Stocks: –
Stock (also known as equity) is a security that represents ownership of a share of a company. It entitles the owner of the stock to a ratio equal to the assets of the company and the profit of the stock they hold. A unit of stock is called a ‘share’.
Stocks are primarily bought and sold on stock exchanges, although they are also sold privately and form the basis of many individual investors’ portfolios. These transactions have to comply with government regulations that are intended to protect investors from fraudulent practices. Traditionally, they have outperformed most other investments over the long term. These investments can be purchased from most of the online stockbrokers.
Companies issue (sell) stock to raise funds to operate their businesses. The holder of the stock (shareholder) has now purchased a piece (or share) of the company and may have a claim on a portion of the company’s assets and income, commensurate with the type of share held. Ownership is determined by the number of shares owned by that individual in proportion to the number of shares outstanding. The stock holders do not become the owners of the company, they own the shares issued by the company.
There are mainly four types of stocks
- Value Stock
- Growth Stock
- Dividend Stock
- Cyclical stock
Now you will know the types of stock 1st is Value Stock
-Discounts are available in value stocks, which they discount even in the price they are fixed, and sometimes the company also gives a discount on its profit at the value stop, meaning some part of its profit is distributed to its shareholder as Dividend. it is called value stock
2nd is Growth Stock
-The company which maintains profit continuously or the profit is less is called growth stock. Such a company is able to manage its profits continuously, whether the Dividend stock in such a company is low or not, it is not certain whether such a company will give Dividend to its stock holder or not and as such Stocks are the most risky means Growth stocks have the highest risk.
3rd is Dividend Stock
-The company generates the profit amount; the company distributes some part of its profit to its share holders.
4th is Cyclical Stock
-The profit of the cyclic company is linked with the economic, if the economics is good then the profit will also be good for the company and if the economic is bad then the company will not profit. The cyclical stock is linked to this.
There are other two types of stock (It is also very good for you)
1st is Blue-chip Stocks (Blue chip stocks are the stocks of those companies which are leaders in their sector and have large capital. Blue chip stocks are reliable and investors’ first choice. Because this stock is capable of earning profit regularly. It can be more profitable if invested in blue chip stocks for a longer period of time.
2nd is Penny Stock (Penny means money. Those stocks whose value is very low (i.e. from Re 1 to Rs 35) and the market capital does not exceed 100 crores are called penny stocks. Investing in penny stocks is not considered safe; these stocks carry a lot of risk).
Bonds – The bonds issued are also called ‘Letters of Debit’, as the bonds are in the format of a letter (letter). On this letter, the face value of the bond or the price of the bond is also written and the interest rate (interest rate) available on it is also written. The coupon rate also refers to the interest rate of the bond.
The way when you need money, you either fulfil that need by saving or you take a loan from someone. In the same way, when the government is hit by fiscal deficit or money is needed for important works, the government issues bonds (BOND) to collect money. The government issues this bond for big investors (BIG investors) and common people (Common People).
By the way, the tenure of the bond i.e. the time period can be from one year to five years or ten years or even more. The maturity period of the bond is also called the maturity period. And when the bond period is over, you get your money back as per the prescribed terms and conditions.
Now you can read about types of BOND
- Government Bond
- Corporate Bond
- Municipal Bond
- High – Yield Bond
1st is Government Bond (When the government needs financial support for government work, it issues bonds and raises funds through it. Let me tell you, government bonds are also called Treasury bonds. The money collected from government bonds is invested in government schemes).
In government bonds, you get a lot of interest in comparison to the bonds of other companies, but its biggest advantage is that there is no possibility of your money sinking in it. The responsibility of this money lies entirely with the government. That’s why government bonds are considered quite safe.
2nd is Corporate Bond (Corporate bonds are those which are issued through the private sector. Corporate bonds offer higher returns, but also carry a lot of risk. Therefore, before investing in corporate bonds, you should have complete knowledge about the company from which your money is safe).
3rd is Municipal Bond (When a local government or municipal corporation needs money to complete its project, to build roads or schools or for government works, then the local government can also issue bonds. This type of bond is called (Municipal Bond). These are also very safe and get good interest rate on them too).
4th is High – Yield Bond (This bond is a good option for those investors, it has the highest risk and with it high returns are also available. For this reason it is known as High-Yield Bond).
