Stock Shares - The Risky Portion of Equity Investment

In today’s time of Modern Financial Investment Methods, many people want to invest their money into Equity Investment also, apart from Savings Investment like Bank Fixed Deposits. Equity Investment can be defined as the buying and holding of Stock Shares by any individual or organization done in return of earning income from Dividends when the Market Value of that particular share will rise. Mutual Funds are another aspect of Equity Investment, where equities are in the hands of private individuals.  Mutual Funds are usually considered as the Safer Portion of Equity Investment.

In Developing Economies like India, there is a huge scope for Equity Investment in Stock Shares. The Four Major Metropolitan Cities of India which are New Delhi, Kolkata (Calcutta), Mumbai (Bombay) and Chennai (Madras) have got their dedicated Stock Exchange Office Buildings. There have been some Stock Share Scams in India in the past many years which has resulted the Union Government of India to set up a Stock Market Regulator for trying to prevent such scams by the name of Securities and Exchange Board of India (SEBI).

Investment in Stock Shares can be fruitful or loss worthy as this is a Financial Sector which is prone to external factors like Recession and Financial Policies of a nation’s Union Government. An organization or individual should not only take ample advice from a reputed Financial Consultant but also do some personal research of the Stock Markets, Economic Climate and the company’s Financial Condition, whose stock shares are to be bought.

 
Many Financial Experts in India and rest of the World feel that it would be wise to invest some amount of our income into Equity Investment, be it Stock Shares or Mutual Funds for better Financial Gains. Such steps can help our money from becoming stagnant and this may help us in growing our income positively.

Indian Railway Budget, Balance Sheet of the World’s Largest Democracy’s Railway System

The Railway Budget of India can be referred to as the Annual Financial Statement of the Indian Railways. The Railway Budget is presented in the Indian Parliament by India’s Union Minister for Railways, every year usually two days before the General Budget in February. The First Railway Budget of Independent India was presented by Mr. John Mathai in November of 1947.

In the year 1924, India’s Railway Budget was separated from the General Budget [Please see 2^nd Paragraph of this blog article: http://businessfinancialplan.blogspot.in/2012/03/general-budget-of-india-balance-sheet.html]. The people of India have been taking interest in the Railway Budget since after Independence as it brings along information about the Changes in Train Fares, be it Passenger or Freight Rail Services. It also gives information about the various Railway Projects from the past and also about their future plans. The projects can be Track Doubling, Track Gauge Conversion, Track Electrification or introduction of new routes.

The Railway Budget of India also acts as a Balance Sheet which describes the Annual Earnings and Expenditures made by the Indian Railways. It also announces the list of various trains which will be introduced, the extension of existing trains and increase in some train’s frequencies. The Rajdhani Express, Shatabdi Express and Duronto Express are examples of some Superfast Train Services which have been announced and then introduced during various Indian Railway Budgets over the years. The Kolkata-Amritsar Superfast Express which runs between Kolkata Chitpur Terminal (KOAA) and Amritsar (ASR) is one train as an exception which was converted from a Duronto Train to a Normal Superfast Train just before its inauguration.

           Thus, it can be concluded that the Railway Budget of India is a hefty but important aspect for the smooth functioning of the Indian Railways. Ultimately, it’s the Ministry of Railways which frames the Indian Rail Budget in consultation with the Railway Board of India.

Bank Fixed Deposits, a very safe option for Financial Investment

A Bank Fixed Deposit also known as an FD is a facility provided by banks in Asian Nations like India to its account holders. An FD provides a higher interest rate as compared to a normal Savings Account to bank account holders, until a fixed date of maturity. A separate account’s creation in a bank only depends upon the particular bank’s rules and policies for availing the Fixed Deposit Scheme. Banking is a system of money saving and transactions which was believed to be started by the Egyptians. This system brought along with it modern tools of handling money like Fixed Deposits or Recurring Deposits in terms of schemes and cheques or drafts in terms of cash alternatives.

          There are various advantages which a Bank Fixed Deposit provides to its bank account holders. Some banks can provide loan to FD Holders against their Fixed Deposit Certificates at interest rates which are competent. A Fixed Deposit Investment in India is usually considered safer than a Post Office Account Money Deposit as it’s covered under the Deposit Insurance and Credit Guarantee Scheme of India. An FD Scheme is also said to provide benefits in taxes like Income Tax.

          There are some disadvantages of a Bank Fixed Deposit for its investors also. FDs don’t always guarantee good interest rates as banks may provide lesser interest rates if a nation’s economic conditions are unsteady. Investors can’t withdraw money from a Fixed Deposit before maturity which makes an FD’s nature a bit rigid as compared to a more flexible Recurring Deposit.

