Portfolio Management and it’s objectives, nature & principles

Portfolio Management is a process encompassing many activities of managing investment effectively in assets and securities.

The term portfolio refers to collection of investment tools such as securities. Since it is rarely desirable to invest the entire funds of an individual or an institution in a single security, it is necessary that every security be viewed in portfolio context. A portfolio is not merely a collection of unrelated assets, but a carefully blended financial asset which include shares, bonds and debentures of the companies.

Portfolio management refers to the act of investing and managing a person's assets by a portfolio expert to increase your wealth in an effort to maximize return on capital.

Portfolio Management and it’s objectives, nature & principles

Objectives of portfolio management:

The objective of portfolio management can be classified into two categories as listed below:

1. Basic Objectives:

The basic objectives of portfolio management are

a) to maximize yield (Return of Investment)

b) to minimize risk

2. Ancillary Objectives:

The following are the other ancillary objectives of portfolio management:

a) Regular Return (Consistency)

b) Stable Income

c) Appreciation of capital by creating wealth

d) Take care of Investor’s Liquidity Requirement

e) Easy Marketability

f) Safety of Investment (Protection)

g) Tax Benefits (Reduce tax burden)

h) Allocation of optimal resources (Diversification)

i) Save for Retirement Plan

Nature of Portfolio Management

Portfolio Management is a dynamic and flexible concept and involves regular and systematic analysis, judgements and actions.
The aim of this service is to help the unknown and uninitiated investors with the expertise of professionals in portfolio management, as given below:
1) It involves construction of portfolio based upon the investors objectives, constraints and preferences for risk and return and tax liability.
2) The portfolio is reviewed and revised from time to time in tune with market conditions
3) The evaluation of portfolio is to be done in terms of targets set for risk and return.
4) The changes in the portfolio are to be effected to meet the changing conditions.

Principles or Elements of Portfolio Management

Portfolio Management is an on-going process involving the following basic tasks.

1) Identification of the investor's objectives, constraints and preferences to frame the investment policy (Buy and Hold Policy, Buy and Sell Policy, Constant Mix Policy, Variable Mix Policy Etc.,)

2) Development of strategies to minimize risk while selecting securities

3) Monitoring the performance of the portfolio by reviewing the market environments

4) Making comparison of portfolio income with targets of investment policy.

5) Making revision in the portfolio to adjust its achievements in relation to its targets.

Hope these details gave you an idea of what is portfolio management, it's objectives, nature and principles to manage effective investment & maximize your wealth.

Read More

The 50/30/20 Rule of Thumb for Budgeting Explained with Examples

50/30/20 Rule of Thumb for Realistic Budgeting Explained with Examples 

Recently the question of "whose text makes you happy" was going viral on social media. Many people responded sarcastically that it was the news of 'Salary Credited' or 'Paycheck Received'.

Such salary will disappear in the next few days due to today's price hike. By budgeting your salary into 50:30:20 ratio, we can keep our expenses under control and save for the future. This time is for those who have no debt. Those who have debt should first find ways to pay it off quickly.

50/30/20 Rule of Thumb for Realistic Budgeting

This 50:30:20 budgeting system is very popular among money conscious people. By this method, one can manage his income successfully and easily.

So, what is the 50:30:20 budget rule ratio, it's simple. We should divide our income into 3 categories. This ratio is how much money should be allocated to which of the three categories.

50% of salary should be allocated for basic needs and maximum of 30% of salary can be allocated for desired buying options. 20% of salary can be earmarked for savings or future projects.

     

50% for Essentials (Requirements)

Unavoidable expenses come in essentials. We should allocate 50 percent of our income for these needs. If you are getting a salary of 50 thousand rupees,

you should have house rent, grocery, food, electricity bill, mobile bill, petrol, transportation, bike maintenance, health insurance, debt/ loan payments within ₹ 25,000 per month. Calculate the current cost of your basic needs.

If they are more than 50 percent of your salary, you are spending lavishly. Cut costs wherever you can as that will be good for your future.

