Ever since the trading in shares of financial ventures and the functions of Stock Exchanges commenced in the European countries, it was the monopoly of the affluent people and wealthy businessmen to invest in shares. As part of their deployment of wealth towards business purposes, to reap high harvests in return, they shared the capital needed for any business venture. Gradually with the advent of technological advancement like the internet marketing, most people realized that making investment in stock markets and securities is not rocket science and anybody with commonsense and prudence can do it for financial growth.In developing nations like India, China and South East Asian countries of Singapore, Thailand, Malaysia, Indonesia and Philippines it took longer time for investment in shares to get popularized. Today the scenario obtaining in these countries is very well encouraging and each of these countries has its own way of psychological approach to this best branch of investment of money. More and more people are getting interested to know what it is to make an investment in shares of public companies, big and small, to augment their financial position by gaining good returns on their surplus money. best investment,earn money,high return investment,high yield investment,high yield investment program,invest online,investing,investing money,investment advisor,investment companies,investment opportunities,investment property,investments,mutual fund,online investments,real estate investing,small business,stock investment Deposit in banks was the only way as a secure and safe investment of money once, but in the longer run people realized that this is a myth and the returns are too low and over a period of time the real value of their money gets eroded by soaring cost of living and inflation of economy. However the high volatility of share prices still keep people distanced from Stock Exchanges for fear that their investment will disappear totally if a slide occurs in a high magnitude. But the fact is the other way round. A wise investment made in shares after thorough scrutiny of the facts and figures related to it can really offer very good returns in the longer run, which any of the other investment channels can never come near. It is true that people hear news that millions of money go down the drain in a single day, when the share prices come down crashing. It should be understood that the money stated to be lost by the share market investors as reported by the news is only a notional thing and not real money. For example a share bought at a certain amount of money, goes up in value when there is an upward surge in the "Bullish" market and only this additional value added up by the upsurge goes when the slide occurs (known as "Bearish"), the base price of the share remaining as it is. Again this fluctuation in price is caused due to so many factors and over a period only. If the investor selects a stock market and a share of a company with sound financial backing, these temporary fluctuations will never take away the real value of the share. Over a period of one year, it can be seen that the value has increased spectacularly from what it was a year ago. This is the real calculator for the growth of the investment made and surely this is the best way to make use of the emerging Stock markets. There are hundreds of websites online keeping their doors open to educate a novice investor and lead them by their hand to the miracles of Share Market business.
Thursday, February 14, 2008
SHARE INVESTMENT
PROPERTY REAL ESTATE INVESTMENT
Investment may be counted on the gross or the net basis. Net investment is gross investment minus depreciation. Investment may be ex ante or planned or anticipated or intended investment; or it may be ex post, i.e., actually realized investment, or when investment is not merely planned or intended, but which has actually been invested or implemented. This is so true when Buying Investment Properties.Another classification of investment may be private investment or public investment. Private investment is on private account, i.e., by private individuals, and public investment is by the government. Private investment is influenced by marginal efficiency of capital i.e., profit expectations and the rate of interest. It is profit elastic. Public investment is by the state or local authorities, such as building of roads, public parks etc. In public investment, profit motive does not enter into consideration. It is undertaken for social good and not for private gain.Investment which is independent of the level of income, is called autonomous investment. Such investment does not vary with the level of income. In other words, it is income inelastic. Autonomous investment depends more on population growth and technical progress than on anything else. The influence of change in income is not altogether ruled out, because higher income would probably result in more investment. But the influence of income is negligible as compared with the influence of population growth and progress of technical knowledge.
Investment property mortgages are often referred to as buy to let mortgages. Investment property mortgages are used where an investor is purchasing an investment property with the intention of renting it out to tenants in return for a monthly rental income.With more sophisticated products available for investment property and the demand for rental property continuing, landlords are tirelessly looking for ideal investment property for sale. Finding investment property for sale can be a time consuming exercise but the most successful investors will constantly be on the look out for the best deals on discounted investment property. An established investor will always be researching areas identified as property hotspots where they can be the first to invest in an investment property. Investment property in regeneration areas can be equally as good but remember it can take time before these investment properties deliver a substantial return on your investment. Investment property in good areas, with strong rental demand will always be a winner if you are looking at good investment property potential.
