Freedom Planning: Dear Investor
I am writing this blog in a situati...: Dear Investor I am writing this blog in a situation where the coronavirus is announced as pandemic and it started affecting the whole w...
Friday, April 10, 2020
I am writing this blog in a situation where the coronavirus is announced as pandemic and it started affecting the whole world and most part of the world is in lockdown whereas the financial commitment of an individual will not stop till his life exists.
Some of us may think that RBI has announced a moratorium for the EMI for 3 months is that really going to help us in meeting out our financial commitments. The answer is no because it is only moratorium and it is not either a holiday or waiver which means this will get accumulated as a liability in our account.
In this situation, one must always think of creating a balance between Man@work and Money@ work. Using this lockdown just revisit your financial goals. Engage a planner and discuss with them about creating a balance between man@work and money@work.
For more planning help you can visit www.pvewealthcreators.com and engage their services to plan your financial freedom.
Wednesday, October 31, 2018
Pve Wealth Creators - Investment Bytes
Dear Readers,
Pve Wealth Creators we are back on blog, We are launching the series of blogs relating to financial planning and personal finances for individuals who wants to achieve their financial goals.
We will publish this series in the name of Pve wealth creators - investment bytes.
We address the following in the investment bytes series
Pve Wealth Creators we are back on blog, We are launching the series of blogs relating to financial planning and personal finances for individuals who wants to achieve their financial goals.
We will publish this series in the name of Pve wealth creators - investment bytes.
We address the following in the investment bytes series
- What is financial planning
- How to do financial planning
- Why financial planning
- Where to take help to do financial planning
Initially we will address the above topics and then move on to investments and investment related products.
What is Financial Planning?????
Before addressing the above question i would like clarify certain myths about financial planning. The following are myths about financial planning.
- Recording Income and expenses
- Planning for taxes
- Financial Planning is as same as investing
- Financial planning is only for rich
- Financial planning is an one time exercise
- Financial planning is only for rich
- Financial planning is all about retirement
If somebody things that above is financial planning then the answer is wrong.
Please follow me tomorrow to understand what is financial planning.
Sunday, July 24, 2016
Freedom Planning: Retirement Plannig Step1: Know your Gratuity
Freedom Planning: Retirement Plannig Step1: Know your Gratuity: Gratuity is lumpsum payment given to any employee when he reitires or leaves service, it is primarily meant to be a retirement benefit to an...
SIP Investing
Dear Readers
I am writing this blog after a long time and i am planning to write this blog continuously giving you a lot of insight on financial planning and investment. Today i am starting of about investing in SIP.
I would like to write some basics about SIP investing. I read in a survey last week that most of the Indians are thinking that SIP is name of a scheme. Let us understand it very clear that SIP is a method of investing and it is not the name of scheme of any companies.
It is a method of investing money in mutual fund on a monthly basis either in equity or debt schemes. Most of the equity and debt schemes of all mutual fund companies allow this type of investing. The minimum contribution per month will start as low as Rs.500/- a month and maximum there is no limit but it will vary from funds to funds and companies to companies. This investment has to me run for a minimum period of 6 months to one year. But it is always better to invest in an SIP with a financial Goal.
There are six or seven methods of investment are available in the market, but we not need worry about all these things, just we have to consider how much can be saved by us and decide the date which is comfortable for a contribution.
Just Start investing in Equity or Debt and have great returns.
I am writing this blog after a long time and i am planning to write this blog continuously giving you a lot of insight on financial planning and investment. Today i am starting of about investing in SIP.
I would like to write some basics about SIP investing. I read in a survey last week that most of the Indians are thinking that SIP is name of a scheme. Let us understand it very clear that SIP is a method of investing and it is not the name of scheme of any companies.
It is a method of investing money in mutual fund on a monthly basis either in equity or debt schemes. Most of the equity and debt schemes of all mutual fund companies allow this type of investing. The minimum contribution per month will start as low as Rs.500/- a month and maximum there is no limit but it will vary from funds to funds and companies to companies. This investment has to me run for a minimum period of 6 months to one year. But it is always better to invest in an SIP with a financial Goal.
