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Know about property investing

2012-02-19T03:14:00.000-08:00

You've little doubt seen them or scan them. shiny ads or four-color spreads in magazines and newspapers promising to show you all the juicy details regarding successful property investing. and every one you have got to try and do to find out of these property investing secrets is to pay a rather high add for a one-or two-day seminar.

Often these slick property investing seminars claim that you simply will build sensible, profitable property investments with completely no cash down (except, of course, the hefty fee you get hold of the seminar). Now, how appealing is that? build a benefit from property investments you created with no cash. Possible? not going.

Successful property investment needs money flow. that is the nature of any variety of business or investment, particularly property investing. you place your cash into one thing that you simply hope and set up can cause you to more cash.

Unfortunately too few newbies to the globe of property investing suppose that it is a magical variety of business where commonplace business rules do not apply. Simply put, if you wish to remain in property investing for quite, say, on a daily basis or 2, then you are going to own to return up with cash to use and invest.

While it's going to be true that purchasing property with no cash down is simple, anyone who's even created a basic property investment (like shopping for their own home) is aware of there is far more concerned in property investing that may price you cash. for instance, what regarding any necessary repairs?

So, the quantity one rule individuals new to property investing ought to bear in mind is to own on the market money reserves. Before you choose to really do any property investing, avoid wasting cash. Having a bit cash within the bank once you begin property investing will assist you build additional profitable property investments in rental properties, for instance.

When property investing in rental properties, you will need to be ready to choose solely qualified tenants. If you have got no money flow when property investing in rental properties, you may be pressured to require during a less qualified tenant as a result of you would like someone to pay you cash so you'll be able to lookout of repairs or lawyer fees.

For any variety of property investing, that means rental properties or properties you purchase to resell, having money reserved will permit you to raise for a better worth. you'll be able to raise for a better worth from your property investment as a result of you will not feel financially strapped as you look forward to a proposal. you will not be backed into a corner and compelled simply accept} just any supply as a result of you desperately want the money.

Another downfall of the many new to property investing is, well, greed. build a profit, yes, however do not become thus greedy that you simply raise for ridiculous rental or resale rates on any of your property investments.

Those new to property investing got to see property investing as a business, NOT a hobby. do not suppose that property investing goes to create you wealthy overnight. What business does?

It takes regarding six months to see if property investing in for you. If you've got set that, hey i like this, then provide yourself some years to essentially begin creating cash. it always takes a minimum of 5 years to become really successful in property investing.

Persistence is that the key to success in property investing. If you've got set that property investing is for you, keep plugging away at it and therefore the rewards are going to be larger than you imagined.

Ways to Get Free Grants for High School Students

2011-12-12T09:33:00.000-08:00

Pursuing a college education is an expensive proposition for parents and students alike. Paying for it likely will involve several different strategies, but chief among them should be to acquire as many grants as possible. Grants are better than loans because the money usually does not have to be paid back. A grant cannot be received unless it is applied for and there are more programs out there offering this form of financial aid than most people may realize.

Getting grants

While most grants for high school studentsare awarded based on financial need, there are other criteria that are considered. To have the best chance of being awarded a grant, parents and students need to plan early in the student’s career.

Course work – A student’s coursework during high school can put them in good position to be eligible for financial aid and to meet pre-requisites for college. Knowing what they want to study at the university level can help choose the right classes for preparation in high school.

Research – Have the student check with the high school guidance officers about potential grants that may apply to their situation. Information is also widely available through Internet searches.

Grant examples

There are multiple sources of grant funding for college, from federal and state government programs to local community organizations. Eligibility for most grants will require filling out an application. Some examples of grant options include:

Federal grants – The most well-known of the federal grants is the Pell Grant, which is based on financial need. There are other grant programs that can be added on to a Pell award as long as the student maintains a specific grade point average. For example, the Teacher Education Assistance for College and Higher Education program is geared toward those looking to go into the teaching profession. In return for up to $4,000 annually, students agree upon graduation to teach at a school that serves low-income families for at least four years.

State grants – Many states will offer students grants if they are attending colleges and universities sponsored by those states. These likely will be based on need and will require high scores on ACT or SAT tests. Check with the school’s financial aid office or the state’s department of education website for information on possible grants.

Employers – Some companies offer children of employees grants or scholarships for attending college. Qualifications may be need-based or dependent upon grade point average and class rank. Others may offer them to students studying for degrees necessary to the business.

While grants will not pay for all of a student’s tuition to college every bit that is awarded is that much more that doesn’t have to be paid for by the child or parents. It may require some advanced planning, including knowing early in high school what the student is going to want to study, but the extra effort will be worth it when others are working to pay back loans after graduation.

