Welcome To The World Of Investment

The word Investment is very commonly used nowadays. But to understand it accurately you should know that Investment is an act or contract that obtains or increases enduring economic links with an existing institution or one that has to be formed.

Everyone knows that in todays era Investment is important. But, how do you know the correct Investment moves that could be right for your personal needs and goals.

The concept of Investment

A good Investment can be a well-coordinated suit and sports jacket for some or may be buying a piece of land or may mean anything to any person. But Investment is a term with several closely related meanings in finance and economics, related to saving or deferring consumption.

An asset is typically purchased, or similarly a deposit is made in a bank, in hopes of getting a future return or interest from it. Literally, the word Investment means the action of putting something in to somewhere else.

The most important exception for the purpose of investment is the acquisition of interest in land, which is governed by both statutory and customary law. The judiciary that comprises both the lower courts and the superior court.

The major difference within the use of the term investment in economics and finance is that economists are known usually as referring to a real Investment. Case in point a machine or a house but financial economists typically refer to a financial asset money that is put into a bank or the market which can then be new to buy a real asset.

The world of Investment can seem to be mind-boggling for a beginning investor and the amount of information required to be consumed can appear daunting. So how does one decide what kind of security to invest in?

Considering the point, would you choose stocks, bonds or some combination of investments? Or could you invest in mutual funds? How do you choose a particular fund, stock or bond? How do you assess the risk to your money? Well! Seems confusing right.

Undoubtedly, the most commonly new Investment service is buying and selling stocks. Since only licensed brokers are allowed to trade stocks, an individual who wants to buy or sell a stock is required to work through a broker.

Individual brokers work for financial services companies known as brokerage houses. In general for Investment purposes, there are two main types of brokerages, the most commonly known full service broker and the more recently developed discount broker.

Since prices of things are rising, doesn’t it make sense to enjoy now rather than save and consume later when we will obtain less for the same money?

Yes, if we are going to keep money under the carpet.

No, if we are going to do proper Investment and the rate of interest is higher than inflation rate. So if inflation is 5% and we obtain 8% return, the money successfully grows 3%. Hence a year later, we will enjoy more than what we would enjoy in most cases, if you or someone that understands and has expert knowledge spent now.

This is the concept of delayed gratification a type of Investment thought of for the future.

Usually taxes are the biggest expense. But you could also watch out for loads in mutual funds, any fee you pay to your Investment advisor, subscription to Investment magazines, demat your Investment account charges.

In most cases, if you or someone that understands and has expert knowledge are investing one lakh a year and its most important to understand if you are paying 5000 as a fee to your advisor and its much more important to understand if you are successfully paying 5% entry load, your chances of this portfolio beating a well diversified AAP, compliant portfolio over the long term is almost nil.

What could you prefer: Rs 10,000 right now or Rs 10,000 five years from now?

Common sense tells us that we could take Rs 10,000 today because we know that there is a sure time value of money. The Rs 10,000 received now provides us with a better chance to put it to work immediately and earn a sure return on it.

A single rupee today is worth more than a single rupee Investment a few years down the line. Given this, households that have surplus funds highlight within the form of savings want to have Investment in those funds so that the value of the funds over the years does not go down.

There are various forms of Investment at the availability of people. These include real assets like a house, an auto, a television, or financial assets like stocks in companies, bonds, units of funds, et cetera.

Traditionally, term deposits in banks, post office savings schemes, bonds and common stocks are the most accessible forms of Investment available to the investors. Term deposits, post office savings schemes and bonds give a fixed return over a period of time.

Investors would usually want their Investment in an asset, which gives them maximum return on their Investment. However, life is not as simple as that. Different assets come with different risk profiles. So choose correctly.

Who Should You Count On For Investment Advice?

If you tell people that you play the market, they’re likely to respond in one of two ways – either they want you to give them investment advice, or they think that they’re experts and they want to give you investment advice.

Today, investment advice is everywhere, but investors should beware – free investment advice is usually worth exactly what you pay for it – nothing!

Using a Stock Broker for Investment Advice

All too often, stock brokers are trained salespeople, more so than trained financial professionals. Before you act on any investment advice from a stock broker, make sure you understand how the broker is paid. Do you pay him a fee specifically to give you investment advice?

If so, does he have any other incentives to advise you to buy a certain stock or financial product? Stock brokers are legally required to disclose any conflicts of interest when giving investment advice, so make sure you ask.