How to Buy a Bond in India
You need to be a citizen of India to buy the bond. If you want, you can buy the bond in your own name or even in a joint. If you are a minor then you can also buy bonds in the name of your parents, you just need to be an Indian citizen! You can also buy bonds through online or you can also buy bonds by visiting your nearest bank branch. You can buy easily with the help of a broker.
Options –
Trading in options allows you to profit from the value of the share without paying the full value of the share. They give you limited control over a stock’s share of stock for very little money compared to the money needed to buy the stock outright. The concept of option can be understood with this example. For example, when you plan to buy some asset, you may have placed a non-refundable deposit to hold the same for some time while evaluating other options. This is an example of an option type. Similarly, you might have heard that Bollywood is buying an option on a novel. In opting for a novel, the director buys the rights to make a film on the novel before the specified date. In both the house and the script case, someone has put some money in for the right to buy a product at a certain price before a certain date.
The same is true of buying stock options. Options are contracts that give the holder the right to buy or sell a specified quantity of a certain stock at a specified price within a specified period of time. A put option gives the holder the right to sell a security; a call option gives the holder the right to buy a security. However, such contracts give the holder the right, but not the obligation, to trade the stock at a certain price before the specified date.
Now you can read about types of options
- Call Option
- Put Option
As mentioned earlier, there are two types of options, call and put. A call option gives the holder the right to buy the underlying stock at the strike price at any time prior to the expiration period. In general, as the value of the underlying instrument increases, so does the value of the call option.Conversely, put options give the holder the right to sell the underlying shares at the strike price on or before the expiration date. When the value of the underlying instrument decreases, the value of the put option increases? A put option is one in which a person can secure a stock against a subsequent price fall. If the value of your stock goes down, you can take your put option and sell it at a predetermined price level. If the stock price goes up, you only lose the premium amount paid.
What do the terms option premium, strike price and spot price mean?
The price that a person pays for a call option/put option is called option premium. Strike Price reserves the right to buy and sell that particular stock at a fixed price. In other words, the strike price is the fixed price at which a holder of a stock option can buy the stock. If you decide not to exercise the option to buy the stock, and you are not obligated to do so, the option premium is the only cost. Premium of an option = Actual Value of the Option + Option Time Value, the price per share for which the underlying stock can be bought (for calls) or sold (for puts) as stated by the option holder at the time of exercising the option contract, called the strike price They say. The spot price is the current price at which a particular commodity can be bought or sold at a given time or place.
Real Estate-
Now you can know about real estate (Real estate is a state that helps any person to get air rights and land rights in a particular place or building. The English word real means real, so real estate can be estimated from real and physical assets as well).
In simple language, doing the work of buying and selling a plot, house, shop, building, flat etc. is called Real Estate Business. Presently real estate can be divided into four parts residential, commercial, and industrial and plot real estate.
Today we are going to tell you how you can earn money in real estate. By the way, there is no need to introduce much because there are many industrialists in India who started their business without investing anything in it and are at a very good position today. Not only this, if you look around you too, there will be many people in your knowledge who will be earning well by investing in real estate. So let us tell you the ways in which you can earn good money in real estate today.
Friends’ ways to make money in real estate
-The easiest way to make money in real estate is to become a landlord. Yes, if you want to earn money in this field then this will be the easiest way. There are many cities like Delhi, Mumbai, Kolkata, and Bangalore where people earn well by seeing their house on rent.
-Nowadays the needs of people keep changing and they also need facilities according to their needs. Technology has achieved so much success today that people search for everything they need on the Internet. And if they like something on the internet, they agree to buy more to see it for real. And this is the reason that property sellers get property photography done by a professional. In such a situation, if you become a real estate photographer, then you can earn quite well.
-Most of the people think that he can earn only from his property. But this is not true if you do not have your own property and still want to get into the business of real estate, then you can also follow the method of managing property in real estate. There are also many people in this work who do the work of taking care of property and collecting rent for real estate companies and earn quite well. If you live in cities then this opportunity will be even better for you because many real estate companies and clients are available in cities.
-Landscaping business or lawn care is one of the most lucrative professions in the agro-based service industry. You can also do this relaxed business from home. For this business, it is necessary to have good communication skills and a little knowledge about the business.
-This method is the easiest and most popular. Real estate agent is one such job that has changed the lives of millions of people in India. Real estate agent is also called as property dealer. In the earlier times, any person became a property dealer, neither had they to get any registration done nor there was any special law regarding all this. But now to join this work, people have to register as a real estate agent.
