RSPH Blogs - Finances!

  Learn To Calculate The Profit Or Loss % Of A Share! Calculating the profit/loss % of a share you invested in could be a great way to keep track of your portfolios p&l (profit & loss). So, today I'll help you learn to calculate the Profit/Loss percentage on Investment with an easy formula. So, here we go; This is the formula & the steps.... The image above is the only thing you'll need to understand the formula; Let me cover the basics quickly; So the procedure of taking out the Profit/Loss % consists of 2 major steps; Step 1 is to first subtract the Cost Price (C.P.) from the Selling Price (S.P.) Cost Price (C.P.) is the price we bought the Share at. & Selling Price (S.P.) is the price we sold the Share at. After subtracting it; if the number you'll get is positive '+' then you can be sure of you earning a profit on this Investment. But in case it's negative that is in 'minus -' then it is a loss. This is a very basic & easy step

Value Stocks Vs. Growth Stocks! What Are Value Stocks? '&' What Are Growth Stocks? <<Basic!>> ---->> Value Stocks are such stocks that hold Value. Investing in these is kind of like Value Investing! ---->> Growth Stocks are such stocks that hold the power to outperform the entire market within a specific period of time. The Major Difference between Value Stocks & Growth Stocks is that.... Value Stocks are not very high priced.... As I said this is kind of like Value Investing; hence, these Stocks are below "The 'Intrinsic Value'!" You May Also Read: What Is Value Investing? How To Calculate The Intrinsic Value Of A Stocks? With Example! While, Growth Stocks may or may not have high prices than average Stock's Prices! But the thing is that Both the Stocks requires us to do Fundamental Research in order to invest in them or else we might face a loss. Value Investors Vs. Growth Investors! Value Investors are kind of like Bargai

  What Are Investment Banks? An Investment Bank is basically such an organisation that tends to work in partnership with various businesses & help'em fulfill their financial needs by being fully responsible for the Risks, involved in the process of collecting the capital. *This entire definition will make a lot more sense by the end of this Blog!* Okay! So, now let's straight up talk about what do they really do & how do this entire system works.... So here we go; What Do Investment Banks Do & How Do They Work? Let's get an overview of what really happens.... Well, now just think that there is a Company willing to raise funds, faster! & so the Company can go to an Investment Bank & ask it to find investors for the Company. & so, the Investment Bank will basically find a good Investor for the Company. & it'll ensure both of them that, the seller will sell & the buyer will buy ---- taking onto the risk & by being a part of the process.

  Well, I recently wrote an article based on "Why Is It Important To Be Rich?" ; & the reason that I wrote that article was that -- Why is being rich a necessity? ---- The real reasonable yet obvious causes were covered & yeah, it's not just about having the ability to buy materialistic things. But yeah, that's a perk, you know!

  What Do FMCG Stands For? FMCG stands for Fast Moving Consumer Goods. What Kind Of Sector Is The FMCG Sector? FMCG Sector is one of the largest Sectors in the Economy. FMCG Companies! FMCG Companies manufacture such products which are not very expensive but however, the products of the FMCG Companies are sold in large quantities. FMCG Companies Examples.... FMCG Companies are.... Food Companies; Home Services; Meds/Pharmacies. Example of an FMCG Company is.... Nestle! FMCG performance in Share Market During Inflation.... FMCG in Share Market tends to perform better especially during high Inflation.... because even if it increases its products prices.... people don't stop buying these Companies products as they are a necessity! Also Read: Inflation's Impact On Share Market! Thanks For Reading!

  What Are Mutual Funds? Basic Definition! Mutual Funds is basically such a Company which have a group people.... who are Expert in Investing. How Do Mutual Funds Works? Mutual Funds is basically such a Company which have a lot of Experts in Investing....! All they tend to do is just collect money from people or what we may refer to as a Pool Of Investors. So, after collecting the money.... they tend to invest that money into different Assets (it depends on what kind of Mutual Fund have you choosen)! Are Mutual Funds Risky? Investing in Mutual Funds isn't really that risky as much as it is, Investing individually.... it is because as I said, there is a group of people who are good at investing.... so they can really cover up the losses.... if they loose some money, they might take it out & invest it somewhere else. But, overall.... to answer your question.... MUTUAL FUNDS ARE SUBJECT TO MARKET RISK! Because, all those people are Investing is just our FINANCIAL MARKET!

  What Are Penny Stocks? Penny StocksCompaniesing but the Stocks that are cheaper in comparison to others.... In India, generally stocks which are less than 100 rs. are considered as Penny Stocks. & in The U.S. .... the Stocks less than around 7$ are considered as Penny Stocks! In simple words, as the name itself might suggest.... Penny means Coins.... So we know that coins aren't really used for large amounts to be paid.... I mean we can use them but we just don't.... Infact, we'll rather use cash to make large payments for the fast & smooth functioning of the system! So, Penny Stocks are basically "Cheap" Stocks! Like the one's that just aren't very pricey & sometimes even low than the average Stock Prices! [I'll talk 'bout Investing in Penny Stocks within a while!] By Penny Stocks.... I more specifically mean that Penny Stocks are those Stocks.... that prices generally range from such to such in what we may just pay as in Coi

  Today we are gonna understand what exactly Short Selling is.... I know.... its like Rocket Science for the most of us.... but honestly, I'll make sure that you understand "the basic concept of short selling and how it works", by the end of this article.... trust me i too struggled to understand it in the beginning but I how so ever managed & I bet by the end of this article so will you! Ok so lets just start from what exactly is Short Selling in simple words & than move on to how things work.... So first.... What Is Short Selling? In Simple Words! Short Selling is nothing but selling high & than buying low! The basic investing principle states that you should buy low & sell high.... We did exactly the same here but we just sold first & bought later....! Lets talk about how it works to make things more transparent! HOW DO SHORT SELLING WORKS? Now, I want you to understand that we invest with the help of brokers, you know those trading app

