Wise Investing

  WHAT IS GDP? Gross domestic product (GDP) is the value of all final goods and services produced within a country in each year, i.e. the geographic area of the country. Nominal GDP vs Real GDP Introduction Understanding Nominal & Real GDP using Hypothetical Eample Let us assume Country A, which only produces Apple. Now, the GDP of the country would be the quantity of apple multiplied by the price of apple. Let us assume country A produces 100 apples in year 1. The selling price of 1 apple being rupees 10. As the country produces only apples and no other product, the GDP of the country would be: GDP (year 1) = Quantity of apple * price of apple = 100 * 10 = 1000 rupees In year 2, suppose country A produces 110 apples. The selling price of apple now is 12 rupees. GDP (year2) = 110 * 12 = 1320 rupees Now, what does 1320 indicates. Is this the nominal or the real GDP of the country? This is the nominal GDP of country A. Now, the increase in GDP from 1000 to 1320 is not just becaus...

What is Option Trading? An option is a contract that is written by a seller that conveys to the buyer the right — but not an obligation to buy (for a call option) or to sell (for a put option) a particular asset, at a specific price (strike price/exercise price) in future. In return for granting the option, the seller collects a payment (known as a premium) from the buyer. Understanding Options Trading With the help of Options Trading, an investor/trader can buy or sell stocks, ETFs, and others, at a certain price and within a certain date. It is a type of trading that offers investors fair flexibility to not purchase a security at a certain date/price. How Does Options Trading Work? When a trader/investor purchase or sell options, they attain a right to apply that option at any point in time, although before the expiration date. Merely buying/selling an option does not require an individual to exercise at the time of expiration. Because of this, options are...

Let’s understand Sum of below figures  GIVEN -  155 LAKH CRORES AS SUM OF MONEY IN INDIAN RUPEES TO FIND-  TO CONVERT THEM IN DOLLARS SOLUTION  -The value "155 lakh crore" is often used in the  Indian numbering system,  where "lakh" represents 100,000 and  "crore" represents 10 million To convert this value into dollars, we'll first need to convert it into the regular numerical form and then calculate its equivalent in dollars. Let's break it down step by step: 1 lakh = 100,000 1 crore = 10,000,000 So, 155 lakh crore would be: 155 × 10,000,000,000 (since 1 crore = 10 million) Now, let's convert this value into a regular numerical form: 155 × 10,000,000,000 = 1,550,000,000,000 Now, to convert this value into dollars, we need to know the  current exchange rate between the Indian Rupee (INR) and the US Dollar (USD). Exchange rates can vary, AS of todays date value of 1 USD = 73 INR. So, to convert the value to dollars: 1,550,000,000,000 INR / 73 (...

XIRR In Mutual Funds: What Is It & How It Works XIRR Meaning: What Is XIRR XIRR or extended internal rate of return is a single rate of return that provides the current value of the entire investment when applied to each systematic investment plan (SIP).  It is used where many transactions happen during a period. At times, one can redeem a small amount from their investments. On the other hand, investors can pause several months of investments. In such instances calculating the returns becomes easier with XIRR.  Investment cash flows are dynamic. In other words, they are never evenly spaced out. It is standard for an investment scheme to have early withdrawals or late deposits. Investors can skip a couple of months of installments.  In these conditions, calculating the return from your investment scheme becomes difficult. However, with XIRR, you can easily calculate your returns. Fortunately, you can use the XIRR formula in Excel to calculate uneven cash flow interval...

friends lets understand something about mutual fund industry. the pillar of Equity market  The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank of India. The history of mutual funds in India can be broadly divided into four distinct  phases. First Phase - 1964-1987 Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs. 6,700 crores of assets under management. Second Phase - 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non-UTI, public sector mutual funds set up b...