Guest writer Chirstina Lloyd writes for a website with lots of useful advice on how to get grants for college. She thinks it’s worthwhile for parents of high school students to research what financial aid is available.

Investing in gold, silver, and platinum

2011-12-08T21:44:00.003-08:00

Investing in gold and silver is a quick and easy way to make money at home. That is why you see all those street venders with carts buying people's gold: Gold is worth lots of money and has been for thousands of years. Though platinum is more valuable, its rarity in jewelry relative to gold makes it a poorer choice to invest in due to low volume, but you can still make lots of money off of it.

Investing in gold

Gold investments are the most common found online, and this is because gold is worth a lot of money. Also, many currencies used to have their values tied to gold, though now most are fiat currencies. Before you invest in gold, you need to get a credit report since you might need a loan for a big purchase, but after that it should be smooth sailing.

Investing in silver

Silver is another popular metal to invest in because precious metals, especially gold, hold their value during periods of high inflation and also during deflationary periods, though deflation is rarer. Silver is less valuable than gold or platinum but it is more valuable than copper, though the price of copper is very regional compared to the rarer metals. For example in Iraq it fluctuated after the U.S. Invaded because lots of copper wires were stolen.

Investing in platinum

Earlier, I said that investing in platinum is a bad choice compared to gold. But it is still a good metal to make money with. Platinum is the most valuable metal (other than dangerous ones) found naturally in the earth so you do not have to trade very high volumes to make money from buying low and selling high.

This is a guest post by Murray Newlands. Murray is a blogger who also advises other bloggers on how to make money online with in-text monetization services like Infolinks, INTENTclick, and Viglinks.

Insurance for Bros, Bro

2011-12-08T21:40:00.001-08:00

Are you a bro in a college fraternity? Do you know how to get car insurance? If not, look no further! It's your lucky day since I am sharing three great things frat members need to do to get car insurance in the United States and Canada!

First things first...

The first thing you need to do is get a credit check which should show you what your credit score is. Your credit score shows banks that you are (or are not) worthy of getting a loan, and it is also used by other people to whom you will owe money, like insurance companies.

This means that if you have a bad credit score, getting good insurance (which has higher premiums than bad insurance) will be hard. Unless you find the right company, you might face restrictions such as other people driving your car not being covered at the same level that you are covered at. Oftentimes states have minimum coverage levels and that is all that they will be covered by.

The next step...

Now that you have a credit report, you need to look at which companies have good reputations. Companies that are good might charge a little more but they will also give you better coverage. Do not forget to shop for auto insurance online; some of the best deals can be found on the Web!

And the final step is...

Buy insurance! Find a plan you like with your chosen company and purchase it. If they don't have any good plans, go back to your second-favorite company and look at what they have to offer.

This is a guest post by Murray Newlands. Murray is an expert on making money online and frequently advises people to make money on their websites with better alternatives to Infolinks.

Five Ways to Take Control of Your Finances

2011-12-02T23:42:00.000-08:00

Times are tight and everybody is looking for ways to save money. It might not be as difficult as people think. There are some fairly simple strategies for making money go further and last longer that can work for anybody.

Five tips for managing money

Whether the goal is to get out of debt, save for a special purchase or just get a little ahead, these strategies will help anyone manage their money better.

Set goals – Simply trying to save money or manage it better is too open-ended and often leads to failure. Setting goals helps people achieve something and serves as a reminder as to why they are making sacrifices. If the goal is to get out of debt, set a time limit to achieve it. Another goal might be to save enough to buy a particular car, or to go on a dream vacation.

Study spending – Spend a few weeks monitoring how much money is earned and where it is spent. Try to account for every cent. Many people believe they know where their money goes, but tracking it will provide proof as to where it is really spent. Honesty is important for it to work. Don’t fudge numbers and don’t try to justify expenses. Just keep track of them.

Budget – Once the flow of money is understood it’s time to set a budget. Set priorities such as monthly bills, gas and groceries, but be sure to add in some fun also. Just like exercise, there needs to be some cheat days built in or the process will become frustrating and lead to failure. Creating a budget can be boring at first, but as it becomes routine the value will truly be appreciated.

Save – At the very least a certain amount of income each month should be deposited into a savings account. This can be made easier by taking advantage of a direct deposit option through work. There are different types of savings accounts to consider. For example, many banks offer Christmas clubs or vacation clubs in which regular deposits are made into the account. At the end of the term, usually a year, the bank pays interest on what has been collected and returns it and the full deposit to the account holder. Another option is to set aside $5 or $10 a week in an envelope until enough has been saved to pay for a special night out or some other purchase.

End debt – Getting out of credit card debt can be extremely difficult. Once accomplished, being debt free means financial freedom. If multiple accounts are owed, pick one and begin paying as much as possible on it until it is paid off. Then pick another and start over. Pay the minimum amounts on the other cards.

