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This is for all the learners who think of capital markets beyond 'shares','intra-day', 'fast money making','risk','mutual funds'..and so on.

This is also for the low risk appetitte people who are away from the markets, but still are very much linked to it, let me help you know how?

Ultimately,this is for everyone who are keen to understand the finance jargons, thus for those, who want to invest their hard earned money with all the understanding!!Lets start with a very common term Investment.

We save money, we save it to be used for our goals,emergency and then retirement. But do we let our money lie idle in our homes as cash? We want out money too to work for us, hence we go for deposits, traditional FDs, Gold, Land or real-estate.

Meaning, we make our money work such that it grows with time. We are trying to cope up with "Inflation". Simply speaking, a toffee which costs Rs 5/- today would be costing Rs 20/- after 20 years.We are trying our 5 turns 20 after 20 years, compounding magic isnt it? And when few of us beleive, share market would help me cope inflation  in better way, there rises the simple yet very complex world of Capital Markets.

Similar to us who want to invest, there is a business class who wants money, capital to raise their business. They knock the door of "Exchange" to provide medium to raise capital. Thus, exchange in simple terms is the entity who exchanges the financial instrument for money. 

Listing on exchange is not a simple process, you need:

• To build trust among investors,provide facts with better track record.
• Pass the "Regulatory" tests, yes watchdogs exist so that no one runs away with your money.
• Follow the protocols, rules and regulations of exchange.

With the great hustle , company initially enters into to "Primary" market through "IPO" - Initial PUblic Offering.

When we trade the shares for that matter on exchange, it is called "Secondary" market.

Thus, as a investor, you buy a potential "share" ie "A Equity" with the hopes of high returns.Company owes you and has to share their profits in form of "Bonus/Dividends". Technically you become the shareholder of that company. Next time you buy a single share, remember you "share" the ownership of the company, have voting rights and are liable to bare losses and enjoy profits!

Thus this is the huge world with lot many financial instruments.We have bonds,mutual funds,derivatives (altogether a different segment) and so on.

Welcome to the world which not only makes money but does it with discipline, smartness and with set of golden rules.

And to conclude, how do the people who dont invest are still investing indirectly? So you have a golden retirement source called PFs? If yes part of your PF money is invested here very very cautiously for you to get the guarateed returns!

Lets learn more, lets spread awareness! Happy learning!, till my next post. Please feel free to share the reviews, critics welcomed!

The financial market of a country develops only when there is growth in each and every segment. In India the equity market has performed quite well over a period of time, and on the other hand the debt market has also grown immensely but it faces problem of visibility lack of knowledge to investors. The Indian debt market is the 4^th largest in Asia while Japan is the leader followed by China and South Korea. A well developed debt market can play an important role in supporting the economic and infrastructure development of a country. Its primary purpose is to provide long term financing for both government & private projects.

In the current scenario for investors who are looking for low risk investments can enter the debt market. Debt or the Fixed Income market is often overlooked by investors because it is less volatile than equity market and it is also difficult to understand and operate.

A bond is just like a loan where retail investors, mutual fund companies, financial institutions, banks invest in bonds issued by government and corporate companies to raise capital for their operations. They are considered safer than equities and other financial instruments. The investors are paid at interest at specified intervals at a fixed rate of interest which is known as coupon rate and at the end of term or maturity period the capital is also returned.

There are two types of bonds mainly: Corporate and Government bonds.

Corporate bonds are issued by private companies in the primary market and they pay a higher rate of interest in comparison to government bonds. In Indian we have companies such as L& T, Shriram Finance, Muthoot Finance issuing bonds. Corporate bonds also have issue convertible bonds which can be converted into an equity share after a certain period of time.

Government bonds are issued by the government entities to finance their activities and are also known as G-sec. Government bonds are considered a very low risk option. The government bond market size is much larger in comparison than the corporate market size in India.

The Indian debt market has been seeing a lot of funds flown in from internal sources like mutual funds, insurance companies, retail investors and external sources such as FII’s. Below is a table showing the investment pattern of different countries into the debt market.

