Tuesday, November 25, 2014

PRM Certification

PRMIA (The Professional Risk Managers' International Association) is an international association of people in the industry to risk management (over 90 000 members in over 80 countries). It was founded in 2002 by practitioners who wish to promote ethical principles and transparency in the implementation of financial risk management. PRMIA offers training (online and face to face), and grants the title PRM (Professional Risk Manager) and Associate PRM to those who pass the exams. It is a non-profit organization.

Why get the PRM designation

The designation PRM ™ is an independent certification that attests to your skills and your integrity in the field of risk management, specifically in the field of financial risk. This is one of the most respected names in the field of financial risk and is more common in large financial institutions. More than 2,400 companies around the world hire people who have the title PRM ™.

This title allows you to distinguish you from others in the community and gives you a competitive advantage. This benefit will be valued by your colleagues as much as your customers, as well as employers and educational and research institutions. In the dynamic environment of today, this kind of recognition is an important asset.

How to get certified from the PRMIA association?

Associate PRM

Title Associate PRM covers the basic concepts of risk management. This is training that is mathematically and theoretically simpler than the real title of PRM ™.
For this reason, you must:

  •         Being a member of PRMIA.
  •         Pass one exam (90 multiple choice questions, 3 hours, 60% pass mark). Interestingly, the success of this examination exempts you from examining IV PRM ™.
To get the "real" title PRM ™, you must:
  •         Pass four exams
The prerequisites are *:
  •          Membership in the Association PRMIA
  •        Have a working experience of 2 years for holders of a Bachelor
no experience is required for holders of advanced degrees as a M. Sc. or MBA .

List of examinations to be passed:
These exams can be done in any order within a period of two years. All questions are multiple choice.

The program is primarily based on self-learning made from the The Professional Risk Managers' Handbook guide.

The time course of study required will vary from one person to another, but the Association estimates that it takes about 8 hours of study per week for 3 months (for review). The pass mark is 60% for exams, and the success rate is about 65%.The total costs are around $ 1100 or $ 1200 depending on the choice of material (electronic or paper).

The difference between the FRM and PRM

FRM (Financial Risk Manager) is a certification run by the Global Association of Risk Professionals (GARP). The FRM certification is the "competitor" to PRM designation in the field of risk management. Currently, there is a little known and widespread that the PRM, among others, because he was created a few years earlier (1997 for the FRM, PRM 2002). For cons, the title PRM has experienced strong growth in recent years and is gaining ground against the FRM. 

The subject matter covered by the exams leading to each of the securities is similar to 80%. There is very little difference in content; PRM is generally perceived as being a little bit more applied and a quantitative, while the FRM has a slightly more academic and theoretical trend. Both titles are highly respected in the industry.

Read more ...

Friday, November 21, 2014

Top 10 Stock Investing tips of Warren Buffett

When it comes to stock investing nothing beats the principle of value investing and even better is the way our genius Warren Buffett practices value investing. Here we will try to see the most probable top 10 stock investing strategies that are likely followed by Warren Buffett for building portfolio of Berkshire Hathaway.
To give everyone a sense of optimism related to stock investing one can say that mastering stock investing is controlling one sense towards investment. It would not be wrong to say that Warrens Buffett’s control over his investment psychology has made him the greatest investor of all time.
Few of Buffett’s psychology and his investment wisdoms are discussed below as stock investing tips for new investors:

1. Live a very modest life, always avoid lavish spending.

In other words save as much as possible to enable you to invest majority of your earnings. Though Warren Buffett is among the richest men in the world but he still lives in a very modest house and still drives his own car. He believes that majority of his earnings shall be used for stock investing to build as much asset as possible. Warren Buffett believes on spending his money to buy assets and avoid liabilities.

2. Avoid being a compulsive buyer and seller of stocks.

It is not always important to keep on buying and selling stocks. Buffett’s believes that investors shall show patience and should be ready to wait indefinitely for that right time to invest their savings. The right time as per Buffett is during stock market collapse where great companies stocks becomes undervalued and are worth buying.

