Financial Advisors Factory

SAVING is putting aside some amount from our disposable income in a secured way, for any kind of unseen future circumstances . And when it comes to saving, we are not looking for any income from that saving; rather we are more than happy we have that money intact in its value. While looking at the value, we miss the most important concept of inflation. Inflation erodes the value of our money. Let’s know how?? Suppose, today we bought one kg apple for Rs.100 and after a year we went to the market with same Rs100 note, but we could only buy half kg of apple. In the stated scenario, we saw that value of Rs100 has eroded and has become half of its value. So when you save 5000 today, it’s not exact 5000 you get in a year. When your saving will not help you in your bad times, does that saving mean anything in literal sense? So to keep the value of your saving intact or make it grow, we need to move from saving to investment. But the most important question is “where”, “how mu...

Dividend A monetary gift from firms to its investor. The term "dividend" usually refers to a cash distribution of earnings. If it comes from other sources, it is called "liquidating dividend.  It is mainly, a distribution of a portion of company’s earning, decided by the board of directors, to a class of its shareholder. Though, could be in the form of cash, shares of stock and other property, but, in India, companies generally distribute cash dividend. Companies maintain their dividend policy, in accordance with firm’s long term goal and strategy.  Companies may maintain  stable  Dividend payout policy  (maintaining a steady amount of dividend irrespective of firm’s financial statement’s scenario),  Target Payout ratio  (a fixed ratio of dividend to earning is maintain throughout), Constant Payout ratio (a company payout a specific percentage of its earning, so the amount of dividend changes with the earning),  Residual dividend...