Stock market investment – Bull or Bear

Stock and shares, commodities , bonds have always remained on the top list when one heads towards the financial community. How market would play is an all time question whether it comes to an economic crunch or it comes to a boom.

Predictions have proved to be useful techniques helping an investor to take decisions regarding investment and divestment as well. Technical analyst give their predictions based on comparative study with past data, trends, cycles, price movements and ratios of a particular scrip , company, industry or market as a whole

Fundamental analyst forecasts on the basis of intrinsic values of the stock, sales, profit, taxes, growth of the company etc.

However, there are as many factors that has the bearing over share prices and the market as well. Such factors include national and international economic health in terms of GDP, inflation, prevailing tax rates , Foreign direct investments , foreign institutional investment, foreign exchange, climatic conditions, political situations, company’s performance in terms of profit and loss, reserves, capital structure, projects and many more.

Besides all such factors I would like to rate “Sentiments” as the driving factor which indicates the market to be “Bear” or “Bull”

Here are some guidelines which would help my friends who want to have some investment in the stock market. I am sure it is going to help you a lot as it helped me reaping good returns .These guidelines have come from market experts and ten long years of my investing experiences and analysis.

Be sure- Investing, speculating or gambling

The very first rule of the market is to understand your own intentions whether you will behave as an investor to reap steady returns gradually, with nominal risk on long term investment, or speculator to reap fast returns with high risk on short term investment or as a gambler to earn abnormal profits with infinite risk irrespective of the time horizon.

Study the market

Having clear intentions of your stand , market study becomes the most important aspect of investing. Collect information about the economic conditions of the country and projections of its future movements. When economic conditions such as GDP , saving ratios, foreign exchange reserves of the country are stable and increasing it’s the right time to invest and vice a versa. Steady growth in economy helps out investors and fluctuations favors the speculators

Do not put all eggs in one basket

It is the golden rule of the market and investment. Be sure of what you are investing in. Making investment blindly in every scrip would bring your portfolio to a no profit no loss situation and even huge losses. Be very choosy about scrip by looking to its past paerformances, dividend rates, expectations of further growth, recent projects and its synergy with other industry performances.

Wait for the right time

Right time to sale and right time to purchase is the factor which will benefit you the most.

Invest at a time where the share prices are to maximum low (bottom line) and divest when it stop rising up. But the point is how to determine the optimum time? This can be determined by reading cycles of that individual stock in various economic conditions.

Boom triggers investment and depression aggravates divestment.

However , recession and depression in the economy can also be an ideal time to start investment or even speculation because of the fact that shares can be availed at all time low prices and then tends to shoot up. The only fear factor is chances of delisting which is very low in case of Big player and even for blue chips.

Tips

Here I am talking about advices one should take from equity research companies, brokers and investment houses. They at times really get hold of some very useful and internal information about a particular scrip or company which will be fruitful for investing.

I don’t know how to succeed but I know overconfidence is the key to failure. It is better to be equipped before war rather than asking for a sword in middle of the battlefield.

Financial Planning – This Christmas

Financial planning and Christmas together is very difficult to enjoy. World go mad about Christmas especially European countries and Christian communities paying a very little attention towards maintaining their personal finance ending up in serious troubles of overspending like heavy cash outflows, negative budgets, low savings in their bank accounts and the most serious is the alarming debt amounts.

Christmas brings the season of “credit boom” with itself and creditors literally behave like poachers to engulf the needy and the unconscious. This fact has to be understood by people who do not want to end up in debt traps and restrain themselves from overspending and borrowing and land up in a finance proof section of the society.

Enjoyment and pleasure beyond your reach will only bring you worries, distress and debts for future. To synchronize enjoyment and prosperity, financial planning becomes a must.

See your wallet

It is very important to figure out available funds that can be managed to spend so that it would not harm your current status and future development. Look out for those amusements and entertainments that fits your wallet.

Budgeting

When it comes to expenses and expenditures, budgeting is indispensable. It is an art as well as a technique to allocate funds and resources for different avenues and requisites.

Budget has to be prepared strategically so that important needs and wants are fulfilled

And at the same time satisfaction can be derived out of such expenses.

Prioritize your wishes/wants

Wants and demands are unlimited and endless but resources are very scarce to meet them. Fulfillment of one leads the beginning of the other want. This is where one has to take reformative actions and prioritize their need accordingly.

Such needs and wishes can be prioritized on various parameters like estimated satisfaction, family , kids etc on level of their importance.

Spend smart

This is the time to look out for offers that are dumped on the market. Now watch out Needs in your priority list that can be matched or satisfied with the market offerings at cheap or discounted prices so that you can save some more penny.

Such market offers may come in the form of discounts, free gifts, gift vouchers and even scratch coupons.

Avoid overspending

Overspending in cakes, excess decoration, partying, sending greetings cards, gifts etc will upset the budget you initially prepared. A good idea is probably organizing get together functions instead of individual parties that would entertain you at the same time.

So plan your finances this Christmas to up live the subtle essence of this “Holy Day”

Lets check out how can you reduce your debt

Debt has become a hot topic of discussion particularly after recession which caused debt to rise abnormally beyond the control level. But of course, economic meltdown, layoff, retrenchment, rising levels of NPA (non-performing assets) and inflated capital products are associated with recession that added fire to the cause.

