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How does Inflation affect Stock Market?

How does Inflation affect Stock Market?

 

Inflation affect Stock Market

It is not necessary that Inflation affects stocks of every listed company in the stock market. It may affect stocks adversely or favorably depending on their fundamentals. If any company is having poor fundamentals then the stocks of that particular company will definitely suffer and on the contrary, the prices of stocks having rich fundamentals will go up. Continue reading

What is Inflation and how it is calculated?

What is Inflation and how it is calculated?

 

What is Inflation

What is Inflation: Inflation means “a general rise in the prices of goods and services over a time period which results in the loss of currency purchasing power.” It is observed that when the general price level rises due to rise in inflation, we are forced to buy fewer goods and services as we were buying earlier. We can explain them by quoting an example here. If we were buying one liter of Milk for Rs. 10-12 in 1995 then the same Milk we are buying at Rs. 40-45 in 2015. Thus, we can say inflation results in loss of value of money purchasing power. Continue reading

What is Systematic Investment Plan (SIP)?

What is Systematic Investment Plan (SIP)?

 

Systematic Investment Plan

Systematic Investment Plan (SIP) is an investment option where a fixed sum of money is invested in a mutual fund at regular intervals. These intervals could be monthly or quarterly depending on investors’ choice. Before starting SIP, investors should identify the best funds and the amount required to achieve the financial objectives. SIP helps investors save and invest periodically over a longer period and get an attractive return at the end. Many investors try to buy stocks at low price and sell at high price to earn profit. But timing the market is very difficult and very irrational and risky. Continue reading

What is Rajiv Gandhi Equity Saving Scheme (RGESS)?

What is Rajiv Gandhi Equity Saving Scheme (RGESS)?

 

Rajiv Gandhi Equity Saving Scheme

Rajiv Gandhi Equity Saving Scheme (RGESS) is a tax saving scheme which was introduced by the Government of India in its Union Budget 2012-13. The main motto behind this scheme is to promote the equity investments among people and also to attract public participation in equity market. The equity investment means investments in shares of companies that are included in the BSE-100 or CNX-100 by purchasing shares or ETFs/Mutual funds which invest in stocks approved by the RGESS scheme. Continue reading