Typically for corpus of less than 5 Crore, Equities, Debt and Gold are three broad asset classes suitable for investments. Your self-occupied house is not counted as an investment since it does not earn any returns. When your assets increase beyond 5 crore, you can consider Real Estate that you can rent and or sell to earn a return, as an additional asset to diversify your wealth.

Liquid Fund is a category of mutual fund which primarily invests our funds in money market instruments like certificate of deposits, treasury bills, commercial papers and term deposits. Since all the above instruments are very liquid and short term assets, Liquid fund can be redeemed easily. It typically earn close to after-tax Fixed Deposit returns but more tax efficient if held for more than 3 years. Besides, it can redeemed without any penalty/pre-mature closure fee.

Context of Timing the market is very important. Timing the market only based on hunches, personal biases definitely will not work in long term. But if one takes cognizance of market valuations, i.e. he can reduce exposure if upside is low and increase exposure to equity when upside is high, it may lead to good outcome. Some experts argue timing may earn poor returns versus buy and hold in back-testing model, we believe staying invested is more important than earning the last paisa from equity. Fall in portfolio value from peak can scare investor out of equities and lead to unproductive behaviour of selling out at the bottom. It is always better to minimize regret rather than maximize profits.

A mutual fund is a pool of funds collected from multiple investors for the purpose of investing in stocks, bonds. Every mutual fund has a fund manager who takes active decision in picking stocks. Mutual Fund charges a fee varying from 1.5 to 2.5% of assets under management typically, with a promise of trying to beat the market. In addition if you buy through a MF distributor (Regular plan) you end up paying 1% towards distribution cost. When you buy a directly (Direct plan) you save the 1% distribution cost. However, you do not get any advice (good or bad) from your distributor/agent when you buy directly.

While we ask you to invest for the long term, ie: money you won’t need for the next 5+ years at least, it can happen that you do need to touch this money. Had you invested in Fixed /Recurring Deposit you would have to break it and would lose some money (interest loss), while doing it. With the MoneyWorks4me Way of Investing you can meet this emergency in various ways depending on the market situation. You are likely to hold some money in a Liquid Funds and selling this becomes the obvious way to meet the emergency. When you do this your portfolio will ask you to rebalance it by selling that portion of your equity holding that makes the most sense to sell at that time. You can override this if you expect to put some money back into the plan soon. This may make sense if the market is under-valued and you wish to hold on to your equity portfolio. If the markets are in the over-valued zone you may be comfortable acting on the rebalancing advice. Thus you will have some good flexibility on how you manage such emergencies.

An index fund is a type of mutual fund with a portfolio of 50-80 stocks constructed to match or track the market index, such as Nifty 50 or MSCI 80. An index mutual fund is said to provide broad market exposure, low operating expenses and low portfolio turnover. This product can be used for tactical allocation if not many stocks are available at decent prices, thereby holding a diversified equity. Two popular index funds are listed on exchange R*Shares Nifty BEES & Junior BEES.

The reduced intraday margin rates are available for U.S Indices and select contracts in the following sectors: Currencies, Interest Rates, Metals and Energies. Reduced margin rates are also available on select Eurex products. Please reference the Futures margin rates page for more detailed information.

The basic trading principle within the Finoda platform is that the result of a trade changes in proportion to the price of the underlying asset the trade is based on.

To manage your money more effectively, you can use leverage, which is set when you open a trade. Leverage is a value that determines how the trade result changes relative to the underlying asset price.

For asset trading, you can only use integer numbers as leverage values. To view the maximum possible leverage value for each trading instrument, please refer to the Trading Instruments Specifications.

To calculate your profit or loss for a Long trade, please use the following formula:

PL = S * L * ( Ec / Eo – 1 ) – C , where:

PL is your profit or loss

S is your investment amount

L is the leverage value used

Ec is the close price

Eo is the open price

C is commission charged for your transaction

To calculate your profit or loss for a Short trade, please use the following formula:

PL = S * M * ( 1- Ec / EO) – C

Let’s assume you open a long Dow Jones trade worth $1,000 at 15,345 with leverage set at 10 and close it at 15,515. Your transaction fee is $1.70, and the rollover fee is -$3.80.

So we get: 1,000 * 10 * ( 15,515 / 15,345 – 1) – 1.70 – 3.80 = $105.28.

Your transaction profit is $105.28.

Now let’s assume we open an identical short trade:

1,000 * 10 * (1 – 15,515 / 15,345) – 1.70 – 0.20 = -$112.68

Here, your loss would be $112.68.

The aim of short selling is to profit on a stock when the price decreases.

To enter a short sell position, you “borrow” a stock and sell it, with the intention that you will close the position by buying the stock back some time in the future. The idea is that you sell the stock when the price is higher, and buy it back when the price is lower.

More broadly, being “short” refers to a position that profits from the asset price falling. This is the opposite of a “long” position, which profits when the asset price rises. The traditional buy-and-hold investing approach (where you buy stocks and hold them until they grow in value) is an example of a long position.

An Exchange Traded Fund is often referred to as an ETF. They’re built like managed funds, but they can be bought and sold on the share market like ordinary shares.

You can think of an ETF as a basket of investments. Each ETF purchases a range of assets (like shares, bonds, commodities and currencies), and their aim is to match the performance of a particular market index or benchmark.

For example, an ETF might aim to track the ASX200 Australian share index by investing in the top 200 Australian companies trading on the ASX.

Another ETF might aim to track a particular commodity (like gold or silver), or an industry sector (like healthcare or mining). Some ETFs can even give you exposure to international markets.

Crypto ETFs are complex investment products. Before investing in crypto ETFs, it is essential you carefully read the Product Disclosure Statement (PDS) supplied by the issuer of the crypto ETF you are considering purchasing, including the sections in the PDS setting out key risks, the fees and expenses related to the crypto ETF. You should also consider seeking advice from a professional adviser and consider whether you need any further information to understand the relevant crypto ETF or any underlying exposure to crypto-assets.

A Bid is the price selected by a buyer to buy a stock, while the Offer is the price at which the seller is offering to sell the stock.

The currency market (also known as the foreign exchange market) is a one-stop marketplace where different currencies can be bought and sold by various participants operating in diverse jurisdictions around the globe. This market plays a very pivotal role in the conduct of international trade and the financial sector.

1. General Insurance

Following are some of the types of general insurance available in India:

• Health Insurance
• Motor Insurance
• Home Insurance
• Fire Insurance
• Travel Insurance               

2.Life Insurance 

There are various types of life insurance. Following are the most common types of life insurance plans available in India:

• Term=Life Insurance
• Whole Life Insurance
• Endowment Plans
• Unit-Linked Insurance Plans
• Child Plans
• Pension Plans