Nifty ended up after 2% decrease and closed at level of 4706.45 and it could have decreased further until some short coverings were made in the dying moments of trade. Sensex crashed 587 points to make an intraday low of 15,478.69 and closed down 365.45 points at 15,699.97.

Not only the Indian market but also the other European markets ended up at the low level than yesterday.

On the contrary the prices of US Dollars are rising high and high and reached to a level of near Rs.52. According to experts the overall situation continues to look gloomy because of problem seen globally and domestically too.

Oil & gas, banks, capital goods, metal, technology and select telecom stocks fell off abruptly and closed at the 2-3% loss. However, Reliance Communications and NTPC were the exceptions, rising over 0.5%. Major large capitals like Infosys, Reliance Industries, SBI Bank, ICICI Bank, HDFC Bank, L&T, Bharti Airtel, TCS, SBI, ONGC, Tata Motors, BHEL and Wipro were down between 2% and 4%.While Unitech advanced 4.5% and DB Realty shot up 20%.

Basically Mutual fund is a professionally managed type of collective investment scheme run by many financial organizations that collect money from many investors who are interested ,to buy stocks, bonds, short-term money market instruments and others. These mutual fund companies invest the money of the investors in different stocks in the systematic manner at regular intervals and take profits on the basis of average making.

Mutual fund issued by any company makes its portfolio of which stocks it will invest money in. On that basis they invest the money in accordance with the current price of a particular stock and make average value every month. But there is also a locking period in mutual fund investment normally of one year or two years. If you take out your money before the locking period then you have to pay the pre-mature charges. Usually people invest the whole of money in one go in mutual funds but if you wnt to be on safe side then investing through SIPs is most preferred.

Systemic Investment plan (SIP), preferred by most the money investors is the most convenient way of investing your money in mutual fund. Under this scheme your money will be invested in the stock market on the monthly basis like installments, and you will get the mutual fund at the current NAV price of the month.

To let you understand the concept of mutual funds deeply and ensure you before investing DSPBlackRockMF have created some great and useful videos which will explain all the aspects regarding investment in mutual funds and will help you to understand the benefits of investing in mutual funds.

Mutual Fund Videos

What is Mutual Fund?

Benefit of Mutual Fund

Different types of Mutual funds

Entry and exit load

Assets allocation of a mutual fund scheme

Risk of Investing I Mutual fund

Investment risk and return

What to look for in a mutual fund?

Choosing the right mutual fund scheme

What are tax saving schemes?

For more Videos related to Mutual Fund checkout DSPBlackRockMF YouTube Channel

Being located in Mumbai, head offices of both BSE and NSE stock exchanges of India make an average turnover of Rs. 2 lakh crores per day. Yes, you have read correctly. The average turnover of stock exchange of India is around Rs. 2,000,000,000,000. BSE India is the oldest stock exchange of Asia and is currently 8th largest stock exchange in the world with more than 5000 thousand Companies of India being listed on it.

To give you a deeper look about what happens and to let you know about the per minute trade that occurs inside the buildings of BSE and NSE India we have presented below some mind opening statistics about the share market of India. Let’s go through the 60 seconds of share market.

In 60 seconds,

• Turnover of Rs. 29, 00, 00,000 (Twenty crores) is done on an average.
• 25, 10,000 stocks are traded
• Turnover of Rs. 56,00,00,000 (Fifty six crores) is done on futures and options F&O
• 16, 267 deals are blocked on an average
• FII (Foreign Institutional Investors) buy Rs. 11, 20, 00,000 per minute and sell Rs. 11, 60, 00,000
• DII( Domestic Institutional Investors) buy Rs. 5,05,00,000 and sell Rs. 5, 80,00,000

These are not the theoretical figures but the reality of stock exchange. So can you realize what is the importance of 1 minute and what can happen in just 60 seconds. If you are an active trader then you can just imagine what %age of your money counts in the total investment. The picture below says the rest.

People always want to save their money for the future so that in hard times it may help them but how to earn from those investments and enjoy the benefits in the future is unknown to many. For those people who don’t know about the various insurances and money saving plans ICICI prudential life has created some videos regarding the same so that the common person who isn’t aware of these financial products and about their profits can get the general idea for investing his money for the future.

There are videos regarding future financial planning, different types of insurances and their plans provided by ICICI. Benefits of insurances, why to go for Term Insurance plan and other schemes are explained nicely and quite elaborately so that it becomes easy for the common men to understand the concept. The videos also contain the experts’ advice on which product you should invest the money and what is actually the need of investing your money.

You can watch all ICICI Pru Live financial videos on YouTube channel http://www.youtube.com/iciciprudentiallife

We have collected those videos and listed them below so that you can become aware about these financial products and schemes.

