In India, Life Insurance is one such product which people don’t buy, rather these products are sold to them. Knowledge, awareness and understanding are minimal, and most of them are even sure if the policy they hold meets their requirements, and in a broader perspective, if it matches their personal finance needs. Hence, [...]more→
The scheme was launched in Budget 2012 to get more first time investors to invest in the equity markets. One can invest as much as Rs. 50000 and avail deduction of 50% .i.e. maximum deduction of Rs. 25000. Effective from 1st April 2013, another Blessing for first time investors: RGESS ( Rajiv Gandhi [...]more→
Liquid Funds and Ultra Short Term Funds are debt mutual fund schemes investing in safe money market instruments and are better than Bank Fixed Deposits(FDs). They provide tax-free returns!! Liquid Funds are very safe debt instruments sold by mutual fund companies.
Liquid Funds are for the rich people while Bank Fixed Deposits [...]more→
Basically, derivatives had been introduced in order to hedge against the price risk (risk of price of asset owned going in an unfavorable direction). It enabled transfer of risk from those who were not willing to take it (hedgers) to those who were intentionally willing to assume it (speculators). Besides hedging, they perform [...]more→
Meaning of Derivatives: Derivative is an instrument that does not have a value of its own, rather it “derives” its value/price on the basis of some other instrument, hence the name Derivative.
For eg, Cheese, curd, ice-cream etc. can be termed as “derivatives” of milk products. Their price is dependent on the [...]more→
In my previous article, I discussed about what exactly are money markets, objectives of money markets and features/drawbacks of money markets: What are Money Markets?
Now, we shall discuss about the structure/constituents of Money Markets in India. Basically, Money Market in India is comprised of two sectors: Organised Money Market and [...]more→
In my previous article: Accounting cycle, I discussed Step 1: Identification and recording of transaction and other events- Journal.
Here, I shall discuss about:
1. Posting to the ledger
2. Proving periodic arithmetical accuracy into ‘Trial balance’.
Step 2: Classified posting into ‘general ledger’