There are six or seven methods of investment are available in the market, but we not need worry about all these things, just we have to consider how much can be saved by us and decide the date which is comfortable for a contribution.
Just Start investing in Equity or Debt and have great returns.
Sunday, March 6, 2011
stock recommendation
buy ispat industries long term postional call for more details visit http://www.pve-wealthcreators.com/
Sunday, November 14, 2010
know debt jargon
Average Maturity: This the average holding period of all the instrument held in a portfolio. This measure is calculated as the remaining period for which each instrument is to be held before it falls due. Each instrument given weights according to the sums invested in them. Average maturity f fund provides an indication as to whether the fund follows a short term or a long term strategy. A low average matuirty is typically resorted when interest rate is moving up. That is because shorter term instruments suffer a lower fall during such phases than longer term ones. Once interest rates are on declining phase, many funds go for instruments with longer maturity.
A short term fund may for instance hold long term debentures but this does not mean it holds the instruments for the long term. The fund may have entered such instruments in the secondary market at a time when residual maturity is not too high.
Modified Duration: Modified duration measures how sensitive the fund portfolio is to changes in interest rates. The price of a bond and yield on the bond are inversely related. When interest rates decline, bond prices rally and vice-versa. Modified duration captures the extent of price changes for a given change in the interest rates or yield.
If the modified duration of a portfolio with average maturity of five years is four then every one percent move in the yield of a five year bond the portfolio value or price moves 4 percent. Generally it is prudent to hold longer druation portfolios during a falling interest rate cycle.
Credit Rating: A credit rating is a opinion on company's ability to repay loans given to it both the interest payout and principal repayment. The higher the credit rating, lower the chance of default. Therefore invetor can look at the credit rating of the instruments in the portfolio and figure out whether the fund is taking a risky bets to imporve yields or if it is managing reasonable returns actively chruning the portfolio.
Yield to maturity (YTM) This is the annaulised return the fund will get if all the instruments are held until the respective maturity (without selling them before they mature) while the coupon rate is the interest receivable on the face value of each bond, the ytm is based on the current market price of each bond ( or fund)
It is return calculated on the current market price of the bonds in the fund using the interest receipts (coupon rate) and maturity amount as inflows
For investment at face value YTM will be equivalent to the coupon rate. In products such as fixed matuirty plans (FMP) the YTM of the instruments in which the fund invests provide a broad indication of the returns that can be expected from the fund. However, in other cases where the fund may sell bonds before matutity, the YTM is not necessarily the return an investor gets on his fund.
A short term fund may for instance hold long term debentures but this does not mean it holds the instruments for the long term. The fund may have entered such instruments in the secondary market at a time when residual maturity is not too high.
Modified Duration: Modified duration measures how sensitive the fund portfolio is to changes in interest rates. The price of a bond and yield on the bond are inversely related. When interest rates decline, bond prices rally and vice-versa. Modified duration captures the extent of price changes for a given change in the interest rates or yield.
If the modified duration of a portfolio with average maturity of five years is four then every one percent move in the yield of a five year bond the portfolio value or price moves 4 percent. Generally it is prudent to hold longer druation portfolios during a falling interest rate cycle.
Credit Rating: A credit rating is a opinion on company's ability to repay loans given to it both the interest payout and principal repayment. The higher the credit rating, lower the chance of default. Therefore invetor can look at the credit rating of the instruments in the portfolio and figure out whether the fund is taking a risky bets to imporve yields or if it is managing reasonable returns actively chruning the portfolio.
Yield to maturity (YTM) This is the annaulised return the fund will get if all the instruments are held until the respective maturity (without selling them before they mature) while the coupon rate is the interest receivable on the face value of each bond, the ytm is based on the current market price of each bond ( or fund)
It is return calculated on the current market price of the bonds in the fund using the interest receipts (coupon rate) and maturity amount as inflows
For investment at face value YTM will be equivalent to the coupon rate. In products such as fixed matuirty plans (FMP) the YTM of the instruments in which the fund invests provide a broad indication of the returns that can be expected from the fund. However, in other cases where the fund may sell bonds before matutity, the YTM is not necessarily the return an investor gets on his fund.
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