28 May 2012

Basics of Financial freedom.


     
    Financial freedom is the state of life without financial difficulties.It can be achieved through the disciplined personal finance approach. However,the below things must be part of your life for achieving financial freedom.

   1.Manage your time.

            Learn to manage your time.It is precious than all other assets.Achieving financial freedom is easy if you  follow time management principles.Often,unncessary things steal your major portion of time.Are you aware about it? Please do self analysis to examine your routine.Reduce  time for watching television serials and divert it towards creative things.
            Your goals and priorities are important for reaching financial freedom.For an example,if you want to become a singer,join a music course and practice it daily.A career aspirant can spend more time for language improvement and developing communication skills.Means,your time should be utilised to fulfill your life dreams.

  2.Fix your Priorities.

         You can divide priorities based on time and importance of the work. Daily priorities are the things required to complete in a day.For an example,you have to pay electricity bill  today.Do not postpone it.At the same time,follow weekly and monthly priorities. Normally,People give priority to urgent things.But,you cannot leave the important things behind.Keep priority to important things always.
        If you like to attain financial freedom,you have to start savings and investment.No over spending any more.Payoff your debt by creating more income.Without time management and Priorities,no one can reach financial freedom.

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24 May 2012

How to invest in Commercial property?

     

  Commercial property investments are always complicated than buying residential properties.So,you have to act like a professional.Metros give more liquidity to sell property fast.But,Price may be too high.Small towns may not develop fast with infrastructure facilities.So,how we will  invest?
Follow the below tips:
 1.Invest with long term viewpoint.Beware of short term down fall in value due to unexpected reasons.
    Never put all of your money in any property.
 2. Find out developing areas with huge potential to be 'the future city'.Foresight brings returns.
     Update with  latest information about upcoming projects.Always,Think beyond  the common buyers.
 3.Buy in recession period to get discounted price.Don't be panic with recession.It will not last more than certain period. Keep good relation with real estate players and developers.This will broaden your knowledge
 4.Investigate about the nature and market price of different properties and select the best.Be familiar with site seeing and evaluate well.Do your Home work before buying any property.
 5.Check the conveniences such as school,hospital,railway station,airport etc.Pollution free atmosphere ,water and quick reach to business centres are crucial for good investment.
      Location is a key factor in making profit from commercial property transactions.So,Find the right location with all amenities and convert it as cash when you need it.

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9 May 2012

Career and certifications in Financial markets.

             
     Indian Financial market  have witnessed tremendous growth after establishing nation wide electronic trading in 1992 by National stock exchange.After that,Bombay Stock exchange,Oldest stock exchange in Asia, also moved from open outcry floor based trading to an automated screen based trading. Establishment of Multi commodity exchange in 2003 changed the way of commodity trading too.

        Now,an investor can easily trade using a desktop or mobile terminal with an internet connection.Rising number of investors and market participants,provide lot of career opportunities for the skilled persons. A career aspirant should obtain required skills sets to choose a role in Equity,commodity or currency markets.

     Like RBI regulates banking sector, Indian stock market is monitored by Securities and Exchange Board of India.Under the supervision of SEBI, Two major stock exchanges named BSE and NSE have lot of  intermediaries like stock broking firms,Mutual funds and Portfolio management companies. After certified from a financial market education body, a graduate  can start career as a stock or commodity dealer in stock broking companies.Responsibilty of a Dealer is punching the orders in trading terminals on behalf of the clients.Stock Broking companies have various departments like Dealing, Client Relations,Back Office,Surveillance,business development and Operations.Career opportunities in Mutual Fund companies include business development ,management and Equity research.

    Most of these firms requires any of the cerification given below.

NSE's Certification in Financial Markets

         This is an online testing and certification programme by National Stock Exchange of India.NCFM modules adress all kind of students from beginners to experienced persons.A fresher can start with Dealer modules in Capital market ,Derivatives  and Depository. NSE Certified Market Professional ( NCMP ), an advanced certificate is issued to the candidates passing  3 or more NCFM modules.To know more visit,NCFM

NSE also offers Proficiency certificates like Certified Derivatives Champion (NCDC) and  Certified Investment Analyst Champion.NSE have tie up with few universities to offer BBA and MBA programs exclusively designed for financial markets.Undoubtedly,These certificates will add  value in your bio data.

Certifications from Bombay Stock Exchange

       BSE Institute, training division of Bombay stock exchange provide classroom programs and certifications. BSE's Exams like BCSM and BCDE are good,but not popular like NCFM.However,Post graduate programs from BSE Institute will be good for serious students.
You may See their courses at BTI

   Commodity futures market is still in a nascent stage in India, although abroad opportunities are high .If you are passionate in commodies segment,below certifications  will give essential knowledge.

MCX Certified Commodity Professional

MCCP, A class room and certification programme from Multi Commodity Exchange, is a mandatory certificate required in all branches of  commodity broking firms.For More details,visitMCX course

NCDEX Commodity programme

  Another commodity certification can be obtained after passing exam of  NICR, a subsidiary of National commodity exchange.To know more details about this course , you may visit: NICR course

Next emerging segment is  Currency Derivatives market and the  certification programme comes under NISM,an institute established by Securities and Exchange Board of India,.They conduct post graduation programs and  mandatory certifications for a career in mutual fund,investment advisory,research and compliance firms.
Details are available at : NISM

           All these cerifications are exclusively designed to address the skill gap in Indian financial market.If you are trying a designation in global markets or wealth management field,professional credentials like  CFA , CFP and CWM will give you a career advantage.

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How to prepare a Personal finance portfolio?