Crypto currencies –
Today’s very popular and important topics is this one. In other words, crypto currency is a virtual currency based on Block chain Technology, which is secured by Cryptography. It is almost impossible to copy. In fact, crypto currency is a peer-to-peer cash system built on a computer algorithm. That is, it does not exist physically.Governments implement other currencies like Rupees in India, Dollar in USA, and Euro in Europe etc. in the whole country and are used in the same way this currency is also used in the whole world. But the thing to understand here is that the government does not have any hand over these crypto currencies because they are decentralized currency, so there is no authority from any agency or government or any board over them, due to which their value has not been regulated. You can go.
If we do Crypto currency first, then it will be Bitcoin which was first brought into the world for these works. If we see today, there are more than 1000 Crypto currency in the whole world, but only a few of them are more important, about which we will know later.
Now you can see how to invest in crypto currency?
You can start crypto currency trading by creating your account on these cryptocurrency exchanges. For this, first of all you can buy whatever cryptocurrency you like with rupees or dollars and when you are getting profit from it then you can send it, in this way you can earn money from cryptotrading.
Some advantages of cryptocurrency(Now let’s know about the benefits of some CryptoCurrency)
- The chances of fraud in cryptocurrency are very less.
- If we talk about Cryptocurrency, then they are more secure than normal digital payment.
- In this transaction fees are also very less if we talk about other payment options then.
- In these accounts are very secure because different types of Cryptography Algorithm are used in it.
Some disadvantages of cryptocurrency (Now let’s know about the disadvantages of some Cryptocurrency) - In cryptocurrency, once the transaction is completed, it is impossible to reverse it because there are no such options in it.
- If your Wallet ID is lost then it is lost forever as it is not possible to recover it. In such a situation, whatever money you have in your wallet is lost forever.
Different types of cryptocurrency:- - Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Dogecoin (Doge)
- Tether (USDT)
- Binance coin (BNB)
- Solana (SOL)
- Ripple (XRP)
- Polygon
I sincerely hope that I have given you complete information about what is Cryptocurrency and I hope you people have understood about Cryptocurrency.
Commodities – The way we buy any commodity i.e. commodity like grains, spices, gold for our daily needs, similarly these commodities are also bought and sold in the stock market. Their buying and selling in the commodity section of the stock market is called commodity trading.
The way we buy any commodity i.e. commodity like grains, spices, gold for our daily needs, similarly these commodities are also bought and sold in the stock market. Their buying and selling in the commodity section of the stock market is called commodity trading. It is slightly different from trading of shares of companies i.e. equity market. Commodity trading is mostly done in the futures market. The ban on commodity trading was lifted in India after 40 years in 2003.
In general, commodities are classified into four types. - Precious Metals – Gold, Silver and Platinum
- Base metals – copper, zinc, nickel, lead, tin and aluminium
- Energy – Crude Oil, Natural Gas, ATF, Gasoline
- Spices – Black pepper, coriander, cardamom, cumin, turmeric and red chilli
- Others – Soya Seeds, Menthe Oil, Wheat, Gram
Commodity & Stock Market Trading
There is a fundamental difference between commodity trading and stock market trading. In the stock market, you can buy shares once and sell after many years, but in the commodity market, business is done only in two-three near months. Therefore, it is necessary to follow a certain period in buying or selling a deal. It is similar to equity future trading.
Investing in commodities beneficial for diversifying portfolio
According to experts, in order to diversify the portfolio, one should invest in equities as well as commodities. This can take advantage of price fluctuations. However, retail and small investors should be very careful while investing in commodities. Market volatility and little information can sink all the money. It is important for investors to know the demand cycle and what factors affect the commodity market in this.
What is the role of Indian Commodity Exchange?
-The Indian Commodity Exchange is the organization that provides a platform for trading in commodity futures. Like stock market provides space for trading in equities. Presently there are 95 commodities available for futures trading which are within the guidelines and framework issued by the regulator Forward Market Commission (FMC). There are currently 3 National and 22 Regional Exchanges functioning in India.
For You – To become a successful trader in the commodity sector, it is important that you never invest your entire capital in trading. You invest only a fixed part of your capital (20 per cent) in commodity trading. Keep in mind, in commodity trading; it is often the same people who are seen taking losses who trade using their full capital in this sector.
How much can we earn from commodity trading?
-If you are interested in commodity trading: You can set your daily target for the same. And yes, it is possible to generate an income of Rs. 500-1000 per day on a capital of Rs. 6000 off commodity trading.
