Investment Valuation in India

Futures Future contracts are agreements between two parties to buy or sell an asset (underlying) at a given point of time in the future. They are standardized contract i.e. an agreement, traded on a futures exchange, to buy or sell a standardized quantity of a specified commodity of standardized quality at a certain date in the future, at a price (the futures price) determined by the parties involved. The future date is called the delivery date or final settlement date. The official price of the futures contract at the end of a day's trading session on the exchange is called the settlement price for that day of business on the exchange. Assume that no cash settlement was done between the two parties. A futures contract gives the holder the obligation to make or take delivery under the terms of the contract. Also both parties of a futures contract must fulfill the contract on the settlement date – it is legally binding. The seller delivers the underlying asset to the buyer, or, if i...

The CFA Institute, USA offers 10 Tips on Avoiding Investment Fraud Understand clearly the investment strategy Match investment strategy to reported performance Watch for e-mail solicitations and Internet fraud Be wary of “sure things," quick returns, and special access Understand what, if any, regulatory oversight exists Assess the operational risk and infrastructure Ask about independent audits and who performs them Assess the personnel Perform a background check Limit your exposure Please visit the link below for the complete article. This is just the summary and the complete article is listed on CFA Institute website. http://cfainstitute.org/aboutus/press/release/09releases/20090121_01.html

IT major Satyam Computers, after being in the news for all the bad reasons has reported a major scam which left the country shocked. The major developments: Satyam Chairman B Ramalinga Raju resigns as Chairman and issues a letter stating that he has been involved in major misrepresentations of accounts. The balance sheet carries as of September 30, 2008 a) Inflated (non-existent) cash and bank balance of Rs 5,040 crore (as against Rs 5361 crore reflected in the books) b) An accured interest of Rs 376 crore which is non-existent c) An understated liability of Rs 1,230 crore on account of funds arranged by Raju d) An over stated debtor position of Rs 490 crore (as against Rs 2651 reflected in the books. For 2Q 08, “reported revenue of Rs 2,700 crore and an operating margin of Rs 649 crore (24 per cent of revenues) as against the actual revenues of Rs 2,112 crore and an actual operating margin of Rs 61 crore (3 per cent of revenue)”. “In the last two years a net amount of Rs 1,230 crore w...

Oil & Gas All’s well for India’s oil and gas future They are roughly 2,000 km apart and yet the pace of activity or the excitement in the air is unmistakably alike. While one set of them is busy scathing the rocks facing challenges in the desert region of Barmer, Rajasthan, the other is battling violent cyclone storms in water depths of 2,700 metres, off Kakinada, east coast of the Indian peninsula. These men are set to script the most exciting story in India's energy history in recent times, and are easily set to be billed as the top newsmakers of 2009. The two discoveries , RIL's offshore gas project and Cairn's onland oil discovery, are set to begin contributing to India's energy kitty in 2009-10, at a time when the country's trade deficit threatens to cause some serious concerns . India's exports have been dipping over the last few months and the slowdown in the global economy is only expected to further add to its woes. Add to it India's gargan...

Please find the link below to download the ebook on Futures and options trading strategies. Futures & Options Trading Strategies Please note that ebooks in the links may have specific copyrights and full credits are given to the authors and publishers. These are freely circulated for educational purposes only.

MUTUAL FUND OVERVIEW What is a Mutual Fund? A mutual fund is a pool of money that is professionally managed for the benefit of all shareholders. As an investor in a mutual fund, you own a portion of the fund, sharing in any increases or decreases in the value of the fund. A mutual fund may focus on stocks, bonds, cash, derivatives or a combination of these asset classes. There are different types of mutual funds. Some mutual funds are riskier than others. For example, it is unlikely that you will lose money in a mutual fund that buys money market instruments, such as treasury bills. Risk can sometimes work in your favor: the higher the risk, the bigger the potential return (and the bigger the potential loss); the lower the risk, the smaller the potential return (and the smaller the potential loss). To reduce your overall risk and enhance potential returns, you should invest in a diversified portfolio of mutual funds which have different risk characteristics. An investment in a Fund is ...