Can you become an investor when you have no time?

Can you become an investor when you have no time?

This is one of the biggest doubts that most people have. Because even those that have spare capital to allow for investing hardly find the time to become an investor. But the truth is that you can indeed become an investor, a good one, even when you do not have time. All you need is the right investment choices and the right support. One thing we all know for sure that tomorrow we would be busier than we are today. And just because we are busy the expenses are not going to come down. With the expenses growing and the income nearly saturating a good investment plan is essential even when you have no time for it. So here are some tips for those who are looking to start their investment journey with a little money but no time at hand.

Passive investing is a reality

Passive investing is something that almost all investors do at some point. These passive investment options might not result in huge profits within a short duration. But when you think long-term this is definitely going to fetch results that are on par with those reaped by the experienced investors.

Managed funds might help

There are many options when it comes to managed funds. These are the types of investments where all you have to do is to deposit the capital and allow a fund manager to do your investments. It is true that this one does attract higher rates of interests than most investments but the tax benefits, and the long-term profits would tally for the expenses made.

Don’t be skeptical about the bots

Robo-advisors have gained a lot of traction in the recent times. There are many fully automated systems and there are a few hybrid systems as well. A fully automated system is where a bot analyses the available funds and takes inputs about the financial goals and preferences. Based on these inputs the best investment plans are drafted and the portfolio is built. In the case of hybrid platforms, there would be bots used in some parts of the process and the investor would also be able to get in touch with human advisors whenever required. This is a combination that many feel very confident to work with. In both the processes all the investor does is to complete the documentation process to create an account and then make a deposit. So without having to spend time or efforts that investor can walk away with the profits.


Behavioral finance – an overview

Behavioral finance – an overview

There are many factors that influence the way an asset performance and the way the market progresses. And there are other factors that influence the decision that every investor or trader makes. With trading and other types of investments, there are several emotional decisions involved besides the ones that are arrived at based on logic and calculations. Understanding the investors’ behavior goes a long way in understanding the market movements.

Behavioral finance

This is a term that you must have often hear investors talk about. This is a theory that takes into account the fact that there are still humans behind every order placed in the market and these human investors are bound by emotions. Now there is an increasing usage of the bots to place orders as well as to take financial decisions. These trading bots would make behavioral finance an irrelevant topic. Behavioral finance is valid as long as there are human traders and investors.

Every little change that the market sees influences the emotions of the investors and when they decide based on their emotions the market further sees a few more changes and this cycle continues. The demand pattern can be understood by understanding behavioral finance.

Social trading is not new to us

Following someone else’s cues and taking decisions based on the social signals is not a new concept. There are some who even manipulate the market using this approach. But the crux of all this lies in the fact that people base their decisions not just on the logic and the technical and fundamental analysis but also on the basis of other investors’ decisions.

A combination of both would be a stronger approach

As the market gets more competitive and as the number of investors and traders keeps increasing a strong investment strategy is very important. Everyone wants to make profits. Unlike the other types of competitive scenarios in trading, when one makes profits the other doesn’t always have to end up in a loss. Those that make profits invest more and result in an increase in the demand further increasing the profits for the others as well. So clearly combining the results of behavioral finance as well as the technical analysis based conclusion would be a better way to invest. There are other contradicting theories like the efficient market hypothesis. But now more and more investors believe that the traditional approaches can be given a good upgrade by combining the understanding of psychological biases and the triggers of financial decisions.

Wanting To Run A Business? Know The Best options to raise funds

We would need money to start any business or company. The initial money infused into the business for its operation is called the capital. This need not necessarily be a larger amount. There are many ways for a businessman/company to raise funds to start a business. Knowing the most viable option to raise money depending on the market conditions reflects the efficiency of the entrepreneur/businessman. Many sectors offer a hand for funding the start-up companies if their business objective is sure to hit the market.

But, there are businesses for which you don’t require a huge amount of capital and can manage to fund easily. Businesses like cryptocurrency can be traded without infusing a huge amount of capital. And, this market is very powerful as you gain mind-blowing returns even though you initiate business with such a small amount.

Here are the ways for a businessman to raise funds for his business

1) Savings: If you have an intention to establish a business in future, start saving from now. Self-help is always the best help. Try to optimize your savings amount in the business so that you are left with debt-free emotion. Moreover, having a sufficient balance in your savings account would enable higher chances for loan approval if in case you need one. It is recommended that you initiate savings or deposit a fixed amount in bank well ahead if you have a goal to run your own business

2) Loan from inter-personal: If your savings are not sufficient enough to initiate the business, don’t hesitate to seek a loan from your family, members, friends or peers. They may be interested in your business and would be willing to contribute some capital to your business. Always give a chance and it is also beneficial to obtain a loan from the person you know as you avoid all the legal formalities that you experience while securing a loan from the bank.

