The Trending Crowd

Budgeting is the process of planning and allocating financial resources (such as income and expenses) over a specified period (often monthly, quarterly, or annually). The purpose of budgeting is to help individuals or organizations manage their finances effectively by setting priorities, reducing unnecessary spending, increasing savings, and achieving financial goals. Budgeting involves estimating future income, identifying necessary expenses, and creating a spending plan that aligns with one's financial goals and objectives. Budgeting helps in the following ways: 👉Helps to plan and prioritize: Budgeting allows you to create a roadmap for your money. It helps you to allocate your funds to your most pressing needs and those that are of utmost importance to you. 👉Avoid debt: By budgeting, you can avoid overspending and instead put more focus on living within your means. Overspending can lead to high levels of debt, and budgeting helps you to avoid that. 👉Achieve your goals: Wheth

PMS (Portfolio Management Services) Investment is a customized investment solution offered by financial institutions or investment managers to high-net-worth individuals or institutions. The PMS investment is a type of discretionary portfolio management where the investment manager manages the portfolio on behalf of the investor based on their investment objectives and risk tolerance. The investment manager takes investment decisions on behalf of the investor and invests in different asset classes like equity, debt, and other securities. The investment portfolio is managed to deliver superior returns to the investor with minimum risk. PMS can be divided into two categories: Discretionary PMS (Portfolio Management Service) is a type of investment service where investment decisions are made by the portfolio manager in consultation with the client. However, the client gives the portfolio manager the discretion to make investment decisions on their behalf without seeking their approval f

Foreign Direct Investment (FDI) refers to the investment made by a foreign company or individual in a business located in another country. It can be in the form of purchasing stakes in a company, establishing a subsidiary, or acquiring a business entity. FDI allows foreign entities to gain control and ownership of assets and resources in a foreign country. It also enables them to access new markets, resources, and technology. For the host country, FDI can provide an inflow of capital, employment opportunities, economic growth, and technology transfer.   The impact of FDI on the host country can be positive or negative depending on various factors such as the quality of the investment, the industry it operates in, and the level of engagement with the local stakeholders. FDI has become increasingly significant in today's globalized economy, and it is a key force behind economic growth and development. India has become one of the most attractive destinations for FDI, and the Indian g

A real estate investment trust (“REIT”) is a company that owns, operates, or finances income-producing real estate. REITs provide an investment opportunity for anyone to invest in real estate by buying their stock either directly or through mutual funds or ETFs. REIT stockholders earn income through dividends without actually having to go out and buy, manage, or finance property. Buying & selling units are comparatively easier as they are traded in the stock exchange, contrastingly selling physical real estate may become difficult as the trade can only be done when a buyer is discovered. Approximately 150 million Americans live in households invested in REITs through their 401(k), IRAs, pension plans, and other investment funds. REITs are mainly classified into two categories i.e. Equity REITs & Mortgage REITs which are also known as mREITs. 👉Equity real estate investment trusts are the most common type of REIT. They acquire, manage, build, renovate, and sell income-producing

A lbert Einstein once said, “Compound interest is the eighth wonder of the world. He who understands it earns it; he who doesn't pays it.” The king Known for his love for chess, the King would challenge wise visitors to play a match with him. It is said that a king would offer any treasure or prize he wished to his opponent if the challenger achieved victory over him. Upon arrival in the kingdom, the King challenged a traveling sage to play a game. Asked what reward he desired, the sage indicated that he had modest means and did not need much. He said, “Oh, Mighty King, my requests are straightforward. I can only hope for this. Please give me one grain of rice for the first chessboard square, two for the next, four for the one after that, eight for the next, and so on for all 64 squares. All I ask is that with each square, the number of grains is double the number of grains in the preceding square.” To the King, this request seemed acceptable. So, he instantly agreed to it. Only wh

Sintex was facing financial problems before the pandemic and these problems rose in a significant manner due to low demand during 2019-20. The company defaulted on its loans. With high debts and rising costs, the company decided to declare itself bankrupt and the business closed. Its stock went crashing down. The stock was down around 93% since 2017. Many investors were buying this stock as it reached 52 week low. 9.1 lakh shares of Sintex Industries were traded on BSE and 52 lakh shares on NSE in one day even when the company was defaulting on its loans. A day later NSE and BSE decided to pause the trading in the stock. Soon, Reliance announced that it will acquire the company. Its acquisition proposal was that the share capital of the company will be 0. All the investors who had Sintex shares even after its bankruptcy was announced have lost their money. One important thing for investors to note is to analyze the financial situation of a company before investing in it. Analyzing jus

A Mutual fund is a type of investment vehicle in which investors pool their money together to purchase a portfolio of stocks, bonds, or other securities. A professional fund manager then manages the fund and makes investment decisions on behalf of all investors in the fund. The value of the mutual fund is determined by the performance of the underlying securities in the portfolio. Mutual funds offer diversification, professional management, and ease of access for individual investors looking to invest in the stock market without having to directly purchase individual stocks. However, mutual funds also charge fees and have their own risks, which investors should carefully consider before investing. Mutual funds are a suitable investment option for individuals who: Want to diversify their investment portfolio: Mutual funds offer a broad range of investment options, including stocks, bonds, and other securities. Have limited knowledge or experience in investing: Mutual funds are managed

The term " blue Chip stock " comes from 'the world of poker, where the highest value chips are blue surpassing white chips and red chips, so it is an informal term for the most reliable and valuable companies on the market. Blue Chip stocks refer to stocks of large, financially sound, and well-established companies with a long history of stable earnings growth, dividend payment, and a reputation for quality management, products, and services. These companies are leaders in their respective industries and are considered to be less volatile and more reliable investments compared to other stocks. Blue chip companies typically have a market capitalization of over $10 billion and include names like Apple, Amazon, Johnson & Johnson, Procter & Gamble, Coca-Cola, Microsoft, Infosys, Reliance Industries LTD., ITC Limited, etc.👈

SAVINGS refers to setting aside a portion of your income or money for future use, usually for emergencies or short-term goals. These savings are usually kept in a savings account, which may offer interest but typically has a low rate of return. INVESTMENT , on the other hand, involves putting your money into financial assets such as stocks, bonds, real estate, or mutual funds, with the expectation of earning a higher rate of return than savings. Investment has a longer-term horizon and typically involves more risk than savings. In summary, savings are used to build an emergency fund or achieve short-term goals, while investments are used to grow wealth over the long term. Both savings and investment are crucial to securing financial stability and achieving financial goals.👈