Money flow suffered seriously in the market which aggravated huge and dearer borrowings which borrowers of course where unable to pay back. These all created a vicious circle that nobody wanted to enter.

I am here not to discuss about the causes of meltdown or its repercussions on the economy. I just want to show some ways to debtors on how to come out of debt which they were unable to resist and are now again feeling unable to push it back.

Savings

Savings at a go can create a huge fund that can be utilized to pay off debts or at least utility bills and local authority taxes. Savings can be generated simply by restraining oneself from using luxurious items and items with low utility. Again idle funds created from savings are of no use and hence is better to keep it or invest in an option which would add interest or return on it. Yes, of course banks , blue chip stocks, commodities , government bonds ,mutual funds and currency trading are beautiful instruments that would help the cause.

Some other corollary ways to generate saving is by implementing cost cutting techniques. These may come from reducing electrical consumption, mobile and telephone usage, cutting short with water taxes and finding cheaper means of transportation.

Other sources of income

The irony is that one hand earns and there is couple to spend. Relying on a single source of income is not at all advisable when markets are going dearer. There are hell lots of ways to add extra income to the family. Teaching , part time tuitions , networking , commissioning , trading , workshops on own area of expertise , internet business like affiliate programs , imparting online training etc can make a huge difference and definitely draws a line between the creditors and debtors.

Debt consolidation organization – the last resort

When creditors make your life like a hell by disturbing phone calls and surprise visits and you are unable to strike a balance between your debt amount and income, it is always advised to take help from debt consolidation companies who counsel you and help you in reducing debt outstanding to a considerable lower amount, generally 40%-60%.

There are many such organization in the market which will help you to restore life balance and to continue with smooth life ahead.

Apart from these pointers, switching to a cheaper house , droping a car , tapping your assets and allowing rental accommodation or paying guests accommodations would help the cause.

3 useful techniques to survive in Affiliate marketing

In a competitive and ever growing internet marketing it is very important to mark your presence in the market to carry with affiliate marketing. Rule of the game is quite simple “out of sight – out of mind”. Successful marketers stick to basics, have a long term vision and are not swayed away in search of a miracle pill.

Affiliate marketing can be profitable with hard work, focus and finding untapped niche markets and resources which pass by unnoticed.

Here are the 3 Golden ways to survive the heat in Affiliate marketing

Content Building

It is the most important part of the website. Unique and useful information always help in bringing targeted traffic to your site.

This as a whole refers to the on page development which requires perfect information, excellent color combination and data required by the traffic. Product reviews should also be included as it attracts many visitors. Testimonial of happy customers, client and partners play a very significant role in building trust among visitors. This is all you can do in content publishing.

Finding Niche Markets

Niche refers to untapped but potential market left unnoticed by major players. Finding such markets are like treasure hunt which gives your site immense leverage and room to grow.

There are many such business specific niche markets available over internet which is left to be captured.

Presence of such niches is quite evident from the growing use of internet. Niches may be in the form of forums, communities, bloggers, email addresses, social and professional groups, webmasters etc.

Targeted Traffic Driving

Do not go crazy when it comes to driving traffic. Some affiliate marketers go on frenzy and start buying all kinds of traffic. What you really need is targeted traffic. One good way to is to imagine yourself as a customer or client. So when you need information where would you go? Answer is simple – forums, ezine, or search engines. So these are the perfect places to advertise your site to get relevant traffic.

PPC has also emerged as a boon to get targeted traffic to your site which must be used to get you on the top.

How to choose the best publisher for affiliate marketing?

Affiliate marketing which has become backbone for many companies is about choosing the best publisher which would direct the traffic to the advertiser’s website or induce registration then and there.

However, the task of choosing publisher is not as easy as it seems in theory. Choosing a publisher who would place your links, banners or widgets in his own website is not a cup of tea for everybody. It needs excellent analytic and vision.

Firstly, advertiser should see whether the publisher is related to the domain, in which the advertiser himself is serving, e.g. advertisers for “loan” must choose a publisher who comes under the “finance “domain.

“Page rank” of the publisher’s site plays a very important role. High page rank always ensures more visitors and also increases the chances of conversion.

Another important criteria is the quality of publisher’s website i.e. its content, on page and off page factors, graphics – it should be attractive enough to entice visitors into becoming their real customers.

At the same time, advertisers should not make a mistake of choosing publishers which are overloaded with advertisements as it would draw away the visitors to other websites.

Advertisers should conduct research on the publisher company history, popularity, product quality, etc. Know if the company is popular for placing importance on advertisers. A good company offers the best affiliate marketing program by prioritizing advertiser-affiliate relationships.

Publisher accepting terms and conditions of the advertiser in terms partnership contract, commissions, revenues, type of incentive plan, mode and frequency of payment or ending up in win-win negotiations must be chosen.

Resources for identifying publishers are many e.g.-affiliate programs directory, affiliate softwares, forums and communities but domain, quality, popularity, page rank and traffic are some indispensable criteria to select the best publisher.

