Finance School

 Market sentiment: Even if a company's results are good, if investors are generally pessimistic about the market or the industry, they may choose to sell their shares, which can cause the stock price to fall. Expectations: If investors were expecting even better results than were reported, they may sell their shares, causing the stock price to fall. Guided lower: If the company has guided lower for the next quarter or next year, investors may sell the shares causing the stock price to fall. Changes in the business environment: If there are changes in the business environment that may negatively affect the company's future performance, investors may sell their shares, causing the stock price to fall. Competition: If a company's competition is performing better or has a new product or service that is gaining popularity, investors may sell shares of the company, causing the stock price to fall

  There are several reasons why people may not be able to make money from long-term stock investing. Some of the most common reasons include: # Lack of knowledge: Investing in stocks requires knowledge of the stock market, the economy, and the companies in which you are investing. People who lack knowledge of these subjects may make poor investment decisions, resulting in losses. # Lack of patience: Investing in stocks is a long-term game. People who lack patience may sell their stocks too soon, missing out on potential gains. # Lack of discipline: Investing in stocks requires discipline. People who lack discipline may make impulsive decisions, such as buying or selling stocks based on emotions rather than research. # Timing the market: Attempting to time the market, trying to buy low and sell high in a short period of time, is a difficult task, even for professional investors. # Risk aversion: Some people are risk-averse and prefer the security of low-yielding investments over the...

 Part 1: NPS offers you to save for your golden years with tax benefits on your investments. However, the amount of pension is not guaranteed and depends on the accumulated corpus and rates available at the time of vesting.  Read more at: http://www.moneycontrol.com/news/retirement/should-you-investnps_1667841.html?utm_source=ref_article Part 2: From Economic times. Friends want to know whether they should invest in the NPS. With tax saving driving investment decisions, people are drawn to the additional Rs 50,000 deduction under Sec 80CCD(1b). But here is why I wouldn't be investing in the NPS. Very long lock-in period All tax-saving investments have lockin periods, but none as long as that of the NPS. The NPS can only be withdrawn at the age of 60. If you start at the age of 25-30, the lock-in period is 30-35 years. Even then, only 60% of the corpus can be withdrawn, and the remaining 40% will have to be put into an annuity for a monthly pension. Taxation on maturity The NPS...

  The  Public Provident Fund  (PPF) is one of the most popular savings vehicles in India. Here are some facts and rules which enable you plan better: Best tax advantages PPF comes under the EEE (exempt-exempt-exempt) tax status. What this means is that at the time of investment, the interest earned, and proceeds received at maturity are all tax-exempt or free.  Number of contributions   As the lock-in period of the scheme starts from the end of the financial year in which the deposit was made, if you make an annual contribution you make a total of 16, and not 15, contributions during the tenure of the scheme.  Let us go back to the example above. The deposit made at the time of opening of account on July 26, 2014, will be taken as your first contribution, the next one in the financial year 2015-16 as the second contribution, 2016-2017 as the third, and so on.  The last contribution, i.e. the sixteenth, will be made in the financial year 2029-2030. The ...

  Valid as per rules till Sep 2017: EPF, PPF, and a host of other deductions available are all part of 80C, which has an overall limit of 1.5 lac per year. If you have already put in 1.5 lac in PPF, the EPF that is deducted by your employer is giving you no advantage from tax saving point of view. If you want to invest additional amount and get tax exemption, there is another way I can suggest. NPS (National Pension Scheme) has an exclusive deduction of 50K a year outside of the 80C 1.5 lac limit. So here's what you can do. Assuming EPF is 50K a year, put only 1 lac in PPF, put the rest 50K in NPS. Having said this, don't do investments just to save tax. If your financial position allows you to, then put in as much as you can, not just what is necessary to save tax. Various NPS performance over the years : https://www.valueresearchonline.com/NPS/default.asp

ULIP is a 5-year tax-saving product. What they say: "You have to invest for only five years" - this is a common sales pitch used as bait to lure in potential buyers who are merely looking to save tax and lock in funds for a short duration. Read more  https://economictimes.indiatimes.com/wealth/insure/beware-of-these-5-common-sales-pitch-in-ulips/articleshow/63187780.cms?from=mdr    Are you being told 'This ULIP offers guaranteed market returns' ? When insurers or financial parties claim their product is better than other types of instruments, this sets the stage for deception. While some instruments are more suited to one individual over another, there is no universally ideal financial instrument.  Read more: https://www.livemint.com/money/personal-finance/be-careful-of-these-sales-pitches-when-shopping-for-ulips-11613496511618.html https://www.businessworld.in/article/Beware-Of-These-Insurance-Mis-selling-Traps/18-12-2019-180699/