Friday, August 24, 2012

2nd batch of Financial Freedom Classes @iLead

Dear Friends,

I feel honoured to be able to contribute to your life with my limited means. Teaching was a dream since my school days and the dream was fulfilled @iLead. Throughout school and college life, I always dreamt of an education system which was not meant for marks, coming 1st in class or learning by rote. It simply instilled fear within us. Getting anything below 90% in board examinations was considered to be a sign of mediocrity. The education system did not encourage creativity. All of us had big dreams during childhood but the competition took away the zeal to learn.

I always dreamt of an education system where learning was fun, practical and did not put any pressure on the student. Hence I decided to conduct classes on Financial Freedom where the objective is to learn stuff related to personal finance which is very important to have a great life ahead. Financial freedom ensures creativity and progress in your life without deadlines, targets and the other constraints that come along with rat race and unhealthy competition.

Due to the terrific response to the 2 orientations and the 2 sessions that I have conducted for my 1st batch so far, I am proud to announce that the 2nd batch will commence shortly. For those of you who are interested, you can kindly enrol by calling @9830015201/02.

For people who would want to know more about the course before deciding to enrol, kindly contact me @9831476200. You can also send me an email. My email address is vivekshah83ster@gmail.com.

Your friend,
Vivek

Monday, August 6, 2012

Trading Portfolio vs Investment Portfolio

A lot of times people tell me that all their shares are kept with the broker with whom they have opened a trading account. These people are long term investors cum traders.

It is for this reason I decided to share my insights regarding this. First of all, there is a differnce between trading and investment portfolio. Trading portfolio is the list of stocks that you are holding for the purpose of trading. You take advantage of the movement in the market to make short term profits as well as intra day gains. Investment portfolio is for your long term needs. A person does not generally trade in this. This investment is made for buying a car, a house, for marriage, higher education etc. Investment portfolio comprises of stocks which one buys and forgets for atleast 5 years if not more.

Hence it is very important that the shares which one purchases for long term should be kept in a separate demat account away from the broker with whom you have opened a trading account. Only trading portfolio should be kept with him/her. The investment portfolio should be kept in a separate demat account which is not linked with the trading account . In simple words, your broker should not have access to your long term investments. Trading portfolio should ideally be kept with a broker because one continuously trades in them. If these shares are kept in a separate demat account, a lot of charges would be incurred every time a person sells some shares. So if a person sells shares of 5 different companies, he/she would have to incur an additional transaction charge per company for 5  companies.

I hope this post is helpful.

Your friend,
Vivek