Proper money management is an art form that has gone by the wayside as consumers are expected to spend, spend and spend to drive the economy. Being financially responsible means being able to reach goals without going broke.

Katherine Watkins uses these simple strategies to stay in control of her finances. She writes for a site that advises on HELOC vs home equity loans and features some useful home equity loan calculators for homeowners looking to borrow money.

3 Forex Day Trading Rules That You Can Follow

2011-11-26T01:11:00.001-08:00

Author:

Owen Moore

The Forex market is considered to provide great opportunity for investors to turn fortunate. The Forex market is an electronic system that is designed to allow traders irrespective of their location to speculate on the movement of certain currency prices. Traders can participate in the Forex market through many ways. One of the method that is widely used is day trading. Most people widely consider day trading to be one of the most profitable methods available. However, this method can lead to substantial losses if not correctly followed. Here we provide 3 most important day trading rules that will ensure you remain profitable if your follow them. You will experience substantial growth in profit if you stick to these rules.

1. Use Minimal Leverage

Leverage is considered beneficial because it allows to the investors to participate in high worth trade even if he has little funds in the account. However, there is greater level of risks involved and with no due care it can lead to massive losses. Although the leverage is meant to allow you benefit from high worth trades, never expose your funds to higher market risks than you can afford. If possible, minimize leverage to only the amount that you can afford to lose without much regrets. In addition, never let the prospect of making huge profits drive you to expose you funds to greater market risks. The best way you can do this is to work with a broker that offers minimal leverage.

2. Focus On Preserving Your Capital

Although the primary goal of trading is to make profits, do not let this make you expose lots of your capital to the market risks. As much as you want to make huge profits, you should be focusing on preserving your capital while participating in day trading. Many people have ended up making huge losses including their initial investments as a result of this drive to make huge profits within a short time. Trade in a way that allows you to enjoy steady capital growth while at the same preserving it. Even if you make little profits, it is worth as long as your capital steadily grows. Over time you will enjoy great profits.

3. Understand how your broker operates

To be successful with day trading strategies, you must have a deeper understating of your Forex broker operations. You should do this at the initial stage when researching for a Forex broker to commit to. There In the market you will find several Forex brokers, each offering different trading platforms, tools, terms and conditions. It is good to understand the kind of trading platform and the type of order execution used by your broker. Understand how to correctly use the trading tools that they offer and you will see yourself successful with your day trading strategies.

Conclusion

There are many other day trading rules that we have not discussed in this article although are equally very important. The rules that we have discussed are what you need to guarantee steady profitability. Even though most day trading rules require maintain small profits margins, they are very helpful because they greatly minimize exposure to higher levels of market risks. This is what makes most people fail to make it the Forex market; they want to make huge profits within a short. If you follow and stick to the day trading rules we have provided you will see yourself remain profitable in the long term.

Article Source: http://www.articlesbase.com/day-trading-articles/3-forex-day-trading-rules-that-you-can-follow-5416980.html

About the Author

These 3 are the fundamental things you need tounderstand on day trading. Read morenecessaryguidelines at <a href='http://fxbuild.com/day-trading-rules/'>day trading rules</a>. Check out theinformation ona brokerthat couldassist in day trading effectively at <a href='http://fxbuild.com/liteforex-review/'>LiteForex review</a>.

Five factors to consider when choosing a forex broker

2011-11-26T01:10:00.000-08:00

Author:

forexpromos

When you finally happen to be self-assured in the manner you are going to attempt investing in the foreign exchange market, combined with the capital administration principles you certainly will put it into action. It could be the perfect time to look for a beneficial fx broker. There are lots of forex brokerages on the market to select from consequently, it\'s worthwhile undertaking a few preliminary analysis prior to picking a fx broker. Several considerations to be aware of while selecting a fx broker consist of:

Minimal Spreads:

Typically the spread will be the primary manner for forex brokers to acquire their revenue. The spread is a variation involving the price from which you can purchase the currency, along with the cost at which it may be sold at any specific moment in time. While searching for a forex broker, be on the lookout on the spread expenses. Typically the smaller the spread is, the more revenue you will save as well as the faster you will end up building a profit in the swap.

Good Licensed forex broker:

In the US for example, forex brokers need to be listed as a Futures Commission Merchant (FCM) together with the Commodity Futures Trading Commission (CFTC) http://www.cftc.gov. They must additionally become a member of the National Futures Association. It is possible to confirm the particular forex broker's registration on their website and can be authenticated by the license number often displayed. In the event the forex broker isn't supported by a trustworthy institution, you should not bother with those forex brokers as it isn\'t worthwhile taking the risk.

