19-02-2013, 11:34 AM
Myths And Realities in Indian Stock Market
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EXECUTIVE SUMMARY
This project intends to study the consumer buying behavior at local mom and the degree of customer loyalty in Meerut. This project covers various aspects like consumer buying behavior, their expectations, needs & requirements, present satisfaction level, factors affecting their choices and the degree of consumer loyalty for grocery in Meerut .
Introduction to Relegare
Religare is driven by ethical and dynamic process for wealth creation. Based on this, the company started its Endeavour in the financial market.
Religare Enterprises Limited (A Ranbaxy Promoter Group Company) through Religare Securities Limited, Religare Finvest Limited, Religare Commodities Limited and Religare Insurance Advisory Services Limited provides integrated financial solutions to its corporate, retail and wealth management clients. Today, It provides various financial services which include Investment Banking, Corporate Finance, Portfolio Management Services, Equity & Commodity Broking, Insurance and Mutual Funds. Plus, there’s a lot more to come your way.
Religare is proud of being a truly professional financial service provider managed by a highly skilled team, who have proven track record in their respective domains. Religare operations are managed by more than 2000 highly skilled professionals who subscribe to Religare philosophy and are spread across its country wide branches.
Today, it has a growing network of more than 150 branches and more than 300 business partners spread across more than 180 cities in India and a fully operational international office at London. However, its target is to have 350 branches and 1000 business partners in 300 cities of India and more than 7 International offices by the end of 2006.
Unlike a traditional broking firm, Religare group works on the philosophy of partnering for wealth creation. It not only executes trades for its clients but also provide them critical and timely investment advice. The growing list of financial institutions with which Religare is empanelled as an approved broker is a reflection of the high level service standard maintained by the company.
Investing In Share Market
To do this effectively, it is necessary to ferret out the real reasons why we are investing in the first place. While ‘to make money' is likely the obvious reason, in reality there are myriad reasons why we try our hand at stocks. These range all the way from the money objective, to wanting to feel good about ourselves, to garnering the respect of others. These are at least as strong as the money factor, and when you think about it, money is usually the means for achieving something else - like respect, etc. Only misers want money alone. From a practical standpoint, we are all a mixture of these reasons and more.
Before you embark on any investment approach it is best to search yourself to see which elements are present in yourself and attempt to root out the attributes of the ego-driven investor and bolster the characteristics of the results-oriented investor.
The ego-driven Investor
The ego-driven investor sees investing as something exciting. He mostly does it as a way to garner the admiration of others. He may also see it as entertainment. He is constantly talking about this or that great deal, imagining that others will stand in awe of his prowess and immense wisdom. In reality, he most likely does not really make too much money in the stock market, a fact which he hides from the outside world by any means possible.
Worst of all for the ego-driven type, he never gets any better at his investing. To admit he has been doing something wrong, even to him, is more than his sensitive ego can take. Since the aura of being an investment wizard is simply a way for him to gain affirmation from others, he really doesn't care too much whether the results are there as long as he can still stay in the game and keep talking about his smart deals at cocktail parties. Of course, he conveniently forgets the bad ones and keeps turning over in his mind his best deals and how smart he must be. He certainly never does a post-mortem on any of his losing trades to figure out just why they were losers.
The results-oriented Investor
The results-oriented investor seldom talks with others about his investment results. Really, he is too busy trying to make his results better. He is never too proud to buy a stock that is making new highs, realizing that those who are buying the stock most likely know far more than he does - and a winning company is more likely to keep on winning than a losing company is. The fact that someone else was smarter and bought at a lower price does not worry him; it is against his nature even to have such a thought occur to him. He is far too focused on trying to pick stocks that are performing well to entertain these types of thoughts. He compares his performance against others' performance only as a means of learning and getting better.
Make A Financial Plan
Figuring Out Your Finances
Sit down and take an honest look at your entire financial situation. You can never take a journey without knowing where you’re starting from, and a journey to financial security is no different.
You’ll need to figure out on paper your current situation— what you own and what you owe. You’ll be creating a “net worth statement.” On one side of the page, list what you own. These are your “assets.” And on the other side list what you owe other people, your “liabilities” or debts.
Subtract your liabilities from your assets. If your assets are larger than your liabilities, you have a “positive” net worth. If your liabilities are greater than your assets, you have a “negative” net worth. You’ll want to update your “net worth statement” every year to keep track of how you are doing. Don’t be discouraged if you have a negative net worth. If you follow a plan to get into a positive position, you’re doing the right thing
KNOW YOUR INCOME AND EXPENSES
The next step is to keep track of your income and your expenses for every month. Write down what you and others in your family earn, and then your monthly expenses. Include a category for savings and investing. What are you paying yourself every month? Many people get into the habit of saving and investing by following this advice: always pay yourself or your family first. Many people find it easier to pay themselves first if they allow their bank to automatically remove money from their paycheck and deposit it into a savings or investment account. Likely even better, for tax purposes, is to participate in an employer sponsored retirement plan such as a 401(k), 403(b), or 457(b). These plans will typically not only automatically deduct money from your paycheck, but will immediately reduce the taxes you are paying. Additionally, in many plans the employer matches some or all of your contribution.
Mutual Funds
Because it is sometimes hard for investors to become experts on various businesses—for example, what are the best steel, automobile, or telephone companies—investors often depend on professionals who are trained to investigate companies and recommend companies that are likely to succeed.
Since it takes work to pick the stocks or bonds of the companies that have the best chance to do well in the future, many investors choose to invest in mutual funds.
What is a mutual fund?
A mutual fund is a pool of money run by a professional or group of professionals called the “investment adviser.” In a managed mutual fund, after investigating the prospects of many companies, the fund’s investment adviser will pick the stocks or bonds of companies and put them into a fund. Investors can buy shares of the fund, and their shares rise or fall in value as the values of the stocks and bonds in the fund rise and fall.
Investors may typically pay a fee when they buy or sell their shares in the fund, and those fees in part pay the salaries and expenses of the professionals who manage the fund.