• Bonds with a higher credit rating always have the least risk of defaulting.
• Bonds are a very good investment option for the people who are looking for a regular source income.
• There is safety of your principal amount that you have invested
• They provide interest rate higher than most banks
• Bond market also faces certain risks such as credit risk which is if the issuing company defaults against payment and the other is the interest rate risk.
• Interest rate risk and coupon interest of bonds have an inverse relationship. When one rises the other falls and vice versa.
• Issuing of debts is also better for companies than taking loans from banks

The Indian bond market has witnessed a significant growth in the past few years. This is primarily because of its high liquidity nature. In addition, the increasing stability of the stock market has fuelled the growth of bonds. The mood is upbeat and Indian bonds have been able to get more business within a short span of time in recent years. Compared to China, the Indian bond market is stronger and is profitable as well. Most of the countries have the debt market dominated by the government sector. The bonds are also traded in the secondary market and India has very high turnover ratio compared to the other economies.

India needs to give more exposure to its corporate bond market since it is lagging behind the government bonds. Looking at the growth in the market cap the debt market is expected to cross $ 160 billion by 2018. It’s a very good time to look out for opportunities in debt investment due to falling interest rates and extreme volatility of the stock and commodities & currencies market.

Dear Corporate Professionals,

Past few decades the Global financial services industry and the accounting profession have undergone a sea change with the rapid globalization of economy where Financial Planning, FAR, IFRS, GAAP Internal Control, Internal Audit and Professional Ethics have formed a substantial part in accounting practices. 

With this development, the accounting bodies of developed/developing nations are trying to share the common updated platform speaking the same accounting language. 

Personal finance products & services are increasingly becoming an important part of this industry as the consumers seek to maximize and optimize the fruits of their hard-earned money and the subsequent pressure to acquire globalized accounting skills is piling up on the Asian Finance and Accounting Professionals.

An Asian Finance Professional, today, faces significant challenges compared to their western counterparts in terms of Career Enhancement Opportunities, Global Exposure, Profile-Spectrum and Rewards.

Knowledge enhancement and skill sharpening is always the careerists’ forte whether you are a qualified professional or fresher.

Mr. Modi taught us the term "Demonetisation".

I need not to write its meaning as most of us have learned its true meaning through practical experience.

Impact of Demonetisation:

1. Dollar Rate conversion may go up due to demand for USD in the short run.

2. INR will be stronger currency than before in the long run.

3. Oil Payments in INR.

4. Inflation under control: Right product at right price.

5. Interest rates come down.

6. Bank Stocks will go up.

7. There will be correction in the stock market by at least 800 points.

8. Real Estate Rates will come down.

9. Time to challenge China as more money available for Industries to avail to upgrade their Technology for Automation.

10. Exports will increase.

11. Industrial output will increase.

12. Tax rates will come down.

13. Treasury will increase due to dividends from Banks.

14. India towards Cashless Economy.

What is Next?

I am anticipating the following measures immediately towards financial reforms:

1. Cash payment restriction to a certain limit say Rs. 5,000.

2. Digital Payments: A compulsory.

3. All School payments including Donations through Digital Payment.

4. All Real Estate transactions through Digital Payment.

5. Gold Purchases through Digital Payment.

6. Random IT Raids on Industrialists, Education Institutions, Hospitals, Politicians, Doctors, Film Community.

7. All Government Transactions through Digital mode.

8. More recruitment in Income Tax and Commercial Tax Departments.

9. Scrutiny of IT returns retrospective.

10. Ban on Political Funding.

As per the Section 14 of the Income Tax Act of 1961, there can be several modes of income for an individual. The computation of income tax is an important part and has to be calculated according to the income of a person. For a hassle-free computation, the income has to be classified properly so that there is zero confusion regarding the same. The government has classified the sources of income under separate heads and then the income tax is computed accordingly. The provisions and rules are according to the details mentioned in the Income Tax Act.

The five main heads of income according to the above-mentioned Section 14 for the computation of the Income Tax in India:

• Income from Salary.
• Income from House Property.
• Income from Profits and Gains of Business or Profession.
• Income from Capital Gains.
• Income from Other Sources.

Accounting operates within a broad socio-economic environment, and so, the knowledge required of the accountant cannot be sharply compartmentalized. It is therefore, difficult to discuss one area without relating to other areas of knowledge. We place a great emphasis on the conceptual knowledge. The accountant should not only know but he should understand.

Objectives of Accounting:

Dear All,

Its quite easy to obtain theoretical knowledge by study, lecture, discussion and other mediums. But the way, we really incorporate the same in actual pictures, is quite different. We have to obtian the scenario in current market practice. For that one has to get exposure in profeeeional manner.

Here the training modules in taxation field is drafted and incorporated, so as to achieve some drastic change not only in knowledge, but also in attitude and skill.

The training part includes- Theoretical summerised knowledge, computation and assessment part, Payment, challan generation, filing of return, tax planning, individual assessment, corporate assessment etc.