Or, if you’re not paying your broker specifically for investment advice, you need to ask him if he receives a higher commission from the product he’s recommending you buy than from other, comparable products.

Using CNBC for Investment Advice

CNBC is a 24-hour business news channel, and throughout the course of day, dozens of stock market pundits appear on screen to give investment advice. To disclose all possible conflicts of interest, CNBC displays an on-screen graphic detailing if the pundit owns any of the investments he’s advising you buy, or if his family or firm do.

However, the biggest risk in using CNBC for recommendations is that much of the investment advice is distilled into minute sound bytes. This results in an incomplete picture, in which you may not fully understand the pros and cons of a given stock or other investment vehicle.

Using Magazines for Investment Advice

There are numerous magazines that dispense investment advice. The best among them are probably SmartMoney and Forbes.

SmartMoney is geared towards somewhat less sophisticated investors, however, Wall Street pros can read and enjoy the publication without it insulting their intelligence. The good news is that SmartMoney offers in-depth profiles of many stocks and other investments in each issue.

It is also faithfully honest about its best and worst picks, and it routinely reviews how its investment selections have performed over the past year.

Forbes is slightly different type of publication, with a somewhat more affluent and conservative audience. While SmartMoney is geared towards upper middle class investors with a few hundred grand in their 401k’s, Forbes is more for the executive-level investor with a few hundred grand in annual contributions to the Republican Party.

This does not mean, however, that Forbes is not a good publication. It does devote a full 1/3 of its pages to investment advice, and while its investments articles are not as in-depth as SmartMoney’s, they are well-written and concise – and sometimes that’s just as good.

Using the Internet for Investment Advice

There are numerous online sources of investment advice. Yahoo! Finance publishes articles and relays analyst opinion. TheStreet.com has many premium products that give comprehensive recommendations. But easily the most famous website for investment advice is MorningStar (morningstar.com).

MorningStar is best known for its mutual fund reviews, but it also publishes research reports on individual stocks. However, MorningStar has come under increased pressure lately as many of its picks have failed to pan out.

MorningStar assigns stocks ratings of one to five stars, and critics charge that the company will give a bad stock a good rating, and then as the share price falls, MorningStar upgrades the stock – saying it’s fallen too far and is now a great bargain.

The problem? The stock sometimes continues to fall. In the case of certain stocks like Microsoft (MSFT) and eBay (EBAY), MorningStar may soon have to create a sixth star to give them as they continue to plummet in value.

The message is – beware of all investment advice. Get your recommendations from multiple sources, always check the advisor’s track record, and be wary of any potential conflicts of interest. And the next time your brother-in-law tries to give you some investment advice, refer back to the first paragraph of this article.

Chinese Outbound Foreign Direct Investment Faces Rigorous Scrutiny

Times are changing for the global financial community. China was the largest investor in developing economies in 2010 and 2011, with total outbound foreign direct investment (OFDI) amounting to US$60 billion annually and projected to reach US$150 billion by 2015. Furthermore, Chinese leaders have now officially prioritized Chinese outbound investment over the historical priority of inbound foreign direct investment.

China’s support for OFDI, however, has a strategic basis and is highly selective. The purpose is to focus outbound investment in a manner that fosters the growth and development of strategic Chinese industries, not to generally liberalize or relax foreign investment or foreign exchange policy. Priority investments would include those that expand markets for Chinese companies, obtain critical know-how and technology, and secure resources for China’s internal growth. According to the 12th Five-Year Plan and the officially issued OFDI catalogue, priority should be given to the following industry sectors:

Energy conservation
Raw materials
High-end manufacturing
Innovative technologies

Although China has prioritized OFDI, it is moving cautiously and carefully. State-owned enterprises (SOEs) and their subsidiaries have typically served as the primary conduit for investment, and appear poised to continue to lead the campaign. However, recent comments by Chinese leaders and the Chinese media suggest there is growing support for investment abroad by smaller and medium-sized Chinese enterprises, particularly in the form of corporate acquisitions.

As such non-SOE Chinese companies pursue greater opportunities abroad, they will have to endure close regulatory scrutiny in the form of a rigorous official approval process and a demanding on-going annual review. Compared to their SOE counterparts, the formal approval process will often include an additional level of formal evaluation by the Chinese government’s Development and Reform Commission (DRC) to ensure such investments coincide with China’s broader strategic goals. Thereafter, the proposal will also be considered by the Ministry of Commerce (MOFCOM) to evaluate the competence of the investor and soundness of the investment plan.

