largest enhanced oil recovery programme, investing about $760 million in the site where its first oil was discovered in the Thar desert of Rajasthan.

Saturday, December 12, 2015

The new Tax pact between Japan and India

Updating an older convention of 1989- India and Japan has signed a new double taxation avoidance deal.
This deal will allow exemption of interest income on loans by the government or government owned financial institutions from taxes.
Japanese entities under the new pact will now pay tax on the interest income earned by them from loans to the projects.