Must Read

Investment News

Tata Steel to sign a JV with Vietnam Steel Corporation

Tata Steel will set up an integrated steel plant in Vietnam under joint venture with Vietnam’s biggest steel producer Vietnam Steel Corporation. It is said that Tata Steel will have at least 65% stake in the project and balance 35% will be held by Vietnam Steel Corporation. The project of building an integrated steel plant will . . . → Read More: Tata Steel to sign a JV with Vietnam Steel Corporation

Mutual Fund

Best Rated Mutual Funds

There are many articles on internet giving you knowledge about right value of stocks but you will not find many on the ways of evaluating best rated mutual funds. Evaluating a mutual fund just on the basis of its past performance is not enough. Best rated mutual funds often carry much more attributes to it than just performance. The future performance of best rated mutual funds is driven by lot of other factors that we will discuss here:

(1) Life of Mutual Fund since its inception
The older the mutual fund is existent in the market the better rating it carries on its head. All best rated mutual funds have a longer life which talks about its stability and steady performance. The older the mutual funds the less risky it becomes. The reason behind is very logical, it consists of loads of stocks of blue chip companies giving it its stability and reliability. But the disadvantage of older mutual funds is that its rate of growth is comparatively slower than young and budding mutual funds. A long term passive investor interested in mutual fund investment must select such funds.

Continue reading Best Rated Mutual Funds

Stocks

How to buy stocks online?

Online stock trading has increased the participation of common retail investors in the stock market. But a lot of people feel fixed when it comes to online stock trading. People are often seen puzzled asking questions like how to buy stocks online? This article has been written to provide a ready made answer to the following tthree questions often asked by investors in stocks:

  • How to buy stocks online?
  • What is the process of online stock trading?
  • How to identify good buy-stocks?

I am sure there are many people who are craving for the above three questions and they will be happy to get a readymade reference here in getmoneyrich.com. I will explain the procedures of how to buy stocks online in simple and easy to follow words. So that a lay man can easily use this information to start trading stocks as quickly as possible. The answer to second question is rather vast. You will appreciate that if the answer to the second question (how to identify good buy-stocks) would have been so easy then every trader would have become Warren Buffette. But never mind I am also not Warren Buffett buy with my experience I have got a knack and few valuable steps to identifying good stocks. I will share my knowledge with my readers. But first things first; let us find out first how to buy stocks online.

Continue reading How to buy stocks online?

Fundamentals

Gross Domestic Product (GDP) a key indicator of economy

A trained investor always keeps a track on key indicators of economy. They help the investor to foresee a bull or bear phase of a stock market. Ideally all investors would like to invest when stocks are low and will rise in times to come. These economic indicators help investors to get a hint on the movements of stock market. By using these economic indicators a trained investor can confirm their hunch that stock market will fall or rise. This helps the investor to time the market to perfection.

Stock prices will rise if a company is making profits. Trained investors see future benefits by investing in companies that is making consistent profits. But a trained investor cannot wait for annual reports of company and then invest, because as soon as the financial reports of company is positive, people immediately start buying those stocks and price goes up. By the time a lay investor gets access to financial reports the stock prices has already shot-up. So in order to time the market to perfection, we will discuss about few economic indicators which rises before industry starts to show signs of growth. By using these indicators investors can time their entry into stock market.

Continue reading Gross Domestic Product (GDP) a key indicator of economy

Fundamentals

Retirement Planning: Savings and investing calculation

I will try not to complicate the subject of savings and investing for retirement planning. Because it is a calculation which required estimation of future costs, we may need to use some analytical skills. But I will make sure that it is simple to understand.

When we say retirement planning (n term of money) we mean that we shall have enough by the time we retire. But the above definition is not complete, it is very important to define the term ‘enough’.

How much money is ‘enough’ for retirement planning?

Let us assume a person of thirty five (35) years of age, who needs $1000 for managing his monthly expenditures as on today. By the time he reached sixty (60) years of age he would like to retire. It means he has 25 years to manage his savings and investing for retirement planning.

Continue reading Retirement Planning: Savings and investing calculation

Stocks

Penny Stocks Investing

Penny stocks investing must not be done in haste. Investors must first understand the difference between penny stocks investing and traditional stocks investing in blue chip and mid-cap stocks. Investing in penny stocks is not same as investing in large cap stocks Reliance, Tata Steel, Infosys etc which are stable and very established companies. These large cap companies are comparatively stable and there prices has a low beta values (low sensitivity to market news), which means the volatility of large cap stock prices are low. Whereas penny stocks are traded literally in penny market prices and hence has high volatility. Generally long term value investors do not touch these stocks. The best thing about penny stocks is that in course of time, these stocks become mid cap stocks making their investors wealthy by a huge multiplying factor. Like in the year 2000 when Microsoft was first listed in stock exchange, its price was $0.89, which is now traded at $24 each (read more… invest in the stock market).

Penny stocks investing bring with itself their own risk paradigm. As the price of each share is very low, they are mainly traded by short term traders. Short term trading is not done with any fundamental analysis. Penny stocks are bought with only one purpose, to make quick money. Penny stocks investing are done with principle of buying low and selling high. Such high volatility is market price of penny stocks is both advantageous and ugly at the same time. If prices have a tendency to rise, it will rise exponentially, but if it fall the reverse is also true.

Continue reading Penny Stocks Investing