What is the need of financial planning? Meaning:- Financial planning assesses the objectives, determined assets, resources, estimating future financial needs and making plans to achieve certain goals. Thus, there are many elements which are involved in financial planning. In other words:- Financial planning includes assets allocation, risk management, investing, taxation, life cover of employees, assets,…
Which of the following is a non-financial indicator? There are some financial indicators. But besides that, there are some important Non-Financial indicators which are the following. Which must be considered before the investment. (1). Types of Business Policy:- The Investors should know that the company is well known in its business. Investors also should know…
Fundamental Analysis Rational decisions are taken before the investment based on effective analysis. While they are investing, investors have primary objectives to gain from their investment. Fundamental analysis also suggests that every stock has intrinsic value which should be equal to the value of future income. However, in a fundamental approach real worth of stock…
What are the constraints of a portfolio? Every investor would like to dig out the objectives of investment before investing. So the concept of portfolio management involves decision making as to what to purchase and what to sell from the available security. It requires detailed risk and return analysis. So in the investment way portfolio…
What are the characteristics of industrial analysis? Meaning of industrial analysis:- When any investor would like to invest in any portfolio. He is required to do industrial analysis. He should consider those industries that promise the most favourable opportunities in the coming years. Successful investors are those who analyse the economic growth of industries and…
What are the basic tools and Macro factors of economic analysis which affect the stock prices? Economic activities have a major impact on overall stock prices. So it is essential for the investors to assess the economy as well as its implications for the stock market. Because investors are interested to know the forces in…
How Many Types of bonds are there in Finance? Meaning of Bonds:- It is a negotiable instruments as evident of debt for the company. Capital is raised through the bonds. Bond is an unsecured documents. Investors lends money to the company in exchange of bonds. on which company pay fixed interest til the specified maturity…
What are the advantages and disadvantages of real estate investment? Real estate is a long term investment avenue for the investors. It is a profitable investment for those who have an appetite for risk and are patient with time. Real estate involves investment in housing, commercial housing, palace, shops and hospital infrastructure. Some people buy…
What are the types of risk involved in an investment? Meaning of Risk:- It is the chance of loss and the possibility of uncertain situations. Thus the risk is losing something or suffering loss from something due to the uncertainties. According to Fisher:- “Risk may be defined as combinations of hazards measured by probability.” Types…
What are the features of an investment program? Before investing , any investor would like to know the features of his potential investment. If these features are consistent with his objectives and preference then he/she will invest in such types of securities. Because such investment is able to offer him optimum facilities and advantages as…