Assignment of Sovereign Rating

S&P did not revise soverign rating of India but Fitch had a slightly different view this time. Few months back S&P downgraded US and European Union resulting in crash of financial markets across the globe. Financial market tanked in the range of 10% throughout the world, such was the impact of this news. How exactly S&P or any other rating agency decides the sovereign rating? Why the rating downgrades or upgrades impacts investor’s sentiment so much? Let’s try to find out the answer.

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What is Contract Note

Contract notes are one of the most important legal documents available to stock market investor. It keeps track of all his transactions at one place together with data of profit and loss. Availability of the critical information related to a transaction in this document and legality makes it important for an investor/trader to understand it properly. In this article we will find out how contract notes are structured and the practical purpose they serve.

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Investing in IPO

“Please read the red herring prospectus before investing”. Does something pop up in your mind when you hear this phrase. If you are a seasoned investor you already know that some company is going public. Soon this company will be all over, be it newspapers, TV commercials, business channels, hoardings etc. Going public means a privately held company is selling shares for the first time to public through Initial Public Offering (IPO).

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Effect of Rupee Movement On Stock Prices

Rupee is again near its lows against dollar. In recent past rupee movement has been quite volatile and this volatility can be attributed to factors like Government Policies, Interest Rate Scenario and demand and supply imbalance. Although as an individual stock market investor we cannot control volatility but we can definitely device some strategies which will enhance our returns. If you can proactively sense the direction of rupee movement (either up or down) you can use it to your advantage by capitalizing on price fluctuation of exchange rate sensitive stocks.

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Taxation of Mutual Fund Schemes

Mutual funds are structured like trusts and they themselves are exempt from taxes. However, individual investors and the trustee company are liable to pay taxes on the profit made on the investment. Taxability of capital gains and treatment of capital losses is different for equity and debt oriented schemes. Securities Transaction Tax (STT) is levied on investments in equity oriented mutual fund schemes. Similarly Dividend distribution tax is applicable on dividends paid by debt oriented mutual fund schemes.

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Investment Strategies for Aggressive investor

Aggressive investor’s focus remains on capital appreciation and he in not risk averse. He doesn’t mind taking risk if the reward potential is in his favour. He prefers investment in high return asset class like equities.Keeping the risk tolerance and capital appreciation objective in mind,I am presenting below an investment strategy which can be fruitful for aggressive investors.

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