  What Do NCD's Stands For? & What Does It Means? NCD's stands for Non-Convertible Debentures. As the name suggests these Debentures can also be converted into others assets like Stocks & Bonds! How Do NCD's Works? I find the way NCD's work is quite similar to the way Bonds really do! That's just my opinion you don't really have to think about it alot! Anyways so; What basically happens is that when a Company/a Business (a new Business, usually) needs some funds for Business Expansion.... they go to people, right? It's similar to what happens in Share Market! So basically Businesses make NCD's.... which are nothing but documents assuring your contribution you made in/to that Business! The NCD's interest rates varies & also the time when it is supposed to be matured! You usually get paid the interest by the Company.... Every Month or Annually (that is Every Year).... Or in another scenario you might be paid the Interest with the

  Who Is An Enterprising Investor? Benjamin Graham's Definition! Benjamin Graham defines an Enterprising Investor as the one who has enough time & experience in Investing. Someone who is willing to put in the Effort in Investing. & the one who basically Invests Smartly following the concept of Value Investing.... & is so called the Intelligent Investor according to the book....! Heres a video that'll help you have a better understanding about Who An Enterprising Investor Is? &.... How He/She Invests?.... in under 1 minute! Here's the Youtube Video: So, thats all for today! Thanks For Reading!

  We'll start with breaking things down to understand what exactly Bond Yield is;.... in the best possible way! So, "Bond Yield" have 2 terms.... "Bond" & "Yield". Let's understand each owe by one. So starting with "Bond(s)".... What Are Bonds? Basic Definition! A Bond is a fixed income instrument that represents a loan taken by a Borrower from an Investor. So, basically a Bond is just a piece of paper which ensures that an investment was made by an Investor & therefore.... the Investor had paid a certain amount to the Business Owner.

  P/E Ratio is one of the main aspects which should not be left unchecked by any Investor while doing Business Analysis OR Research on any Company. Today, we shall learn some important basics of the P/E Ratio each & every Investor should know about.... the following are to be covered in this article/blog...: What Does P/E Ratio Stands For? What Is P/E Ratio? How Is The P/E Ratio Calculated? When To Invest In A Company Based On The P/E Ratio? Which P/E Ratio Is Better To Go With? Higher Or Lower! So, now without any further ado; lets dive right into the topics.... So here we get started.... What Is P/E Ratio? What Is It Used For? P/E Ratio stands for Price Earning Ratio. P/E Ratio basically lets us know that how much amount of money are Investors ready to Invest in a particular Company, just to earn 1₹ of profit! In other words, P/E Ratio shows us that; how many times of the money are the Investors ready to pay to earn ₹1 of profit. More on that, later.... but before that.... let us

  What Does ETF's Stands For & It's Meaning? ETF(s) stands for Exchange Traded Fund.... & as the name suggests.... ETF is a Fund Traded On An Exchange! How Does ETF's Works? Basic Explanation! ETF's are basically a basket or a pack of multiple & different types of Assets.... like— Mutual Funds, Stocks, Debentures, Bonds, etc., etc.! Which means buying 1 ETF means that you are investing in so many things all at once. But now, there's one question you may have.... that, why would someone buy an ETF.... when they can buy.... stocks, bonds & all.... individually.... So, Are There Any Benefits Of Investing In ETF's? & the answer is YES! Here's why.... So, talking 'bout the benefits.... First thing is DIVERSIFICATION.... So instead of finding multiple places to invest in.... you can get a ready-made basket, ALL AT ONCE! & talking 'bout the second benefit.... it is that you won't have to pay any extra charges.... — you know like

What Is Bitcoin? Bitcoin is a Digital Currency (Crypto Currency) which is not really physically available. We cannot touch it. We usually see images of Bitcoin  in which they are represented as Gold Coins with "B" written on them. Well, here's one:  But still, it's just an image it is not real (physically). Bitcoin is a peer to peer transaction system & no third party is included while making transactions. Henceforth, Bitcoin within itself introduces a unique way of Transaction without having the risk of loosing any of the Money! Who Is The Founder Of Bitcoin? & When Was It Invented? Bitcoin is a digital currency invented by a person or a group represented/named as Satoshi Nakamoto in 2009. & nobody knows who that person or group was....! It's known as that the person reveals himself then he/she may go into the jail because they've performed some illegal activity. I honestly don't know whether if it's true or not or even if there's some

  So as we know that Stocks & Bonds are best known for Assets. But still their are some queries which is to make sure which one of them is less riskier. As you might know that Risk Management is really important when it comes to Investing, Business, etc. So it's essential to pick up an argument/debate which talks 'bout which one of the 2 (Stocks & Bonds) is less riskier. So today we are about to do the comparison among the 2.

What Is A Bond In Simple Words? A Bond is a legal Document provided to you by a Company's/Business's owner, while making sure to pay you back the money with interest & at a fixed time, which the Company/Business owner, owes to you. A Simple Example Of Bonds: Let's say your friend is about to start a Business or a Company & needs money for it. Now, he/she does not have enough money to start a company; so your friend came up to you & asked for a little help. & you do helped your friend. Well, now as you've paid the money then you are handed over a document by your friend.... & that document ensures that you have given money for that business growth & therefore the owner have received it & will give the amount back at a specific date with Interest.