China’s SWFs and SOEs Lead the Way
China’s sovereign wealth funds (SWF) are a driving force in the nation’s financial expansion abroad, making investments from their very large pool of foreign currency reserves. These SWFs include the China Investment Corporation (CIC) and Safe Capital, which is a division of the State Administration of Foreign Exchange (SAFE). As noted, China’s vast SOE network serves as the primary conduit of investment for CIC and Safe Capital, carefully monitored and supervised by regulatory agencies such as the State-Owned Assets Supervision and Administration Commission (SASAC). However, some smaller SOE investments may be internally driven and not likely to rise to the level of heightened regulatory scrutiny.

Compared with past efforts, what may be different in the reliance upon SOEs to carry China’s investments abroad is that the new strategy includes SOEs drawing more heavily upon the expertise and resources of foreign professionals to advise and implement investment decisions. It’s not uncommon these days to see the biggest names of the global financial and legal industries visiting China’s SOE headquarters to pitch their services and advise on the latest investment proposal. There is heightened concern with successful execution after recent high profile blunders. CNOOC’s recent acquisition of Canadian oil producer Nexen is a model example of a successfully executed investment compared with its failed efforts to acquire Unocal in 2005. The Nexen investment is closely aligned with China’s OFDI strategic objectives and is being successfully carried out with only mild controversy. China National Gold Group’s pursuit of African Barrick Gold is another current example.

Scrutiny by Multiple Chinese Agencies
For private Chinese companies wishing to invest abroad, the three Chinese government authorities of critical importance necessary to obtain OFDI approval are:

The Development and Reform Commission (DRC)
The Ministry of Commerce (MOFCOM)
The State Administration of Foreign Exchange (SAFE)

Approval by these agencies may require review at either their provincial or central government-level branches, depending upon the specifics of the proposed investment. For the highest value investments, the DRC would also need to forward the application to the Chinese central government’s State Council for review.

By contrast, China’s SOEs may pursue an abbreviated approval process that eliminates the need for approval by the DRC, provided the investment is below certain thresholds (less than US$30 million for resource exploration and exploitation investments, or when the foreign exchange involved is less than US$10 million). Since China’s SOEs are supervised and closely monitored by SASAC, government participation in investment decision-making (and tacit approval) would presumably have begun at an early stage.

In the final step of the investment approval process for private Chinese companies, SAFE would review the tentatively approved application to grant the final stamp of approval.

The term “investment” refers here to the Chinese investor’s contribution by way of currency, marketable securities, goods, intellectual property, technology, stock equity, creditor’s rights or other assets or rights, or the provision of a guaranty.

Regulatory Approval Thresholds
The monetary value of a proposed investment is a decisive factor in determining which approval is required. The investments must also be analyzed and broken down by type according to the following categories:

Resource exploration and exploitation (including for such natural resources as crude oil and gas mineral and other resources)
Projects of non-resource exploration and exploitation
Special projects

Special projects include:

Projects in countries that have not established diplomatic relations with China
Projects in countries that are subject to international sanctions
Projects in countries and regions at war or in ferment
Overseas investments involving basic telecom operations, cross-border development and utilization of water resources, large-scale land development, news media, and other special sensitive industries.

Provincial Development and Reform Commission
If a private Chinese company invests in a project of either of the two types listed below, then the project would be subject to the approval of the DRC at the Chinese provincial level.

Resource exploration and exploitation in an amount less than US$300 million
Non-resource exploration and exploitation in an amount less than US$100 million

By way of background, China has 33 provincial-level divisions, including 22 provinces, 4 municipalities, 5 autonomous regions, and 2 special administrative regions. For approval purposes, provincial-level equivalents are the governments of these divisions. The four municipalities directly under the Chinese central government are Shanghai, Beijing, Tianjin, and Chongqing.

National Development and Reform Commission
Chinese overseas investments in resource exploration and exploitation in an amount reaching US$300 million or more, or non-resource related development projects in an amount reaching US$100 million or more, would be subject to the approval of the National Development and Reform Commission (NDRC).