          Thus, it can be concluded that a Bank Fixed Deposit is till today considered as one of the safest options for investing money, especially in Developing Economies like India. Ultimately, it’s an option which people can safely go for rather than the more risky financial system of Stock Equities consisting of Shares and Mutual Funds.

General Budget of India, Balance Sheet of the World's Largest Democracy

The General or Union Budget of India is also referred to as India’s Annual Financial Statement, according to Article 112 of the Constitution of India. The General Budget is presented in the Indian Parliament by India’s Union Minister for Finance, every year on the last working day of February. The First General Budget of Independent India was presented by Mr. R.K. Shanmukham Chetty on 26^th November, 1947.

            During the British Rule in India, the Railway Budget and the General Budget were presented together. It was in the year 1924 that both the budgets were separated. They were separated as the Indian Railways started turning into a Huge National Network Organization to itself so it required a separate budget, which could deal with Expenditure on Infrastructure and Coming up Fiscal Years & also on Operating Revenue, Passenger and Freight Tariffs & also Investment on Infrastructure. According to the Separation Convention on the recommendations of the Acworth Committee 1924, the Railway Budget is presented to the Parliament by the Union Minister for Railways, two days before the General Budget, usually around 26^th February.

            There are some advantages of conducting the General Budget. By this exercise, the Central Government of India can try to gain control over unnecessary and necessary expenditures while planning its Fiscal Deficit. The General Budget also acts as a kind of Balance Sheet for the Central Government separating the Assets from the Liabilities, while planning National Economic Policies. It also helps the Union Ministry for Finance to formulate Tax Benefits and Proposals towards Individuals & Companies, which includes both Public and Private Enterprises.

            There are some disadvantages while framing the General Budget as well. This exercise is at times very Time-consuming to carry out. This exercise becomes more cumbersome to handle especially when the surrounding environment is very unstable like that during times of a National Emergency or Unstable Central Government.

            The General Budget is a complex and lengthy document which is prepared by the Senior Officials of the Union Ministry for Finance and the Planning Commission of India. Then the Budget Speech Papers are taken by the Union Minister for Finance and are presented in the Parliament House. The General Budget has to be passed by the House, before it can come into effect on 1^st April which is the beginning of India’s Financial Year.

 Thus, it can be concluded that the General Budget of India is a complex but important aspect in increase or decrease of commodity prices & taxes for Indians. Ultimately, it’s the mirror towards the Growth Story of the Republic of India to attain 9% Gross Domestic Product alias GDP.

BSE Stock Market Trading News and Tips

BSE Stock Market Trading News and Tips

In today's fast pace world, where time is money and people need to handle their finances in an efficient manner, taking Financial Advice at times from Financial Advisers has become very important. An advice given to an individual, family or to an enterprise, on topics like Money Management, Home Loan, Investment, Pension Plan, Personal Finance or Tax Savings, is known as a Financial Advice. It is better to take a financial advice from a well qualified financial adviser, who is well versed in the field of Finance and Commerce. A Financial Adviser is a professional who gives financial services to individuals as well as to businesses. These services can include investment advice which may include pension planning and other financial advice related to topics like mortgages and insurance. Thus, a financial advisor helps the client in maintaining a balance between income from investment, gains from capital and an acceptable level of risk by using proper allocation techniques on assets.

There are various types of financial advice to adhere to. Some of them are Insurance Advice, Investment Advice, Tax Advice and Personal Finance Advice. An Insurance Advice is related to various types of insurance policies like Health Insurance and Car Insurance to name a few. An Investment Advice is related to various kinds of investments like Stock Market Equities or Fixed Deposits in Banks. A Tax Advice is related to the know how of various types of taxes to be paid by an earner or business like Income Tax, Sales Tax, Property Tax and so on. A Personal Finance Advice is related to the handling of an individual's or family's Personal Finances like Household Expenses and Personal Loans to name a few.

There are various advantages of listening to a Financial Advice. Through such advices, an individual or a family can be able to manage their finances and income in a better manner and can be prevented from debt and unnecessary expenditure. The same thumb rule also applies to businesses, as they can also prevent themselves from debt and can move towards profit generation and can maximize their wealth. A good financial advice also helps in bringing discipline in the handling of one's finances, so that there is minimum requirement of taking risks.

There are some disadvantages of listening to a Financial Advice also at times. If a financial advice is followed over the Internet, then it must be followed from a valid and reputed finance based website. If the website is not properly checked, then it may result in the following of wrong or inaccurate financial advice, resulting in financial loses. Even off line, if financial advice is followed from a financial advisor, who may not have a sound knowledge on financial issues, may result in suffering financial losses.

Thus, it's also important to take a financial advice from an authorized and reputed financial advisor to take accurate and useful financial advices. Other forms of media like reputed finance based newspapers, journals and magazines are also to be taken in account for following useful financial advices.