30% for Wants (Desires)

Desires help make life more enjoyable and engaging. We can see spend some money on it. You can spend up to 30% of your salary on them.

You can spend up to 30% of your salary on travel, cinema, buying your favorite clothes, sporting goods, smartphones, smart TVs, etc.

These are all plannable expenses so you can get savings every month. If the salary is ₹ 30 thousand, you can allocate up to ₹ 15,000 per month for these.

20% for Savings (Investments for future)

As soon as the salary reaches the bank account, the first thing to do is to save 20% of the salary of ₹ 50,000 and save ₹ 10,000.

Then consider the above 2 costs. Many people may wonder if they can continue to save by starting a private, non-permanent job savings.

If you count like that, not a single rupee will last till the end. RDs, mutual funds etc. have the facility to start and stop saving anytime. So set a goal and keep saving consistently.

Always keep 6-9 months’ worth of monthly expenses in advance as an emergency fund in a bank deposit or Liquid Funds. If your household expenses are ₹ 20,000 rupees per month,

it is better to have ₹ 120,000 in hand (FD, Liquid Funds). Even if not now, keep creating it in the future. Even humans sometimes do not give trust like money that can give hope to your life.

As a final verdict, it is better to increase your savings 30%-40% for future by reducing essentials or wants spending to achieve financial freedom sooner than you think to retire. Hence revised 40/20/30 or 40/15/35 or 35/15/40 or 40/20/40 rule of thumb of budgeting would bring you more fortune and become rich faster. SO BE IT.

Read More

Trading Days Calendar for 2021 (BSE & NSE India)

The below summarized list of Trading Days Calendar and Trading Holidays at #BSE India and #NSE India for the year 2021 which will be useful to make decisions to trading strategies on whether Stock Market is open or not for the day in Indian Share Market.

As you are well aware of Opening time, Trading Session Timing at BSE is 9:15 AM – 3:30 PM with Pre-opening Period of 9:00 AM -9:15 AM (15 minutes)

Below is the summary of Trading days and Holidays Calendar for 2021 (Month-wise)

Read More

Top Best Free Bitcoin Faucets - Cryptocurrencies Faucets

Top Reliable Free Cryptocurrency Bitcoin Faucets

There are many Faucets around the world which pay free cryptocurrencies (Bitcoins (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Tron (TRX), Doge Coin etc.,.).

The following Faucets seems to be more reliable Free Cryptocurrency Faucets especially Free Bitcoin Faucets that are currently live in action to share free Satoshi or the pool of coins or rewards points or loyalty bonus or passive interest income to all visitors for doing some tasks, watching ads, PTC ads, playing games, completing surveys, filling captchas etc.,

Top Best Free Bitcoin Faucets - Cryptocurrencies Faucets 2020

Reliable Bitcoin Faucets Summary

1) https://freebitco.in/

 New Bitcoins every 60 min
 Max Earnings: $ 200 per Hour
 Registration: Mandatory
 Bonus: Yes Received

Freebitco.in Faucet Description
FreeBitco.in is one of the oldest and biggest bitcoin faucets on the internet. They give away up to $200 every hour in the form of free bitcoin satoshi’s by rolling the numbers with just entering captchas. There is also chance to win lotteries, betting high/low, golden tickets and reward points, Bitcoin Savings account with 4.08% interest rate compounded daily.

2) https://hashrapid.io/

New Bitcoins every seconds
Max Earnings: 2,000 Satoshi (Free Account) and 11,00,000 Satoshi (Diamond)
Registration: Not Mandatory

Hashrapid.io is a smart bitcoin cloud mining service developed for affordable bitcoin mining, meanwhile designed to provide frequent mining payouts within the shortest possible timeframe. If you are looking for passive income or want to multiply your bitcoins, don't waste your time and start bitcoin mining today with Hashrapid!

3) http://cointiply.com/

 Free 100 coins on joining
 New Bitcoin: Every 12 hours
 Registration: Mandatory
 Bonus: Yes Received

Cointiply Faucet Description

Cointiply Bitcoin (BTC) Faucet's Free Account allows 2 times of Faucet Roll in a day to win coins. And it has a portal of useful links to earn Bitcoin by completing surveys & offers, tasks, playing games, watching videos or watching advertisements.

