Why should the annual give up of a given compound interest rate be greater than the compound rate?
Why should the annual yield of a given compound interest rate be greater than the compound rate? why should it be only slightly difficult?Answers: Accounts can compound monthly.
Eg, I invest $1000 in an rationalization that pays 5%.
At one month, the interest is $4.17.
Now the balance is 1004.17.
Next month the interest might be $4.18.
Small interest doesn't attach up quickly or compound like lightning.
Sensex is dropping as a first time investor is it sensble of me to buy when they are selling??
Which industry should i concentrate on if i am investing? Gas? Power??Answers: You have mentioned you are "first time investor". Yet the plain point in investment is correctly judge by you, that is sensex is dropping, our souk is yet not matured, FII are taking pre-eminence of it. One should always suggest of buying when prices are coming down. But no one know how much it will fall. So the best piece is to study first, so that you will not be at loss.
Secondly which shares one should purchase. Sensex based
(30 shares) or Nifty base shares or mid cap or small sou`wester all these question you must consider.
Some of the good shares resembling Sesa Goa, Larsen and Toubro,
Sterlite Industries, State Bank of India, Hindalco, ITC, NTPC,
PETRONET LNG etc. are good for long permanent status investment.
Power, gas, energy, infrastructure sector are better for investment. But refer to price chart and consequently only start buying. Because the marketplace will remain volatile and you will get indiscriminate to purchase these shares at low rate. Don't make hurry. Long possession investor with mag monitoring never loose in stock flea market if keep self-control in buying.
I notify you a story here: There was a trader. He thought of making money and started purchasing monkeyies at the rate of Rs.100 per monkey. People started buying monkeyis, give the price. Then he increased the price to Rs.120. People thought that price is rising so they started collecting at Rs.120. Then he increased the price to 140. People again started more buying. By the time he collected lot of monkeyins. Now he started to sell most of the monkeyies and made huge profit. Our marketplace is like this.
Are you referring to India's Sensex Index or a U.S. stock?
Not sure exactly..
It is other advisable to buy when the market is falling. Its considered to be an opportunity within fact.
Since you are first time investor, of late be cautious. Do not over trade and do not cart over positions if you do not know about the scrip. Keep strict stop loss.
Considering the scenario, shares of Infrastructure, Power and Capital stuff sector are supposed to perform ably in in close proximity future.
How risky is it, to invest within gold ingots?
And do you think it's better than putting money contained by a cd account?Answers: investment on GOLD on long language is a good hypothesis.
Mostly Indian (conservative - majority believe in good than spend) usually opt for investment in Gold.
disc account will not offer you return on par with inflation - it is an aged (old) man's available protected option.
Trading contained by Gold (commodities) always unbelievably risky. Now dollar is falling - Gold is shinning. reverse cycle is not ruled out when America economy (largest economy) regain its strength (it will develop in 9 to 12 months time).
When crude price go up, OPEC (countries) invest large amount surrounded by GOLD After winter season crude prices are likely to fall down drastically, at that time, OPEC will release GOLD to meet their commitments (to stability - balance of trade) at that time (during SUMMER) the GOLD prices will hit and DOLLAR emergency will raise.
right time of investing surrounded by GOLD is SUMMER
right time of selling GOLD is during recession/WINTER, etc.,
please Analise COMMODITY market behavior (atleast 3 years history).
You buy gold ingots and put it into a safe deposit box. Where it earn no interest. Inflation marches on friend.
That 100 bucks you spent on the gold ingots coin is worth a little smaller quantity every day due to inflation. Its compassionate of like burying a see of bills in a jar within your back patio.
On the other hand, gold ingots is gold. Gold will other be worth "something", even if the market crashes and civilization collapses.
I would strongly urge you not to buy it presently. My grandfather sunk a lot of money into gold ingots in the seventies when it be up. Then the price fell through the floor. It never got pay for up to the price he paid for it surrounded by his lifetime.
Gold is a terrible long-term investment.
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