An array of leverage choices:

Leverage is necessary to trade foreign currencies because of the fact that price movements are just fractions of a cent. Generally speaking, leverage is usually indicated in the form of a ratio involving the volume of money you will offer to the amount of money your forex broker is going to loan you. For instance, consider an illustration in the proportion for 200: 1. It indicates the fact that forex broker is going to loan a trader 200 times the capital you will provide. Really take into account the greater leverage you utilize, the greater chance there exists in getting a margin call, nevertheless, you have also all the likelihood of bigger profits and vice-versa. On the whole, when getting started using a tiny amount of capital, ensure that the particular forex broker you happen to be trading with provides a wide variety of leverage options. This can provide you with a lot more influence on the risk exposure you need to be ready to consider.

Numerous Trading Resources:

The vast majority of bigger forex brokers present you with a selection of investing resources to the clients. A lot of forex brokers can offer you with real-time forex price ranges as well as other many different resources. Ensure that your forex broker offers all of the resources you need to trade efficiently. Some other tools could possibly consist of: Real-time forex rate charting Technical analysis resources Fundamental research commentaries

Financial calendars:

The good forex brokers provide several kinds of trading accounts. As an example the most basic account size is referred to as a micro account. Micro accounts need you to provide a minimum of say $100, and with that you will be supplied a higher level of leverage. Leverage is needed to make money from these kinds of small amounts involving investing capital. Regular accounts also provide a baseline investment capital prerequisite, typically somewhere within $500 and $2,000. Ultimately it is critical to pick a broker which has the best leverage as well as services which meet your requirements to go with the amount of funds you might have committed to trading the forex market.

Customer care:

Foreign exchange is a 24-hour marketplace; consequently 24-hour assistance is important. Are you able to get in touch with the forex broker through telephone, e-mail, chat, and so on? Do the customer service associates appear to understand what they are on about? The caliber of customer care can differ substantially from one forex broker to another, thus make sure to look it over prior to starting a forex account.
By taking time as well as efforts to perform a preliminary exploration, it is possible to pick a dependable forex broker. This can basically help you save lots of stress and anxiety as well as issues you might come across in the event you ended up to consider any forex broker randomly.

Article Source: http://www.articlesbase.com/day-trading-articles/five-factors-to-consider-when-choosing-a-forex-broker-5417617.html

About the Author

ForexPromos.com is the leading resource for traders and investors looking for forex trading tools, market analysis, financial news and forex broker reviews.

Basics of Forex trading – What you should know

2011-11-19T23:52:00.000-08:00

The foreign exchange market, popularly known as Forex or FX, is a worldwide decentralized cash market where currencies of different countries are traded with the help of brokers. In this non-stop market, foreign currencies are constantly bought and sold across the local and global markets. Foreign exchange market trading is always done in currency pairs. The market provides opportunity to make large profit. But earning good money requires a lot of education.

Who trades in Forex market?

National central banks, commercial banks, security dealers, corporations, government of different nations, investment management firms and individuals through brokers trade in the Forex currency market.

Who is a broker?

Individuals can trade in currency market with the help of brokers. A Broker connects the buyers and the sellers in the foreign exchange market. They normally charge a spread for rendering their service. Electronic Communication Network (ECN) and retail Forex companies are the two types of brokers.

What is a spread?

Spread can be defined as the difference between the buying and selling price of a combined currency pair. Spreads are measured in PIPS (Percentage in Points). The only transaction cost you have to bear is the spread.

Why should you trade in Forex market?

Foreign currency trading has become very popular in the last few years as it enables investors/traders to make a lot of money. You can earn substantial profit by investing a small amount of money. Forex trading offers you the following advantages:

Non-stop trading: The currency trading market starts in Australia at 5.00 pm and closes in New York on Friday at 4:30 pm. Hence, it remains open non-stop for 24 hours providing you an opportunity to trade at anytime of the day.
Trade from any place: You can trade in this market from anywhere in the world with the help of a computer, internet connection and an active Forex trading account.
No trading limit: You can invest and trade huge amount of money every day as the market does not provide any daily trading limit. This helps you make high profit.
High liquidity: The foreign exchange market offers high liquidity. You can quickly convert huge sum of money into other country’s currencies. You can also convert your assets into their actual cash value.
High amount of leverage trading: The currency trading market offers you the unique advantage of trading in excess of what is there in your account. Brokers may even offer you leverage as large as 200 times of the amount you have in your account.
No commission: Generally brokers do not take any commission from you and enables you to keep the full profited amount.

If you are new to Forex trading, you can take help of an automated robot to trade. A robot is a type of software that automatically starts monitoring the currency market as soon as you install it. It can analyze the trends in the market 24 hours a day and open a trade only when the scenario is favorable. All these benefits make the foreign exchange market very attractive to traders.