4) http://bonusbitcoin.co

 New Bitcoins every 15 min
 Max Earnings: 5,000 Satoshi
 Registration: Mandatory
 Bonus: Yes Received

Bonusbitcoin.co Faucet Description

Bonusbitcoin.co is a one of the best and largest faucets where you can decide when to claim satoshi with maximum chance of winning 5,000 Satoshi every 15 minutes. There is loyalty bonus of 5% if you are loyal and frequent visitor every day without discontinuing. Also, there is additional chance of winning with Dice game, completing surveys and offers.

5) http://moonbit.co.in

 New Bitcoins every 5 min
 Max Earnings: Depends on long claiming time
 Registration: Not Mandatory but Login must
 Bonus: Yes Received

Moonbitco.in Faucet Description

Moonbit.co.in allows claiming of free bitcoins (BTC Satoshis) every 5 minutes with increase in payout up to 100% for loyal visitors. Also, you can complete offers, surveys, tasks. Having longer duration in between each claim of bitcoins will fetch more satoshis.

6) http://Bitfun.co

 New Bitcoins every 3 min
 Registration: Mandatory
 Bonus: Yes Received

Bitfun.co Faucet Description

Bitfun.co is a faucet where you can claim every 3 minutes with filling captchas. Also, you can earn Bitcoins (BTC Satoshis) by playing games, viewing advertisements.

7) http://Coinpot.co

 New Bitcoins every 3-5 min (Multiple Options)
 Max Earnings: Depends on long claiming time
 Registration: Mandatory to accumulate
 Bonus: Yes Received

Coinpot.co Faucet Description

Coinpot.co is a cryptocurrency micro-wallet where many reliable Free Faucets are linked (some are provided above) which will deposit all collected coins in one place for easy deposit and withdrawal of Bitcoins (BTC)

These are not the final exhaustive list of free bitcoin faucets but will be added or modified as suitable for the criteria of reliable nature.

To know more about what is Cryptocurrencies and Bitcoin, please check out at:

https://subramoneyplanning.blogspot.com/2017/08/what-are-cryptocurrencies.html

https://subramoneyplanning.blogspot.com/2017/09/what-is-bitcoin.html

 

Read More

10 Key Features of Sovereign Gold Bond Scheme (SGB) by RBI Overview

 Sovereign Gold Bonds Scheme (SGB) Introduced:

Sovereign Gold Bonds Scheme are popularly known as SGB scheme in India. Sovereign Gold Bonds Scheme were introduced in November 2015 by the Government of India under the Gold Monetization Scheme. 

Prime Minister Narendra Modi launched four Gold related schemes viz., Gold Monetization Scheme (GMS), Sovereign Gold Bond Scheme (SGBs), Gold Coin Scheme and the Gold Bullion Scheme on Thursday 5th November 2020 to reduce demand / hold of physical Gold and aim at productive use of 20,000 tons of precious gold lying idle in Indian households and temples. Reserve Bank of India in consultation with the Government of India will issue the bond as substitutes for holding physical gold.

10 Key Features of Sovereign Gold Bond Scheme (SGB) by RBI Subramoneyplanning.blogspot.com

10 Key Features of Sovereign Gold Bond Scheme (SGB)

1)      Eligibility Criteria for Investment:

Sovereign Gold Bonds are restricted only to be sold to Resident of India which includes individuals, HUFs, Trusts, Universities and Charitable Institutions. Also, Resident Individuals can invest on behalf of minors.

2)      Tenure:

The tenure of the bond is fixed at 8 years with premature exit options exercised at the end of the 5th, 6th and 7th year.

3)      Minimum Investment Limit:

Minimum Value of 1 gram of gold for all type of Investors and in multiples of grams

4)      Maximum Investment Limit:

Maximum Value of 4 Kilograms for Individual and HUFs, 20 Kgs for Trust and all other similar entities per fiscal year (April-March)

5)      Interest Rate:

Sovereign Gold Bond bear interest at 2.5% (fixed rate) per annum. Interest will be credited semi-annually to investor's bank account and the last interest shall be payable with principal amount on maturity.