How to avoid Foreclosure... Few tips...

a Foreclosure is a legal & professional procedure for a mortgagee or a lien holder likely a lender or creditor that enables them to obtain a court order termination on a mortgagor's equitable right of redemption. In real seance, a borrower need to produce or pledge an asset or other immovable properties to secure the interest of the lender while taking up a term loan. In case the borrower defaults in paying off such & consequently the lender tries to reposes the property in mortgage, court of equity can grant the borrower an equitable right of redeemption if he/she repays the debt. Accordingly, exercise of such a right restricts the lender's lien in repossessing the property. Thus a lender or a creditor tends to defuse or foreclose the equitable right of redemption. Other lienhilders are also follows up in foreclosing the owner's right of redemption over the other debts like overdue taxes, outstanding contractors' bills etc.

From the above discussions, we can define that from a borrower's point of having foreclosure is not at all desirable. While a lien holder always looks in foreclosing the the asset of the borrower, the borrower rigidiously tries to refrain such proceedings. Hence, on behalf of a borrower it not easy enough to earn an advantage over the lien holders plea. Here are few tips on how to avoid foreclosure & secure your favorite home.

Once you can sure upon forthcoming foreclosure, need to work out a plan over all your expenses & earnings to ensure an effective management on such & to make out few extra dollars to essentially eliminate at least an extent of your credit obligation. Once, you are accustomed in such practice, can gain much promise in the court in the light of your earnest effort.

Secondly, if an individual finds himself in the midst of financial difficulties & not quite fit enough to meet the remaining credit obligations need to take the matter to the creditor to derive a promising solution & if he/she is capable enough to negotiate with the creditors can really take down the loan amount to a level of settlement.

Thirdly, one can take help of a certified HUD counselors who can guide you in all possible manner to prevent the foreclosure. In many cases, they directly deal with the creditors to bring down the amount of outstanding debt to an affordable level.

Know your Credit Report..

a Credit Report puts a lot of importance in making of every activities of an individual in pursuance of past line of performances. To be more precise, a Credit Report for each individual reflects the financial stability as well as credibility of the concerned person & opens up a fair view up on his/her financial positions, prudence in making payments, compliance of the credit conditions etc etc. Accordingly a credit record takes in to account all these financial as well as other relevant obligations to opine in to a three digit figure & in every aspect our living space, such figure( commonly known as credit score) is of immense importance. Hence, for obvious reason all of us need to take care of all the facts that concludes up on credit report & necessarily essential to keep a trace of our credit report & the changes if any there in to ensure an effective score. Moreover, following up the Credit Report from any of the reputed bureaus like Eqifex, TransUnion & Experian is not good enough.. rather need to compare among credit reports from all the available sources. It is not always essential that credit report from each of these bureaus will carry similar facts & figure since the fundamental reporting factors are varies accordingly & creditors can subscribe to any of such agencies as per their choice.
For many peoples, proper following up of all the facts stated in a credit report is a furious ask. Hence, I found it will be convenient to clarify the contents of a credit report. Lets take a wise look in to a Credit Retort details.

A credit Report is classified into the following four distinctive segments..

Identifying Information

Every personal information of an individual is retained under this section. Here the fairness of the report rests in the accuracy of each intimate details including mistake in spelling of any personal data to missing out any vital one or intimating any change in existing records.

Credit History:

Each individual credit accounts or trade lines along with name of the respective creditors are listed with the following details like the opening details of the account, type of credit availed in to, including installment types(car, mortgage etc) as well as revolving types( credit card debts), account types i.e, whether it is holded solely or jointly, the credit amount & the extent of repayment made, the amount of each installment & of course the extent of credit availed in respect to the permissible credit limit. Here, the previous payment track backs & the prudence in making of such payments are also considered. In Experian's Credit Report credit status of the individual is defined in simple term so that everyone can earn a fair idea from it. If any account is remarked as charged off, it signifies that the concerned creditor has given up the collection & puts a negative impact in to the credit report. For other reports, creditworthiness & credibilites of each individual is evaluated in a single digit number in between 1 to 9. Accordingly expressions like R1 or I1 significantly hints into the soundness of the credit report.

public record

In a Credit Report, events like filing bankruptcies, any penal charges previously levied or legal verdicts or court judgments made etc that requires public intimation are maintained under this section. Hence least remarks here in carries more respect in the credit report. However this section does not necessarily includes any criminal proceedings aginst such person in concern.

Inquiries

This segment in a credit report shows the list of the peoples who placed interest over his/ her credit report along with the details of each of their hard as well as soft inquiries. It includes every petty quarries to hard inquiries like request for a copy of credit report from the respective bureaus. Among these, hard inquiries are generally initiated by the potential lenders & creditors on filling up of credit application form. Again a soft inquiries are commonly found among companies on issue of promotional information to prequalified individuals. Although in this point, it is widely belied that maximum number of inquiries can make a negative impression on the credit report, every major bureaus has never paid much attention on this issue & moreover FICO scoring model clearly denies any such public presumptions.

finding out a favorable auto insurance quote: what discounts can do for you!..?..

Having a lower auto insurance premium is a handsome task. It requires a lots of effort to elect an effective one. Hence, before buying an auto insurance, one need to take care of the factors that can bring down the premium to the best possible extent. Now days most of the insurance companies offers some discounts on taking up of an add on policy on either home or another auto. It is important to have a fair idea on every of such discounts. Most of the insurance companies offers the following discounts to cash in their customer orientation.

