Dilemmas of investing from MyIRIS

When a layman decides to chalk out his investments what crops up first are queries and confusion. The first question that causes the chain reaction is `` what kind of investment option are available and which ones will help me reap maximum returns? ``

Nothing comes free of cost and investments are no exception. Investments come with their set of risks which are to be borne by the investor... Risks in investment are inevitable. The potential investor should always consider the risk options before investing. Taking risk is the first dilemma that the investor has to face.

Coming back to the main question: `what kinds of investment option are available and which ones will help me reap maximum returns? `

The answer to this question is very subjective, as it defers from person to person. Factors like the person`s risk appetite, his investment goals and others have to be precisely considered.. Seeking the most suited reply for the question the investor usually lands up taking advice from near and dear ones for investment. Suggestions put forth by different people vary from one another; some suggests to go for the traditional way of investing i.e.`` Fixed Deposits with a Bank``, others may suggest none other than ``Investing in Equities``.

``Properties/real estate``, ``bullion`` and so on and so forth will appear in the list of possible avenues available in today`s time.

The plethora of options proves to be of little help in guiding the person out of the problem, moreover they add on to be just another reason for the prospective investor to have sleepless nights.

The question that arises next in mind is that whether I should go for self investing or opt for a financial advisor?

However, this is not the actual dilemma faced by a potential investor, it`s a decision which depends upon one`s availability of time to keep track of one`s investments and one`s ability as it requires research before opting for an investment avenue.

So to evade any further dilemmas, the best way to find an answer to our main question i.e. ``which investment avenue shoulder I opt for? `` is to go for self questioning/ self advice, keeping in mind certain factors like one`s risk taking capacity, investment goals, amount to be invested etc...

One should calculate his/her risk appetite and invest accordingly.

Acknowledging the goal for which the investment is been made is radically important; investment goal can be a short term or long term goal. If the potential investor is eyeing short term investments he/she can go for options which are best suitable for short term investment like, bank deposits or debt mutual funds as they have performed well as compared to equity funds.

Only if you think that you can make the above decisions on your own, if you have the time and inclination to get into research and know the in and out of your investments, as well as keep a track post your investments, you need not approach a financial planner or a financial advisor, you can invest on your own; else, it will be feasible to utilize the services of a financial planner and pay a little today to have a profitable tomorrow. - MyIRIS.Com

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Few thing you would Love to know about Warren Buffet.

This is a video on Warren Buffet and His secrets are revailed.
He is my Role Model.
Watch It.

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What is Fiscal Policy ?

Definition - Government spending policies that influence macroeconomic conditions. These policies affect tax rates, interest rates and government spending, in an effort to control the economy.

What is Fiscal Policy? - Fiscal policy is the means by which a government adjusts its levels of spending in order to monitor and influence a nation's economy.

Fiscal policy and Monetary policy go hand in hand with each other. Both are interdependent on each other.

Before the Great Depression in the United States, the government's approach to the economy was laissez faire. But following the Second World War, it was determined that the government had to take a proactive role in the economy to regulate unemployment, business cycles, inflation and the cost of money. By using a mixture of both monetary and fiscal policies (depending on the political orientations and the philosophies of those in power at a particular time, one policy may dominate over another), governments are able to control economic phenomena.

Objectives of Fiscal Policy –

1. To achieve desirable price level:

The stability of general prices is necessary for economic stability. The maintenance of a desirable price level has good effects on production, employment and national income. Fiscal policy should be used to remove; fluctuations in price level so that ideal level is maintained.

2. To Achieve desirable consumption level:

A desirable consumption level is important for political, social and economic consideration. Consumption can be affected by expenditure and tax policies of the government. Fiscal policy should be used to increase welfare of the economy through consumption level.

3. To Achieve desirable employment level:

The efficient employment level is most important in determining the living standardof the people. It is necessary for political stability and for maximization ofproduction. Fiscal policy should achieve this level.

4. To achieve desirable income distribution:

The distribution of income determines the type of economic activities the amount of savings. In this way, it is related to prices, consumption and employment. Income distribution should be equal to the most possible degree. Fiscal policy can achieve equality in distribution of income.

5. Increase in capital formation:

In under-developed countries deficiency of capital is the main reason for under-development. Large amounts are required for industry and economic development. Fiscal policy can divert resources and increase capital.

6. Degree of inflation:

In under-developed countries, a degree of inflation is required for economic development. After a limit, inflationary be used to get rid of this situation.

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What is the meaning of BRIC Nations?

BRIC stands for Brazil , Russia , India and China.

These nations are also called as the emerging economies in the world. These countries are supose to be the future superpower.

The markets in these countries are emerging once.

Almost 2/3 of the worlds population thrives here. Here the population is huge and ROI's is faster.

Between 2000 - 2005 BRIC contributed roughy 28% of the Global growth.

Just imagine the power of BRIC nations.

I will write  full report on BRIC very soon. I am working on it.

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How do you define Recession ?

Recession is "A period of general economic decline, part of the usual business cycle."

"|A significant decline in general economic activity extending over a period of time."

Or else "As reflected in the gross national product, a decline in economic activity in at least two consecutive quarters."

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A Few stock market abbreviations you need to know.

BSE - Bombay Stock Exchange. (Index - Sensex)
NSE - National Stock Exchange (Index - Nifty)
MF - Mutual Funds
SIP - Systematic Investment Plan
MCX - Multi Commodity Exchange
S&P - Standard & Poor
HNI - High net worth Individual
FII - Foreign Institutional Investor
DII - Domestic
EPS - Earning Per Share
PAT - Profit After Tax
PBT - Profit Before Tax
IPO - Initial Public Offerings
NAV - Net Asset Value
CAGR - Compounded Annual Growth Rate
P/E Ratio - Price Earning Ratio

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Some more abbreviations used less frequently.

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