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New Ways to Increase Investment through Immigration Proposed

2011-11-02T10:48:00.000-07:00

With the danger of double dip recession looming in the horizon, two Senators have proposed a bill to provide residence visas to foreign nationals that spend at least $500,000 to purchase properties in the United States.

The proposed bill crosses party lines, as Sen. Charles Schumer, a Democrat from New York and Sen. Mike Lee, a Republican from Utah, and aims to increase foreign investment in the US economy. This legislation aims to augment the short fall of home purchases by American who opt to sit out the recession instead of investing in properties to spur growth.

Currently, foreign nationals, mainly Chinese and Canadian purchasers, have steadily increased the number of properties bought in key property market areas such as South Florida, Southern California, Arizona and other markets. These investors have taken advantage in the sharp price falls of US homes and the slowdown of demand from the local American market. Another favorable condition is the higher value of their home currencies pegged against the US greenback.

Under the proposed plan, visas would be provided to individual foreigners who make cash investments totaling half a million dollars on residential real estate, be it a house, a condominium or a townhouse. The investors can sink the entire amount in one home or spend a minimum of $250,000 on a house and invest others in commercial real estate properties.

This program would complement other visa programs that require investments in new businesses that would create new jobs. It is expected that the large inventory of oversupplied homes would be bought by these investors, in lieu of Americans worried about their money and opting to hold off investments until the market fully recovers.

Overall, foreign buyers spent around $82 billion in US in real estate purchases for the year ending in March. This was a big jump from the $66 billion reported for the previous year. Foreign purchasers had a 5.5% market share in Miami while 4.3% of all home purchases in Phoenix were bought by foreigners in July, according to sources.

The visa package would allow the purchaser to enter, together with their dependents and spouse, the United States. They would not be allowed to work though without the required work visa and the purchase a home visa would be cancelled once the property they bought with the visa is sold to a third party.

The visa program would be separate and distinct from current programs to prevent any displacement of other visa applicants. There would be no quotas for this new home purchase visa program.

For a more comprehensive discussion on property investments, do visit us at US Bill Proposes Visas for People Spending 500000 or more on a House. Please visit the author's site The Property Community.

Know about Gold Exchange-traded funds (ETFs)

2011-11-02T01:19:00.000-07:00

Why should you invest in Gold?

Gold has become an essential part of a sensible investment portfolio, being seen as a safe haven while stock markets fluctuate.

Historically, gold prices have shown better stability even during periods of crisis, as compared to other investment types. Most experts advise investing in gold as a "must", since gold creates a robust portfolio that withstands market fluctuations. Gold has reflected providing stable returns in the long run.

With Gold Exchange-traded funds (ETFs), investors hold units of gold with a fund who has invested in physical gold.

Gold is a natural hedge against inflation and currency volatility.
Low Volatility as compared to Equities.
Gold price appreciation makes up for lost interest, especially in a bull market.
Listed and traded on NSE and BSE just like a stock -Easy Buying/Selling.
Quick & convenient dealing through Demat account.
No Storage & Security Issues for investors.

What is Gold ETF?

Gold ETF is a security listed on the stock exchange available for trading with an intention to offer investors a means of participating in the gold bullion market without the necessity of taking physical delivery of gold.

Gold ETF is correspond to the returns provided by designed to provide returns that, before expenses, closely domestic price of Gold. Each unit is approximately equal to the price of 1 gram of Gold.

In simple words investing in Gold ETFs is investing in Gold through dematerialized form.

Comparison of GOLD ETF's vs GOLD BARS vs JEWELLERY

Transaction Charges	Jewellery	Gold Bars	Gold ETF's
Purchase	Making charges of 15-20 %	10-20 % mark up charges by banks	Brokerage of 0.5% or even less
Sell	10-20 % is lost due to purity issues	Banks do not take it back, so premium paid at time of purchase is written off	Brokerage of 0.5% or even less
Maintenance	Insurance charges and locker charges (if you put in locker)	Insurance charges and locker charges (if you put in locker)	1.00%
Tax Implications	Long term capital gain, but after 3 years, plus wealth tax	Long term capital gain, but after 3 years, plus wealth tax	Long term capital tax of, but after 1 year. No wealth tax

How to trade in GOLD ETF?