Investment opportunities come in all shapes and sizes, and business investment opportunities are one option that is available. This type of investment can involve either investing in other people’s companies or investing money in the start up of your own business. If you want to invest in other people’s companies then you can invest via stock equities, venture capital investment opportunities, and regular stock market investments. On the other hand if you want to invest in the start up of your own company then you can use your investment capital to buy a franchise or to establish a unique company based on your own business concept.Investing in property can be an insurance to see you through your retirement years, or a way to increase your cash availability. It is known that you cannot often go wrong with property as an investment. Using a good investment property agent and getting expert advice is imperative to the success of your investment. Before you rush out and buy any property, there is a certain amount of investigating which needs to be done regarding that land/building; buying investment property can be risky, it is important to get professional investment property agents to assist you in the purchase of your investment property.If you have reached a point in your life where investment property is attainable, getting a professional agent to aid in the purchase of a profitable property is important. Any professional agent is aware that the client needs to make a profit when they purchase the property, not when they sell the property. Looking out for the client’s best interests is a main priority for any professional property investment expert. Most property investors have an idea of their personal property investment objectives, now investors can use property investment agents to find properties where client’s objectives can be met.
One benefit of dealing through an investment property agent is that your chosen agent will generally find motivated sellers. This can be a great benefit in that un motivated sellers can waste time, even money for any buyer. Expert property investment agents can be invaluable in helping their clients achieve their objectives, offering clients the opportunity to negotiate for undervalued investment properties. Save time by using an investment property agent, which can supply you with a list of all the investment properties that meet your requirements.Another benefit of using an investment property professional is that these people are qualified, usually have extensive experience and often have industry knowledge which could help you get a profitable investment property. Many expert agents have an “ear to the ground”, where their clients can benefit from industry knowledge such as foreclosures. Many properties can come up for sale at a very reasonable rate for any number of reasons such as missed payments, job interests, divorce and health problems. Get in depth industry knowledge and experience from top property investment agents and let them do all the hard work for you. Let property be your tool for making money.
MUTUAL FUNDS INVESTMENT
At present Investment in Mutual Funds is really good option for the investors in India Apart from the many advantages that investing in mutual funds provide like diversification professional management the ease of investment process has proved to be a major enabling factor However with the introduction of innovative products the world of mutual funds nowadays has a lot to offer to its investors With the introduction of diverse options investors needs to choose a mutual fund that meets his risk acceptance and his risk capacity levels and has similar investment objectives as the investor. Mutual funds simply are a method through which people invest. People often asking, "What are mutual funds paying?" The truth is that mutual funds don't pay anything! People also say, "I don't like mutual funds because they're risky." But there's no such thing as a "risky" fund. Nor has anyone ever lost money in a mutual fund. Mutual funds are not good, and they're not bad.
A mutual fund, in fact, is merely a mirror a reflection of something else. Thus, if you invest in a mutual fund that invests in stocks, and you are as likely to make money or lose money as any other person who invests in stocks.
In fact, you can use mutual funds to buy virtually any kind of investment: stocks, bonds, government securities, real estate, gold and other precious metals, international securities, foreign currencies, natural resources, even hedge positions and money markets. You can find funds that engage in virtually any type of trading activity, including options and futures contracts, derivatives, and even selling short.