Regardless of the amount, so-called “special projects” must be reported to the NDRC for review and consideration after the provincial-level DRC conducts a preliminary examination, or shall be directed to the State Council after the NDRC conducts its own preliminary review.

Ministry of Commerce
Overseas investments between US$10 million and US$100 million, or that involve energy-related investments or that entail “other domestic investment,” are subject to the approval of MOFCOM at the provincial level.

Chinese outbound investments of US$100 million or more are subject to MOFCOM approval at the central government level. Likewise, investments in sensitive geopolitical locations also require MOFCOM review at the central government level and would likely receive heightened scrutiny, including investments in the following:

Where the legal jurisdiction of the investment destination has no diplomatic relations with China
Where the destination has been identified as a region of particular sensitivity by MOFCOM or the Ministry of Foreign Affairs
Where there is a complicated repatriation structure involving a special purpose entity
Where multiple jurisdictions are involved

State Administration of Foreign Exchange
SAFE reviews the outbound investment from the point of view of foreign exchange controls. If the foreign exchange amount is no more than US$10 million, then only provincial-level SAFE need approve. If the amount is above US$10 million, then SAFE at the central government level must review the investment.

Note that representatives of SAFE, the DRC, and MOFCOM have confirmed there is no floor below which approval need not be sought. However, where a Chinese individual seeks to convert and transmit funds abroad in lesser amounts such as US$50,000 or more on an annual basis, he or she may only be required to register with SAFE and in some cases may first need to obtain the pre-approval of MOFCOM. There is a general understanding that outbound monies amounting to US$50,000 or less do not need to undergo review.

Recently SAFE has taken a special interest in “round trip” investments where a Chinese person establishes and capitalizes a foreign entity that then reinvests in China. Under SAFE Circulars Numbers 19, 75, and 106, this kind of investment must be registered with SAFE and any subsequent changes of a substantial nature further recorded with SAFE.

Project Bidding
Note that any Chinese investor bidding for an overseas project must still pursue approval according to the formal procedures outlined herein. The fact that the investor may not win the bid does not excuse the enterprise from the approval requirements. Certainly if the bid exceeds US$100 million, then pre-approval would be required. However, according to officials contacted, if the project bid is under USD$100 million, then the investor may be able to proceed with bidding without having obtained pre-approval, but must remain in on-going consultation with DRC and MOFCOM officials and seek official approval after the successful completion of bidding.

Development and Reform Commission Review Process
As set forth above, for lesser investment amounts, only provincial-level DRC approval is required. For instance, if the overseas investment has the previously mentioned purpose of resource exploration and exploitation and has an investment amount of less than US$300 million, then the project may submitted directly to the provincial DRC or equivalent provincial-level government. If the investment in a non-resource related project in an amount less than US$100 million, then it may also be submitted directly to the provincial DRC or equivalent provincial-level government.

With respect to each of these submissions, the DRC or equivalent must decide to accept or reject the application within five days and shall issue the Registration Approval Form for Local Major Overseas Investment Projects. The period of such review may last 20 days or longer, depending upon the circumstances. An extended review period is possible. Before issuing the approval, the relevant government division shall register the application with the NDRC.

For those investments exceeding substantial thresholds, NDRC review and approval is absolutely required. For resource exploration and exploitation-related investments reaching US$300 million and beyond, or non-resource development related investments reaching US$100 million or more, investment applications must be submitted directly to the NDRC.

The NDRC shall, within 20 working days of its official acceptance of such investment project application documents, complete its review or submit the application to the State Council. The NDRC may in some instances extend the review for an additional 10 days beyond the normal 20 working days review. The proscribed review period would not include time granted to a consulting firm to consider the application on behalf of the NRDC or State Council.

The aforementioned “special projects,” regardless of the amount of the investment, must be forwarded to the NDRC for approval after the provincial-level DRC conducts a preliminary review. In some cases it must be passed to the State Council for review after the NDRC conducts its own preliminary review. Any investment in Taiwan, no matter the amount, must be sent to the NDRC for review and may be forwarded to the State Council for review after being preliminarily examined by the NDRC.

