Investment Articles

It doesn’t matter where you invest your money, the matter is you know the investment rules well and invest like a rational being; otherwise, these lack of information will cost you hazards in each and every step you take to move ahead with your investments. As you can’t play hockey with football rules, you can’t invest in banks with the knowledge of Share market rules. Each investment has different rules and regulations which you need to be aware of. In this article I’ll discuss about investment rules in different areas segment wise-

Segment-1 | Post Office Savings Scheme

• Post Office Savings has the current rate of interest is 3.5%. You can invest a maximum of Rs.1, 00,000 in one account in single name & Rs.2, 00,000 in Joint account. The topmost attraction of this kind of saving is- you will get Rs.3, 500 as interest in one year by investing Rs.1, 00,000 and Rs.7, 000 in one year Joint account, the amount of which is totally TAX FREE.

• The current rate of interest in PPF Account is 8% and it also is totally Tax free. You can extend the tenure of this investment by 5 years after 15 year’s completion.

• There is no Tax deducted at source from Post Office Deposits, but it doesn’t mean it’s totally Tax FREE (with exception to PPF).

Segment-2 | Bank Deposit

• All kind of interests received from Bank Deposit are totally taxable.

• Interests are calculated on a daily balance basis.

• You’ll have to inform your bankers whether you renew your fixed deposit within 15 days after its maturity. Otherwise bank will renew it from the very next day of its maturity after 15 days are over with the same tenure.

• If the interest you receive exceeds Rs.10, 000 annually, TDS of 10% deducted from source. If you don’t inform bank about your PAN, bank will deduct double the amount of TDS from your source.

• You can use your debit card or ATM card to withdraw money from other bank’s ATMs also; you don’t need to pay anything if such numbers of transactions are limited to 5. Also keep it in mind that you can only withdraw Rs.10,000 per day using your debit card in other bank’s ATMs.

• Some banks are providing current interest rate for 10 yearlong fixed deposit schemes.

• You can also open Recurring Deposit Schemes in Commercial Banks as per your choice of amount and tenure.

Segment-3 | Mutual Funds

• Quoting your PAN is necessary for investing in Shares and Mutual Funds.

• You can invest a minimum of Rs.500 in SAP system in any mutual fund schemes.

• Transaction charge of Rs.150 is applicable in any transaction over Rs.10, 000. In old investments the amount of fee is Rs.100.

• There is a high risk of huge loss if you encash your investment before maturity or immediately after lock in period of Unit Linked Insurance. If you intend to encash your investment, it is preferable that you invest in mutual funds instead of ULIP.

• It is preferable to invest in Fixed Maturity Plan (FMP) schemes for high tax payers.

Segment-4 | Share Market

• For share trading, you need to have a DE-MAT account. You also need to have a share trading account in any of the recognized share broker’s hand.

• With DE-MAT Account, you can only buy or sale 1 share of any company.

• If you sell shares and gain profit after holding them for at least 1 year, you don’t need to pay any tax. For not being so patience, you should be ready to pay tax for any gain in the head “Capital Gain”.

• The dividend on shares and mutual funds of any Indian company are totally tax free income.

• Nomination facilities are available for shares and mutual fund investments and it is highly recommended to avail such facilities.

Segment-5 | Other Investments

• Gold is Gold. No one has ever seen the price of gold reduced in long run. Its prices are increased whenever we see uncertain scenario in world share market. You can invest Gold ETF in mutual fund investment scheme thus you’ll be able to avoid the risk of keeping gold in your home.

• The value of silver is also increasing day by day. In one side, the uses of silver are increasing and in the other side, its supply is getting reduced.

• Pension is taxable as salary. Getting retired and being rewarded as senior citizen does not mean that you get rid of all kinds of taxes.

• If you have more than one house property, one will be regarded as your own residence and tax will be imposed on the other(s) assuming that they are being rented, whether they’re rented or not is not a matter at all.

• The higher the interest is, the higher the risk is. If you see somebody is promising to pay you absurd high interest, you need to be more cautious before going to make any investment decision with them.

Mr Suman Dey is a teacher of Accounting and Finance by profession & writing article on Business-Economy and Commerce related issues is his passion. He maintains a blog http://dailyfinancebites.blogspot.com/ and writes articles on his interests over there. You will definitely find some interesting and informative articles regarding your daily finance issues.

What should be Your Cash Position?

