Investment Ideas

Children Today Are Smarter Than Ever, Is Your Future Planning Too?

You must be wondering how smart your children are and how they are learning so much beyond their years. For instance, ask your child to open an app on your smartphone, and they would do that in a jiffy.

Studies show that young children are smarter than adults and can imagine, observe and learn new things. If your children are this intelligent; therefore, don’t you want to make sure that they achieve greater heights in their lives?

You know how important a role does education plays in helping your children accomplish their dreams, which is why you should make the best arrangements for them.… Read the rest

Abey Francis

Think Beyond Traditional Plans to Maximize on Your Goals: Here’s How

Long gone are the days when you invested Rs. 1 lakh a year for 20 years to receive Rs. 20 lakhs. While our grandparents and parents were dependent on this benefit for their future retirement, the truth is that the present generation will not. The essential question here is, “What can the present generation do to secure their future?” and “Are there any chances of ever getting one that can match up to these plans?”.

The answer is Yes. Today,there are far more ways to potentially grow your money. There is another world of investment options beyond these traditional plans that can provide opportunities for maximizing your returns and saving for retirement.… Read the rest

Abey Francis

How To Minimize Risk When Investing Online

Any type of investment carries risk, and you should be distrustful of an investment opportunity that offers you a guarantee of your money back plus earnings. The greater the risk can mean the greater the return, however if the investment opportunities you are currently pursuing are resulting in a lack of sleep and causing you to worry about them then perhaps they are too high-risk and you should look at minimizing your stake to lower your potential losses. There are ways that you can try to minimize your risk when it comes to investing online, such as obtaining sage financial advice, diversifying your investment portfolio, and keeping up to date with all your investments and monitoring and reallocating funds where necessary.… Read the rest

Abey Francis

Catastrophe Bonds or CAT Bonds

Catastrophe Bonds (or CAT Bonds) are high-yield, risk-linked securities used to transfer explicitly to the capital markets major catastrophe exposures such as low  probability disastrous losses due to hurricanes and earthquakes.  It has a special condition that states that if the issuer (Insurance or Reinsurance Company) suffers a particular predefined catastrophe loss, then payment of interest and/or repayment of principal is either deferred or completely waived.  These bonds were first introduced as a solution to problems resulting from traditional  insurance market capacity constraints, excessive insurance premia, and insolvency risk  due to catastrophic losses.

Catastrophe Bonds or CAT Bonds are complex financial tools which transfer peril specific risks  to the capital markets instead of an insurance company.

… Read the rest
Abey Francis

Case Study: The Story of Warren Buffett

Warren Edward Buffett, born August 30, 1930 is a U.S. investor, and philanthropist. He is one of the most eminent investors in chronicle, the basic shareholder and chief executive officer of Berkshire Hathaway and in 2008 was ordered by Forbes as the 2nd most robust person in the world on an approximated net worth of around $62 billion.

Buffett is often called the “Oracle of Omaha” or the “Sage of Omaha’ and is noted for his adhesiveness to the value investing philosophy and for his own frugalness in spite of his huge riches. Buffett is also a famed altruist, having engaged to impart 85 percentage of his fate to the Gates cornerstone.… Read the rest

Abey Francis

Investments when entire Stock Market is Under or Over Valued

Should management proceed with investing in a project with a satisfactory NPV (Net Present Value) if it has sufficient funds to do so, and if (a) the entire stock market is significantly undervalued and may well rise by 25 or 30% over the next year, or (b) the entire stock market is significantly overvalued and may well fall by 25 or 30% over the next year?

In case (a), it could be argued that management should postpone the investment for a year, and invest the cash in a general portfolio of shares, realize them after a year, then take up the postponed investment, and use the capital gain either for future investment or a special dividend payment to shareholders.… Read the rest

Abey Francis