6)      Availability:

Bond is available both in Demat and Paper form

7)      Issue Price:

Issue price of a Sovereign Gold Bond is fixed in INR on the basis of simple average of closing price of 999 purity gold (24 carat) published by the India Bullion and Jewellers Association Limited (IBJA) for the last 3 business days of the week preceding the subscription period.

8)      Redemption Price:

On maturity of the Sovereign Gold Bond, bond shall be redeemed in Indian Rupees on the basis of simple average of closing price of 999 purity gold (24 carat) published by the India Bullion and Jewellers Association Limited (IBJA) for the last 3 business days of the week preceding repayment date.

9)      Where it is sold:

The Gold Bonds can be purchased through banks, Stock Holding Corporation of India Limited (SHCIL), selected post offices and trading through NSE and BSE (National Stock Exchange of India and Bombay Stock Exchange of India)

10)  Finally, who can buy or invest in Sovereign Gold Bond Scheme (SGBs)? Or SGB is suitable for whom?

The investors who are conservative in nature, low risk appetite persons, those who are fond of gold as a safe investment and those who want to protect against risk of theft or cost of storage in physical form can buy or invest in  Sovereign Gold Bond Scheme (SGBs) as it has all the benefits of gold investment with more secure mode of investment backed by the Government of India with interest rate & no loss on making charges and probability of appreciation of gold price during redemption.

For more latest details about SGBs (Sovereign Gold Bond Scheme) press release from RBI Circulars, please have a look at https://rbi.org.in/Scripts/BS_SwarnaBharat.aspx

For most frequently asked questions (FAQs) regarding Sovereign Gold Bond Scheme (SGBs), please have a look at https://m.rbi.org.in/Scripts/FAQView.aspx?Id=109

Read More

Advantages and Disadvantages of Management Accounting

Management Accounting provides the accounting information which is useful for planning, directing and controlling the activities (covering major principles of management) of an organization. J. Batty defines Management Accounting as “the term used to describe the accounting methods, systems and techniques which coupled with special knowledge and ability, assist management in its task of maximizing profits or minimizing losses”.

To know more about Definition, Objectives & Tools of Management Accounting, you can have a visit @  https://subramoneyplanning.blogspot.com/2019/10/management-accounting-definition-objectives-tools-used.html

To know more about Scope & Functions of Management Accounting, you can have a visit @ https://subramoneyplanning.blogspot.com/2019/11/scope-and-functions-of-management-accounting.html

We know that everything has it’s own merits (uses) and demerits (limitations) , so let’s take a overview of the Advantages and Disadvantages of Management Accounting

Advantages of Management Accounting

The advantages of management accounting can be seen in the following:

1)      Systematic Operation: With the help of management accounting, the business activities are planned effectively. This will avoid over working in busy periods and slackness In slump periods.

2)      Profit Maximization: It enables the business to get maximum return on capital by helping it in planning, controlling and coordinating the activities.

3)      Better Relationship with workers: It helps to improve the relationship between the management and the workers and motivate them to achieve the goals of the enterprise. It ensures high degree of morale in the organization.

4)      Better Customer Services: By comparing the results with the standards continuously, it helps the management to improve its services to the customers.

5)      Communication of Information: The management accounting provides information not only to the management but also to outsiders. It helps the management in communicating progress, financial position etc., of the enterprise to the creditors, investors and shareholders etc.,

Disadvantages of Management Accounting

1)      Dependence on basic records: The management accounting depends mainly on cost and financial accounts for deriving the information. Therefore, the strength and weakness of management accounting depends upon the weakness of these accounts.

2)      Continuous effort: The conclusions drawn from management accounting will not readily be accepted. Therefore, the management accountant must take continuous efforts to convince the people at all levels to accept his ideas.

3)      Tool of Management: The management accounting is a tool of management. Therefore, it cannot replace the management and administration. The management accountant can give his advice but the decision regarding the implementation of his advice will be taken only by the management.