In maximum cases, multi-car discount can be availed up to 20%, Multi line discounts in combine of home & car insurance cab be as most as 22%, longevity discounts i.e, sticking in to the same job or company can be up to 25%, Again for senior clients usually 50 years or old they also facilitates age discounts. Apart from these, other facilities like defensive driving discount ( normally 10& for 3 years), pleasure use discount( i.e, if the car is not used for official purpose), academic discount for students( need to maintain 3.0 GPA) can also be entitled up to 15%. along with alarm discount, alcohol & drug awareness discounts etc in the line.

Hence, one really need to make sure if every such discounts that applicable to him/her are availed. For such it would be apprehensive to review every possibilities on renewal of policy as well as time to time keeping a track with the agent to ensure up on latest offers & also if any changes made in rate of discount. It is essential for an auto buyer to equipped up with enough knowledge over these discount rates of various insurers in order to achieve a more comprehensive comparison while shopping around among them.

some guidelines on travel insurance..

Now days, people becomes cautious enough to secure every aspect of their activities. Accordingly insurance finds much wider acceptance in protecting us in every possible manner. In line of such safety measures, travel insurance comes up as an essential tool to take care all of a traveler's headache. However, before taking up any travel insurance or shopping around for it among traveler insurance facilitators, one essentially need to make sure of the followings....

Firstly, before shopping for any travel insurance, one need to find out if the credit card he/she holds either carries any travel insurance protection or not. In these days, many credit card providers also facilitates travel insurance protection to the card holder. However, in these cases the coverage is only available to he concerned person with certain extent of limitation & comparatively it facilitates lesser amount of flexibility than a dedicated travel insurance. If you are traveling along with your family, then these types of add on facilities are not going to help you out.

Alternatively, if one travels with friends or families, travel insurance is quite essential. In these cases, a single travel insurance policy covers all the traveling members.

In both the above cases, it is also important to work out the exact cost of your travel. More precisely, one need to furnish details of all expenses that will come under coverage. For instance, if you provide only cost of flight & accommodation & missed out car rental expenses, no protection is available if something happens while you are driving a rental car. Also, while one willing to opt for an online travel booking, the booking engine often adds insurance coverage with the package. In this context, it is essential to ensure that if such policy carries any money back stipulation or not. In absence of any such stipulation, it is advisable to avoid such coverages. In recent times, many insurance companies offers some grace days to their customers to examine the policy certificate in order to customize their customer orientations. However, if the so called policy holder is dissatisfied on any issue with in such given period the entire payment made to the insurance company is repaid back to the client provided no claim has been made with in that period & accordingly the certificate becomes void. Lastly & most importantly you need to be tactful enough to take up each & every pros & cons of the policy agreement before making any final decision.

Life Insurance: Your Life Protection & few Precautions..

a Life Insurance policy facilitates enough financial security to the family of the holder in loss of his/her life. In many cases the assured amount is repaid back on expiration of a stipulated period or expiry of the policy holder, whichever is earlier. Whatever the case may be, life insurance is quite inevitable for every individual in order to indemnify their families from immediate losses on loss of the policy holder as well as for a prudent family planning. Hence, a life insurance policy puts enough promise over a well protected future. However, now days insurance companies offer several types of life insurance schemes to meet the requirements of their diversified customer portfolio. Accordingly, finding out a affordable as well as amountable life insurance policy is a handsome task. It requires a lots of shopping around among companies, comparing quotes, consultation with existing clients & confirming up on all terms & condition of the policy in choice etc etc. However, it could always be apprehensive to have some fundamental thoughts over the kind of life annuities & their applicability as follows:

Term Life Insurance

a term life insurance policy covers the minimum criterion of a life insurance program. Hencefoth, a term life policy comes up with no cash assurance on expiration of the term unless the concerned individual dies with in & for such carries with a lower premium. The said term can be extended depending upon the agreement with the insurer & varies accordingly. However, if the insured person doesn't die before the expiry of the term, the entire amount so paid over the span of insurance will be forfeited by the insurance company. This type of policy is not fitted for savings plan.

Whole Life Insurance

a whole life insurance is more secure than a term insurance policy as it gives the assurance of money back on death of the insured individual. Also it helps in indemnifying the immediate loss on death of the prime earner of a family. Again a whole life insurance can be work out as a savings plan to take care of future needs & moreover this type of policy facilitates premature withdrawal to offer more customizations in the hands of the customers.

Universal Life Insurance

an Universal life insurance policy is same like a whole life insurance policy only differs in the mode of return. Here, the premium so paid are put in to capital market investment & periodical return or dividend are paid back to the policy holder. Henceforth, it can be taken as a good savings option with more promising return.

Endowment life insurance

This type of insurance scheme comes with a higher premium as the maturity period is low. It acts more like a savings plan along with a life indemnifying stipulation. Accordingly it suits more to young peoples who seeks to have big savings as wel as life protection. On maturity, a lump sum amount is paid back to the policy holder.

On all the above Life Insurance plans, the prima facie concern is to secure the financial stability of the near ones on loss of policy holder's life. Henceforth, a life insurance policy should be choose considering your income stability over future span of time i.e, the extent of affordability in paying premium, the number of dependent family members, current financial standings & future requirement of funds as well.

