Richers Diary

Hello Readers.. January Month has passed and the planning to save tax has started for lot of employees. This time everyone is interested in the tax saving instrument where they can invest their money. But due to lack of time, they are not able to compare all instruments which can provide them with a better return. What is ELSS????? ELSS stands for Equity Linked Savings Scheme where a person can invest his extra income from his tax slab and can expect a better return in future. This ELSS is totally stock market's dependent tax saving scheme. This is available in the form of a mutual fund which is an open-ended diversified long term plan. Money can be invested in this scheme through SIP or Lump sum mode. Anyone who adopt this scheme for tax purposes, can get upto Rs. 1.5 lac deduction from u/s 80C. Among other schemes like PPF, KVC, NSC or Tax saving FDs, only ELSS has 3 years of lock-in period. Why should someone choose ELSS?? ELSS fulfills the purpose of tax ...

Hello Readers, Planning a proper financial portfolio is not an easy task. Nowadays people are getting aware about savings and investments but they don't get proper information on where should they can invest for good return and safety. Security of capital is major concern of traditional investors where they are ready to compromise with higher returns but cannot take risk of capital loss. In India, where incomes are low and saving ratios are also not in good position. Here people have hardly knowledge of other way of investing other than bank FDs and RDs. But one thing people love to invest is Gold which is traditional way of low risk high return conceptual investment. Today I will share you one of the safest investment where you can get assured return. In traditional way of investing, people like to invest in physical gold and when value increases, they sell at market price and book profits. But in between of buying and selling gold, people have to take care of gold in a w...

Nowadays, everyone is familiar with 'Bank' and related terms. Here, I will not be explain the meaning of bank however, we will look at an interesting fact about where the word 'Bank' originated from? There are two interesting stories behind it which everyone should know. The word 'Bank' came from the word 'Bench'. Before 12th century, in Rome (Central Itly), local merchants used to do their business using bench. Their main work was to give loan to public and to take interest against the loan. They also kept safe deposits of excess wealth and issued repository notes to their customers. The bench they used for trading was not ordinary. Those were made of fine wooden work with precious coins of gold and silver fixed on them. The size of coins was symbol of status for every merchant. As the time passed, the word 'Bench' became 'Banco' and then gradually it transformed into 'Bank'. In same way few other words also came with Bank...

Mutual funds  are best options for savings and achieving our goals. But when an investor goes to invest into mutual fund, he finds difficult to select which fund would work to be the best. There are various mutual funds schemes out in the market, and I would guide you today to not choose these funds because of certain reasons. Lets start. Nowadays, in every sector there are few negative techniques to grow business. For example, in medical sector, pharmaceutical firms are offering their medical representative, an attractive commission to build up their business revenue and MRs (Medical Representatives) are not focusing on customer benefit in front of their own. In a same way, Mutual funds companies are also offering the same offer to boost up capital into fund schemes and few financial advisers mostly advise us on the basis of their high commission, not on the basis of our goal. It is not sure that all financial advisors are greedy but before choosing any mutual funds on ...

It is also called "Day Trading" where a trader trades with stock or other financial securities within a day. In this trading method, stocks are traded (Bought & Sold) in a market time which is 9-15 AM to 3-15 PM from Monday to Friday in India. Every trader trading in intraday has to open & close his stock position on a same day itself. Intraday traders take one of the highest level of risk with their own capital. When share market moves up and down within a day, they try to utilize their capital with this  movement. Why should one participate in Intraday trading: 1. Higher margins available to traders compared to investors. 2. High return potential. 3. Lower brokerage charges, especially with the Free Intraday Trading (FIT) option. Important guidelines for Intraday trading As it seems easy to earn profit by Intraday but one disconnect with time and analysis can wipe out your whole capital within second. So Before choosing any stock, follow the gui...

Hello Readers, Today I would be sharing few easy tricks that can eventually change your change your monetary status. Sometime we see that a person earns well but his status remains the same and doesn't change with change in increment. So here comes few habits which if implemented, can surely build up your monetary status in long term: 1) Control your Borrowing habits: Today its easy to apply for loan and an option to repay back using simple EMIs. But when we repay the loan, money is charged more than its worth. It is true that facility of taking loans from banks or traditional ways fulfills our short term needs but in long term it decreases our lifestyle. To maintain balance in lifestyle we again opt for loan. I higly recommend you to leave these cycles of borrowing habits. We should always borrow wealth for productive tasks which can create wealth after repayment. 2) Say No to Smoke and Alcohol: Nowadays, people are spending a significant amount on their bad habits. ...

