| We devote more than 20 years in education, study | | | | Debt linked mutual funds, bank bonds, municipal |
| millions of pages but none teach us the most | | | | bonds, central/state government securities etc. |
| important lesson of our life, how to become | | | | As the name suggest companies/Institutions line |
| financially rich. One may be academically a genius but | | | | central government, state government, Private/Public |
| that does not guarantee his financial intelligence, | | | | sector companies, banks etc needs funds to run their |
| because neither in school nor in our homes are we | | | | daily business. They issue securities/certificates |
| taught the theories of becoming rich. What is the | | | | against which we lend them money against a |
| problem, why are people ignore teaching their children | | | | chargeable interest. Mainly in Debt market we lend |
| the most important thing of life? From our childhood | | | | money in the form of DEBT. The interest promised |
| we have heard our parents saying "study hard and | | | | by companies, banks, government here is secured. |
| get a good job". When any mom says "Go to school, | | | | In Equity market we buy shares instead of |
| get good grades," she definitely intends to say | | | | certificates. These shares makes us a proportionate |
| "Study hard because this in only thing going to make | | | | owner of the company of which we buy shares. |
| you rich". Our pattern of education does not give | | | | Here also we lend money to the companies but like a |
| emphasis on making their students "Financially | | | | owner. If companies makes profit we gain interest |
| intelligent". This is because, I believe, very few people | | | | and if the companies makes loss we loose money. |
| have this intelligence. So how they can teach? They | | | | In short you can say in DEBT MARKET investment is |
| themselves are ignorant. | | | | very safe but gives low but fixed returns. In EQUITY |
| Being financially intelligent means controlling your | | | | MARKET investment is linked with a risk but when |
| cash-flow (money in and out of your pocket). In | | | | market if good given a much better returns than |
| other words financial intelligence is nothing but your | | | | DEBT schemes. |
| ability to "manage your money" so that you become | | | | If you want to invest in shares market you need to |
| richer every day. | | | | have 3 things |
| This Idea of getting richer every day is very | | | | (1) Spare Money - That even if you loose this it will |
| tempting. When I say "getting richer every day" it | | | | not hurt. (2) Demat a/c - In this account you can |
| calls for investing your money. Invested money is like | | | | 'store' you shares (no papers) (3) Trading a/c - You |
| your slave, who works 24 hrs making your money | | | | can 'buy & sell' shares by this account |
| grow. Your money safely kept in the locker is not | | | | To open a demat a/c - Ask your bank (where you |
| growing. Instead the eroding effect of inflation of | | | | maintain a savings a/c) for opening a demat account. |
| money makes it weaker every day. (1) To prevent | | | | These days nearly all banks provide this facility. They |
| your money from this eroding effect of inflation (2) | | | | will charge a very nominal amount from you for this |
| To make your money grow one must invest their | | | | service. |
| money. Invested money makes more money. | | | | To open a trading account - Approach a online |
| The question is where to invest the money. For this | | | | share-market broker or else, safest and reliable will |
| one must know the investment options available in | | | | be your bank. Some banks has their own trading |
| the market.o One can invest in shares /equity directly | | | | accounts or they have a collaboration with some |
| in the share market (either online or through a | | | | online brokers. Approach your bank and ask for |
| broker).o One can invest in equity through mutual | | | | details. |
| funds, one can invest in debt linked schemes through | | | | The bottom line is "Your Bank" is the best choice. |
| mutual funds, bank's fixed deposits, companies fixed | | | | They can be your best guide & support. Give a |
| deposits. | | | | call to your bank (or visit), tell them that you need to |
| If a person invests in Debt funds it means he is | | | | open a demat & trading account and the rest |
| either investing in Company bonds, Fixed Deposits, | | | | will follow. |