Wise Investing

  learn about how SBI makes money. The State Bank of India (SBI) is one of the oldest and most prominent financial institutions in India. Founded in 1806 as the Bank of Calcutta, it was later renamed the Bank of Bengal in 1809. In 1921, following the merger of the Bank of Bombay and Bank of Madras, the institution transformed into the Imperial Bank of India. Finally, in 1955, the State Bank of India was formed after the Reserve Bank of India acquired a controlling interest in the Imperial Bank of India. The story of SBI is one of resilience and adaptability in the face of a constantly changing financial landscape. In this blog post, we will explore the business model of SBI using Alexander Osterwalder’s Business Model Canvas, a strategic management and entrepreneurial tool that allows organisations to describe, design, and challenge their business models. Value Proposition SBI’s value proposition can be broken down into four key components: a wide range of financial products and se...

Hello friends lets understand most important part of max pain data  Understanding Max Pain: Its Theory, Complications & Example For traders who want to make informed judgements while trading options, grasping the idea of maximum pain is crucial. The idea of maximum pain will be thoroughly examined in this essay, along with its application to make better trading decisions. Key Points Max Pain is the price at which most open options contracts would result in losses for the majority of option holders upon expiration. Max Pain theory empowers traders by helping them anticipate key market pressure points, allowing them to adjust their strategies for better results. A step-by-step process to calculate Max Pain, can be a vital skill for gaining a trade. Explore the complications and real-time nuances of applying Max Pain theory for a more nuanced approach to trading decisions. Max Pain theory in action with a practical example, showcasing how it helps traders strategically position th...

  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 ...

 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...