Employees Provident Fund Organization (EPFO) is India's one of the largest central  government organization, which regulates the Central Board of Trustees, a statutory body formed by the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 and is under the administrative control of the Ministry of Labour and Employment, Government of India. It provides to all industrial labour, a retirement benefits scheme which covers two major benefits after retirement that is: 1) Provident Fund 2) Pension Fund Provident Fund In this scheme, an employee get a lumpsum amount after retirement. He contributes a deduction from his salary during his working life and this small drop of contribution become an ocean at retirement. Pension Fund This scheme provides a fixed monthly income for life time after retirement. The same contribution which deduct from once salary for provident fund, a part of it goes to pension fund and secure for monthly payments. How it works?? Du...

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 ...

Capital markets is a part of financial market, where companies raise funds for their business needs by equities, bonds, derivatives etc. Capital market plays a important role in county's economic development. In this market, buyers and sellers trade with long term financial instruments. We can divide capital market into two parts. One is primary market and second one is secondary market. In primary market, companies initially offer their securities to public by Initial public offering(IPO) and trade directly with public. Other side, in secondary market, buyers and sellers trade with equities and debt, previously issued in primary market. Secondary market also known as stock market or stock exchange. Capital market is regulated by Securities and exchange board of India(SEBI). SEBI controls all the activities of all companies and take care of public interest. Thanks Saurav.. 

Financial Market Financial Market is a place where buyers and sellers trade with short term and long term financial instruments like share, debenture, bond, loans, currencies etc. It is a very large in size. We can categories the Financial Market into two parts. One is money market and second one is capital market. In money market, we always trade with highly liquid and short term financial need with less then one year of maturities like Certificates of deposit, Banker's bill, Treasury bills, Commercial papers etc. and other side, in capital market, we always trade with long term financial need. Here's any individual or corporate institution raise fund for there long term financial need through share, bond etc. For any country's economic growth, financial markets play a very important role because of its regulations, investors protection, highly liquidation of funds, time saving policy and transparency in trades. Thanks Saurav..

Crypto Currency Crypto currency is a digital, virtual and alternative currency which doesn't have any physical existence. It is called currency because its regulated by decentralized Authorities. If I explain it in easy way, so I can say that "Crypto currency is a decentralized digital currency with no physical existence. It is traded by peer-to-peer network system with proper ledger maintenance." Crypto currency is a currency which trades by one computer to another computer with no midway authentication. For example, if I transfer money one bank account to another bank account, money goes by different midways like VISA, NPCI etc. but crypto currency trades direct peer-to-peer network. But for prevention of fraud and ledger maintenance, it need a approval from public financial database. This electronic currency works on a strong distributed ledger technology, called Blockchain Technology. In which every single transaction records with proper detail one by one. Bl...

Currency All Currencies are Money, but all Monies are not Currency. Got confuse? Ok.. Here I am going to clear this. In my earlier post, I have given my view on Money . http://saurav1mukherjee.blogspot.com/2018/08/money-makes-life_11.html?m=1 Now here I am trying to explain you currency. As we know that world population can not govern under one roof. Its always govern by different countries. In which there is some huge populated countries like India, China etc. and some low populated country.  In every country, there medium of exchanges for life necessities are same which is money. But we can not use one country's money to another country. For example, I can not buy something by Indian Rupees in America and in same manner, Indian shopkeeper will not exchange his Goods and Services with US dollars. Although both, Indian Rupees and US dollar are money but do not have permit for exchange in other countries. Because there government only authorise these money to ...

Money As my post is related to money, so first of all my understanding of money is... "Money is nothing but a medium of exchange of our need with someone else" Our life is based on necessities like foods, water, clothes, home and other luxuries. We demand all these to get comfortable in life. But as we all know that resources of necessities are limited, so we need to distribute all the necessities with the help of any medium. Money, here helps us to exchange all the necessities with each other. We never consume money directly. We always give or pay money to get our necessities. So "Money is a medium of exchange of Goods and Services. Where we get our demands with exchange of money." We can not assume a particular things as a money because now a day money has different type and shape. As time is changing, money is also changing its form like virtual money, electronic money etc. Lets go deep about money, so the particular word "Money" came from the w...

Hello Guys, This is my first post. This blog will help me share my knowledge with you all. I will try my best to reach out all common and popular topics. Here I will give my views on Money related terms and vocabularies. I will explain here the easy way of understanding of monetary terms, policy and related aspects. I will share my opinion about how to save money, where you can invest your money, what should be the best period of investing it and simple financial planning. I only need your Like, share and comments on my views.. Thanks Saurav...