How to find out a favorable auto insurance quote..??

From my previous article, it is obvious that shopping around for an auto insurance is quite essential before making a final buy. Finding out a favorable insurance quote is not always a cup of coffee. In some cases, cost of insurance can be crusial enough to prove out the entire buying decision costly. Hence, one essentially need to take care of the factors that affects in quoting & once opting in to a certain quote of an auto insurance company, further necessory cautionss must be taken regards to extent service the company caters. However, whatever the case may be, one really need to shop arount among atleast few auto insurance companies to find out the best possible quote that fits with in the buyer's pocket. Now, often people perplexed in sourcing these quotes. Here are the few ways that can work out for you in picking up a well-judged quote out of several alternatives. First foremost & probably the best possible option is to explore over the net. Internet offers not only the quotes through respective sites of auto insurance companies, also even assists in analysing as well as comparing company wise. Atmost what one need to do is to follow up all the options in a insurance quote site or fil up an questionnaire that ask for every intimate details regards to your car to prescribe more prominant picture. It is important to read out every such companies before opting in to a quote. Because many companies makes much promising claim of offering cheap insurance quote supressing many chargable stipulations. Hence, it is always apprehensive to get rid of all the reviews of existing customers to ensure whether any particular company is known for ripping people off. Further, after getting in to several quotes, exercise of self appraisal is an essential issue. Lastly, searching for a suitable insurance quote is not a handsome task, it just requires some amount of internet exploring efficiency & study over the auto insurance facilitators.

Few Tips on Finding out a Favourable Auto Insurance Quote:

While one opts in buying an auto finding an appropiate auto insurance quote is the inmmidiate consideration just after taking up the auto. However, chalking out a cheap insurance quote is a tough ask. As I have mentioned in my previous article, an auto insurance quote is fixed up on account of several factors & varries accordingly. Henceforth, one can never be sure why his/her quote differs to a wide extent than the very next neghbior. Hence, one really need to shopping around among few more auto insurance companies & compare the respective quotes given by them to come up with the suitable one. Again, some auto insurance companies offer consession in quotation on addtional puchase of auto or home insurance. Also, most of these companies offer discounts to senior citizens and students although it differs state wise & insurer wise. Finally once you opts in to a definite of a company, need to be sure upon every discount that offers by the company. Sometimes, agents make assumptions that can result in paying out a higher premium.Apart from these, it is essential to be exact upon what extent of coverage you are asking for.If your vechile is new enough & insured with the basic coverages, it is resonable to have extra coverages & consiquently it will lower your premium. On the other hand, in many cases, furnishment of maximum possible details of your car can earn more assurance up on insurance holders & subsiquently ends up in bringing down the quote.

What are the factors that affect car insurance quotes?

Auto Insurance is quite inevitable while an individual looks for buying an auto. Hoewever, in certain cases the cost of auto insurance proves to be more crucial than the original cost of the auto vechile. Henceforth, once an individual opts in buying a vechile, need to take care of respective insurance quotes as well while taking up the decision. Moreover, finding out a favorable insurance quote is a tough ask as now days insurance companies counts many other factors like driving experience, driving record, zip code, cost of the car, marital status etc. along with credit score. Although, in recent times, many auto insurance companies doesn't put much stress upon credit score of an individual rather the quote is fixed up taking account of other ancilliary factors. Hence, you never be sure what will be your insurance quote or why it differs from your very neghbiour. These quote determinant paramiters are set by the auto insurance companies & varries companywise accordingly. As I have mentioned earlier few presumption can be made upon the residential location of the insurer, it has been observed that city dwellers often pays more than the suburbs peoples. Again, for an young driver the race among them costs more than a senior one. It sences that the common intent among teen drivers to take up a rough drive often results in grater probability of accident & damage. Simillar presumption can be applied for the distintive difference in quotes between experienced & inexperienced drivers. Apart from these, the car model,condition, mileage, safety features & place of registration are the essestial consideretions that influence in auto insurance quotes. Further driving record, i.e, history of past driving experience also contributes there in.

Debt Relief Vs. Bankruptcy: Take a Wise look before deciding upon....

