Preeti Kapoor

  Financial Planning Thumb Rule   These thumb rules are very basic they only provide a general direction and may not necessarily give you the exact picture. These are broad guidelines and you may need to adjust them as per your requirement. The thumb rules for financial planning:   First rule The first rule of personal finance is “Pay yourself first”, i.e., your goals. It means that out of your monthly income save a certain percentage of amount for your goals.   Equity Allocation Many factors determine asset allocation. But the most common rule of thumb is used in the investment says equity percentage in the portfolio should be equal to 100 minus your age. So for a 40year old, 40 percent of your investments are in debt and 60 percent (100-40) in equity.   Emergency Fund An emergency fund is a must for any household. There’s no fixed rule on how much emergency cash one would need. Ideally, 3-6months of household expenses should be one’s emergency fund. Retire

 Investing in Indian Stock Market  Steps that help you to invest in the Indian stock market: Screening and filtering the right stocks using financials - Stock screening involves searching for companies that meet specific financial criteria. Value investors will not buy stocks of even the biggest of companies till their financial health is acceptable Select the companies that you understand - It is important that you invest in companies that you understand. Spend time studying the company and its sector. Look for companies with sustainable Moat - In business Moat means companies that have a competitive advantage. Companies with moats are sort of monopolies and it's difficult to compete with them. For example- Maggi has a strong brand name. Find low debt level companies - Debt-free businesses have numerous advantages and are a solid investment option. Debt-free businesses are unaffected by a slowing economy. These companies can provide superior returns. Financial ratios - Two financi

 RBI Retail Direct Gilt Account RBI Retail Direct Gilt Account allows retail investors to buy and sell government securities through the online portal. This scheme facilitates investment in government securities by an individual by opening a gilt securities account with the RBI. The account opened will be called Retail Direct Gilt (RDG) Account. RDG Account Under the scheme, investors would have to open and maintain the Retail Direct Gilt Account (RDG) with RBI. It allows individuals to buy government securities directly in the primary market as well as a secondary market. The online portal will offer an account statement showing transaction history and balance position of securities holding in the Retail Direct Gilt Account. Benefits It provides an offer for the long term. Government securities are risk-free. Retail investors can now easily participate. It helps in portfolio diversification. Retail Direct Account is completely free of charge. Investors can pick and choose specific bon

 Know the difference between Mutual Fund & SIP Many people get confused between Mutual Funds and SIP. Mutual Fund is an investment product, while SIP is nothing but a regular and disciplined method of investing.in Mutual Fund. Mutual Fund is an investment product and SIP is a mode of investment.  We can do SIP into a mutual fund. MUTUAL FUNDS Mutual Funds are instruments for investment A Mutual Fund is a professionally managed investment scheme where a fund house pools money from several investors. The idea behind the mutual funds is to get the benefit of diversification of risk Mutual funds further invest your money in: Debt instrument Equity instrument   Hybrid instrument SYSTEMATIC INVESTMENT PLAN (SIP) SIP is a method of investing in a mutual fund. Through SIP, you can automatically invest a fixed sum of money at specified intervals. SIP is the most recommended way of investing in Mutual Funds. You can invest a small amount on a regular basis either monthly, weekly, quarterly a

  Growth Stocks  Growth stocks are those stocks that grow at a faster rate than the average stocks in the market.   GROWTH STOCK MEANING A stock that has high growth potential. They can lead to massive wealth creation.  They have the potential to earn above-average returns.  Growth investing focuses on investing in companies that are growing rapidly. KEY INDICATOR TO FIND GROWTH STOCKS Some key indicators that may help us to identify growth stocks as there is no absolute formula that helps us to identify growth stocks. EPS (Earning Per Share) EPS is an important financial measure. It indicates the profitability of a company. It is the tool used by the market participants of a company before buying its shares It is calculated by dividing profit after tax by the total number of outstanding shares. As the EPS of the company increases, the stock price also appreciates. Comparison with peers in the same industry also tells you about the financial performance of a company. Growing reserve of

  Credit Card Charges You Must Be Aware Of Bank claim that credit cards are free, the user must understand that there are few hidden charges attached to the cards. Knowing these charges may help customers to use their cards wisely. Annual Charges - Credit cards come with a joining fee and an annual fee. There will be an annual charge, even if you are offered a credit card for free. Check before opting for the same. GST Charges -  All credit card transactions are subject to GST. Currently, the charge is 18% upon the billed value. Late Payment Charges -  In case an individual does not pay the minimum due amount in time, the bank levies additional late payment charges. These charges are applicable after the due date. Cash Handling Charge -  If you withdraw money from ATMs you have to pay additional charges. Around 2.5%-3% cash withdrawn is charged. Try not to withdraw cash by using credit cards.  Overdraft charges -  When a credit cardholder exceeds their monthly credit limit applicab

Golden Rules Of Investing In Stock Market Investing doesn't need to be complicated or difficult, but there are a few golden rules which may help you stay on track A properly disciplined approach to stock market investment can work wonders for an investor. Thus, it is important to keep in mind some golden rules when it comes to stock market investment. 1. Avoid the herd mentality - Try to avoid getting influenced by other investors. follow your strategy. Avoid herd mentality if you don't want to lose your hard-earned money 2. Think long-term - When you are investing in the stock market you cannot have a short-term goal or strategy for investment. Most of the stocks take at least 2-3 years time frame to give good returns to their shareholder.  3. Never invest in a single stock - If your investment is diversified, then the chances of a single stock hurting your entire portfolio are reduced. 4. Do not get emotional - In the stock market due to fear, greed and investors' i