Now this question is subjective and has different answers for different people. If you are retiring early than plan on having right money and right time for you and your family.
Personal finance is a very important area for all individuals. There are four important areas to focus to have a smooth financial life. These are 1. Source of income 2. Expenses 3. Assets 4. Loans & Liabilites
If you have finally decided to invest and ready to get on with your investing. First thing you do is to sit with your financial advisor and select an appropriate fund/plan. There are a range of funds to choose from. Most funds now, provide two options to get into. The two options are : 1. Lump Sum 2. SIP (Systematic Investment Plan) In the Lump Sum way of investing, you put a certain amount of money for a period. The money is invested in for a duration. This way of investing is done by people who have received a lump sum of money through any ways viz., redemption of a prior FD/investment, received a bonus, selling of property , or other ways. Since the money is parked for a longer duration, it goes through the effects of compounding. The advantage of this route is the compounded returns on the whole sum obtained at the end of the tenure. So whenever you have a large amount of money,...
Financial ratios are important in evaluating the stocks. The two important steps in evaluating stocks: · Evaluation of Business Health · Evaluation of stock’s price Financial ratios fall into two broad categories :- 1. Ratios for Price Valuation a) PE ratio b) PB ratio c) PEG ratio d) Dividend yield 2. Ratios for Profitability check a) RoCE ratio Steps in evaluating the stocks 1. Prepare a list of of top stocks 2. Calculate following the values for each of the stocks a) Market cap b) ...
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