Bytes & Coins - Tech and Finance

Investment Process Investment involves various processes to be followed: define investment policy by planning our savings, investment to be done & time of return expected. gain knowledge & risk about the financial market where we are going to invest. analyze the market, industry, & company where we are going to be investing; to know about the history & profitability of the company or sector where we are going to invest. identification of the valuation of the company where we have invested (intrinsic & future value). portfolio construction means constructing a portfolio of a variety of companies (diversification). portfolio evaluation of our portfolio (appraisal/revision of portfolio). Requirements for Stock Trading DEMAT Account (Dematerialised Account): an account that allows us to electronically hold company shares & securities. It will be opened with a stockbroker (associated with a stock exchange). We can hold dematerialized securities such as stocks, mu...

What is Investment? It is a process in which an item or asset is acquired with the goal of generating income or appreciation over time. e.g. investment in FDs (Fixed Deposits), gold, equity (stocks), property, etc. Investment is better than saving as it could provide returns in the future.  Pillars of investment: safety, liquidity, and return. Purpose of Investment Wealth creation to fulfill financial & life goals like building our home, marriage, children's education, setting up business, buying land, retirement, etc. And to achieve these goals we should start investing from today. Inflation Tax benefits Secondary income Emergency savings Savings Investment according to its priority & time Long Term Investment Compound Interest Compounding is the process whereby interest is credited to an existing principal amount as well as to interest already paid . Compounding thus can be constructed as interest on interest - the effect of which is to magnify returns to interest over ...