Investors needs to evaluate and consider various factors before making an investment decision Since not everyone has the time or inclination to invest and do the analysis himself the job is best left to a professional Since Indian economy is no more a closed market and has started integrating with the world markets external factors which are complex in nature affect us too Factors such as an increase in shortterm US interest rates the hike in crude prices or any major happening in Asian market have a deep impact on the Indian stock market Although it is not possible for an individual investor to understand Indian companies and investing in such an environment the process can become fairly time consuming Mutual funds whose fund managers are paid to understand these issues and whose Asset Management Company invests in research provide an option of investing without getting lost in the complexities
Mutual funds provide risk diversification diversification of a portfolio is amongst the primary tenets of portfolio structuring and a necessary one to reduce the level of risk assumed by the portfolio holder Most of us are not necessarily well qualified to apply the theories of portfolio structuring to our holdings and hence would be better off leaving that to a professional Mutual funds represent one such option
Moreover Evaluate past performance look for stability and although past performance is no guarantee of future performance it is a useful way to assess how well or badly a fund has performed in comparison to its stated objectives and peer group A good way to do this would be to identify the five best performing funds within your selected investment objectives over various periods say 3 months 6 months one year two years and three years Shortlist funds that appear in the top 5 in each of these time horizons as they would have thus demonstrated their ability to be not only good but also consistent performers
The following criterias can be choosen by an investor according to his investment objective
Thorough analysis of fund performance of schemes over the last few years managed by the fund house and its consistent return in the volatile market
The fund house should be professional with efficient management and administration
The corpus the fund is holding in its scheme over the period of time
Proper adequacies of disclosures have to seen and also make a note of any hidden charges carried by them
The price at which you can enter exit i e entry load exit load the scheme and its impact on overall return
How to start investing in mutual funds
You dont need to have a lot of money to start investing Thats a pretty erronous belief The answer I often come across on investment queries is I dont have money to invest This answer often is the start of your investment needs You dont have money so you need to make whatever you have work
Take for example you save 100 units I am loathe to put any currency every month That makes it 1200 units every year Lets say you are putting it in an instrument bank deposit that gives 5% annually At the end of 5 years you are getting something like 6830 units
Suppose there was an instrument that gave you 15% You know the amount you will make 8970 units A cool disposable income of 2000 units
The next question is who will give that kind of money return Mutual Funds well researched stocks have given that kind of return and more Do you know that markets in Brazil India China have given returns in excess of 40% conservative in the last year And its not a single year episode These kind of returns have been seen for the past 45 years To ride these growth markets a plethora of country specific mutual fund schemes have arisen So investing is a global phenomena And if you are from these nations your choice becomes wider Even certain sectoral funds aggressive funds have maintained a high rate of return
So how do you jump unto the bandwagon so to say You dont happen have too much idea of stocks returns markets etc and naturally you dont want too many risks So mutual funds become your natural choice Mutual Funds diversify your risk puts your money in many companies eggs in many baskets so to say you can invest small you get the benefits of professional research every stock that a mutual fund puts its money in is researched by a team of professional fund managers and professional fund management services its mostly liquid ie you can put your hands on your money whenever you want it The best way to start investing in a mutual fund is through a Systematic Investment Plan SIP It means just that You invest small amounts systematically in a fund scheme of your choice
Here are some easy steps to start investing
1 Decide how much you can save in a monthEven if you dont have money to invest you must be saving something
2 Find a financial advisor She he will guide you on the schemes
3 Research on the scheme suggested on the internet Follow some basic principles see the pedigree of the fund house see the pedigree of the scheme like last 35 yrs performance see the other schemes the fund manager is managing the corpus of the scheme ie the total amount of money in that scheme
4 Stick to your small investment amount till you are comfortable investing ie dont let the advisor sweet talk you into putting in more
5 See the liquidity of the scheme ie whether you can withdraw your money whenever you want and if any cost load involved
6 Bingo you can start your SIP systematic investment plan and be on your way to investment riches Remember SIPs in equity mutual funds are your first tentative steps into the stock market and eventual unimaginable riches
Please dont treat this as a comprehensive investment compendium its just a small nudge towards making your savings more effective
Why you invest your money A simple question but your reasons why can vary from paying for college financial security starting a family buying a home large future expense changing jobs building wealth or retirement Whatever your financial goals are there are two really great reasons why you should start investing your hardearned money as soon as possible
The cost of products and services such as housing education retirement transportation and medical keeps increasing
These increases have been continuously outpacing the average savings rate forcing people to invest for higher returns besides saving money in a bank account Those who dont invest fall even farther behind every year that goes by Note A typical savings accounts barely keep up with inflation and can result in very small returns of less than 1% after factoring in the inflation rate
Time can be your best friend or your worst enemy
If you start investing early time is on your side If you procrastinate time becomes an unavoidable enemy of compounding your money and can dramatically effect your outcome
What you have to do if you start investing and want to retire at 65 with one million dollars Lets run through some examples by saying you started investing at some different timeframes in your life 25 35 45 and 55 Along with the starting age the average yearly return is another important variable The different yearly returns that we were able to get an 8% 10% or 12% return on your investments per year
Your wealth not only be measured by equities but depend on your ability to generate positive cash inflows
I think you dont like idle money if you have a little freedom of your financial money Increase your wealth by the investment that possible to create cash inflow Do not invest your money in bad business sector which result negative cash inflows
People invest their money for several different reasons You may want to save money for retirement your childs education or to one day own your own home Regardless of your purpose for investing you need to understand the basic forms of investments available to you i e stocks mutual funds and bonds
Companies sell stock to raise capital money for growth When you buy a companys stock you are purchasing partial ownership of that company because you now own a percentage of the companys shares For example if a company had 10 000 shares of stock outstanding and you bought 1 000 shares then you would own 10 percent of the company and be entitled to 10 percent of the companys assets
Purchasing stock is a way to invest in a single company The value of your shares rises and falls with the performance of that company This type of investment can be rewari ding if the companys value skyrockets However bankruptcy low earnings and other factors can cause the stock value to plummet Certain companies pay stockholders dividends a portion of the companys earnings in cash or stock. Mutual funds are good investment option if you are looking to meet your financial goals. The best part about mutual funds is that they are managed by investment professionals and the risk involved reduces as the funds invested in the mutual funds get diversified.