The presence of numerous insurance companies often distracts and confuses your mind to which company to opt for. There are many insurance companies like LIC, ICICIPru, Bharati axa, various private banks, Religare Insurance, etc. which offer the life insurance schemes and programs but none of them tells you about the term life insurance which is the actual least expensive insurance policy truly defining the meaning of insurance.

Importance of Life Insurance: Before buying a life insurance you should see whether anyone is dependent upon you or not i.e. are you the major source for income for your household? If yes, then life insurance is a must buy policy to secure your family in the future. Suppose some miss happening falls on you and you die. In that condition how your family will survive comes first in mind. But when you buy the life insurance plan the company gives you a risk coverage meaning that if anything happens to you then your family will get the risk covered amount for their survival.

Although life insurance may be of less use who depends on other but is very important for those who lead their families and their family solely depends upon them.

What is Term Insurance?
Term insurance is life insurance which provides coverage at a fixed rate of payments for a limited period of time i.e. you need to pay a fix amount of yearly premium for the certain period of time defining your term of insurance. When the period gets completed you can renew it under new rates of premium. But the amount you invested doesn’t get refunded at the end of the term. During the span of insurance, if the insured person dies due to some reason, the death benefit covered under the policy will be paid to the beneficiary.

It is the least expensive way to insure you and your family as its premium is just about Rs. 2000-Rs. 4000 per year for Rs. 10 lacs risk cover depending upon your age and term. You can have your term insurance for 5 years, 10 years or more depending on the choice and for that period you just need to pay the meager premium only.

Benefits of Term Insurance: The other traditional life insurance plans asks you for big amounts of premium while in term insurance you need to pay only two to four thousands of rupees yearly. After investing huge amount in those insurances you get a risk cover of few lacs while in term insurance you get huge amount of risk cover. So if you are getting better risk cover in fewer amounts then why to invest on those heavy costing insurances. Although the amount gets refunded in traditional plans but if you invest that sum of money in some other programs like fixed deposits and other schemes you can gain a lot from that.

For example: In term insurance if you get it at a age of 20-25 years then the yearly premium comes out to be approximately Rs.2500 and you get risk cover of about 10 lacs.

But in the same case if you take other insurance plans they provides 10 times risk cover on your annual premium, meaning if you invest 2500 you get only Rs. 25000 risk cover. So to get risk covers of up to 15 lacs you need to pay a premium of about 70-80 thousands.

Taking an example of 23 year old person if you take term insurance for 30 years and risk cover of 10 lacs then you have to pay premium approx
ICICI Term Insurance: Rs. 2400/- Per Year (30 years term)
LIC Term Insurance: Rs. 2600/- Per Year (25 years term)

You can also opt for single premium option where you have to pay one time premium for the whole term.

Insurance advisers do not advice you for this term insurance because the commission which they get from term insurance is very less. They always present you other plans which generate high commissions for them but in real those plans are less useful and beneficial for you.

Term Insurance don’t Giveback
Many people don’t like term insurance because they feel it do not give any returns. If nothing happen to them there paid premium get wasted. Do you think other insurance plan do not charge you for insurance cover they provide. If you think so then you may be wrong because there are some insurance charges on every plan. Sometimes it is not noticeable because you don’t get any detail of charges. For example if you pay Rs. 10000/= of premium in traditional insurance plan and they provide you risk cover of Rs. 1 Lakh then they may charge you about Rs. 200 -500 per year. This is not shown anywhere. So don’t think term insurance do not giveback.

At the time of opening broking house attract the customers with their unique plans of brokerage. One method is based on per share basis i.e. they asks 30paise per share on delivery trade and 3paise per share for intraday trading. Some offer 3paise/30paise per share or some may get down even to 1p/10p depending upon the customer and its financial strength and the second method is based on the percentage basis where they take brokerage on percentage calculation over the cost of share i.e. 0.03 % or 0.3%. Which method they apply on which share is unknown to you and the main problem arises when you trade for share below Rs.100.

Considering the Intraday transaction:
This can be understood with the following example:
Suppose if you buy a share which cost Rs. 10 per share and you buy 1000 shares of that company
Total Investment 10 x 1000= Rs. 10, 000
Then you pay brokerage 1000 x 0.03 = Rs. 30
But if they follow the percentage method then you will pay
10 x 1000x 0.03% = Rs.3
!!! Ten times Higher You pay !!!

Now if you buy 10 shares each of Rs. 1000 then
Total Investment 10 x 1000= Rs. 10, 000
But now the Company calculates this brokerage on the basis of percentage of per share cost i.e.
0.03% X 1000 X 10= Rs. 3
But if calculated on share quantity basis i.e. 3p/ share then you pay
0.03 x 10 = Rs. 0.3
!!! Again Ten Times Higher !!!