         Preperation of Personal finance Portfolio is the basic step  for achieving financial freedom.This is not similar for everybody.Risk taking attitude and  financial capacity determines the nature of your portfolio.Low Risky People with less income can opt  Low Risky and Capital Presrvation Portfolio.If you are not interested in risky assets, your Low Risky Portfolio can be made by following things:
       1.Emergency fund
       2.Savings account
       3.Fixed Deposits
       4.Government and Corporate bonds
       5.Liquid fund  ETFs
       6..Public Providend fund
       7.Life and general Insurance
       8.Pension plan
           Emergency fund is common for all and mainly used for meeting unexpected income fall of a person.This may be due to loss of employment ,unexpected costs or business failure .Life and Health insurance protection is  required to prevent financial loss to the family by death or critical illness of an income earning person .So,Portfolio changes can be applied in fixed income instruments only by replacing riskier avenues.Risk and reward is correlated. So,better returns come only when you are taking more risk.
If you are a High Risky Investor, Portfolo may include risky assets such as stocks and real estate.
      See the High Risky Portfolio  below:
    1.Emergency fund
    2.Savings account
    3.Government or corporate bonds
    4.Unit Linked insurance and pension schemes
    5.Exchange traded funds
    6.Shares
    7.E-Metals such as E-Gold and E-Platinum
    8.Real Estate.
   These are two Model Portfolios for better understanding about Personal finance products.Fixing adequate Proportion for each scheme depends your  risk tolerance levels.

Disclaimer: Investments are subject to market risks.

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8 May 2012

Exchange Traded Funds:An introduction.


   

   An Exchange traded fund (ETF) is an investment fund traded on stock exchanges.
Most of the ETFs are index based.This concept launched at USA in 1989 in the form of index funds.But,now ETFs are also available with commodity,currency and bonds.
                 India's first ETF Niftybees listed on National stock exchange in 2002.This is based on Nifty 50 index.
Now,Sector index based ETFs ,Gold ETFs and Liquid fund ETFs are also popular in Indian stock market. Prices of Exchange traded funds are  liquid and transparent like stocks.It provides diversification like a mutual fund and real time price and intraday trading opportunity as in a share.
An Investors can hold it in demat account.There is zero long term Capital gain tax.
       Unit price of Gold ETFs represent the one gram price of gold .Investor can  gain from rising gold price and avoid the expenses such as making charges.He can also save the cost of securities transaction tax and wealth tax. Major ETFS in India are the following:
Gold ETFs              -   GoldBees,GoldShare,RelGold,KotakGold, IdbiGold etc.
Index based  ETFs  -  NiftyBees,JuniorBees,IiflNift,BankBees,SPICE,M100,KotakSensexETF
Shariah index ETF  -  Shariabees
Liquid fund ETF      -  LiquidBees
International ETF    -  HangsengBees.

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4 May 2012

Get Out Of Debt Plan

   Why United states still suffer from 2009 recession?
    Is it because of Sub prime crisis,collapse of banks or fall in real estate prices?
    I think, the basic reason is lack of discipline in personal finance due to  rising debt levels.
    Recently,this is a common problem all over the world.
    Debt products are making a trap for individuals and organisations.
    It may be of your credit cards,auto loan,home loan ,personal loan or any other debt product.
    Debt management act as corner stone for attaining financial freedom in life. Apply the following 10 step plan for your personal debt management:
  1. Assess your debt level and categorise it as high interest paying or high amount debts.
  2.Try to change the High interest debt towards Low interest options.
  3.Make a ready reference file of your debts for reducing it step by step. 4.Create an emergency fund from any source like friends or well wishers to payoff urgent debt.
     5.Start to payoff small debts first.
     6.Change your lifestyle and reduce unnecessary expenditure.Stop overspending by credit cards.
     7. Make a monthly budget and stick into it.
      8.Try for additional income sources by part time second job or freelance work.
      9.Prepare an action plan to start savings and invest it wisely.
      10.Fix a time horizon to get out of the entire debt and pay it off by installments.
Most important: Get out of Procastination and be confident in your skills and abilities.

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3 May 2012

E-Gold,E-Silver,E-Platinum...... etc.

    Now,Things are changed.No need to worry about volatility in stock market and world recession.Metals are stll continuing the growth trend.
      Examine the movement of Gold,Silver,Steel etc over the last decade.
     The Uptrend is only because of shortage of metals and huge mining cost.
      In this scenario, people can add metals in their portfolio by Electronic metals  from National Spot Exchange.National Spot Exchange offers the products such as  E-Gold ,E-Silver, E-Copper, E-Zinc, E-Lead, E-Nickel and E-Platinum.
      Gold and platinum is traded at 1 gram and silver at 100 grams per unit.
      Minimum size of other metals are 1 kg per unit.
      Any body can buy and hold  E-Metals with their demat account.
      As we know, Diversification of Portfolio is very important for wise investing.
      So,E-Metals will be a good option for Retail Investors.
       Another chance for systematic investment planning like doing in mutual funds or ETFs.
      E-Metals Prices on 3rd May 2012 are given below.
        
SymbolUnitBuy PriceSell PriceBuyQtySellQtyLTPOpenHighLow
E-GOLD1 GRAMS2930.602942.00522930.602925.002944.002925.00
E-SILVER100 GRAMS5670.005674.50145674.505660.005724.505640.00
E-COPPER1 KGS515.10527.55101526.25526.00528.95525.40
E-ZINC1 KGS145.00146.3016146.00146.50146.80145.60
E-LEAD1 KGS150.05156.5010102154.15154.55155.25154.10
E-NICKEL1 KGS1257.001272.00351267.501259.001270.001256.50
E-PLATINUM1 GRAMS2974.002990.00162990.003050.003060.002952.00

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