Before embarking on the journey of wealth creation to attain financial independence, it is imperative to understand the difference between savings and investment. Savings is to be done keeping in mind short-term financial needs, whereas investment is generally done to meet long-term financial goals.
A comprehensive financial plan will help you evaluate your priorities, divide your investments as per your short/medium/long term needs and help you lay a framework on steps to attain the same.
Fluctuations in stock markets are a result of wide variety of factors involved. But unfortunately, there is no simple formula determining the same. There are a host of factors influencing stock markets. Having a fair idea of these factors will help us make prudent decisions.
Systematic Investment Plans (SIP), as the name suggests, SIP is a systematic way of making investment. This concept has become widely popular in mutual funds investment. But, not far behind is Equity SIP. The concept remaining the same, the only difference is periodic investment in stocks.
Buy, sell and exchange of currencies happen in foreign exchange markets, often abbreviated as Forex or FX. It is one of the most exciting and growing markets, operating 24 hours a day with enormous amounts of money traded on a daily basis.
Risk management is the process of identifying the potential risk, analyzing the same and taking precautionary measures to prevent the severity of impact.
Portfolio Management is the process of organizing your investments in order to make them more rewarding and less risky. Know how a well balanced portfolio will sail you through the tides.
Understand and consider the tax implications on profit and loss in shares an example of capital gains.