Tuesday, 10 April 2012

Salary seed to Moneyplant

Lets start by making an assumption. You are earning a nice enough income and are happy with your earnings. You know that all your current needs are met by your pay cheque alone.

But is your income sufficient to make all your dreams come true? Your needs may be very less today. However, it will not be the same in the future.
Your needs increase as time goes by.
  • You need to provide for events like your marriage, raising a family etc
  • You may have commitments in life like owning a house, furthering your education for better career prospects etc.
  • You may have to spend on vacations and holidays with your family.
  • There are periodic medical expenses that you will have to factor in. These expenses maybe for your dependents, family or even yourself.
  • Planning for your retirement too is very important.
  • Notwithstanding all of the above, there maybe an unexpected financial turmoil for which you need to have safe reserves.
So, what is the foolproof plan to tide over all these and many more vagaries that life may present to you?

Needless to say, you need something more than just your income to cater for various needs in life. Investments or investing your money is an art. There are various financial instruments which in which people invest and augment their income. Some of the places where people generally save and invest their money are
  • Bank and company Fixed Deposits
  • Gold
  • Real Estate
  • Mutual funds etc.
All the above mentioned methods, though advantageous to a great extent, also have their own limitations.In short, though investing in such traditional instruments is necessary, they, by themselves, are by no means the only way for future financial security and wealth creation.

What RupyaGyan is all about?

We would like to draw your attention to the advantages of investing in the stock market. There is always a starting point. So, let's begin to learn investing in stocks. The advantage of trading in stocks is that, buying and selling can always be done at the prevailing market price whenever you want. Once you buy a stock, your money does its work with the stock as the market conditions change and when you want to sell you can actually count your money before selling it. The liquidity is always there.
This is what RupyaGyan is all about. This blog is designed for the beginners to learn about investing in stocks from scratch. Though stocks will be our primary area of interest, we also will emphasise the advantages of other financial instruments from time to time, so that the investor gets a wholesome picture and can decide on his course of action towards financial health. You can find the following here :
  • Find out what stock markets are all about. Go to the beginners section to start your journey into the rewarding world of stocks and stock investments.
  • You can view our Learn to Invest section if you are one of those who are convinced that stocks are for you and want to learn how to make the right decisions.
  • View some great stocks to invest in our third section. We have presented some companies as case studies to illustrate the concepts used while investing in stocks. Investor discretion is advised before deciding to invest in any company stock. View the disclaimer for further information.
  • How to efficiently use your income so that your road to financial well-being is smooth. We have put together a set of posts which will help you in your financial planning. Visit the Asset Allocation section for more.
  • News is the pulse of the economy. Hence, we have done our bit to condense the happenings of the economic sphere and bring you relevant updates week after week. Visit News & Updates section for more.
When you invest in stocks after some mandatory research, you are actually investing in a company. That is the bottom line!! Investing in stocks is all about investing in good companies which grow as time goes-on and in the process creates wealth for their investors too.
If you invest sensibly and after doing thorough research, the market rewards you by multiplying your investment many times over.

One golden rule to follow for all beginners to stock investment is to know the company whose stocks you are investing in. What is the actual product of the company and what is its relevance in the near and far future are criteria that will make or break an investment.

Interested? Why don't you go through our post on Beginners' Guide to Stock Markets for starters?

Then you can read on and explore the different sections of this blog to learn about investing in stocks. We have presented a lot of concepts in a simplified way and hope you enjoy your journey.