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January 13, 2009

Longer ring finger – More Money

Filed under: Stocks — Tags: , , , — admin @ 7:11 pm

A new research shows that stockbrokers with longer ring fingers make six times as much money as their rivals. According to this research, people with longer ring finger have been associated with higher exposure to testosterone in the womb, which has been linked to confidence, risk-taking ability, extra vigilance and quick reactions.

The research led by Dr John Coates, included 44 men in the study. Dr John Coates compared the profits of the traders over a period of 20 months with their finger-length.

Results showed that traders with long ring fingers made up to 11 times the earnings (averaging 6 times) of their counterparts.

“We were surprised to find that exposure to hormones in the womb had such a strong influence on future trading performance. But we should not conclude from this that only people with long ring fingers should be employed in the stock market,” said Dr John Coates.

January 2, 2009

Mutual Funds

Mutual Fund is an Investment Firm that raises capital through public and invests them in diversified financial instruments such as Stocks, Bond or Government Securities. The profit or loss accrued through such Investments will be shared by the Shareholders (Investors). Investment in Mutual Funds is a great option for Individuals who don’t have the knowledge in Stock Markets and also to earn more money than a typical Bank Savings Account or Certificate of Deposit.

Financial Knowledge

The Mutual Funds Investor need not bother about the Equity Market conditions after investing in Mutual Funds. The Asset Management Company (Mutual Fund firm) will have a group of fund managers who are experts in analyzing the Stock Market and invest the money of Investors wisely.

Better Returns

Mutual Funds have shown great results for Investors in the past. They offer good returns than Investments in Bank. Top Mutual Funds have generated 20 to 25% return in a year. Unlike Shares, the risk of loss is mitigated as the Fund Managers diversify the Investments which they predict to be more profitable.

Tax Savings Funds

There are many types of Mutual Funds. One such type is the close-ended Mutual Funds. Close-ended funds are those which can not be sold for a specific period from the time of purchase. The lock-in period may be 3 or 5 years depending upon the Fund Scheme offered. Closed-ended Mutual Funds offer tax benefits for its Investors. Although it is not possible to redeem your money once invested, many AMCs (Asset Management Company) offer the advantage of switching to a different scheme if you think the current scheme is not profitable.

Risk of Investment

Mutual Funds can also be classified as low risk, medium risk and high risk Funds. The Investor can choose the one that best suits his risk-appetite profile. Before buying any mutual fund, one has to assess the performance of the particular fund in the last 3 to 5 years. On the same time, one has to remember that past performance of a fund may not work the same way in the future years.

January 1, 2009

Is Stock Market for me?

Filed under: Stocks — Tags: , , , , , , , , — admin @ 1:31 pm

Investing in Shares or trading in Shares is one of the lucrative ways of earning money in a short period of time. In the same time, Investments in Stock Markets is risky and may lead you towards losses. Before entering into the world of Stock Markets, a person needs to gain a decent amount of knowledge about Share Market.

Apart from gaining knowledge about the basics of share trading, one needs to have enough money and patience to make profits. Share trading is the process of buying shares and selling it in a short period of time. In contrary, Share Investments refers to the process of buying shares and holding it on for a longer period like 1 year or above. Choosing the Share Trading or Share Investments is a personal choice of the Investor.
Market Sentiments

An Individual should understand that the activities of Stock Markets are prominently driven by the sentiments of Investors. If the sentiments are negative it would have a negative impact on the Stock prices and incase the sentiments are positive the stock prices would surge.

Stock Specific News

At times, the price of Stocks may be influenced due to stock specific news irrespective of the overall market condition. If there is a positive news, the specific stock would increase in value even if the overall Market is moving in a downward direction.

Global Cues

US Stock Markets (Dow Jones and Nasdaq) are considered the mother of all Stock Markets. The results of these Stock Markets have a great impact on other countries’ Stock Markets. Typically the price of stocks raises or falls depending on the global cues.

Demat Account

In today’s electronic world, opening a Demat Account has become a must for Stock Investors. A demat account is useful to buy or sell shares over the Internet and eliminate the need for physical share certificates. Market regulators in many countries have framed rules in favorable of the electronic delivery of Shares.

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