Futures –
When we deal in futures, we have to sign an agreement in which we promise to fulfil this agreement. The futures price and spot price of an asset are different and there is a formula to calculate the future price. The minimum number of shares that have to be bought to make this deal is called a lot.
Future Trading in stock market: –
Futures and Options trading in the stock market is one such investment. Future trading follows the process of futures contracts and stock exchanges act in the role of an intermediary, so that the interests of investors can be protected.
Benefits of future trading
-Future Trading is fair and clear. It is monitored by SEBI which makes the agreements fair for both the party.
-It makes traders efficient with the idea of the future price of a stock
-Based on the current future price, it helps the trader to determine the future demand and supply of shares.
-Futures trading involves less cost as the brokerage charges on futures contracts are low.
Disadvantage of Future Trading
-If the market conditions oppose the predictions made, the trader may face large monetary liabilities.
-Futures contracts are time dependent, parties must regularly complete deals, hence maintaining capital becomes critical.
Hope you now know what is futures trading and how to trade in future.
Investment in Gold
Some popular statement about gold investment (Gold is considered to be the top-class investment tool for investment. Experts are giving advice for long term investment. There are speculations that gold can give good returns in the coming days. Gold Investment Plan: Gold has always been the first choice of Indian investors).Also, with the advent of Gold ETFs, it has become easier for investors to buy gold. Investors can buy Gold ETF online and keep the units in their Demat account. An investor can buy and sell gold ETFs on the stock exchange. Gold ETFs are entities against physical gold, which can be in demat form or in paper form.
How to invest in gold?
Some important types for investment in Gold.
-Invest through Gold ETFs- A Gold ETF (Exchange Traded Fund) is an instrument that is based on the price of gold or invests in gold bullion. A Gold ETF specializes in investing in a range of gold securities. Such diversification can reduce your risk to some extent.
-Buy Gold Direct- You can buy gold directly in the form of coins or bullion. You will then keep physical quantities of gold with you, which can then be sold.
-Buy shares in a gold company- You can buy stock in a company that makes gold. This is an indirect exposure as the asset class would be equity, but the company involved in the gold and would benefit from the fluctuations in gold prices.
Some Important question from customers
Is it necessary to invest in gold?
Gold has proved to be a great investment option. It has given good returns as it is considered as one of the best ways to diversify a portfolio of investments. Furthermore, the value of gold never depreciates, which means that if you invest in gold, you can be assured that it will deliver excellent returns.
Is gold a good investment option?
Gold is a great investment option, especially if you want to diversify your investment portfolio. Gold is also an ideal option if you want to secure your investment. You can be assured that you will never run into losses.
Is it necessary to have a demat account to invest in gold?
Yes, you need a demat account. These are like stocks and shares, and hence you need a DEMAT account to buy SGB.
Does the price of gold decrease?
Gold, like any other investment, does depreciate in value, but it will never be less than the value of the amount you buy. In other words, the price of gold will never fall so much that you will not get any return on investment. Thus, even if the price of gold fluctuates, it will never fall below your purchase price.
About PPF Investment
What do you mean about PPF investment?
Public Provident Fund scheme is a good option for this. This scheme is for all the people of the country. From child to elderly one can invest in this scheme. The biggest advantage of this investment with a lock-in period of 15 years is that it earns more interest than other investments. Public Provident Fund or PPF is a government-backed small savings scheme with high yields. Its purpose is to create long-term wealth for investors after retirement. PPF also acts as a tax-free mode of investment. Investors can invest Rs.500 in a minimum year.
A big advantage of PPF account
One of the major advantages of PPF account is the tax saving. The amount deposited in this account, interest earned on it and the amount received on maturity are not taxable. PPF is called a scheme with triple tax benefit. You can claim tax exemption on the maximum amount deposited in this account up to Rs 1.5 lakh.
Interest rate for PPF account
As of the first quarter of the financial year 2022-23, the PPF interest rate is 7.1% per annum. The interest rate applicable on PPF is decided by the Ministry of Finance which changes every quarter (every three months). You can use the calculator to get PPF returns based on different interest rates.
A simple example for PPF account and a calculation for return your investment.
If you invest Rs 33 per day in your PPF account, then the value of your monthly investment will be around Rs 1,000. This means that per year, you are investing a little less than Rs 12,000. If you do this from the age of 25 to the age of 60, then after a total of 35 years, you will get Rs 18.14 lakh after reaching maturity till the time of your retirement. This amount will be completely tax free and the total interest earned will be around Rs 14 lakh. The total amount deposited by you in 25 years will be Rs 4.19 lakh.