When the market is in an uptrend, sitting on large amount of cash available to be traded can seriously limit your investment returns. One should always keep in mind the percentage manor. If the market is going slow and is on the down side then one should follow 50-50 approach where one can have 50 % invested in the market through various instruments and remaining available as cash reserve to average out on considerable crashes. This is a good approach for investors as this way they can curtail the high amount of risks involved.

How much should be invested in Mutual Fund?

Mutual fund investments can be a little tricky to understand, as sometimes the fees related to these fund can really get little too heavy on returns to give its true value. Having too much mutual funds in one’s portfolio can really limit your success potential. One should maintain a fine balance while choosing a Mutual fund preferably from top 25 mutual funds.

The international Exposure Present in Your Portfolio

This does vary from person to person as everyone does not fall into same risk and exposure category. Investing in emerging equities can provide much higher returns, even the dividends are way too high, but a conservative investor should stick to domestic stock market, as international risks are unpredictable.

How much should you diversify?

Over diversification can eat into your profit but it’s surely a safer approach. As many analysts repeatedly warn investors to not to put more eggs in fewer baskets, so diversification is a necessary component of investment portfolio, no matter if it limits the returns.

Comparison with the S&P 500

The easiest way to judge one’s investment success is to compare it with S & P 500 Market index. One should always look at S & P 500 Market index as percentage basis and not as a whole basis. One can go to any of the free sites for investment consulting and can pull up a chart of the S & P 500.

Role of Your Broker

The broker should always supply the investor with everything from the tools to the timely stock quotes. The broker should always rank high in customer support and should always be keen in your investment success.

Options Investing 102

Direction of the market

An insight on the direction where the market is heading is really a great advantage for an investor. This ability comes with experience and one really has to do lot of research about the movement in the stock market. One can get an idea about this by following any of the major indexes like S & P 500 or NASDAQ

Setting Investment Goals

Setting goals right at the start can really play important role in achieving better returns. One should do some serious research and set quarter based targets for achieving what one wants to achieve as his/her goal.

Compare Online Brokers at http://www.comparebroker.com

We can assist you in opening an investment account with a leading brokerage. Visit our site for latest reviews of offers and promotions from different brokers. Our blog section is regularly updated with informative write-ups for traders and investors.

As an individual we all have targets and set goals in our finances, hence adequate information to the right investment is very important. Considering the fact that good investments help us to actualize our objectives in our education, career, capital projects, family needs, etc, then it’s imperative for us to understand these investments.

Presently, we are faced with the recovery of the economy after experiencing the global economic meltdown for more than two years of economic impasse. In most African countries, especially Nigeria do not seem to get on a good start as the government has limited funds to inject into the economy (Capital market) unlike other developed nations of the world are currently doing. Therefore, there’s a need for us to make the right decision at this trying period. There are different types of Investments available to us; Savings, Insurance, Bonds, Equities and Stocks, FOREX, Real Estates, Importation and Exportation, and what have you. These may sound interesting, but we must look before we make decisions in our chosen investments.

For most people, making the right investment decision can be a tough one. They assume that you need enough money to venture into a lucrative business. It is always a good idea to do some research before you can make a decision as to what you want to invest in. This is better achieved the most when you gather information on your type of investment because you want to make the right investments that would work best for you. It is financially wise for you to know the investment basics so that you will be in a position to have variety of choices. Is this where the use of funds comes in? It is advisable that you use your savings especially if you plan to invest in long term. Moreover, you do not need a lot to get into investing though; you can use your monthly savings and investing consistently. The Stocks and shares option is one of the most popular and profitable business.

Also investing in Insurance policy is another guaranteed way of investing without having fear for drop in market price. Unlike the stock market, Insurance is a sure way of getting your money back with a certain accumulated interest over a stipulated period of time that is if there have not been any occurrences before the maturity date. This however, would be discussed exclusively in my subsequent articles.The mutual fund investment option is yet another form of investing whereby organizations collect money from different individuals and use it to venture into suitable quoted company stock at the right time.This reduces your risk of losing money since you are not directly investing in the stock market. You should look out for all loop holes and engage the services of a financial expert to help you make suitable investment choices.

