Wise Investing

  Hello friends lets understand about CPI & Repo rates friends  CPI is an essential tool for RBI as it looks after the monetary policies of the country. The framework by RBI requires it to keep the inflation rate around 4% however it can fluctuate anywhere between 2% and 6%. The primary motive of RBI is inflation control, while it may change from time to time depending on the decision of the monetary policy committee. Knowing what is CPI and how much is the impact becomes important for the central bank. The MPC holds its meeting to decide the repo rate in the economy. Repo rate  are decided in tandem with the inflation rate of the economy. Say the inflation in the economy is rising. This means that the general price level prevailing in the market is rising. In such a situation, to arrest inflation, the central bank would want to reduce the money supply in the economy. For this RBI may increase repo rates, which will make it difficult for the banks to borrow money from the RBI, ulti

 Hello friends lets understand Most important ratios in mutual fund investment  A Detailed Look at the Mutual Fund Ratios Given below are the details of various mutual fund ratios:  Alpha This ratio denotes how a fund has performed compared to its benchmark index. In other words, alpha denotes how well a fund manager has been able to manage a fund. Based on the fund manager’s performance, an actively managed fund will have a positive or negative alpha. The baseline for alpha is 0. If a fund’s alpha is greater than 0, it indicates that the fund is performing better than its underlying benchmark. If it is 0, the mutual fund performs the same as its benchmark index. Conversely, a negative alpha reflects a fund’s underperformance compared to its benchmark. Let us use an example to understand this. For example, suppose the NIFTY 50 index generated 13% in the previous year. If a mutual fund with NIFTY 50 as its underlying benchmark delivered 10%, its alpha will be -3%. It means that the fund

 Educating Your Children on Finances Ages 3-6. Their eyes are on everything. At this young age, children are like little sponges, learning and soaking in everything. This means they catch more than you think! This is a great time to introduce key financial concepts that they can carry throughout their lives. One study from the University of Cambridge found that money habits in children were formed by the age of 7. When they get money for a birthday or holiday, have them save it in a clear piggy bank or jar. At this age, humans are visual creatures. As they see the amount of money grow they will get excited. Each time you add money, use this as an opportunity to count what they have saved. Help them set a goal of something they would like to use the money on. Activities teaching how to save and the importance of patience are important in this early development in showing sometimes you have to wait. Remember that young children have a short attention span so it is important to keep their

 Support and resistance trading strategy Using support and resistance levels as a trading strategy is one of the very basic methods of trading. It can be used to manage risk and place stops, determine the market conditions, and find appropriate entry and exit positions. The most common trading strategy using support and resistance levels is buying (going long) when the price is closing in on the support level and selling (going short) when the price is moving closer to the resistance level. However, traders should wait for some confirmation that the market is still following the trend. Placing stops and limits below support and above resistance is also recommended. It helps traders to close a position quickly if the price breaks through levels of support or resistance. Before you place the trade, consider your profit target and what you consider to be an acceptable level of loss, then decide on your exit points near the support and resistance levels. Another strategy used in support an

Lets understand whats is going in & out  Foreign investors continued their relentless selling in the Indian equity markets in August, offloading shares worth Rs 21,201 crore due to the unwinding of the yen carry trade, recession fears in the US and ongoing geopolitical conflicts. This came after an inflow of Rs 32,365 crore in July and Rs 26,565 crore in June, data with the depositories showed. Foreign portfolio investors (FPIs) infused funds in these two months on the expectation of sustained economic growth, continued reform measures, better-than-expected earnings season and political stability. Before that, FPIs withdrew Rs 25,586 crore in May on poll jitters and over Rs 8,700 crore in April on concerns over a tweak in India's tax treaty with Mauritius and a sustained rise in US bond yields. According to the data, FPIs withdrew a net amount of Rs 21,201 crore in equities so far this month (August 1-17). So far this year, FPIs invested Rs 14,364 crore in equities, data with t

Hello, traders In a market situation, swap zones in trading are formed as a result of a change in market direction. When the trend changes, the price often returns to the previous support or resistance line. This is due to the fact that participants often use the lines as reference points for trading decisions. Swap zones can be used by traders to identify optimal entry-exit points for trades. For example, a trader can open a long position when the price is approaching support or a short position when the price is heading towards resistance. What is a Swap Zone  Swap zone in trading is a price level that was previously a support and then became a resistance, or vice versa. It represents a part of the chart where the price pauses or rolls back. It is formed as a result of a change in the trend direction. Swap zone is easy to use to identify reversal points. For example, if a price is in a rising market and is pulling back to support, it is a signal that the trend may resume. In order to