3) Bank Loan: This is one of the most common ways of raising fund. Though it is cumbersome and involves a lot of complex processes, many businessmen raise fund using a bank loan. Describe in detail about your business plan, objective, goal and your business forecast to your loan manager. You must also insist on the methods and modalities that you have in plan for repayment of the loan along with the interest when obtained. Prepare yourself thoroughly to answer the questions raised by the loan manager and to the best possible extent try to give definite answers.

4) Initial Public Offer: Entrepreneur/businessman can make an offer to the general public to raise fund by purchasing the company’s shares. An investor who funds money and gets the shares in return becomes the member of such a company. An IPO is governed by strict rules and regulations. An Entrepreneur, aiming to raise a large fund for establishing the business in the market normally prefer this route. While making an IPO, your primary goal would be to attract maximum investors by explaining the business forecast, profit, turnover and most importantly the rate of dividend that an investor would receive upon purchasing the shares of the company.

Well! These are the most common and natural way that a businessman utilizes to fund his business.

Employing Cost Cutting Efficiently in Business

Whether you are new into business or well-established, at times of crisis, there are all possibilities of suffering a cash crunch, and every organization needs to be prepared to bare it in a better way, so as to not get lost in the crisis.

Here are a few ways to reduce your costs and manage the tough times better:

Keep employees cost minimal:

Well, though this is a known policy in many companies, how you do it matter the most. Rather than sacking the employees altogether, you can try re-organizing, from the beginning itself, so that there are not too many employees and at the same time the work is done on time.

Gather employees and check with their time preferences and schedule roasters accordingly. You can employ those morning birds in the early shifts and get the work done, and so to others as well. In case you have too many employees, then you really need to sack those underperforming to reduce your cost. If you are wise with business ideas, then you need to initially hire only people with multitasking ability and also talents, so that they can be helpful when in need, to swap the responsibilities and to work when in crisis.

Paying one employee a small percent for some time is always better than hiring one complete employ and pay him fulltime. Have some rewards for employees who multitask, who give their full time and who work that extra mile!! This will be smaller in comparison to the payment you make.

Keep safety policies in place:

Yes, always these small loopholes are the places where lots of money goes in vain. Without insurances, any injury at the workplace will take a toll on your financial health. medical costs, resources availability, cost to cover while the worker is at the hospital, time and person loss for the productivity of the company and finally some heavy fines imposed for no safety measures; is what you get!! So, to be on the safer side, always have some insurance covered for all of your employees, no matter what is their grade and role. Even the contract employees need some form of medical support, which will help you stay safer in the long run.

The process should be reviewed every half-yearly:

Have a check on the process of the company work, review and make changes whenever necessary. Check the efficiency of the teams and make any amendments if necessary. Reduce the overhead costs by giving work from home options to employees, and even reducing the prints.


Don’t Worry About Crypto Currencies

Don’t Worry About Crypto Currencies

In the past month, the prices of cryptocurrencies, especially Bitcoin has taken a nose dive. This has led to a lot of negative speculation and a lot of “we told you so” admonishments from the establishment.

The reason a lot of people find cryptocurrencies scary is that it is the completely open source and doesn’t fit into the established protocols when it comes to valuation or any other parameter. Trade pundits have long warned about the cryptocurrency bubble, and the sudden fall in prices has only gone on to cement these viewpoints.

Will Cryptocurrency investments fail?

The present market is being fuelled by fear. Everyone from trading specialists, as well as governments, is cracking down on the cryptocurrency wave and people are deferring to experts’ opinions on the same. However, recent reports indicate that the spiraling prices have now stabilized and regulatory authorities are taking measures to ensure that the volatility that usually accompanies cryptocurrencies is established to a great extent.

In the US, the Security and Exchanges Commission (SEC) is going to approve a Bitcoin exchange-traded fund. This will mean that valuation will be easier and investors who don’t want to use the traditional Bitcoin trading platforms can invest in ETFs instead.

In the meantime, the Intercontinental Exchange, the parent company of the New York Stock Exchange’s parent company in collaboration with Starbucks, Microsoft and the Boston Consulting Group will be rolling out a Bitcoin ETF in November to be used in its trading platform Bakkt.

While some countries have banned cryptocurrencies, the highest rated stock markets are taking steps to ensure that they can monitor the workings of the cryptocurrency to ensure there is some form of regulation.

Why did the price fall?

If there is one thing that the market has ensured is that speculation will drive the price up or down of a specific commodity. In the case of Bitcoin to the same had happened. When the prices began spiraling upward, a report was released stating that the investment giant Goldman Sachs was going to close down its proposed cryptocurrency desk before it even took off.