Steps to Trade Online :

Step 1 - Log on to your Trading account
Step 2 - Click on Buy/Sell
Step 3 - Enter Script code (e.g HDFC Gold) & No.of units
Step 4 - Place your order

List of Gold ETF available

AXIS MF - AXIS GOLD ETF
BENCHMARK GOLDBEES
UTI GOLD ETF
HDFC GOLD ETF
QUANTUM GOLD FUND
RELIANCE GOLD ETF
RELIGARE GOLD ETF
SBI MF-SBI GOLD ETS-GO
ICICI PRUDENTIAL GOLD ETF
KOTAK GOLD ETF

Reference: http://www.hdfcsec.com/

Individual Investor Recommendations

2011-10-31T11:00:00.000-07:00

The concept is familiar to financial professionals, but rarely consider the individual investor. And 'the concept of a threat. In short, it means that you drive, a loser, if prices move more. Here are some examples:

The most obvious example is a hedge fund manager who has a stock "short". This means that the profits of the fund when the stock goes down and loses when it goes up. His risk is upside down.

Investment fund managers try to beat a specific benchmark. When they are in part out of the market, or a very conservative investment, the risk is reversed.

When a stock analyst to write a professional relationship, which recommends the stock, list all the factors, which may be problems with the company. When an analyst recommends against the owner of the store, lists all the things that could be better than expected. The risk is upside down.

This is an essential concept for the individual investor. It begins by analyzing your personal situation

Issues relating to key investors: What are your risks?

The average investor thinks only downward. Because of our natural instincts of man, well established in the psychological study of behavioral finance, we focus everything we could lose. This can have a chilling effect.

Meanwhile, a steady stream of new issues. This is the grain to the reports of the media every day.Professional cut through the news. They have a specific marketing plan, balancing risk with reward. Most retail investors do not have a solid plan - one with a specific goal and a process to achieve the objective. They often make the mistake of treating their investment as a game of poker, where they are "all inclusive" - or all out.

If you have all the money you need for your future, you need to preserve capital. I understand that interest rates are low, but safety is important. Be careful!Most of us are not in the happy situation. We need to create wealth, not only to preserve wealth.

If you have a great need for the future and you do not own any stocks, was undervalued.To understand the risk, you should ask yourself, what would you do if the market is going to 15,000? For 20 000? When you decide to buy? If you do not have a plan, it means that you will fail to achieve your goals.Every portfolio needs a balanced asset allocation. The correct answer is different for every investor.

Great victory

The professional investor views risk in terms of raising and lowering. The fan is in decline. That does not pose a decisive when there is opportunity and the units on the market to new heights. There is no better time to invest when there is the concern of many well known and well documented. A bad time to invest is when nobody cares.It is very difficult to understand and even harder to implement.

Indira Geffrys is a what is malware and financial expertinterested in economics, antivirus live, and different business opportunities.

Direct Equity Investing - Is it For you?

2011-09-11T23:39:00.000-07:00

People may think why not direct equity investing rather than investing in mutual funds? Why to pay 1.5% annual fund management fees to the fund managers?

Well, let me ask you the simple question.

What is the P/E or PEG ratio of Reliance Industries right now? And weather its over valued, under valued or fairly valued? If you don’t know the answer of this simple question than well, direct equity investing is not for you. You will surely burn your money in direct equity investing. To save that 1.5% annual fund management fee, you will surely do a large disaster with your money.

Many people also plan to invest in equity by following the advise of their friends/broker/brother-in-law. Well, this is not the right kind of equity investing.

Direct equity investing demands lots of time investment on daily/regular basis to research the markets and the best scripts in the market. If you are not going to invest this much time in the market than direct equity investing is not for you. You can’t build fortunes in direct equity investing by following your brother-inlaw's advise.

Returns generated by professional direct equity investing and mutual funds are exactly the same.
If you are going to invest in equity by following the advise of your friend/broker/brother-in-law than direct equity investing is not for you.
Mutual funds have a team of research analysts who take highly informed decisions on behalf of you.
Only go for direct equity investing if you are willing to invest 1-2 hours a day for equity market research

How to Invest in Indian Mutual Funds?

2011-09-11T23:31:00.000-07:00

There are three ways to invest in Indian Mutual Funds.

Buy Mutual Fund units directly from the fund house
Invest in Mutual Funds via Online Demat account
You can either visit the website of any mutual fund house and download the form and fill it with required documents and submit it to your nearest fund house office.

Simplest way to invest in mutual funds is from your online demat account. ICICIDirect.com, Shrekhan.com, HDFC Securities etc gives this facility. Many other online demat services in India also gives the same service. The best thing about investing through online demat account is that, you don't have to do any paperwork as everything is online. While in case of buying mutual fund units directly from the fund house, you will have to submit all the physical documents and lots of paperwork.

NRIs & Mutual Funds

NRIs can also invest in Indian mutual funds. However, according to SEC, the NRIs living in America can't invest in Indian mutual funds of US origin say HSBC, Fidelity & Templeton.
All the other Indian origin mutual funds are open for NRIs.

List of Demart provider in India

Icicidirect.com
Sharekhan.com
Reliencemoney.com
HdfcSecurities.com
Indiabull.com
MotilalOswal.com
Kotaksecurities.com
etc..