3. Do not buy stocks what everyone else is buying

It is best to buy that stock which has not drawn attention of others. When everyone starts buying a particular stock its market price is bound to go up above reasonable price levels making it overvalued. Or in other words buy those stocks which are considered as bad purchase by majority of investors. Of course it is important to check the fundamental of the company before buying one.

4. Buy stocks of companies which has simple products and services

Buy stocks of company whose product or services are understandable to you. Understanding the business process is important before buying its stock.

5. Use your own method to evaluate value of stocks

The basic of any stock investing strategy is to learn the process of fundamental evaluation of a company. It is also important to learn the trick evaluating the value of stocks. Fundamental analysis and stocks valuation are two preconditions of value investing.

6. Always buy undervalued stocks

Warren Buffett calculates an intrinsic value of stock. If the market price of stock is below its intrinsic value then it can be termed as undervalued stocks. Warren Buffett first checks the fundamental strength of company and then calculates its intrinsic value to judge its status of being overvalued or undervalued. Warren Buffett calls purchase of undervalued stocks as buying stocks by maintaining “margin of safety’. The trick Warren Buffett uses to calculate the intrinsic value of stock is the heart of his stock investing wisdom. Intrinsic value is nothing but present value of all future cash flows linked with a particular stocks. In calculating the intrinsic value Buffett pays more attention to (a) return on equity, (b) operating margin, (c) and on reasonable or no debt at all. Warren Buffett does not do analysis of stocks on basis of only one year figures; instead he works on figures for at least last five years.

7. Buy stocks of companies doing monopoly business

Such companies are becoming less and less in today’s world, but still there are companies you can find who can manipulate their selling price at will without effecting their sales a lot. One example is Microsoft’s Windows OS, Airbus A380 and likes. It may be difficult to locate too many of Microsoft’s today but careful study will make it evident that there are companies that enjoys major competitive advantage than others. Warren Buffett will buy such companies over others.

8. Only confused people diversify their investments.

If you will ask Warren Buffett about investment diversification he will give you a glare eyes. He believes that all investors shall be ready to wait indefinitely till stocks prices of fundamentally strong companies become undervalued. Till such time all investors shall save all of their earnings, so that when the time comes they shall not fall short of money for stock investing.

9. Buy stock to hold it for life.

This does not mean that one shall go on holding a stock even if the business has gone sick. Warren Buffett says that periodic evaluation of portfolio is very important. If the company us loosing its competitive edge or its fundamental superiority then it is better to quit it than holding it forever. But what Buffett means when he says that ‘hold it forever’ is that before you buy stock you should evaluate the stock such that you are going to hold it forever as your kids.

10. Do not do investment to make money, instead invest your money with the objective of generating more and more assets.

There are people who enter stock market for making quick bucks. Warren Buffet will call such people fools. Stock investing is not for making quick bucks, instead it is longer term money making machine. The term is so long term that investors even loose the interest of making money. Then what is the motivation for such long term investors? Their drive for investment is drives by their desire to become financially independent and go on accumulating as much “asset” as possible.

More Tips on Investing
Top 10 Bear Stock Market Investing Tips
Top 5 Tips For Investing In Stocks
Top 5 Investing Tips for Beginner's

Read more ...

Thursday, November 20, 2014

Stock Investing Books That You Should Read From Time To Time

Lists are the recommended books for all potential investors. I arranged them in a such a way that, each book is relevant to different level of financial intelligence as well as investing compentency.

New Investor is for anyone who are still learning ways and means to invest their hard earned money.

Beginners is meant for basic understanding on stock investing subjects and how to get started.

Intermediate Investor on the other hand is for stock investor who plan to diversify their investing strategies into stock trading.
Happy Investing & Have Fun Reading Them ;)

For New Investor

Undoubtedly, Rich Dad Poor Dad is a great starting point for anyone looking to gain control of their own financial future. His inspirational way of writing enough to make you want to start investing as soon as you completed reading the book. However, he doesn't show the exact science of making money. As long as you get motivated to invest, the objective is met.
Eric Tyson's Investing for Dummies covers very broad scope about investing subject. It's plain English writing made even the most naive person to investing world can still understand and apply the concept. However, don't expect you can invest straightaway as you might need to learn the nuts and bolts about specific investment options. 