There are no mandatory application documents required in the course of application to the DRC. Documents to be reviewed by the DRC may include those which:

Describe the investment with supporting details
Evidence of the satisfactory completion of corporate formalities
Demonstrate the financial wherewithal of the investor
Confirm the financing commitments of participating financial institutions
Fulfill other project or investment-related documentation requests of the DRC (e.g., a framework agreement)

Throughout the DRC review process, officials will consider how closely the proposed investment corresponds to the standards identified in the officially-promulgated “Guidance Catalogue of Outward Foreign Direct Investment in Foreign Countries and Industries,” a document that details those geographic locations and industries of highest investment priority to Chinese authorities. It would likely be one of the most important guiding documents considered during the approval process.

The catalogue is highly detailed and identifies specific industries in specific countries where investment is officially prioritized. For instance, it is so specific that it lists the Syrian property industry as a preferred investment, an investment priority that may now have come under review because of the on-going civil war. The document is very similar to the “Foreign Investment Catalogue of FDI,” which categorizes priority inbound investment. Because China’s economic development and the global economy are highly dynamic, the DRC would likely consider the catalogue’s priorities in light of ongoing economic development and current issues in foreign currency exchange and international trade, among others.

Financial Consultant for best investment plan

Holistic Investment Planners are the Financial Planners and Investment Advisors for Senior Corporate Executives and NRIs. They help their clients to identify financial goals, develop strategic investment plans for creating, preserving and managing wealth, and achieve results in their wealth management.

Clients make significant improvements in their investment strategy and unique customized wealth management approach that enables them to take right financial and investment decisions.
By using 360 degree wealth management approach, Holistic provides strategies needed to preserve, manage and transfer their wealth. Unique customized wealth management approach will help the clients to avoid costly mistakes, manage risk, save time, and improve their overall financial investment results.

Financial security tomorrow requires that you make profitable investment decisions today. Holistic, investment advisory package will show you how to invest like a veteran. It gives you the suggestion on where your money should be invested with reference to whether looking to make money now or over the long term.

Holistic understands that each and every individuality has unique financial situation and provides assistance based on their situation. Advisory services help the clients in taking decision about wealth management, money management, personal financial planning, investment planning very easier.

Clients may need assistance in various aspects of money management so Holistic can create a customized package based on their requirement.
A few aspects on which Holistic has already coached their clients are:
How to get out and stay out of debt ?
How to create a workable budget that gives you money and life?
How to set priorities and guide your financial decisions?
The savviest ways to finance big purchases like a home or an education?
Tactics for eliminating when saving and investing?
How to develop good spending habits?
How to get on the road to financial fitness?
Principles and techniques of successful investing.
The above is not an exhaustive list of coaching provided by holistic and It can be personalized.

The Necessity of Investment Banking Courses

Most of the institutions are situated in India, they offers investment banking courses that makes learn, how to improve economic situation of the nation, but only few of them fulfill their promises. One of the institutes called Investment Banking Institute (IBI) which follows the exact rules to improve investment banking skills, it is world’s largest financial modeling center. Basically, these courses deal with a variety of investors, companies, firms and the government. Company valuation courses are main requirement of investment bankers that will take care not only of investments, but also of taxes, estates.

The major services that are provided by IB Institute are like financial modeling, financial statement analysis & forecasting, online training in accounting & finance, visual basic application. Investment Banking is the best stage to help those people who have money to invest and make them meet up those who need investments for business enterprise. In financial modeling training, a lot of concepts and ideas to run investment techniques and research need to be done to keep investing valuable money in safe place. Generally, financial modeling training makes an experienced and knowledgeable group of professional investment bankers who are able to perform each and every action of investment tactics.

IB Institute provides training classes in the weekends so both students and professionals can take admission without any worry of timing and they can also learn advance excel, company valuation, mergers and acquisition, transaction valuation, relative valuation modeling, vba training, fast and exact investment transactions. In investment banking weekend classes, excel-based exercises are learned by doing the practical analysis, IB Institute team make you understand the real world problems by using real solutions. Our institute always tries to be in touch with an investment banking solution provider in the first place and provides encouragement scenario in the investment banking field for both public and Private Corporation. Company valuation courses also include other functions such as merchant banking, credit advisory service and financial modeling.

The main feature of IB institute is, it offers online video financial model courses to students and job persons so that they can study at anywhere. IB institute is corporate finance banking institute which also gives investment banking job in Delhi. It maintains and upgrades the excel techniques and financial services at its best level. Jobs related to banking are available in each of the investment course that requires capability or talent to do investment under real issues. Power point presentations are there to learn visual basic training in advance level.

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