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Any action taken by the company that creates an impact on issued securities is known as corporate action. Dividend, stock split, bonus and rights issue are examples of corporate action. Typically, corporate actions are approved by the company’s shareholders and Board of Directors.  Dividend A dividend is a part of the profit distributed by the company to its shareholders. Distribution percentage (dividend payout ratio) is decided by the company management depending on capital requirement, cost and availability of alternative funds, liquidity, etc. For example, if a company with 10 crore outstanding shares has a net profit of Rs. 50 crore and decides to distribute 40% of its profits to shareholders, then per share dividend will be Rs. 50,00,00,000* 40%/10,00,00,000 = Rs. 2 A dividend is paid on the face value of the share and sometimes declared in percentage form. If a company share price is Rs. 500, face value of the share is Rs. 2 and the company declares a dividend of 250%, then ...

At the height of the pandemic, when most asset classes floundered, gold glittered, and even crossed the 56.5k mark at its peak. Gold’s ability to shine in a crisis is one of the factors that investors love about the yellow metal. Be it a war or financial crises, a pandemic or a natural calamity, people turn to gold in times of uncertainty. That’s why gold is called a safe haven. Let’s look a little more closely at the benefits of investing in gold. Benefits of Investing in Gold There are several factors which makes gold a great asset class to invest in: Safe haven : Unlike fiat currencies, gold has intrinsic value, and it has maintained its position as a store of value for thousands of years. In times of crises, investors tend to move to gold as financial assets turn volatile. Steady returns : While historically, financial assets like equity may have performed better than gold in terms of returns, the yellow metal still offers decent returns. In the last five years, gold has returned o...

  Ratio Analysis Techniques to use while picking stocks We are sure that you hopped onto this article only because it will help you make wiser decisions while building your basket of stocks, and most definitely this article won't disappoint you. Putting your hard earned money into the equity market is a difficult financial decision due to the risks involved in it, but as you know  risk hai toh ishq hai,  and on that note today you will learn various ratios and how to understand and implement it the next time you are on a stock shopping spree! There are a plethora of methods through which stocks can be analysed and stock picking has been an art very few have mastered. Each investor will have their very own philosophy to make the best possible decision. A lot of these numbers are time-consuming and cumbersome to understand therefore the ratio analysis will make your life easier by having a quick check on any company’s financial health. This, like all methods, is not a foolp...

Repo Rate & Reverse Repo Rate  Current Repo rate : 4.00% Current Reverse Repo rate : 3.35%  The term ‘Repo’ stands for ‘Repurchase agreement’. Repo is form of short-term, interest-bearing and collateral-backed borrowing. Interest rate for such borrowings is termed as repo rate. Repo is basically a short-term money market instrument which is used to raise capital for the shorter-term. In Indian Banking terms, repo rate is the rate at which Reserve Bank of India lends money to all the commercial banks in the country in the event of scarcity of funds. In other words, it is the rate at which Commercial Banks sell their securities and bonds to Reserve Bank of India with an agreement to repurchase the securities and bonds from Reserve Bank of India on a future date at a pre-determined price. The repurchase agreement is signed by both parties involved in the transaction.   Reverse repo is an opposite contract to the Repo Rate. Reverse Repo rate is the rate at which Rese...

Below are the New fund Offers from different AMC's , please do call your advisor if you are interested to invest. *Mutual fund investments are subject to market risk . Pls read all related documents before investing. Reach us on pcswealthadvisers@gmail.com

 Just random thoughts before buying a house but these are very important...do read and think seriously. Don't jump to buy a house because your friends or relatives  are buying.  These points are from experts and people who experienced the pain of buying house without proper planning Now that people have postponed their foreign trips, they all want to buy a house…. Let us see if you can afford a house: – can you afford to pay at least 40% of the cost of the house as a down payment? – can you afford to pay the EMI on just ONE salary while running your household ? – will you REALLY save any rent that you are currently paying? – what happens if you buy the house, and at the same time your wife gets pregnant and is advised bed rest? – what happens if one of you quit a job voluntarily and one of you lose your job involuntarily? – remember if you take a 25 year loan, how quickly will you really repay? – how prepared are you for a loss of job coupled with a fall in property price...

  Investing in any financial asset has some Do’s and Don’t’s   . Below are the few points one need to underline before investing in Mutual funds   Do’s   -Focus on Wealth creation -Asset allocation -Systematic Investment Plan -Opt for professional help   FOCUS ON WEALTH CREATION   When investing in mutual funds focus on long term wealth creation. Most mutual funds are not the appropriate vehicles to make short-term trades.   ASSET ALLOCATION   Part of having a plan is determining your asset allocation. Asset allocation defines what portion of the invested capital should be allocated to each asset class (i.e. debt, equity, gold, real estate, etc.). Asset allocation would depend on your goals, existing investments, and the current market conditions. All investments should be aligned to your desired asset allocation.   SYSTEMATIC INVESTMENT PLANS   Investing isn’t a one-time activity. Financial markets work in cycl...

