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
Hey @Smart2Investor , very well written. I am using finvasia only for trading and most of the info you have mentioned is correct, brokerage is absolutely zero, so are account opening charges. Though you got one thing wrong.
But, the platform does charge for annual maintenance cost for account operating on the application
AMC is zero as well that too for lifetime.
Apart from this, if I talk about the trading platforms, they have recently closed NOW and BEST for new users. So, all in all what’s left are Scalpert, NEST and fox trader. As for scalpert, being their in house trading platform, needs a little more work, but has improved significantly since its update, very user-friendly, order execution speed has increased, much stable now and various distinct features are added like multiple chart view at the same time, save the strategies applied on charts, single swipe buy and sell for mobile trading etc.
Overall, all I can say is, finvasia is definitely becoming a popular choice today and good to see brokers making efforts to cut down the unnecessary cost for traders.
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.
I have a lump sum to invest and I'm looking at SWP as an instrument for tax efficiencies and better returns.
I plan to invest majorly in Debt MFs ( ~80%) and the remaining in equity since my risk appetite is low and am a retiree.
I don't want to erode my capital, therefore I want schemes which are only Capital Appreciation withdrawal oriented. I would want the redemptions to happen on a monthly basis.
Can you please suggest good debt oriented SWP schemes which can provide returns upward of 7% annually(based on previous performance)? Also to say, this is not my primary source of income, I'm flexible with the returns but hoping for good ROI.
@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.
@Anmol Very interesting business ideas. Have confidence and try the one you like.
My favourite business ideas are:
Making chocolates and candies.
Making designer candles.
These 2 are tried and tested traditional home business ideas. My cousin tried this for sometime and got good results. For some reasons, she had to quit. But, if you can grab a good customer base these business ideas can really work well in the festival season in India.
@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.
I would say a blog. You can take courses online to learn SEO and market your blog. It would be a great and cheap investment
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