Systematic Investment Planning

2011-09-11T05:00:00.000-07:00

The Power of SIP – Always invest via SIP

SIP (Systematic Investment Plan) is the most powerful way of invest in equity via mutual funds and build wealth over the period of time.

SIP works like this – when the market is up, you will buy less units (automatically) and when the market is down you will buy more units (automatically). Over the time, this strategy will dramatically reduce your overall entry price in the market and gives your excellent returns.

In the real life people do exactly reverse means when the market is up, they run to buy stocks and the market is down, they sell their stocks and run away from the market.

SIP develops patience and systematic discipline in your investments and build huge wealth over time.

Start monthly but REGULAR SIP in equity diversified mutual funds since the first day of your active earning life and do this SIP for 10,15,20 or even 25 years or even more and see how wealthy you will become.

The compound interest is so powerful over the time that it will multiply your money in a breath taking manner.

Mutual Funds in India

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Mutual funds are the best and most cost-effective financial products to build wealth in India.
Mutual funds are available in all the varieties means equity, debt, gold, exchange traded funds, gilt…etc..
You don’t even need to invest in government bonds and bank fixed deposits because gilt funds and debt funds are available in the Indian market.
Mutual funds (Equity & Debt) are the best financial products available in India to build some serious wealth.

No need to invest in child future plans offered by insurance companies. Only 2-3 equity diversified mutual funds are enough to build enough wealth for your child’s future and for your retirement.
Start investing in equity diversified mutual funds as early as possible via SIP. Many people have a false belief that, mutual funds are costly and they will invest in equity by themselves. But well, mutual funds are so much professionally managed that its hard to beat the returns generated by them unless you have extremes levels of expertise in direct equity investing.

Mutual funds have 0% Entry load & 0% Exit load after 365 days of investing.
No other financial product is as cheap as mutual funds.
MFs charge 1.5% Fund management fees every year
All the insurance cum investment products offered by insurance companies are HIGHLY OPAQUE mutual funds which charge 20-100% entry loads by various charges so avoid them anyhow.
Exit from any insurance cum investment product and start SIP in mutual funds.

The Simple & Most Powerful Financial Planning Formula

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Term Insurance + Mutual Funds (Equity & Debt) + PPF

The most simple and the most powerful financial planning formula to build wealth , save tax and cover your life (insurance) is,

Term Insurance + Mutual Funds (Equity & Debt) + PPF

No other financial product is as cheap and as effective than the above simple combination. Term insurance will provide you adequate Life cover. PPF will save your tax and Mutual fund can build enormous wealth for you in the long run.

Importance of Term Insurance

One is never sure about life. We often come across people claiming that nothing is going to happen to them; that they are too young to pass away. But do they really know what the future holds for them? Individuals need to insure themselves to secure the future of those who are dependant on them; especially if they happen to be to only earners in thire family. You wouldn’t want your family to go through hardships or rely on others/relatives, etc. This, in fact, is the MAIN reason why one should buy an insurance policy! Also TAX saving is the another added advantage of term insurance.

Public Provident Fund

PPF is one of the best tax saving financial product in India. The mimium limit of PPF is Rs.500 and maximum limit of PPF is Rs.70,000 per annum which is tax free under section 80C and not only this but it also gives you 8% annual compounded returns which is best in India.

Mutual funds

Mutual funds in India are so much professionally managed, highly regulated by SEBI and cost effective (Entry & Exit loads are 0% after 365 days).No need to learn direct equity investing now a days. Equity mutual funds will do all the job for you. Equity multual fund can build enormous wealth for you in the long run that you can fulfill all of your and your child’s financial goals.

Top 10 Best Financial Products in India

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Below are the lists of best financial products available in India. For effective and successful financial planning you can invest in any of the below products according to your needs.

Mutual funds - Equity mutual fund is the best product which can help you to beat inflation and build ample wealth in long run. Mutual funds has only 1.5% annual fund management charge. No other financial product is as cheap as Mutual Funds in India as they will charge 0% Entry load and 0% Exit load after 365 days of investing.

Term insurance - Term insurance will give you enough life cover with very low premium. Please note that Insurance companies claim that their financial products like money back plans, pension plans, ULIPs, Child future plans etc are best products but well this is not the TRUTH. Term insurance is the only best product being sold by insurance companies.

PPF & EPF - PPF and EPF is the best product in India for TAX saving.

Stocks, Equity - Stocks and Bonds are also good to grown your money in long run.

Infrastructure Bonds - Infrastructure and other bonds are also good for TAX saving and generate steady growth of your money.