While the company itself responded saying no clear decision was taken, that one news report sent the cryptocurrency into a spiral and led to a lot of people pulling the value of the currency down as well as calling it a bad investment.

Currently, regulatory authorities are working against the clock to make sure that cryptocurrencies come under some kind of regulatory umbrella so that it can be made a reliable investment for users.

Advantages Of Investing In The Stock Market

Advantages Of Investing In The Stock Market

Stock market became popular in the news and it is the major choice of the people to invest money. There is also a risk in the investment of the stock market and also huge gains. You can bear the advantages of the stock market by taking certain measures to prevent the loss by managing the risks. Thereby you can earn more money and your financial position can be secured. Best blogs are available for the Indian stock market, you continue reading the quotes of the stock daily.

1) High return                                                    

The stock market is the risky place for the investment which means there is no assurance for the return of the money. But the stock market of the long-running is found to have a high return. A benefit of the stock market is huge comparing to the other investments.

2) High liquidity

It is considered as the main benefits of the stock market investment. High liquidity of the stock market is due to the purchase and selling of the shares every day. When there is an immediate need of cash you can make it quick and easily from the buyers. Whereas in other types of properties it will be difficult to sell. Investment in any other assets is not possible to sale immediately. It will take at least a month. When you are investing in the stock market you can find the buyer by the next day itself.

3) Delayed taxation

One of your gains in the stock market is the delayed taxation. If the value of your stock has raised mean s there is no need for the paying of taxes. Instead, you have to give the report about the profit gain of our stocks. And also if there is any loss in another stock you can reduce the tax cost on the gain of another stock. Whereas your investment in the bond or in the bank means you have to pay tax for your earnings in every year.

4) Sole proprietorship

It is like starting your own business when you had invested money in the stock market. When there is a profit gain in the stock it will make the growth of the business and you are the only owner of this business.

5) Regulatory framework

All the investors in the stock market will be secured by means of the regulatory framework. Securities and Exchange Board of Indie is the regulatory framework of India to safeguard all the investors.





Know How The Auditor Evaluates The Sundry Debtors Acting In The Business Process

Know How The Auditor Evaluates The Sundry Debtors Acting In The Business Process

Primarily, the Sunday debtors indicate the cash amount that is recoverable from the customers for the goods sale or for the service rendering process made by the business company.

  • For analyzing this, an auditor should utilize the following procedures and thereby, the book of debts or the Sundry debtors is evaluated after receiving a convenient schedule or the short-listed note of debtors from the client.
  1. Confirmation of the balances must be ensured from the debtors by sending them the confirmatory letters in advance.
  2. Detailed inspection of the ledgers can be done on a yearly basis.
  3. Further, the examination of debt position can be made for knowing the present status of the debts like it is bad or doubtful.
  4. Observance should be thoroughly done and use the legal service or present it if needed.
  • An Arrangement should be made to send a confirmation letter regarding the balances maintained by the client as per the records and make sure the reply to this confirmation reaches back to his office directly.

All this process should be initiated within a gap of 15 to 20 days towards the year ending and that too under the supervision of any audit staff. So, once is reply is received, the accounts must be tallied with respect to the balance shown in the Debtors Ledger and the difference is properly reconciled.

  • Further, the auditor should proceed to carry out a detailed observance of the debtors’ accounts in person and in cases, if the debtor’s number is large, then the method of test checks can be applied to ascertain the truth.
  • During the ledger checking, an auditor should focus more on the things like the discount made, allowed rebates, any goods returning done or so.
  • Before confirming with the Genuity of the debtor’s balance, the auditor has to check for the bad or doubtful types. If it is seen that the debtors hold a bad debt, then the financial statements will not be certified with a True and Fair view. Additionally, strict provision is made for analyzing the debtors’ age, total payment received till date, management and other financial opinions about the debtor. If the auditor fails with this provision, then he held liable for negligence.

According to the Company Act made in 1956, the debtors can be classified as the outstanding type that holds a period of more than six months and other major types. All these debtors need to be evaluated by the auditor.


Accounts Of The Financial Performance

Accounts Of The Financial Performance

Understanding Income Statement

It is one of the financial statement that accounts for the firm’s performance with respect to finance. The performance is recorded over a specified period of accounting. The assessment of the financial performance is provided in the form of a summary of how the revenue of the business is sustained by it and how it sustains the expenditures through activities that are operating as well as non-operating. There is a net profit or loss that the company has sustained also shown in the statement. The profits and losses that have occurred over a specified accounting period.

