Investing

Who is Investor & What an Investor Do?

An investor is a party, person, or institution that provides financial capital in the form of money with expectations to receive a return on investment. People invest their money into different financial instruments, assets, and ventures in hopes of letting it grow over the years. An investor’s willingness to accept risk can differ in investment choices depending on factors including financial goals, assumed risk, and timeline....

A. Stock Market

Stock market provides a dynamic platform for individuals and institutions to buy and sell shares in publicly traded companies. For decades, stock market investing has been a crucial component of wealth building. Research by Siegel (2014) demonstrates that over long time horizons, stocks tend to outperform other asset classes....

B. Stocks

Stocks, also known as equities, are essentially certificates of ownership in a company. When you buy stock, you’re buying a share of that company, and with it comes a claim on its profits and a vote in its future. The price of the stock fluctuates based on the company’s performance and investor sentiment. Understanding stocks is a stepping stone to investing in the stock market....

C. Commodities

A commodity is an external object or item fulfilling various human needs, subsequently exchanged for other goods or services. These are typically physical products intended for consumption or use in production, needing more differentiation among themselves. Commodities encompass raw materials, basic resources, and agricultural or mining products like sugar, rice, iron ore, and wheat. Traded within commodity markets, these markets focus on the primary economic sector rather than manufactured goods....

D. Mutual Funds

Mutual funds offer a diversified approach to investing by pooling money from multiple investors to purchase a basket of securities. Research highlights the potential benefits of mutual funds, especially for novice investors. These funds provide professional management, instant diversification, and reduced risk compared to individual stock picking. As fund manager Peter Lynch, puts it, “Owning stocks is like having children – don’t get involved with more than you can handle.”...

E. Bonds

A bond is defined as a debt asset that reflects an investor’s loan to a borrower, usually an authority or a firm. When a company issues a bond, it is borrowing money from investors and promising to pay periodic interest payments (coupon payments) and repay the entire principal amount (face value or par value) at the end of the bond’s term....

F. ETF

Exchange traded funds, commonly known as ETFs, are financial instruments that can be easily traded on a stock exchange like any other securities. ETFs are a combination of mutual funds and equities of the listed company....

G. Real Estate

Real estate can be a lucrative investment with the potential for both income generation and long-term appreciation. As Suze Orman: says “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense…it is about the safest investment in the world.”...

H. Cryptocurrency

Cryptocurrency, also known as crypto, is a digital payment system that uses cryptography for security and operates independently of a central bank. Transactions are recorded on a public ledger called a blockchain, making them transparent and verifiable. Unlike traditional currencies, crypto isn’t controlled by a central bank but relies on a decentralized network to verify transactions and issue new units. This makes crypto transactions faster and potentially more secure. This decentralized system aims to provide a secure and tamper-proof way to transfer digital assets....

I. Sustainable Investing

Sustainable investing is a way to grow your money while aligning your values with the health of the planet and society. It considers environmental, social, and governance (ESG) factors alongside traditional financial metrics to invest in companies making a positive impact. This approach is gaining traction as investors seek to balance financial returns with creating a more sustainable future....

J. Income Tax – Taxes

Understanding the complexities of income tax is essential for responsible financial planning and compliance. Learning about applicable deductions, exemptions, and tax-saving strategies can significantly reduce tax liabilities. Financial experts often repeat, “Don’t pay more tax than you legally owe.”...

K. Fintech

Fintech is revolutionizing the way we manage money. By using innovative technologies like mobile apps and artificial intelligence, FinTech companies are making financial services faster, cheaper, and more accessible for everyone. This rapidly growing industry is changing everything from payments to investing, with new applications emerging all the time....

L. Financial Planning

Financial planning is the process of thoughtfully managing your income, expenses, and investments to achieve your financial goals. Financial planning is the process of thoughtfully managing your income, expenses, and investments to achieve your financial goals....

M. Retirement Planning

Retirement planning is the process of strategizing to generate income for when you are no longer working. It involves determining your financial needs, setting goals, and creating an investment plan to build your retirement fund....

N. Budgeting & Saving

Budgeting is the process of outlining the estimated income and expenses over a specific period. The process involves planning, organizing, and controlling the financial resources of an organisation or an individual to achieve specific goals within a defined period. The objective of budgeting is to guide in making financial decisions and to ensure that available resources are used efficiently and effectively. It helps to guide the financial performance and stability of the business and encourages to work towards achieving an end goal....

Investing – FAQs

What is investing?...