NSC, KVP, Post-office savings schemes - Government schemes like National saving certificate (NSC), kisan vikas patra (KVP), Post-office savings schemes etc are good for TAX saving and generate steady income for retirement.

Bank saving & fixed deposits - Bank deposits are good for those who don’t want to take any risk for example when you are retired.

Health insurance (Mediclaim) - Health insurance is also important for you and your family, which will cover your medical expenses along with tax saving.

Real Estate - Real estate in India if chosen carefully will give you good return in long term.

Gold & Gold ETFs - Investment in Gold and Gold related products are always profitable.

The Power of Long Term Investing

2011-09-10T05:52:00.000-07:00

Albert Einstein once said that, "The Compound interest is the greatest Force in the Universe". He also said that. "The Compound interest is the 8th wonder".

Investment is not only the game of money but it's the game of MONEY & TIME both. To build wealth and become financially stressful, you don't have to just invest lots of money but you will also have to invest lots of time to work compound interest work better in favor of you.

People who started early have invested more time and time is the important element of success of financial planning.

Lets see the formula of compound interest.

Consider the following four investors ages 25 – 55. Each invests Rs.1 Lakh per year in Equity Mutual Funds and earns 20% annually.

At age 60:

The investor who started at age 25 has over Rs.35 Crores (In 35 years)
The investor who started at age 35 has just over Rs.5 Crores (In 25 years)
The investor who started at age 45 has just Rs.15 Lakhs (In 15 years)
The investor who started at age 55 has just Rs.9 Lakhs (In 5 years)

The earlier you start the less you have to invest to reach your financial goal.

The person who starts investing at the age of 25 will invest 10 years more time than the person who started investing at the age of 35 and 20 years more time than those who start investing at the age of 45. The only way to become successful in the game of financial planning is you START EARLY & invest more time.

Investment Time Horizons

2011-09-10T05:18:00.000-07:00

The length of time over which an investment is made or held before it is liquidated is known as Investment Time Horizons. Time horizons can range from a day, in the case of a day trader, all the way up to decades for a buy-and-hold investor example real estate.

Before starting financial planning you should know various time horizons and its products, Depending on your need you can go with below mentioned time horizon.

Shortest Time Horizon (< 1 Year)

Shortest time horizon investment are not ment to grow your money, It’s just to maintain the liquidity of your money say for example Emergency fund. However for day trader it can be an investment but you cannot totally depend on such investment.

Cash on Hand
Bank Savings Accounts
Liquid & Money market mutual funds
Gold

Short Time Horizon (1- 2 Years)

Short time horizon investments are just to preserve the purchasing power of your money for the purpose of near future. You cannot expect very high return from it. Because of volatility equity is not ment for short time horizon.

Short term Debt Mutual Funds
Bank Fixed Deposits
Gold

Medium Time Horizon (2-5 Years)

Medium time horizon investments are to compete with inflation and expect growth with time. Again due to volatility equity is not ment for medium time horizon

Bank Fixed Deposits
Debt Mutual Funds
Real estate funds
Gold

Long Time Horizon (> 5 Years)

Long time horizon investments are to multiply your money & build Wealth and can expect financial freedom. Equity is the best Asset class for long time horizon. It is used for long term financial goal like retirement or for big buy like buying home.

Equity (Stocks)
Equity Mutual Funds
Real Estate
Government & Private sector Bonds like PPF, EPF
KVP, & NSC
Long term mutual fund

Where do I invest my money?

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This question may arise in your mind - where do i invest my hard earn money? Before starting a effective financial planning you have to understand which product is good and which product is bad. To become financially free one do not have to invest in all the products available in the market. Truth is combination of only few products in proper proportion deponding upon your risk ability and your financial goal can make you financially free. Risk ability depends upon in which age group you fall. For example a young investor can invest 80-100% in equity where as investor of age 50s cannot invest that much in equity.

Financial Products available in India

Stocks
Bonds
Fixed deposits
Saving account
Gold
Mutual funds
IPO
Real estate
Term Life insurance
ULIPs
Whole insurance plans
Money back insurance plans
Pension plans / retirement plans
Health insurance (Mediclaim)
Auto / Home insurance
Post-office savings scheme
National saving certificate
PPF (Public Provident Fund)
EPF (Employer Provident Fund)
Home / Auto loans
Gold loans
Personal loans
Credit Cards
etc.....

And many other products are introduced every year, You don't have to invest in all products. NOT the all the Financial products can help you to achieve Financial Freedom. Before you start investing in a particular product do some homework's like read reviews on net, ask experts on various financial forums etc.

Combination of only 3 financial products can help you to achieve your financial goals - Term Insurance, Mutual Funds & PPF.

Term insurance gives you enough life cover with low premium.
Mutual fund helps you to grow your money and beat inflation.
PPF is the best product in India for TAX saving.