4)      Costly system: The installation of management accounting system is costly since it requires elaborate organization. Therefore, it can be adopted only by big business concerns.

5)      Wide area of operation: The scope of management accounting is very wide since it takes into account both monetary and non-monetary factors. Therefore, the conclusions derived by it will not be more accurate.

6)      Change in accounting practices: The management accounting requires change in traditional accounting practices. Such a change can be made only by rearrangement of personnel and their activities which is generally opposed by the people concerned.

Thus, these are the advantages (Merits) and disadvantages (Limitations / Demerits) of Management Accounting for implementing to maximize profit and control cost and loss.

Read More

Trading Days Calendar for 2020 (BSE & NSE India)

Here is the list of Trading Days Calendar and Trading Holidays at BSE India and NSE India for the year 2020 which indicates whether Stock Market is open or not for the day in Indian Share Market.

As you all know, Trading Session Timing at BSE is 9:15 AM – 3:30 PM with Pre-opening Period of 9:00 AM -9:15 AM (15 minutes)

Below is the summary of Trading days and Holidays Calendar for 2020 (Month-wise)

Read More

20 Warren Buffett Quotes on Stock Picking, Risk & Leverage

Warren Edward Buffett (popularly known as Warren Buffett) is an American based Investor, Business Magnet, Chairman and CEO of Berkshire Hathaway. 

Warren Buffet is considered one of the most successful investors in the world, also one of the top 10 wealthiest person in the world for the last few decades and currently he is ranking third among top wealthiest person in the world with $82.5 Billion Net worth. His Investment wisdom and his Investment Quotes related to Investing are most popular among all Investors for almost half century and so on.

Here we will list down famous Warrant Buffet Quotes on Stock Picking, Risk and Leverage:

1)      “Rule No. 1: never lose money; rule No. 2: don’t forget rule No. 1” ~ Quote by Warren Buffet

2)      “Risk comes from not knowing what you’re doing.” ~ Warren Buffet

3)      “Never invest in a business you cannot understand.” ~ Warren Buffet

4)      “When forced to choose, I will not trade even a night’s sleep for the chance of extra profits.” ~ Warren Buffet

5)      "If you like spending six to eight hours per week working on investments, do it. If you don't, then dollar-cost average into index funds." ~ Warren Buffet

6)      “Keep all your eggs in one basket, but watch that basket closely.” ~ Warren Buffet

7)      Charlie and I view the marketable common stocks that Berkshire owns as interests in businesses, not as ticker symbols to be bought or sold based on their "chart" patterns, the "target" prices of analysts, or the opinions of media pundits. ~ Warren Buffet

8)      “Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing” ~ Warren Buffet

9)      Buy into a company because you want to own it, not because you want the stock to go up. ~ Warren Buffet

10)   We believe that a policy of portfolio concentration may well decrease risk if it raises, as it should, both the intensity with which an investor thinks about a business and the comfort-level he must feel with its economic characteristics before buying into it. In stating this opinion, we define risk, using dictionary terms, as “the possibility of loss or injury.” ~ Warren Buffet

11)   "If you don't feel comfortable making a rough estimate of the asset's future earnings, just forget it and move on." ~ Warren Buffet

12)   "Buy companies with strong histories of profitability and with a dominant business franchise." ~ Warren Buffet

13)   “It’s only when the tide goes out that you learn who has been swimming naked.” ~ Warren Buffet

14)   "We want products where people feel like kissing you instead of slapping you." ~ Warren Buffet

15)   "It's better to have a partial interest in the Hope diamond than to own all of a rhinestone." ~ Warren Buffet

16)   "In the business world, the rear view mirror is always clearer than the windshield." ~ Warren Buffet

17)   “The best chance to deploy capital is when things are going down." ~ Warren Buffet

18)   "It's been an ideal period for investors: A climate of fear is their best friend. Those who invest only when commentators are upbeat end up paying a heavy price for meaningless reassurance." ~ Warren Buffet

19)   “When you combine ignorance and leverage, you get some pretty interesting results.” ~ Warren Buffet

20)   “I’ve seen more people fail because of liquor and leverage – leverage being borrowed money. You really don’t need leverage in this world much. If you’re smart, you’re going to make a lot of money without borrowing.” ~ Warren Buffet

Feel free to share more famous quotes of 20 #Warren Buffet on Stock Picking, Risk and Leverage.  

