AVFINPAL- Your Financial Pal

Lately with an increase in investor awareness programs, access to the apps that allow an easy of investing and all the information available on various platforms. The number of people entering or willing to explore more and more investing avenues is increasing with multifold year on year.  One of the most common and best available avenues for the new and no nothing investor are a mutual fund. The mutual fund industry has grown rapidly in the last decades due to its ease of access and various other benefits. Also, the "Mutual Fund Sahi Hai" campaign has boosted the interest of novice investors.  In this article, we will be know all about mutual what. How it works and what are its advantages and disadvantages? Wikipedia defines mutual fund as-  "A professionally managed investment fund that pools money from many investors to purchase securities. These investors may be retail or institutional in nature. Mutual funds have advantages and disadvantages c...

Dalal Street which was bleeding red since past few months finally got some rejuvenation on Friday. The Finance minister Nirmala Sitharaman gave a sigh of relief to the corporates and retail investors from tax regime in the fourth round of a series of measures that the government has announced in the past few months. The tax relief which is addressed as the bonanza to domestic business and manufacturing firms makes the tax rate to be the lowest in Southeast Asia. In response to these tax relief, all the major indices registered a decade's highest upward movement in a day. BSE Sensex showed a really of over 2,200 points and Nifty showed a 5% growth to settle at 11,274. The mid-cap index rose to 6.5 % and small-cap showed an upward movement of 4%. Still wondering what made the market flooded?  In this article, we will be looking at the key takeaways from the changes made in the tax regime. 1. Reduction of basic corporate tax: The FM reduced the basic rate of the income ...

The very basic of investing and understanding a business is to understand the finances of the company. The finances and monetary positions of the company are the backbones of any decision when it comes to investing or understanding the company.  Though there is no set pattern when it comes to filtering the information from the financials of the company and the type of filtering depends upon the style, need and size of the information. required. In this article, we will be sharing the basic you should always look for while picking up a company for investing.   1. Net Income In terms of overall profitability, the net income is the obvious starting point when analyzing a financial statement. This bottom-line amount on a company's income statement is an excellent indicator of profitability because it puts a value on the amount a company takes in, once all costs of production, depreciation, tax, interest and other expenses have been deducted. 2. Operating Profit Ma...

It is a scientifically proven fact that people do irrational things to avoid making losses. One of the biggest fears they have is that of losing money. In fact, studies have revealed that the pain of losing is twice as strong an emotion than the joy of winning. Thus, the emotion felt while losing Rs 100 is doubly strong than that felt by gaining Rs 100. Human nature is not designed to accept losses. Hence human species’ instinctive or natural reaction to a market downturn is flight, and not fight. However, this brings with it the possibility that investors could miss out on opportunities to generate returns that would help them achieve their long-term investment objectives. In this article, we will be sharing as the list of the behavior of investor that can make the equity market mortal for the investors.  1. Not doing proper research and investing based on tips.  The most common and one of the biggest mistake that investors do is to invest based on the tips rec...

Salary slip is one of the vital documents of employment. It gives you an overview of your salary structure and taxes paid by you on a monthly basis. The fact is many of us still don't understand the basic structure and terms of the salary Slip. Understanding a salary slip can help you manage and plan your money in a better way. In this article, we break down and discuss the components of the salary slip and its importance as well. Before dig deep and decode the salary slip lets understand the two very basic terms and importance of the salary Slip:  a. Cost To Company (CTC): It is the cost that the employer spends on the employee during a particular year. It Includes Salary, reimbursement, contribution, performance bonuses and taxes. b. Gross Salary: It is the amount the employee receives as a salary, before any deductions. It is the amount the employer has committed to pay to the employee. It includes components like basic salary, dearness allowance, medical allowan...

The success of a financial journey requires some detailed view and technical approach. Possessing these two at the same time is a hard task for many. However there are few things if kept in mind, will always help you maintain your finances smoothly. In our financial life we need to consider the following points to be of the optimal necessity: Savings and investing Insurance Loan and Liabilities Returns on investment Retirement In this post, we are sharing the thumb rules a no nothing investor should follow. However, all these may or may not be relevant to everyone, as financial requirement and perspective may differ. 1. Savings and investments. a. Maintaining an emergency fund : The first and most basic approach for saving is to keep aside some portion of earnings for an emergency. Maintaining an emergency fund helps you to be prepared for some unforeseen event. Since you at the back of your mind you know you are having some backup in case of some uncertainty, you will ...

Investing in financial securities such as shares, debentures and bonds is considered one of the best avenues for investing. These investments are profitable as well as exciting. Investing in such instruments involves both rational as well as emotional responses. It is indeed rewarding but at the same time involves a great deal of risk. It is very often (and not even suggested) to find investors putting their entire savings in a single security. Instead, it is always better to invest in a diversified pool of securities. Such a pool of securities is called a portfolio. Creation of a portfolio helps to reduce risk without sacrificing the returns. An optimal portfolio is one which minimizes the risk and provides a higher return. Therefore, this makes portfolio management a very important aspect of your investments. What is Portfolio Management?  Portfolio management means strategically managing an investment portfolio, by selecting the best investment mix the right proportions...