The Only Investment Guide You'll Ever Need
It is fun to read and full of good advice in clear explanation. It won't be the only one you'll read for sure, but it may be the one that holds up the best over time. Tobias' main point is that you need to start saving 10% of your income, and he gives advice on ways to cut costs and places to put money.
The Millionaire Next Door By Stanley and Danko
It discovers that most of the wealthiest households were not located in the most upscale neighborhoods. This discovery led to additional studies, and finally to this book. These wealthy people don't dine out much, are likely to drive four-year-old Buicks, and own very few Armani suits.

For The Beginner

Jim Cramer is everywhere on TV and radio if it is about stock market. And his book, Jim Cramer's Real Money: Sane Investing in an Insane World can be extremely useful for beginners. Though it's neither specifically about technical or fundamental analysis things, he did explained some details in real world situation, which good for those who want to know how to invest or pick stocks and mutual funds better.
The Five Rules for Successful Stock Investing is about how to find wonderful businesses and purchase them at reasonable price. The five principles are do your homework, find companies with wide economic moats, have a margin of safety, hold for the long term & know when to sell. This is all fundamental analysis, but traders may find the advice on analyzing company finances useful as well.

One Up On Wall Street: How To Use What You Already Know To Make Money In The Market By Peter Lynch
Lynch provides his take on the incredible rise of Internet stocks, as well as a list of twenty winning companies of high-tech '90s. He suggests that investors can continue to reap exceptional rewards from mundane, easy-to-understand companies they encounter in their daily lives.
The Little Book That Beats the Market By Greenblatt
Greenblatt conveys his ideas through a lucid if rudimentary and rather corny explanation of basic investment concepts about risk, return, interest and business valuation. Although the fabulous returns he touts seem too good to be true, Greenblatt's formula is a reasonable variant of mainstream value-investing methods.

Intermediate Stock Investor

Intelligent Investor: The Definitive Book on Value Investing
The hallmark of Graham's philosophy is not profit maximization but loss minimization. In this respect, The Intelligent Investor is a book for true investors, not speculators or day traders. Graham coaches the investor to develop a rational plan for buying stocks, not emotionally driven.
Trend Trading: A Seven-step Approach to Success
The book examines in detail the steps in finding, assessing, selecting, managing and monitoring a long-term trend trade. These are proven, successful methods which are easy to understand and apply. Included are the most recent updates and developments in using the count back line and the Guppy Multiple Moving Average.

Swing Trading: Strategies to Cut Risk and Boost Profits
Swing Trading presents the methods that allow busy people to hold positions for as long as a week to a month and then exit with a handsome profit. Where day traders execute many trades for nickels and dimes, swing traders take larger positions and make few moves for more substantial returns.
Technical Analysis of the Financial Markets
A comprehensive guide to trading methods and applications. From how to read charts to understanding indicators and the crucial role technical analysis plays in investing, readers gain a thorough and accessible overview of the field of technical analysis, with a special emphasis on futures markets.

Read more ...