Read More

Scope and Functions of Management Accounting

J. Batty defines Management Accounting as “the term used to describe the accounting methods, systems and techniques which coupled with special knowledge and ability, assist management in its task of maximizing profits or minimizing losses”.

Scope of Management Accounting

The Management Accounting includes the following fields / scope of activities:

       1)      Financial Accounting: Financial accounting is the basis for Management accounting. Therefore, there must be a properly designed financial accounting system. Otherwise, the management cannot obtain full control and co-ordination of activities.

       2)      Cost Accounting: The costing techniques like standard costing, budgetary control, marginal costing, opportunity costing etc., play a vital role in the creation of policies and the operation of the undertaking.

       3)      Statistical Methods: The statistical tools like graphs, charts etc., help the management to understand the facts clearly. The statistical methods are also useful for drawing up plans and conclusions without waste of time and energy.

       4)      Internal Control: Internal control systems like internal check, internal audit and inventory control etc., ensure accurate information which is useful for making correct decision.

       5)      Office Operations: The office services which include maintenance of proper data processing and other office management services are also useful to the management in carrying out its functions.

       6)      Legal Provisions: The management decisions depend on various rules and regulations.

Functions of Management Accounting

The basic function of Management Accounting is to help the management in carrying out its function effectively. This basic function involves the following other activities:

       1)      Providing the Data: The management accountancy provides the necessary data for the drawing up of it plans.

       2)      Modification of Data: Th management accountancy compiles and classifies the data properly for decision making.

       3)      Analysis and Interpretation of Data: In order to make the data more meaningful to the management, the accounting data is analyzed by means of comparative statements, ratios and percentages, cash flow and fund flow statements.

       4)      Means of Communication: The Management accountancy serves as a means of communication by expressing the effectiveness of organizational capabilities and methods of carrying out plans.

       5)      Facilitating Control: The Management Accounting enables the management to control the organization by fixing the goals and the time limits for their attainment. In any system of control, the standard of performance and the analysis of variations therefrom are essential. This is made possible in management accountancy through budgetary control and standard costing.

       6)      Qualitative Information: The financial data alone is not sufficient for the management for decision making. It may require some other information which is not capable of being expressed in terms of money. Such information like statistical compilation, minutes of meetings, engineering records etc., are also collected in management accounting.

Thus, these are the scope and functions of Management Accounting for assisting management to maximize profit and control cost and loss.

To know more about Definition, Objectives & Tools of Management Accounting, you can have a visit @ https://subramoneyplanning.blogspot.com/2019/10/management-accounting-definition-objectives-tools-used.html

To know more about Advantages and Disadvantages of Management Accounting, please do visit @ https://subramoneyplanning.blogspot.com/2020/08/advantages-and-disadvantages-of-management-accounting.html

Read More

Management Accounting – Definition, Objectives and Tools used

Management Accounting Introduction:

Management Accounting is the accounting technique helpful to the management in discharging its functions. In other words, it provides the accounting information which is useful for planning, directing and controlling the activities of an organization. It rearranges the accounting information provided by the financial accounts in such a manner to suit the diverse requirements of the modern management. In brief, it provides the information in a suitable form to the management for exercising its functions effectively. It includes all sorts of accounting analysis, costing and statistical and graphical techniques.

Management Accounting - Definition, Objectives and Tools Used subramoneyplanning.blogspot.com

Read More

5 Important Functions of Management Lessons from Thirukkural

The Thirukkural (Sacred Couplet Verse) is one of the ancient non-religious Tamil literature and scripture that guides human beings (Society)and shows light on wisdom for better living in this universe. Though Tirukkural (Divine Couplet Verse) is written over 2,000 years ago by Saint Thiruvalluvar in Tamil (one of the oldest languages), the way of life advised in Tirukkural is still relevant for today’s modern life and will be relevant for future generations also. Thirukkural is praised as “the Universal Veda” and “ the Universal Code of Conduct”.

