Stock Market and Bonds

Many people heard about stock market for example in news today market crashed, stock market is Bull run or some listed Company did fraud and so. This makes people stay away from stock market but what about companies like Tata, Infosys, Gillette, Colgate, MRF you can invest such big companies and we can become part in the growth of such Companies.

Today, I will talk about stock market and what it is.

What is Stock Market??
It is a market similar to our local market where you buy fruits, vegetables etc. but in this case we buy the shares of the company. Share means the ownership in the company and we become shareholder of the company.

Why company gives ownership to shareholder??
Company requires money for expansion and to grow bigger. So, company raises funds from people through IPO and get listed in the Stock Exchange and give ownership in the Company and people becomes Shareholder in that Company. There are two main Stock Exchanges in India. That is, Bombay Stock Exchange and National Stock Exchange. If company take loan from Bank from next day Bank start to charge the Interest rate. If company raises fund from people company not have to give anything to shareholder.

You question will be how shareholder get benefited??
Shareholder get benefited by Capital appreciation. If company performs better, shareholder will earn money and vice versa. Dividends and Bonus share. We will all about this in our stock market post.

In the next post, We will discuss in details about Stock Market.

If you did not get it, you can watch this video https://www.youtube.com/watch/finnovationz you will get idea of stock market. This video belongs to FinnovationZ Youtube Channel.


Disclaimer: Share Market involves High Risk High Reward.
Bonus tip: Take complete knowledge about share market before Investing in share market.

In the next post more about stock market will be discussed and which broker you should choose.

Bonds:

What is a bond??
A bond is a debt security in which the authorised issuer- Company, financial institution, or Government, offers regular or fixed payment of interest in return for the money borrowed by the said issuer. It is for a certain period of time.

For more information visit this link: https://www.bajajcapital.com/bonds.

Bonus tip: Don't invest in bond which is issued by company because they default the Loan. So best thing to do is invest in government securities bond and treasury bond where they return the money with Interest which  is higher than fixed deposit of Bank.

In the next post you will learn more about it how to invest in government securities and why government issue a bond etc.

So, in the next post we will continue our Investment journey and we will discuss about Mutual fund and Commodity Market. 

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Different Investment Option and Why you should do Investing???

According to Warren Buffett,

The about statement of World's 3rd Richest Person and Investor said we should Invest more in our knowledge to increase our earning and so now let's begin in Investment Journey.

Different Investment options:
1. Fixed Deposits From Bank and Company:
You can invest in fixed deposit in Bank. You will earn interest rate of 5.75-7.55% depends on the bank to bank. Ex: Jana bank give interest of 9.75% because of Micro bank you can invest in such bank to earn higher interest and beat inflation.

What is Inflation???
According to Investopedia,"Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time. Inflation indicates a decrease in the purchasing power of a nation's currency." for more information visit this https://www.investopedia.com/terms/i/inflation.asp
Lets take example: Suppose in 2018 you purchased 1kg of Potato at 100 Rs and inflation rate say increases every year at 4% and in the next year the price of Potato will be at Rs.150. This means increase in price of goods and decreased the purchasing of power of your currency.
So, those who keeps their money at home will not beat the inflation. Those who keep their money in saving account is a loser and those who invest in fixed interest will be at advantage. Bank is low risk low return. It will keep your money safe but you will not get high returns.

2. Company Fixed Deposit: 

What are Company fixed deposits:
The deposits made by investors in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits.

Benefits of Company Fixed Deposits:

Higher Interest rate: 2-4 percent high compared to Bank Fixed Interest rate.

Regular Income: In this case Investor have advantage that is  depending upon the scheme, investors have the option to receive interest at monthly/quarterly/half-yearly/yearly intervals.

Lock-in period: It has minimum lock-in period and you can withdraw after maturity.

TDS: is not applicable if interest earned is equals to or less than 5,000 for a year in a single company.   

Bonus tip: High Risk involved so analyse the Company before Investing in Company Fixed Deposits.

For more information visit this link: https://www.bajajcapital.com/fixed-deposits

Bonus tip: Before Investing in any financial Instrument do your own analysis.

In next post we will talk about Other Investment options such as Stocks and Bonds. 

Welcome to Book and Investment Guru World!!!!

   

Hii, My name is Vigneshwar Bhat I will be your mentor in you'r Investment journey. I know you'r excited to be part of this journey!! I will tell you different Investment options and how you can achieve financial freedom in your life. What makes this blog special from other blog??? that question will be popping in your head. This blog is different because I will help you as a mentor and also help you to achieve financial freedom that is the value of this blog. Our motto is "to help many people". Vision is" IF PEOPLE BECOMES PROSPEROUS, COUNTRY BECOMES PROSPEROUS." That is all about this blog. I will guide you in Stock Market, Real Estate, Commodity etc.

          In this blog you will also know different Investment books on Entrepreneurship, Business                    and Strategy, motivational and financial book.

Lets talk about me, My name blah blah already mentioned. I am studying Msc-II Chemistry. I am doing my final year Goa University.Goa beautiful place beach famous for tourism and I recommend you to visit this place. Very Beautiful! blah blah blah. My hobbies are reading books, listening audiobook and Investment and computer Enthusiast. My interest also include Entrepreneurship. This is all about me I will see you guys in my next post. 

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