All of us need to take care of our credit taking capability in accordance the extent of available earnings free from other essential expenses & relative risk accomplishments as well. Hence, effective control & command over financial standings & stability is what calls for an efficient debt management practices. Debt management shows the root of how to rule out all your debt obligations. Although, debt management is a crucial consideration, it does nothing when an individual already in indebtedness. Moreover, it just creates a genuine concern among the indebted to ensure that from the next time onwards, debt no more remains an worried factor for them. On the other hand, debt relief programs like debt consolidation, debt settlement etc are the crucial capsule to cure indebtedness. However, in this regard, few people opines out that debt relief is not good enough to take an indebted out of debt. For them, filing bankruptcy is more promising solution. Here the point is from an individual's point of view which option would be beneficial. The decision lies in the extent of indebtedness & financial position of the debtor at present. If the amount of debt is too high, then debt consolidation might not be a viable solution as it doesn't reduce the total debt amount rather consolidates all the petty debts in to a single loan lowering the interest rate & with a longer payment period. Henceforth, a debt consolidation program doesn't reduce the total debt burden, in spite of that it just arrange your existing debt accordingly as per earning terms that suits you best. Again, debt settlement is somewhat accountable than debt consolidation especially when there is a severe debt situation. A debt settlement program helps an indebted to settle down the total debt to an affordable extent through negotiation with the creditors. However, in such a practice, it leaves a bad remark in the credit report than debt consolidation program. However, the major drawback of all these debt relief programs are you will never be sure when or whether all your debts will be paid off. Where as, in case of bankruptcy, you will be aware of the consequence at the very moment filing for it. Moreover, bankruptcy puts a line over all your existing debts & allows you to take a fresh start. However, in the bottom line the twist in the tail takes a toll in the credit record of an individual. Bankruptcy can bind all your financial activities for 8 to 10 years depending up on the circumstances of each & every case. However, tactful guidance of a bankruptcy lawyer might bring down the legitimate to a little extent. Moreover, you might end up loosing your honor in the eye of the society. Whatever the case may be, holding up your home will be more acceptable than your honor. Henceforth, best judgment should be rest upon your own appraisal over all debt obligations as well as future feasibility over every source of earnings.

Investment opportunity in Gold..

Gold, a very promising term in all seance. Since the ancient past, people keeps investing in gold for being one of the most precious & treasurious commodity across the counter. still today, the common concern over accumulating gold persists resting upon it's universal appeal, acceptance & applosure, however the perspective varies widely. Previously, most of the Asian as well as europian familis kept populating gold to show of their prestige over others. Moreover, these funding in gold were never ment for resale unless the situation demands drastically. However, in recent term, the interest is still intact, but the opportunity of making profit subsides over prestige. Henceforth, Gold opens up an opportunity for either making out profit in commodity market through hedging & all or holding for long term for wealth maximization. Moreover, ongoing turmoil in stock market & subsequent devaluation in dollar makes more sense in investment in Gold as it's growing up as a consistent performer over the years. Lets discuss upon both the options to find out the most prudent & profitable one. In commodity market, investment in Gold is an inevitable trading option. Over the last several months, it shows a much promising uptrend in spite of global economic slow down. Henceforth, as the opportunity in equity market is not quite sure, one can rest assure upon Gold option. Again, counting up on gold coins, bullion etc can be a safe investment option for longer term as well. Moreover, investment in Gold proves out to be more prudent as even the World's Federal Bank is opting for more & more Gold reserve to ensure their financial standings & stability. However, keeping in view of resale factor, small coins & bullion can be ideal.

Opting for a loan?.. think a while to decide up on fixed & flexible rate of intetest that fits for your business needs..

While taking a loan, interest rate is always remains an impotent criteria to consider in to. Further, in time of taking up a term loan most of the people finds difficult to decide up on what mode of interest will be ultimate beneficial for the business regards to future course of payments. Lets put few words in defining what do we exactly mean by fixed & floating rate of interest charge. Fixed rate of interest, as the terms suggests rest in a definite rate being fixed at the time of signing in to loan agreement. Again, floating rate of interest floats accordingly as per change in interest rate portfolio of the lender( commonly a bank, other non banking financial institutions etc). At the time of entering in to the contract, either of these types of interest is settled as per relation between the borrower & lender, creditworthiness of the loan seeker & prevailing rate equals or more than the prime rate as prescribed by the governing rules. However, very often people get puzzled in opting out the most appropriate payment mode that will serve best for them. Taking in to account of the following factors can be helpful in taking suitable payment option. Lets have a look..

Firstly while signing in to contract deal, take a wise look in to the current economic scenario as well as future outlook in present term. For instance, if one opts for a loan & the economic strength & stability remains intact.. can be settle of in a fixed rate as the further economic boom may boost up the interest rate to a new high.

Secondly, the present as well as future viability of the industry with in the economy in which the object of the borrower persists. If one asks for home loan, the respective rigidity of the housing industry need to be considered. Henceforth, if the demand is on, it can be presume that the rate will not fall in near future rather it may go up as long as demand dominates.

Thirdly, need to compare the current rate with the prime rate, i.e, the rate prescribed by the regulating authority. If the rate is varies too much need to have further negotiation with the lender or look out other alternative options.

Fourthly, the current REPO & Reverse REPO is also a critical criterion to opine up on mode of interest rate fixation. If there is enough liquidity in money & capital markets, it is expected to encounter a strict monitory policy. Accordingly, the banks & other financial institutions are forced to increase the interest rate to restrict the borrowing capacity of the probable buyers & encourage in savings.

Fifthly & most impotently self risk tolerance capability & anticipation upon future economic credibility plays a vital role in resorting in to either of the payment rate.

Lastly, the tenure or the loan acts in the decision making. If the tenure to too long, it is quite impossible to opine upon what can be the social as well as economical scenario after several years. In such cases, fixed rate can be preferable.

InVestment in CoMModities: An IneVitable tRading opTion..

In recent times, a coroborative curicity pops up among traderes across the countries in commodities & their tradability. Many of them beting over these commodities as an inevitable investment option in coming days. But.. all these words are more prospective over present perspects. Lets find out what these commodities actually do mean.