A company dealing in mutual funds invests your money in a variety of bonds, stocks, assets, securities and many other short term investment instruments. You will earn dividends when a mutual fund earns profit and on the other hand, the value of your shares will decrease if the mutual fund company faces a loss. Usually a professional investment manager will do all the buying and selling on your behalf to ensure that you get the best returns for your investments.
There are different types of mutual funds, namely equity funds, fixed income funds and balanced funds.
Equity funds involve just common stock investments. They are extremely risky but can end up earning you a lot of money. Fixed income funds are government and corporate securities. Fixed income funds offer fixed returns and the risk associated with these funds is very low. Balanced mutual funds are a combination of bonds and stocks. These funds have a very low risk factor but your investment will not earn a lot of returns.Mutual fund shares can be purchased either through the mutual fund company or from a broker. The mutual fund share is bought at the net asset value of the fund. This is the price you have to pay when you buy a mutual fund share and it includes the shareholder's fee. Mutual funds are managed by investment professionals who are trained for this kind of job. They will do research on the investment type, select your securities and monitor individual funds. Having a good fund manager will usually ensure that you get rich. Your fund manager will invest in number of companies in different industries, thereby diversifying your investment.
GOLD INVESTMENT
New investors may not be aware of the power of gold as a longterm investment but seasoned investors with experience in a wide variety of markets know that gold has historically been a strong investment when compared with the fluctuations of the stock market and other investment options If you are new to investing you may also not know that there are several ways to invest in the strong value of gold If you are an experienced investor but you have never considered gold as an option you may be surprised at the rewards gold investing can provide While gold coins and bars are still one of the ways to invest in this commodity other options exist that you can choose depending on your financial situation and investment goals. Investments help in making profits from businesses or mutual fund schemes that increases the valuse of money deposited.
Physical gold coins continue to be a strong investment and are an excellent choice if you want to have your investment in your personal possession You must choose between investing in older coins or the newer bullion coins but either type of gold coin investing is a solid choice because of the large selection available and the lower premiums when compared to choosing gold bars
Gold Bars
Few things beat the feel of holding a bar of gold for an enthusiastic investor Receiving physical gold is one of the safest ways to participate in gold investing because you receive something tangible that you can keep in your possession or safely stored in a bank vault One of the drawbacks of investing in gold bars versus gold coins is that you can sell a few coins at a time if you need cash but you need to sell the larger gold bars as a whole in order to receive cash for them
Gold Futures
Gold futures are a highly speculative investment that is often done only by professionals However it is another option that exists for those who are interested in diversifying their gold investment portfolio
Gold Accounts
This is a rarer method of gold investing because many financial institutions do not offer gold accounts or gold storage Gold accounts are often only available to highdollar clients with at least one million dollars to invest
Gold Mining Stocks
If you want to have a paper investment instead of receiving the actual physical gold investing in gold mining stocks may be the best solution for you Instead of receiving gold bars or coins you would be investing in gold mining companies Gold mining companies often increase in value when the price of gold increases This is not a hard and fast rule but if you choose the right stocks and follow the market carefully you may be able to reap the benefits of gold investing
Wednesday, April 6, 2005
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