The best thing about this forum is that we get quick answers here. This forum really solves specific financial queries. I will always recommend this channel to anyone who wants to increase their financial knowledge.
Discuss about stock market investments, upcoming IPOs, stock performance and how to invest in stocks
Most financial advisors with any competency whatsoever will caution against improper use of credit cards. However, they do have benefits that can be worthwhile. Provided you have the resources to ensure monthly payoff, just the frequent flyer points or other benefits make their use worthwhile. But they also aid in cashflow and convenience.
We need good credit card advice to make your shopping smart.
All the discussions and options for NRI investments in India. Also discuss NRI Taxation.
Have you ever wondered, how share prices are determined? Do you wish to know the factors influencing stocks prices of different companies? What;s the share price formula? If yes, let's analyse how is share price actually calculated?
How is Share price determined?
There was an ancient time wherein we used to exchange goods for goods (barter system). But, today’s world believes and works on price tags. For every goods or products or services, we now determine the exchange policy in “price” or “cost”.
So, speaking of “Price”, as per English dictionary is defined as “an amount of money expected, required, or given in payment for something.”
Nowadays, “Price” forms the base of every financial or social transaction.
How is this “PRICE” determined?
In a free market model, price is determined on the basis of two important factors: SUPPLY & DEMAND.
Let me get my economics boots on: to try and explain you the law of supply & demand and the resulting price determination.
What is Demand?
Demand originates with the consumers i.e. they show a desire to purchase a product. On a general basis, the users are willing to pay a particular price for a product depending on their income capability and need to own the product. This relationship in the economic term is expressed as a “demand curve”.
What is Supply?
On the other hand, Producers/manufacture arrange to supply product or services to meet this demand. The higher the demand the company tries to increase its production. This relationship is called a "supply curve".
The point at which the demand and supply curve intersect is called the “equilibrium price”. And this is how my friend pricing of every goods, commodity, service, is determined in the same way.
Got too much economics, let’s try and understand with a daily example:
Everyone loves “Mango” I am sure of it. So, we all know the demand for mangoes is an all-time high. Thus, if you see the pricing trend, at the beginning of the summer when the supply is low: the price is high Rs.100 per kg.
But, during the mid-summer period the, when more mango has come into market and supply is high: the price reduces to as low as Rs.40 per kg. But, after the summer is over and mangoes are disappearing from the market, the price resets to Rs.100 or even Rs.200 per kg.
Similarly, stock or share price are determined by the play in between demand and supply. Thus, higher the demand for a share, the higher is the price and vice versa.
Share Price Determination: Example:
Let’s take a hypothetical example of opening a new company with no market presence and new offering.
When this organization is opting for their first Initial Public offering (IPO), the demand for the share is lower, but the supply is huge. Thus, price here in this scenario would be low.
Now, once the company starts to progress and shows better returns, the request for company shares starts piling up. Therefore, the share price of the company starts showing an upward trend.
Talking about actuals, we all would have seen the success story through and through for companies like Reliance Ltd., MRF tyres, Rasoi and many many more.
I wouldn’t go in further details. but let me take you through a few important factors which don’t affect share price directly, but affect the demand side of the formula.
How Share Price is determined? Factors to Influence
The below factors which can create an upward trend for higher demand shares, if:
The company has a scalable market shares and is making a profit.
Its shareholders are happy, that simply means they get dividends issued and payments.
The company has a great future due to their prospective future plans.
Company shares form basis of any company value. Thus, pricing is a highly delicate matter. These simple details about share price determination above is a humble attempt to help you understand the price trending philosophy.
What is share price? How share price is determined? The answers to these rest in the market fluctuations altogether. To conclude, in the simplest terms and frankly speaking, share price is just a battle play between “supply” and “demand”. What would you say about it? Any other crucial points you wish to add here, feel free to do so.
All about investments and personal finance in India.
In the today’s world, "TARGETS" or "GOALS", form a very important catalyst. Today the world is moving towards their set targets and is caving pathways only to ensure that the targets are achieved at any cost.
