DERIVATIVES AND TYPES

Derivatives are one type of securities whose price is derived from the underlying assets i.e. a commodity or bond or equity or currency, that is why they are known as derivatives.. As derivatives are merely contracts between two or more parties, anything like weather or rain can be used as underlying assets.

Types of Derivatives are:

1. FUTURE CONTRACTS: Future contracts are no different from forward contracts as they serve the same purpose. The main difference between a future and forward is that Futures are standardized contracts whereas forwards are tailor made. Method of operation of future is also different.

2. FORWARD […] Read more

ASSET CLASSES FOR INVESTORS

For building a successful balanced portfolio one has to understand different asset classes and as per their risk appetite, one has to build his or her portfolio from his risk return point of view.

Asset class is grouping of similar investments whose prices tend to move together.
These are different asset classes for investment:
1.STOCK/EQUITIES: It has highest risk and return potential is also higher.

2.FIXED INCOME/BONDS: It has low risk and high return potential.

3. CASH:It has lowest risk but high return potential.

4. REAL ESTATE:

One should use all 4 asset classes to build his/her portfolio.

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FORMS OF SECURITIES

As said earlier in my post today I am discussing various forms of securities in which an individual can invest. Different forms of securities are:

1. STOCK: Stocks are the most popular security for investment. We know it as shares. They represent ownership in a specific company. These can be purchased through IPOs (Initial Public Offers) or through secondary market i.e. Stock market.

2. BONDS: I have discussed bonds in my earlier post also. They are the fixed income securities.

3.FUNDS: Funds becoming an interesting tool for everyone who is not interested in wasting time in investing in individual shares or bonds. Investment […] Read more

TOP GAINERS AND LOSERS IN STOCK MARKET

Top Gainers in NSE
1. Dr Reddy’s
2. Sun Pharma
3. Kotak Bank
4. Grasim Industries
5. Coal India

Top Gainers in BSE
1. Sun Pharma
2. Coal India
3. Tata Motors
4. Reliance Ind.
5. Hero Motorcorp

Top Losers in NSE
1. Infosys Ltd
2. TCS
3. Wipro
4. HCL Tech.
5. Jindal Steel

Top Losers in BSE
1. Infosys Ltd
2. TCS
3. Wipro
4. Hindalco
5. Jindal Steel

Today Sensex closed at 17095 i.e.(-238) and NIFTY closed at 5199 i.e. (-78).

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