Before we delve into the various investments stated above properly, there is a need to highlight the basic Principles of Investments that would be our guide to a successful venture. I shall discuss 5 of these proven principles that would guide us through;

The first investment principle we must know is to get the foundation right of any investments plan and all the hiccups we envisaged or encountered would be checked. The problem most people have is that they try to solve their challenges from the surface. It is easy for one to quickly take a pain relieving tablets to stop his toothache problems without knowing the cause. Alright let’s look at our business transactions as an instance. A growing businessman borrows money from his fellow business men to build his business venture. By doing this overtime he became heavily indebted. But in order to be free from his indebtedness, he quickly pays his debts without ever considering the fact that his greatest weakness could be poor financial (money) management. In Nigeria today, an average 60 percent of the population are into entrepreneurship in one business or the other yet most of them have little idea of their venture which accounts for low returns in profit every quarter. This dismay performance could only be attributed to their poor knowledge of the said business, hence the business foundation is lacking. In addressing such situations, understanding the roots of these investments
would place us on the driver’s sit to know where and how to make great returns on our investments

The second principle simply tells us to set values in our investments’ plan and life goals generally as a yard stick to take us to our desired expectations. Values are internal anchors we set ahead of time to guide us in time of decisions making. It is also important to note that in our individual offices and business places, values we set for ourselves would determine the future and success of our careers and business ventures. According to Hamel, G. in “Rethinking the basis for Competition” in (Gibson, R (ed) Re-thinking The Future, Nicholas Brealey Publishing, London pp. 76-92 he says that “the big challenge in creating the future is not predicting the future. Instead, the goal is to try to imagine a future that is plausible – a future that you create based on values.” As matter of fact, we must place great values on our investments and businesses for it to grow beyond limits.

On the third principles of investments, we must draw out our investments plans and strategy. One does not expect a high dividend as a return on your investments from a quoted company if you don’t invest well on that company. In any investment we do, there is need to know the strategy to adopt in getting good returns. Let’s look at the stock market for instance, you would not be foolish to invest in First Bank PLC in the Nigerian Stock Exchange that has reached its’ bullish state when you know most investors are bailing out after a period of planting then smiling to the banks for a good investment. You have to understand the investment first (foundation) then adopt a particular plan or strategy that would suit it for a stipulated period. That is why; Sun Tzu, great author, posits that “the General who wins the battle makes many calculations in his temple before the battle is fought while the General who losses make but few calculations beforehand”. You should know that whatever plans or strategy you make does not really guarantee you success as it may not suit the kind of investments you are into but get the right information to guide you through. Hence, you are advised to invest in financial books, business tips or any investment instruments to put you ahead of your contemporaries. By doing this, you must have drawn an investment philosophy that includes your; aim, period, returns and interest of your investments.

The fourth Principles would centre on our spiritual strength in business. Knowing that sometimes we face all sorts of problems and setbacks in our investments or business activities, we may not have the physical power to overcome them. To be realistic, we need to look up to God by committing our businesses in His hands irrespective of our religion or faith. According to the Book of Proverbs; “If God can see everything in the world of the dead, he can also see in our hearts.” If we commit our ways to God, He would direct our paths. We should always seek Him when faced with any problems. I also suggest you renew your minds with great spiritual and inspirational materials. Great authors like; T.D. Jakes, John Mason, Joyce Meryce, Mathew Ashimolowo, Dale Carnegie, etc have wonderful works that can nourish our soul and make us achievers even in the face of adversity. You would find out that what you consider as problems are not problems, but some stumbling blocks you encountered as challenges to your road to success.

The last Principles of investments which is the fifth, has to do with you as an individual. As a child while growing up, we all aspired to be one great professional in our chosen field. That’s the reason why Education could be adjudged as the highest form of investment. I must say that that most professionals or CEOs these days don’t utilize five percent of their brain. With the latest technologies at our finger tips, we seldom use our brain to work even getting the least calculations. Knowledge they say is power. The more knowledge we acquire, the more resourceful we become in affecting our lives positively. We have to invest in ourselves to improve on our business ideas and skills as change is inevitable. To buttress this point, let’s look at Romans 12:2; “and be not conformed to this world, but be ye transformed by the renewing of your mind that you may prove what is good and acceptable and perfect will of God”. Please make it a habit to invest huge part of your income on your brain and mind, as it’s such an investment that you would receive a 100% returns.

Remember, knowledge is part of the key to all successful businesses. Follow these basic principles of investments guide and you would be amazed how your business would grow in greater profits.

The best investment strategy still involves investment in stocks and bonds, and mutual funds are still the best investment options for most people investing on their own. Now, where do you find the best funds to invest in?