So you see whichever method you are applying the companies are taking 10 times more brokerage. They say that the brokerage can be calculated either by 3p/ share or by 0.03% of share cost, whichever is higher.

Whatever be the case you are being charged higher. If you are investing Rs. 10,000 in shares then buying shares above Rs. 100 can somewhat reduce your brokerage charge as on buying 1000 shares of Rs.10 you are paying Rs. 30 brokerage and on buying those 10 shares of Rs. 1000 you are paying Rs.3 as brokerage.

Moreover, some Trading Houses also apply a limit of minimum brokerage of Rs.10-Rs.25 on the day you trade. So even if your brokerage comes out to be less than Rs. 10 then also you have to pay more than that.

According to SEBI no broking house can charge above 2.5% but practically you are paying much more than 2.5%. For example, if your broking house is charging minimum of Rs.20 as brokerage and you buy a share for Rs. 100 only and you are paying Rs. 20 as a minimum brokerage which comes out to be 20%.

Overall, finding of the fact says that if you are a small investor then you have to suffer a lot in terms of brokerage. As said the Indian share market is just for the big tycoons who make their turnover in large numbers.

After gaining little momentum at the commencement of the week, Sensex abruptly plunged with over 700 points downfall on Thursday itself soon after the warning from the US Federal Reserve causing double dip recession in the west and continued to remain below the redline on Saturday also with a decline of around 199 points. NSE-Nifty also suffered the losses dropping 216.5 points in this week and ended at 4,867.75.

Rupee also depreciated 4.4% in the past week, marking its biggest weekly fall in 15 years hitting a new 28 month low of 49.90 because of the RBI abstaining from intervening in the currency market.

Apart from Sensex and Nifty other indices also remained under the pressure with CNX Midcap and BSE Small Cap indices felling 2.3% and Bank Nifty was down 3.7% and BSE Capital Goods Index down 7.4%.

Among the sectoral indices, BSE Metal and Oil & Gas suffered the top loss, down almost 6% each. NMDC and Sterlite Industries declined 9% each, and Hindalco was down 8% and in oil & gas segment Essar Oil declined 8%, Petronet LNG fell 7% and Reliance Industries and ONGC declined over 6% each. DLF was down 5.6% and JP Associates down 3%.

In the midcap index, IVRCL went down 15%, S Kumars fell 13% Pantaloon Retail dropped 12.5%. Jain Irrigation, United Spirits, Orchid Chemical, Crompton Greaves and Alok Industries fell 7-11%.

The few gainers were the FMCGs. Bajaj Electricals was the top gainer, up 3%, followed by C Mahendra and VIP Industries, up 2.6% each.

Commodity prices were also down the red line with all metals Gold, Silver, Copper and others suffering a downfall in prices. The shining metal lost its sheen this week with Gold prices declining below the Rs 28,000 mark across the country.

It is expected if loan interest rate will be high then people and corporate will borrow less loan and growth will be compromised for increasing inflation, but as far now there is no decrease in inflation.

After increasing so much interest rate only one thing is happen good for common man that he now get much better interest rate on fixed deposits. Before getting excited look at the inflation rates it is not going to give you good returns on your saving.

Example you are planning to buy a car after 1 year and you created a fixed deposit of Rs. 1,00000/- at interest rate of 9%. Current inflation rate is of 10%. After 1 year you will get Rs. 109000/- from your fixed deposit. Now how much that money worth you? Considering inflation rate of 10% anything you buy today will cost you about 10% more. If you have to pay Rs. 100000/- 1 year back now same thing will cost you 110000/- and your fixed deposit have given you only 109000/- this mean you have to put Rs. 1000/- extra from your pocket to buy that thing.

This is why stock market is consider much better then fixed deposit for long term as past record shows that stock market has given 15% return per year. But if you are planning for short term then stay away from stock market and always look for fixed deposit.

Today most of the banks are giving 9%+ of interest rate on their fixed deposits which is not bad at all. If inflation rate started decreasing in next few months or years then today’s fixed deposit will give you very good returns. Almost all banks are offering additional 0.25% to 0.50% extra interest rate for senior citizens on fixed deposits.

Here is the list of current fixed deposit rates in India from some of the popular banks in India. Interest rates may vary because of amount you are depositing and if you are senior citizen of India then you get much better interest rate on fixed deposits.

*(As on September 2011)

Every stock in share market have historical track record and technical analyst check for stocks chart to find trading opportunity. Technical analysis software uses many different indicators to help you analyze that stock. There are many paid and free software available for technical analysis.

Paid technical analysis and charting software may cost you from Rs. 10,000 to Rs. 100,000 but what if you don’t have that much money to invest. You may find some good free software but they may not so powerful as paid software.

ChartNexus is free Charting Software with great features which offer 3-year EOD (End of day) data (updated daily) for free. It comes complete with a comprehensive list of popular indicators.

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