The income statement is also known by two other names:

  • Statement of revenue and expense
  • Profit and loss statement

In the annual report and the 10-K that consists of financial statements, the income statement is one of the three main financial statements. The Securities and Exchange Commission and investor public makes are compulsory that all the public firms should be submitting the above-mentioned legal documents. The balance sheet and the statement of cash flows are the other two types of financial statements. All the conditions of the firm’s financial affairs information are provided by all the three financial statements to the investors. However, the income statement is the one among three that will provide the summary of the sales and net income of the company.

Dissimilar to the balance sheet where a particular moment in time is covered, the information regarding a defined time about the performance is offered by income statement. This defined time is usually

  • Monthly
  • Quarterly
  • Yearly
  • Different variations that are present

The income statement starts with the sales of the company and works its way towards the net earnings and earnings per share of the company. The income statement consists of two sections: operating and non-operating. In the income statement, the operating part reveals the information regarding the revenues and expenditures which are the direct result got from the operations performed by the business on a regular basis. An example would be of a business that produces equipment for the fitness, therefore it should generate money in the sales and production of the fitness equipment. On the other hand, a non-operating part of the income statement will reveal the revenue and expenditure information regarding the activities that are not tied to the operations performed by the firm on a regular basis directly. Taking the same example to explain this: If the fitness company is selling real estate and investment assets, the gain got from this sale is enlisted in the non-operating section.



Retirement Savings Taken As Loan

Retirement Savings Taken As Loan

There is a home buyers’ plan which is a Canadian program which will let individuals who have registered retirement savings plans to make use of their plan to buy their home. They can use as much as $25,000 of their holdings in their plan in the form of a loan to make the purchase.

The individuals who are planning to buy a home for the first time are only allowed to make use of the Home Buyers’ Plan and they are known as first-time home buyers, but they need to have an agreement written which will say that they will be buying or building a certified home. The first-time home buyers are people who purchase a principal residence.     The plans are qualified for people who are disabled or the individuals who want to help their relatives who are disabled. The first-time home buyers are defined by Canada as the people who haven’t had a house of their own and inhabited a home for the period of more than four years that starts on January 1 of the fourth year which is earlier to the withdrawal. We can consider an example where there the withdrawing of the funds in done in July 2017, in this case, this will become eligible at the start of January 1, 2013. The eligibility period is for the purpose of finding out whether that person is qualified as the first-time home buyer or not. Their partner or common-law partners might also qualify separately provided they have not lived in a home that was on their name or the home was not in their present partner’s name.

If the person who is buying home wants to take full advantage of this program, the withdrawal made should not be higher than $25,000 and also all the withdrawals should be made in the same year. After they start to live the home purchased, the home buyers should make sure to withdraw the complete amount within 30 days and not longer than that. Once the home buyers complete 2 years of the withdrawal, they will have to pay back the loan within 15 years. They should start by depositing the money back into their RRSP accounts and the amount paid should be level minimum which is done annually. If the amount that needs to be repaid is not paid by the end of the year, it will be considered as taxed income.


Controlling The Supply Chain

Controlling The Supply Chain

Vertical Merger

When there are two companies that are at different level of the process of the supply chain but the goods or services supplied are same, when such companies are merged it is known as a vertical merger. A vertical merger can happen between two or multiple such companies. The aim of a vertical merger is to grow the synergies, gaining more authority over the supply chain tasks as well as growing the business. In addition to this, there is cost reduction and growth in productivity and there is an increase in efficiency as well.

Sometimes vertical integration is also used instead of a vertical merger. But sometimes the functions of supply chain process might be expanded without the necessity of vertical merger of two companies in which case vertical integration is used. We can consider an example where a company that manufactures ladder will require aluminum to do so, but instead of buying the aluminum from other sources where this is supplied, the company decides to make aluminum on their own. On the other hand, when there is a vertical merger it will result in the company that manufactures ladder and the supplier who sells aluminum getting merged. Conversely, there is a horizontal merger that is completely opposite to vertical merger where there is a merger of two companies that are competing but are at the same level in the supply chain process.

Some more examples of vertical merger

A company that manufactures cars will buy a company that manufactures tires, this is an example of a vertical merger. What will happen after the merger is that there will be a reduction in the price of the tires for their automobile production? Further, there will be a potential expansion of the business as they will able sell tires to the other automobile companies that will require the tires. In this example, we can see that how a vertical merger will be two times more beneficial to the firm in comparison to the company that will undergo vertical integration.

In the initial stage, the company will benefit from the reduced prices and this will result in growth in the profits gained. Another benefit will have is that there is an increase in the bottom line since the flow of revenue will be expanded. The very first vertical merger that was noted was in the year 1996 when Time Warner Inc. that was a big cable company was merged with the Turner Corporation which was a big media company.