What do you need to open a PPF account?
To open a PPF account, you will need the following documents:
Identity Proof (Voter ID / PAN Card / Aadhar Card)
Proof of residence
passport size photographs
Pay-in-Slip (Available at Bank Branch/Post Office)
Enrolment Form.
PPF account Can be closed even before maturity
In case of life-threatening illness of the PPF account holder, spouse or dependent children, the entire amount of PPF can be withdrawn. Apart from this, PPF account can also be closed before maturity in case of higher education of the account holder or dependent children, in case of change of residence status of the account holder (i.e., became NRI). PPF account can be closed after completion of 5 years of opening. On doing so 1% interest will be deducted from the date of account opening/extension date to the date of closure of the account.
If the account holder dies
In the event of the death of the PPF account holder before the maturity of the account, the nominee can withdraw the entire amount of the PPF account, even if the PPF account has not been opened for 5 years. After the death of the account holder, the Public Provident Fund account will be closed and the nominee/legal heir will not be allowed to continue with the PPF account.
How to open PPF account offline?
Most of the banks provide the facility to open PPF accounts online. However, you can also open a PPF account offline at your nearest post office. The step-by-step guide is as follows- Obtain an application form from the nearest post office or sub-post office in your area. Fill the form and submit it along with required KYC documents and passport size photograph. Preliminary required for opening a post office PPF account the deposit is Rs 500 and the maximum amount allowed initially is Rs 70,000.However, the maximum deposit amount allowed within a year is Rs 1.5 lakh.Once all the documents are submitted along with the initial deposit, a passbook for the PPF account will be handed over to the applicant. The passbook will contain all the details like account holder name, PPF account number, branch name etc.
How to open PPF account online? How to Open PPF Account Online at Home?
If you are an SBI customer, you can open a PPF account online anytime, 24X7. The process is instant and paperless. Here is a step wise guide:
Important point:
You must be an SBI Bank savings account holder.
You must have Net-Banking / Mobile Banking enabled for your account.
Your Aadhaar number should be linked with your account.
- First of all login to your bank’s net banking.
- Now click on the given link to open PPF account.
- Some banks ask you to select an option either self or minor. Choose the option suitable for you.
- You enter the details like nominee details, bank details.
- Now your permanent account number or other details may appear in front of you. Verify all the details correctly.
- After entering the details, enter the amount you want to deposit in your PPF account.
- Also you can give standing instruction
- Different banks have different process. In such a situation, you may have to verify the transaction with OTP or transaction password.
- After completing all the steps, the PPF account will be opened.
Annuities: – Today we will know in detail about Annuity
Annuity is a type of investment plan which is useful for retirement of most of the people. This plan is sold by most of the insurance companies. In this plan, the investor can invest in lump sum or in pieces. After the retirement of the investor, he gets a fixed amount as pension out of the deposit amount and his interest. This amount can be received till the life of the investor, after the investor, he can also get it till his spouse is alive. It all depends on the type of annuity plan the investor chooses. If the investor chooses a fixed percentage of pensions, then his risk will be reduced and the insurance company will have to bear the risk.
There are two types of annuity according to the time of taking pension,
Immediate Annuity
Deferred Annuity
Now I am describing about it.
Immediate Annuity – If the investor starts taking pension immediately after investing a lump sum in an annuity, then it is called Immediate Annuity. This type of annuity plan is a better plan for investors who are nearing retirement or who have retired.
2nd is Deferred Annuity – Investor can invest slowly in Deferred Annuity and can take pay out after few years. This is better for those investors who have a lot of time left to retire. In both of these, investors can take their pension from a fixed percentage or according to the return received in the option invested. Like you can take pension at 7% per annum or you can take it according to the return received in the investment option. In both the cases, the investor can choose the period of receiving such pension every month, every year.
Is there any tax benefit on investment in Annuity?
The amount invested in Annuity is tax free under section 80C but pension received from it is not tax free. On top of this, the investor will have to pay tax according to his tax slab.
Who should invest in Annuity Plan?
Withdrawing money back before maturity in annuity attracts very heavy penalty, so this plan is not good for all investors. It is good only for those investors who know that they have to pay the amount invested in annuity prematurely. Will not be needed?
If all the other investors can bear the decrease or increase in the interest rate, they can get a certain amount for themselves by investing in the monthly income plan of the post office. So friends, this was our information for Annuity.
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