Commodites can be largely termed as goods having a little distinctive aspect. What differs them from common term is their world wide avilability & acceptability along in the line of consistency with a least variation in standard & quality. Lets take few examples of commodities that are commonly in use like precious metal(gold, silver, copper etc), agricultural products such as rubber, corn, rice ,sugar etc., energy & industrial resources like crude oil, coal & aluminium etc. However their respective trading value varries in accordence with their tradability.

Now lets see how traders play in this market. Although here we deals in commodities, it doesn't necessorily mean that we need to buy or sell commodities in physical sence. Moreover, what actually do mean is to buy a future contract of an underlaying commodity at a certain price at a certain future date more like future trading in equity market. Accordingly, in the mean time the daily price of such commodity varries accordingly. the extent of these varrietions effects in fixing up future contract price. In technical term, commodity trading commonly practices in derivative tools rather than dumping up for further deal in real term.

As I have stated earlier, commodity market gradually growing up with global applosure. Now days commodities are traded accross the countries in various exchanges like Chicago Mercantile Exchange, Australian Securities Exchange, the Tokyo Commodity Exchange etc. These exchanges facilitates the platform for plotting future course of contracts. Now, unlike eqity market, valuation of a commodity depends upon several events strats from environmental to social,political & economical outlooks. For exampale, price of crops varries yearly in accordance with change in climate & it's favourability. Similarly, for crude oil the pricing depends up on economical & political stability of eastern countries as well as economic conditions of other countries. These seriees of fluctuations among commodities helps in fueling momentum in to the commodity market. Accordingly for a trader, need to predict the future contract price taking the factors like cyclical trend in supply & demand, social, economical & political aspects as well as future viability.

Comodity Trading: an emerging Investment option..

Commodities can be defined as goods having wide demand & doesn't differ much in terms of quality. On the basis of such standardized quality, these goods are considered as an useful investment as well as trading options. For instance, gold, silver, crude oil etc doesn't differs much in due course. Apart from these, other popular traded commodities are.. precious metals like gold, silver, copper etc. , agricultural products such as rubber, corn, rice & sugar., energy & industrial resources like crude oil, coal, aluminum etc.

In recent times, may investors & traders are taking their bet in to the commodity market as an inevitable invest option.

Few Tips on Maintaining Cash for your business..

In my previous article, I have tried to depict a detailed discussion up on needs of cash management. We have seen tactful management of cash can have a substantial impact upon profitability of an entity. However, the question of effective cash management rests in efficient maintenance of cash at an sustainable level. Further its also facilitates in better working capital management & accordingly improves the current ratio to define the financial stability of the business.

In recent times, major economic instability across the countries & as the recessionary roll outs ruthlessly in almost every industries, most of the small as well as middle scale business units are finding hard to cope up the financial curse & hence many of them are already winded up & rests are running short of fund. Henceforth, it is crucial concern for every business organization to work out a initial feasibility over the average maintainable level of cash requirements. However, these words doesn't have much value for an entity already in disaster. Henceforth, it will be better of to discuss upon few revival remedies for a staggering concern to get rid of financial rigidity.

For every business entity, the relative strength of available cash & cash equivalents reflects in current ratio. Accordingly, to maintain a healthy current ratio, sufficient amount of liquidity must be put in to business. However, if the available cash & cash equivalents are lagging behind the least requirements, then need to work out upon alternative options. Firstly, as all of us commonly do in time of crisis, evaluate the extent of scraps in process & non performing fixed assets & sale of accordingly to feed your financial needs. Also one need to console his operating activity as per the current economic circumstances where the demand in in downturn day by day. It will further help to bring down the working capital needs. However, it is not always easy to change the level of operational activities due to prospective impact upon cost effectiveness more precisely for big production houses. Secondly, if the above options are not sufficient enough to satisfy the severity, further steps can be taken in negotiation with creditors & debtors. Ask for longer credit period from the creditors as far as possible so also to debtors by keeping a constant track with them & make them to pay at their earliest. Also, if there is any negotiable instruments in hand, these can be easily discounted through any banks. Apart from these, non performing assets like doubtful debtors etc can be discharged off at a discounted value through some agencies & institutions deals in such. Thirdly, taking a term loan is a good option provided the business has the capability to cope up with that. For a public company, further fund can be raised through IPO's & right issues etc. Although, in recent terms I don't think there will be enough response in such practices. Fourthly, federal government of most of the countries in economic dire, offers several revival packages & grants to safeguard the business functions of every scale. As such, before taking off the entire activities, it will be apprehensive for every busines concen to evaluate these options wisely.

Few Tips on Effective MANAGEMENT of business CASH..

Cash maintanence & management are the crusial consideration for every concerned undertakings. To continue the regular course of operation for a business unit adiquate maintanence of cash as well as effective utilisation of excessive or idle cash is essential. For any business undertakings, irrespective of self propritorship or partnership or a company, excessive funding over estimated project cost amounts in to loss of opportunity cost & also increases cost of capital. Henceforth, it is importent to evaluate the requirement of liquid cash or cash equvallent to carry on the business function in terms of adiquate provision for bad debt, relation with creditor, market stability for the products in process, availability of the factors of production, current economic condition & political situations etc. However, so far I have discussed upon effects of inefficient cash management. Let's find out few techniques of tactful cash management.

