Lifeblood Finance

  Want to earn more than what you earn normally on an FD or RD? Knew nothing about stock market or afraid of investing in stock market? You need not worry; you can still invest in stocks indirectly via Mutual funds. Let us understand about Mutual funds and how one can invest in shares via mutual funds. MUTUAL FUND MEANING Mutual fund is a type of investment vehicle run by a mutual fund company. These companies are run by mutual fund manages possessing high level expertise in the field of finance and stock markets. These companies pool money from various investors and invest that money in logically selected stocks and securities that are expected to provide huge return. Simply speaking you just need to provide your surplus money to these mutual fund companies and the mutual fund managers would invest your money in intelligently picked shares and other securities that provide you high returns. ARE MUTUAL FUND COMPANIES SECURE LIKE BANKS? Yes Mutual fund companies are highly secure. The w

Stock Exchange Terminology Till now we understood that shares are small pieces of the amount, a company wants to raise, and you can buy those shares from markets that are now available online just like other shopping websites. Let us now understand about these markets further. A platform where shares (also known as stocks) are exchanged/ traded among buyers and sellers is known as STOCK EXCHANGE. When a company issues shares for the first time (known as Initial public offer-IPO) to public, it must get itself registered with Stock exchange which is commonly known as the process of LISTING. Persons who bought shares at the time of IPO can sell those shares anytime in stock exchange. The picture below depicts the popular stock exchange of various countries from where you can buy and sell shares. FINANCIAL REGULATORS Financial regulators are the institutions which regulates stock markets. Every market needs a regulator to protect the interest of buyers and sellers and mo

ROOTS OF SHARE MARKET When I ask you about the return you expect from your investment, your answer might be 10%, 20%, 30% or some might rarely say 50%. What if I say you should expect 5000% return or even 10,000% return? Most probably you would say this is impractical or impossible. But you are wrong. You can actually earn a massive 3 digit return or even a 4 digit return. But how it is possible? Well, if you are thinking about risk free investments, you are going in a wrong direction. If you want such humongous returns risk is compulsory. Let us start learning about risky investments, an enthusiastic and adventurous journey towards massive 3 digit return. SHARES In order to understand what shares are, we firstly need to understand how a company raises funds in order to  run its business. A company in order to start or grow its business can raise money from following major sources: Loan from a Bank. Loan from Public also known as debentures(we will learn ab

Return is directly proportional to risk Dreaming about huge returns? Want to convert your dream to reality? Get ready for the adrenaline rush named RISK. What is Risk? Risk is the possibility of happening something disagreeable or bad. But remember it is just a possibility. Risk is not a distressing situation; it is rather an adventurous journey like a roller coaster with lots of exhilaration and fun. Why do you need to take Risk? Answer is simple Return is directly proportional to risk. It simply means “Higher the risk, Higher the return”. Risk always pays off. If you really want to achieve something enormous in life the pathway is only RISK. It is well said that: “The biggest risk is not taking any risk … In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risk.” Mark Zuckerberg (Facebook  co-founder) This depicts the importance of risk in our life. A life without r

How to Become a Billionaire? Have you ever wondered why only 20% of the people in the world are super rich and rest belong to middle class or a poor family background? What is the reason for such interlude? What is the “secret mantra” of their success and such massive wealth? Well the answer is quite simple, it is nothing but the INVESTMENT. Investment is the key which can multiply your money to infinite times. Investment is the word which we all use frequently in our daily routine. In simple terms Investment is nothing but putting your money in a certain avenue to get an optimum return in foreseeable future. For a Layman Investment is simply purchasing an FD, RD or most probably a land. But actually the world of investment is much massive than what we think, there are thousands of investment avenues which exists, but we are not fully aware about them. Following are some of the famous investment avenues in the order of risk involved in them i.e. lower to higher risk: