Richers Diary

It well said that a person lives his second childhood at old age. But before we turn again child, it better to plan something big. Today I will share my views on after retirement benefits. What is NPS?? National pension scheme is a after retirement benefits scheme in India. In which a person, age between 18-60, contributes a certain amount regularly in his working life and a part (up to 60%) of lumpsum corpus withdraw at his retirement and rest part of corpus use to buy a annuity to receive regular monthly income for rest of his life. On January 2004, Government of India closed its defined benifit pension scheme and launched National pension scheme in place of it. It said that all govt joinings after January 2004 will enroll on NPS and 10% of their Basic+DA will contribute in their NPS account. Employer will also contribute the same amount in their account. On 2009, the NPS opened for all sectors like private employees and self employed person. Why NPS is better? Amount con...

Stock broker is an individual or organization which have license to buy and sell securities, bonds etc. direct from stock market on behalf of their clients. For trading in stock market, everyone needs a stock broker who helps you to settle deal between company and you. Stock broker provides you demat account where you keep your certificates of shares, securities and bonds in soft copies. So before choosing any stock broker, some key points you should keep in mind. How can one choose stock broker?? There are two type of stock brokers:- • Full service provider • Discounted service provider Full service broker are generally known as traditional broker. They usually have online & offline presence for customers. They provide you many services like stock research, stock advice, investment banking, asset management etc. along with their investment platform. Offline presence of these broker help investors to solve their query easily. But as their services are so broad, so t...

Demat account is an account where we keep our certificates of share, bonds, mutual fund or securities in electronic format. The process of converting a physical document into an electronic document is called Dematerialisation whereas the process of changing electronic form to physical form is called  Rematerialization. Earlier we used to retain our all securities and bond in physical form where we had to take care of lots of paperwork. There was always a risk of losing  documents and receiving fake documents from fake companies. But nowadays, investors have options to open a demat account and keep their all documents of securities and bond in soft copies securely. Why should you have Demat account??? Trading in stock market with physical document is quite difficult due to validation of papers, checking identity and its time taking process however for seamless trading with no paperwork, demat account is best way to trade in stock market. Demat account holds all your c...

In order to understand Nifty50 and Sensex, we need to understand what is stock exchange index. As I have mentioned earlier that stock exchanges have thousands of company listed. It is very difficult to track their daily records and analyze the market movement as per the records. So every stock exchange picks ups some company belongs to various industries and sector as well as best performer in national economy. After selecting these company, stock exchange track their records and analyze them in daily basis. The summary of analytical report is called 'Index'. For example, suppose there is a classroom of 100 students finished an exam. Subject teacher cannot reach out to every student to know how tough or easy the paper was. So teacher can ask some of the good student about the paper and according to the responses, subject teacher can understand, whether its tough or easy for everyone. In the same way, stock exchange select different type of companies from different sector ...

Stock exchange is a place or platform, where stock buyers, sellers and brokers trade with each other. When any company plans to issue securities, it needs to be listed in stock exchange. In India, there are about 20 stock exchanges but two of them are generally considered, that are BSE & NSE. Bombay stock exchange (BSE) is Asia's first and one of the largest stock exchange founded in 1874. There are approximately 5000 companies list in BSE which trade securities, currencies and other financial instruments with their buyers and sellers. BSE uses an index, named SENSEX which gives all over performance report of all listed companies. National stock exchange   (NSE) is also Asia's one of the largest stock exchange founded in 1992. This was India's first demutualized electronic stock exchange which was fully automated screen-based electronic trading system. There are approximately 1600 companies listed in NSE. NIFTY50 is the index which NSE uses to measure perfor...

Mutual fund is an organized fund, where many investors put their money together for investment. Basically it is an institution, organization or company which invites people and collect money from them and creates a pool of money. After creating the pool, the fund manager who is expert in managing funds and highly qualified in finance sector, invests the money according to his knowledge and experience. Mutual fund is a safe way to invest money in stock market because all funds are managed by experienced fund managers who diversified your money in different sectors. But as performances of all mutual fund are based on stock market, so the value of money can be go up and down. Mutual funds are basically three types according to risk bearing capacity. 1) Equity fund 2) Debt fund 3) Hybrid fund Equity funds are those funds which invest its money to share and stock with high risk as well as high gain approach. Debt funds are those funds  which put its money to lower risk instru...

Savings “Do not save what is left after spending; instead spend what is left after saving". We never satisfy with our income and always try to earn more but in my opinion it doesn't matter how much we earn, however what matters is  how much we save from our earnings. Now a days everyone is saving money for their future needs but do they save money in proper plan? Here I am going to tell my opinion about how we can plan saving according to our earnings and can make our future better. According to me, two things are most important while we are planning for saving. First is your age and second is saving goal. By these two, we decide our saving platform and plans. Age :- I categorize a person into 3 ages according to monetary risk bearing capacity. These ages are below: 18-30 age people 30-45 age people 45-58 age people Before 18 and after 58, generally a person does not earn. So, first of all talk about 18-30 age group. This time your risk bearing capacity is ...