 Exchange rate is the price of foreign currency in terms of domestic currency (rupee) i.e amount of domestic currency needed to buy one unit of foreign currency. Let us understand what is currency appreciation and depreciation  Rupee prices keep fluctuating all the time . Sometimes we need more rupees to buy one unit of foreign currency and some times we need fewer rupees to buy one unit of foreign currency. This change in rupee price is known as rupee appreciation or depreciation Rupee appreciation is when value of rupee increases (becomes expensive) . Rupee depreciation is when rupee value decreases (becomes less expensive) and more rupees can buy one unit of foreign currency . This is known as weakening of rupee as now INR worth is less than foreign currency. What causes currency to appreciate or depreciate ? Like any commodity whose price is determined by its demand and supply , currency price is also determined by demand and supply of that currency in the International ma...

 Finance Bill 2021-22 has proposed to tax gains from ULIP with a premium of more than Rs. 2.5 lakh per year to remove the disparity relative to mutual funds. This means from April 1st 2021 if you buy a new  ULIP with a premium of more than Rs. 2.5 lakhs the maturity proceeds will be taxed identically to mutual funds. Death benefits continue to remain tax-free regardless less of the premium amount. Lets hope no more mis selling happens

  Tax saving investment plans are instrumental in effectively achieving your financial goals. Investment schemes available in the market provide tax exemptions and tax deductions. Learn how you can reduce your tax burden by investing in the tax saving schemes at the right time. Choose from various tax saving mutual funds to claim tax exemptions and/or tax deduction under section 80c or section 80ccc. NPS u/s 80CCD :  The National Pension Scheme is a contribution based retirement scheme regulated by PFRDA, which is backed by Govt. of India. It helps you build a retirement corpus in a systematic manner during your working life. Tax Benefit :   NPS comes with the dual advantage of additional tax benefit up to Rs. 50,000 u/s 80CCD(1B) over and above the limit u/s 80C of Rs. 1,50,000 and assuring a regular income in the future. Section 80D - Deduction upto Rs. 55,000 per financial year. (Rs. 25,000 for Self, Spouse & Dependent Children + Rs. 30,000 for Parents who are s...

Some very important financial tips that everyone should know ….These tips are from experienced wealth creators whom i met in my Investment journey .  Worth following to get discipline in daily finance and Investments.  1. Avoid buying property on loans as it eats most of your earnings unless you have a clear plan for its repayment. It's important to monitor cash flow. Though, the house will be your asset, your liability will be much more. 2. Start a SIP at a very young age. Try to save atleast 15–25 % of your earnings. 3. Avoid buying a car unless you use it everyday. . 4. Do not let this sentence scare you. “Mutual fund investment are subject to market risk. Please read the offer documents carefully before investing”. Most people avoid investing in mutual funds just because of this one warning. Yes, there is a market risk, but look at the history and growth of mutual funds. 5. Try having a simple wedding. 6. Atleast 20% of your wealth should be liquid so you can utilize it wh...

 The equity segment of the stock exchange allows trading in shares, debentures, warrants, mutual funds and exchange traded funds (ETFs).  lets us know what are these  An Equity Share represents the form of fractional ownership in a business venture. Equity shareholders collectively own the company. They bear the risk and enjoy the rewards of ownership.   Debentures are instruments for raising debt. Debentures in India are typically secured by tangible assets. There are fully convertible, non‐convertible and partly convertible debentures. Fully convertible debentures will be converted into ordinary shares of the same company underspecified terms and conditions. Partly convertible debentures(PCDs) will be partly converted into ordinary shares of the same company under specified terms and conditions. Thus, it has features of both debenture as well as equity. Non‐Convertible Debentures (NCDs) are pure debt instruments without a feature of conversion. The NCDs are ...

 Recently , we are seeing huge demand in IPO from retail investors , unfortunately many are not getting any allotment . Why this happens ? let us  know how exactly IPO shares are allotted .  What is the IPO or Initial Public offer :    IPO is the selling of securities to the public in the primary market.  A primary market deals with new securities being issued for the first time .  After listing on the stock exchange, the company becomes a publicly-traded company and the shares of the firm can be traded freely in the open market. Procedure for allotment of shares in IPO  If any company goes in public all bids for the shares  in online , from online first they eliminate all invalid bids which were incorrectly submitted from number of total bids , then we will know number of final bids. There are two cases amongst which the situation of a company may fall in, that are: 1  If the total number of bids made by the applicants is less tha...

  Invest in Mutual funds to achieve your children education goals .  This is a sample video which explains the cost of child education after few years . For more details on investments do reach us on pcswealthadvisers@gmail.com

Everyone are worried about taxes in Debt mutual fund and sale of land .   Indexation is an efficient way of preventing draining of your returns on investments in the form of taxes. Indexation is applicable to long-term investments, which include debt fund and other asset classes. Indexation helps you in adjusting the purchase price of the investments. In this way, you will be able to lower your tax liability. One need to understand Inflation and capital gains before understanding Indexation Inflation is increase in the price of  product or service . It means  you will be able to buy fewer things year after year as compared to what you can buy today with the same amount of money .  Capital gains is the increase of value of investment in over a period of time . Suppose if you have purchased debt mutual fund for a NAV 10/- and after a year you sell same fund at a NAV 11/- the difference between  purchase NAV and selling NAV is your capital gain.  In other word...