Firstly, if you find your business is fueled with excessive funding the easiest way for a self propritorship or partnership firm is to take out the excess amount on account of dreawings.However, for big corporate houses (private & public companies) this procedure is a bit complicated. Here disbursment of excessive fund is termes as capital reduction. It is commonly practised through buy back of shares in complience with the respective governing act.

Secondly, in most of the cases & mainly corporate houses maintain a portion of their liquid fund in relatively illliquid invesment portfolio. It also helps them to diversify their source of income as well as appreciate balance aheet figures. Another prospectful aspect of this practise is that it facilitates in quick availability of fund as per requirement. In many times, holding company's stake in subsuderies also comprise of these excess funds.

Thirdly & most commonly major corporate houses often discharged off excess liquidity in terms of higher divident payouts. It also helps in inflating the equity value in the capital market.

Lastly, excessive cash is favorable for a business to the extent of it's effective utilisation. Henceforth, additional fund can be deployed in to business diversifications. As such, in recent days business diversification is a quite handy tool for better business promotion.

If you are looking to fuel fresh finance in to your business…wait!!... take a wise look on the following factors..

Capital is the backbone of every business. Although, in all aspects capital doesn’t necessarily mean cash, it can be comprise of cash equivalent or fixed assets that we very often find in self proprietorship or partnership firms. Also in course of conversion of any self proprietorship in to a company we can observe personal assets of the proprietor invested in the business are either taken back by the proprietor or subsidized by equivalent amount of share in the capital & of course the ownership of the property is immediately transferred to the company. However, in general terms, capital forms in finance. Now if one needs to extend his capital base due to new undertakings or expansion of existing business, selection of the best source of finance out of several other alternatives is quite crucial. In this aspect, the decision should be rest in the respective cost of each source of capital & estimated return on investment (ROI) of the new as well as expansion of the existing business. As such, if the calculated ROI is higher than the cost of capital, financing decision should be made on fixed interest bearing securities i.e, term loans, debenture etc. Further, the rate of interest is to be settled upon a negotiation between the lender & borrower in terms of financial stability, future viability & past records etc. For a company, generally a syndication among all the representative of the financial institutions & authorized representative of the company are called in. Often this entire process is undertaken by a investment bank. However, for a unstable company looking for capital reconstruction, finance through fresh issue of equities will be ideal as for these companies very often cost of capital remains at a higher side than ROI, if any. Henceforth financing through fixed interest bearing securities can be prove critical in terms of future uncertainty. Although, as I have said if ROI is greater than Cost of Capital, we will prefer for fixed charge carrying financing option, however the theory has got certain amount of limitation in terms of unforeseeable future. As we can’t sure on future, one need to take maximum possible caution in calculating future estimated cash flows. On the other hand, the theory of financial leverages also proves the fact that in the favorable scenario, financing through fixed interest bearing securities indirectly helps the equity share holders by appreciating the net worth of the company.

How to adopt an appropriate venture out of several alternatives..??

Whenever we plan for opening up a new venture, initial study over feasibility of the projects is quite essential. In other words, project analysis is the main theme of a successful business. However, there are several capital budgeting techniques that will help you to find out the best option. Amongst all, financial analytic prefers mostly the discounted cash flow method (or Net Present Value method) of project analysis. It is an extended version of existing net cash flow approach. Here, initial cash outflow & future cash inflows are discounted with inflationary functions. Henceforth, an estimated figure of the net profit in future terms can be prescribed. Apart from NPV, now a days Internal Rare of Return also a crucial consideration in determining project viability. This approach is fixed upon a rate that will equalizes the initial cash outlay & future inflows. Accordingly, if such rate is more than the estimated discounting factor (or inflation rate) for a particular project, that project is said to have some profitability. However a project carrying highest IRR will earn higher priority. However, in present days more emphasize is placed upon NPV or more precisely Profitability Index is considered more comprehensive than IRR on account of certain limitations. Now what is Profitability Index? It is also known as benefit cost ratio. It is calculated by taking the total discounted cash flows( including inflow & outflow) divided by the initial investment. If the index shows positive, we will take up the project. Apart from all these, another vital concern in project evaluation is the pattern or trend of cash inflows. If the flows furnishes an descending order, in spite of having a good net return or greater IRR, that project should be avoided on anticipation of further decline.

Factors that need to be considered before fueling fresh fund in to your business..

Whenever we plans to set up a new venture, need to populate several other essentials like source of raw materials, financing options, labour forces, markets capitalisation, organisation structure etc. All these aspects requires a detailed review before comencing the business. However, among all these, the first & foremost concern should be placed in comprehenive project analysis & accordingly adopting appropiate capital budgeting technique.

Project analysis asks for selection of most appropiate project among several alternatives. Here, an entrepenure effectively analyse the viability of a project in terms of cash flow pattern, inflationary impact there on, estimated project duration, trend of such flow, initial capital requirements etc. Let's have alook what are the factors influence in capital budgeting decisions.

As we all know capital is the back bone for every business, need to take proper care of such right from the day of investment. Hence, before taking any financing decision, we need to consider the available options, cost of such each source of finance, relative tennure of investment, the extent of obligations & repayment procedure along with expected return upon invested capital.

In my following article, we will have a detailed discussion upon both these analytical aspects.