Let us see how Thirukkural provides five 5 important functions of Management Lessons through various Thirukkural couplets / verses (kurals). Management is well explained in Kural 381.

5 Important Functions of Management Lessons from Thirukkural (திருக்குறள்) Thiruvalluvar subramoneyplanning.blogspot.com

குறள் பால்: பொருட்பால். குறள் இயல்: அரசியல். அதிகாரம்: இறைமாட்சி.(The Greatness of a King)

Read More

Difference between Cheque vs Demand Draft (DD)

Let us understand the definition of Cheque and Demand Draft to have clear idea.

According to Section 6 of the Negotiable Instruments Act, “Cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand”.

Although Demand Draft is a pre-paid Negotiable Instrument, it is not defined under the act. Demand Draft is popularly known as DD in Banking Jargon. Demand Draft means an instrument drawn by one branch of a bank upon another branch of the same bank instructing the later to pay a certain sum of money to the person named therein or to his order.

Read More

Definition of Banker and Customer

Banker

There are three different definitions of Banker which covers essential and secondary functions of Banker.

1. Dr. Herbert L. Hart defines a Banker as, “one who in the ordinary course of business, honors cheques drawn upon him by persons from and for whom he receives money on current account”. As per this definition, the receiving of deposits of money from the public and repaying the same by honoring their cheques are their essential functions to be performed by a person to become a banker. But

Read More

Difference between Cheque vs Bill of Exchange

Before analyzing the difference between Cheque and Bill of Exchange, let us understand the definition of both the terms to show some light on it.

According to Section 6 of the Negotiable Instruments Act, “Cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand”.

According to Section 5 of the Negotiable Instruments Act, “Bill of Exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument”.

Below are the distinguish / difference between Cheque vs Bill of Exchange to understand more about these features of Cheque and Bill of Exchange:

Difference Between Cheque vs Bill of Exchange Subramoneyplanning.blogspot.com

Hope this will be clear enough to see the distinguish / difference between Cheque vs Bill of Exchange.

Read More

Highlights of Union Budget 2019-20

Finance Minister Smt. Nirmala Sitharaman presented the maiden budget 2019-20 of newly formed Modi 2.0 government on Friday 5th Jul 2019 which was good for middle class.

She mentioned the budget was presented with 10 years vision in mind. Below are the 16 key takeaways and highlights of Union Budget 2019-20:

1) Indian Economy to achieve 3 Trillion Dollar Economy by 2019-20 and most likely to achieve as 5 Trillion Economy in few years. This would be great achievement.

2) Startup India Scheme to be continued till 2025. New programmes to be exclusively introduced for start-ups on DD Channel.

Read More

Robert Kiyosaki Inspirational Quotes part2

I would love to share today with part 2 of inspirational quotes from Robert T. Kiyosaki, Author of best selling book "Rich Dad Poor Dad". If you would like to know more about him, please do visit part 1 of Robert Kiyosaki Quotes

Robert Kiyosaki Quotes

Below are the ten inspirational quotes from Robert T. Kiyosaki Part 2 that will transform your life towards creating money & wealth:

Read More

What is Bitcoin | Explain about Bitcoin

You might have heard a lot in recent times about "Bitcoin" as I did, so I thought of throwing some light on What is Bitcoin (which is a  first cryptocurrency), how Bitcoin works, Bitcoin Mining, how to buy & sell Bitcoin in Exchanges, how to earn free bitcoins (Bitcoin Faucets) and much more about everything you need to know about Bitcoins in the coming blog posts.

Bitcoin is an Open Source Peer-to-Peer Currency which uses peer-to-peer technology features that operates with no control of any Government or Central Banks or Central Authority, Issuing new currencies or tracking transactions.

What is Bitcoin? | Explain about Bitcoin

Read More