For most of our goals, we need money to help us enjoy the benefits. And, investment can be one of the ways wherein we can earn returns. We are not masters of all trades and some of us are not that a great expert in their financial planning.
So, here comes the function of "GOALWISE" to help us set and achieve our financial goals.
What is GOALWISE?
Goalwise is a service platform provided by "Alphafront Finserv Pvt. Ltd." which is a Bengaluru based company established in 2015. Goalwise portal provides user benefit by helping you and me to set financial goals, track the portfolio’s progress and achieve them.
The service provider is involved in guiding their users through financial and investment jargons and simplifies the task at hand by personally managing the funds.
The company is also involved in risk profiling of their user, so that they can do the appropriate fund allocation in between equity and debt. They also closely monitor the performance of the portfolio and re-balance and redistribute the funds (if needed) efficiently to always keep you on track to achieve the defined goals.
How does the Goalwise system work?
The portal uses smart algorithms which automatically detect any the pathway of investment pattern needed for achieving such goals. It tracks any discrepancies if your portfolio is falling short and performs such activities which need to be done to get you back on track.
They have a very dedicated and expert team to help them to develop this data and help you and me to accomplish our planned goals.
Goalwise: Steps to Follow
Step 1: You need to select your financial goals:
Other life goals like buying a house or marriage or holidays
Step 2: Set your financial goals i.e. target money and period.
Step 3: Once your goals are set, you will get an array of options of mutual funds to select and invest into. Select the option which suits your need the best. If you are confused then ask the advisors.
Step 4: Goalwise meanwhile monitors your portfolio performance and help you check any discrepancies from the determined target. Thus, if needed, it advises you to re-invest more funds so that you don’t miss your set goals.
Fees & Charges
Goalwise is completely "FREE". Since June 2019 the portal has moved to direct equity plan system and have changed their pricing policy for their accounts. The accounts don’t have any account opening or annual maintenance charges.
Also, the account users are not liable to pay any hidden charges or commissions charged for the account and investment usage. They charge only for the financial planning and advisory services.
Hence, Goalwise is a service-oriented platform to help us understand the investment and succeed by managing our portfolio in an efficient and well-organized manner.
@Harleen Hi, thanks to clarify how to activate a dormant and inoperative account. On of my accounts got inactive and I was looking for ways to activate it now. Actually, that was a prior salary account of my previous job that I forgot to close and it became inactive since no transactions were done. And, I got a new account opened for salary from new company. Thanks for sharing such useful information!
General Queries not covered in any of the above topics.
I hope you all are doing great. I came back from the US on September 1st 2019 after three long years and I am settled in India now. But, I have a US consultancy company that I formed during my stay in the US. I earn money in USD and it gets credited to my US bank account regularly. I am going to be considered a resident of India as I will be living for more than 182 days in the FY 2019-20.
I have started remitting the money back into my father’s bank account in India. I pay taxes on my income in the US. Do I have to pay taxes on that income remitted to India as well? I know there is a DTAA that exists between India and the US. I am confused and I seek your opinion on this.
Please let me know. Looking forward to hearing from you.
@sakshi001 Hi, Bankbazaar also provides easy loan solutions for women entrepreneurs in India. You can try that also. They have a quick service and easy to go financing options. I liked their service. I don't know much about Lendingkart as such.
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The internet makes a lot of our everyday tasks simpler, from getting up-to-date information and weather know-how to paying expenditures and even submitting taxes on-line. The internet is also a pleasant supply of understanding for those looking to study about managing their individual funds.
Probably the greatest on-line aids come in the form of calculators that may inform among the most fashioned personal finance questions like whether you must save money or repay debt and whether you'll have adequate cash to retire.
Disclaimer: Any views/recommendations expressed in the forum, of the individuals are their own only. Fintrakk doesn't endorse or recommend any financial product or views by the users of the forum. The information/comments on the forum should not be considered as a financial advise. Please do your own due diligence before investing. Fintrakk is not responsible for any financial loss to any of its visitor/user.