In order to put together your own best investment strategy you will need: access to a variety of investment options, diversification, and a low cost of investing. All three of these requirements can easily be satisfied and simplified if you invest directly with the right fund companies. That’s where you can find the best funds for your money, plus good service free of charge.

Let’s start with the need for a variety of investment options to choose from. Both stocks and bonds come in many varieties with varying degrees of risk. With mutual funds you can be conservative or aggressive in both investment categories by simply choosing funds that agree with your risk tolerance. For example, shorter-term bond funds are much safer than long term bond funds and could be the best funds for the conservative investor in search of higher interest income than is available at the bank. Each fund states its objectives and is rated for relative risk.

Now let’s look at diversification in putting together your best investment strategy. Diversification is the key to long term investing with less risk, and is the signature of mutual funds. Instead of managing your own list of dozens of individual stocks and bond issues, you can be instantly diversified and own a small part of a large portfolio of stocks and/or bonds with a single mutual fund investment. Plus, your investment will be professionally managed for you, usually at a reasonable cost.

In uncertain times like today, don’t overlook the importance of keeping investing costs low in your investment strategy. Some of the best funds today come from some of the lowest-cost and largest fund companies in America. A higher cost of investing can lower your net profits significantly. The two largest mutual fund companies in America are Fidelity and Vanguard. Both offer low-cost funds called no-load funds that have no sales charges (loads) and lower than average yearly expenses.

Where can you find these best funds for your money? Simply get on the internet and search “no-load funds”. The major fund companies that offer low-cost funds will be at your fingertips. Visit their websites and request free information. If you have questions call them toll-free. I’ve personally steered dozens of friends, family, and former clients in this same direction without a single complaint.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.

First and foremost, college students have more resources than they think. Even if you can just put away a few dollars each week, you are still working towards creating a sound investment portfolio even during your university years. Ten or twenty dollar a week doesn’t seem like much but it adds up quickly.

Remember to pay yourself first. So many students fail to see that they should pay themselves for the work that they do. Most suggest that ten percent of a person’s income should go into retirement or into savings. When investing money while in college, you can opt to go for this lofty goal or you can opt for a smaller amount.

List your sources of income. Work Study programs are designed to help students pay tuition. However, some of this money may go above and beyond the basic tuition payments. Anything above your basic tuition costs can be rolled into a savings account, an IRA or into mutual funds.

Since most college students are young, they have the unique opportunity to go aggressive with their stocks and mutual funds. This is a daring approach and many may prefer to take a slow and steady approach to their college investments. The choice depends on your philosophy and your future outlook on your investments down the road.

Keep in mind that stocks will generally be more risky than mutual funds. You can still opt to go aggressive in the mutual fund investments but they are still a little safer than playing the stock market. Also, don’t fret about not putting enough money away in your savings venture. As long as you are contributing something you are ahead of the game.

Consider your years attending a university as a series of investments. You will be putting in time to achieve goals. Once you have earned your degree you can move on to your professional career, an IRA and many more investment opportunities.

Students are already investing their time and effort into earning a degree. Why not continue in the spirit of preparing for a bright future by investing money while in college?

To learn much more about the investment and finance, visit http://world-online-resources.com/finance/ where you’ll find this and much more, including invesmet, finance, insurance, mortgage rates and quotes.

For most people making the right investment decision can be a tough decision. They assume that you need a lot of money to be able to venture into something lucrative. It is always a good idea to do some research before you can make a decision as to what you want to invest in. This is because you want to get the most out of what you invest in. It is always better when you gather information since this will help you make an informed choice of the type of venture that works best for you.

You need to know the investment basics you will be in a position to have a variety of choices. Sometimes you may want to invest in a venture and you may not have adequate funds to get into it. It is advisable that you use your savings especially if you plan to invest in the long term. You may also borrow from friends and family who may have some money floating around and you have to come to an agreement that you will not reimburse them till the venture matures.

You do not need a lot to get into investing though; you can even use your monthly savings and invest consistently. The stock and shares option is one of the most popular and profitable ventures. The mutual fund investment option is yet another form of investing whereby organizations collect money from different individuals and use it to venture into suitable company stock at the right time.

This reduces your risk of losing money since you are not directly investing in the stock market. You should also check out all the loopholes, and acquire the services of a financial expert to help you make suitable investment choices.

Mercy Maranga writes content on Finance and Finance Management. Visit her site here for more information on Finance.
Finance Information