Wednesday, November 19, 2014

Real Estate in Gurgaon shows significant change during last 5 years

Real estate purchases are auspicious in India. However, over the last few years, the shaky economy resulted in a very poor real estate market. Sellers tried to unload their properties, but buyers sat back and waited for the economy to stabilize before they spent their savings.
It’s 2014 and times have changed, though. A new central government, new business policies, and a flourishing economy has affected the Indian real estate market considerably. In fact, popular investment areas like Gurgaon are seeing a huge flip-flop in prices and investment attitudes.
Real Estate in Gurgaon
According to a joint report released by EY and the Federation of Indian Chambers of Commerce and Industry, the real estate market contributed about 6.3 percent to the national GDP in 2013. This sector was also expected to generate about 7.6 million jobs during the same period. By 2025, the sector is expected to generate about 17 million employment opportunities in India. Due to rapid urbanization, rising revenue levels, and positive demographics the Indian real estate market saw considerable growth in 2013.
The year 2014 has changed the real estate market though. The year started strong with great property rates and burgeoning investment in commercial and private properties. However, sales of residential properties declined in mid-2014. This was particularly true in around Delhi-NCR. In 2013, Gurgaon was THE place to buy property. Reliable builders, lovely properties, affordable rates, great amenities, wonderful infrastructure, and rapidly rising property rates were the main reasons for this national and international interest. Property rates spiked in 2013, but in 2014, many markets dropped.
Several real estate developers are now reeling under high debt due to flaring construction and labor costs. They also had to contend with high interest rates and delayed product delivery that depressed the market even further. Gurgaon was considered India’s premier realty market, but it is now facing a fall in real estate rates that could prove lucrative for first-time buyers. Several builders have already launched properties, and they are offering Statements of Purpose as well.
However, the increase in supply is not commensurate with demand and this has led to an oversupply of great properties in the NCR – Gurgaon region. This subdued demand resulted in an automatic correction of 5 percent to 10 percent in property rates in the same region, according to India Info Online. This pinch was also felt in the commercial property market as well. The fall in interest was attributed to the subdued job growth in the IT market and sagging hiring rates in the software industry. According to The Economic Times, prices could stagnate or fall marginally over the next year, making this a great time to buy property.
2014-2015 – The Real Estate Market For Buyers
This real estate market could be great for property buyers. But even though the supply of property is rising, many buyers are waiting for the market to fall even further.
The Delhi-NCR residential market faced a downward trend in demand since early 2014 as buyers waited for prices to fall further. Some market experts were also predicting a 17 percent fall in demand, which could lower property rates even more, according to the FICCI report. This could change anytime though. With the Union budget posting substantial incentives, the market could rise and level out by 2015, according to Meri News. As a result, mid-2014 to end-2014 is a great time for small buyers and first-time investors to snap up properties in the NCR area. Market experts are also cautioning buyers from waiting for home loan rates to fall further.
Another very important tip offered by industry watchers is to choose areas like Greater Noida West where you can find property in Gurgaon by Unitech Group. These areas have several new properties and supply is high. Buyers can negotiate rates and get some discounts as builders are trying to sell property faster. Commercial property can also be a great investment opportunity as corporate buyers have postponed expansion plans leading to a glut of commercial property for sale. For small buyers, this is a great potential opportunity to diversify a financial portfolio with commercial investments.
Meri News also stated that the overall mood in the market is optimistic. The recent changes in the budget and a slowly improving GDP could result in the real estate market rebounding by late 2014 to early 2015.
The Bottom Line
Many buyers are sitting back and waiting for the prices to stabilize, but this decision could backfire on them. With a new progressive government in place, a budget that’s focused on improving the realty sector, and a burgeoning GDP, buyers should snap up residential and commercial properties right away. Cash-strapped builders are offering discounts, statements of purpose, and various freebies in order to help sell stagnating property. Buying property now could mean a huge profit for you down the road, provided you make smart decisions.
Read more ...

Monday, November 10, 2014

Sustainable Responsible Investing and its Benefits

Sustainable and Responsible Investing (SRI) focused asset managers are facing many challenges these days. Their main task is to screen socially responsible companies by doing extensive research. They are also entrusted with the task of identifying companies that have superior ESG practices in comparison to the other companies. When it comes to the roles and responsibilities, the SRI focused asset managers have to generate good returns while investing in firms that amalgamate aspects of social and environmental responsibility and corporate governance.  

For Sustainable and Responsible Investing research tasks, asset managers generally rely on consulting companies. These consultant companies adopt stringent processes for company analysis and help in identifying the right data sources for various ESG parameters. These companies perform extensive research across multiple information sources and generally follow the three-level quality process.  

Hiring a multilingual consultant company is always a good idea because such companies can hunt through local media when they are evaluating the most lucrative emerging markets. Most research companies will provide you with highly qualified professionals, but you will have to consider the turnaround time (TAT) as well. Most research companies will commit a few days for extensive research on the various companies.

Many people are not aware of the transition of responsible and sustainable investing, which actually was an offshoot of socially responsible investing. The former was an approach that generally included owning certain types of assets. There were some region-influenced socially responsible investing ideologies that refrained for buying sin stocks (those of pornography distributors, distilleries, casinos, tobacco producers etc.)  

Most financial experts will tell you that socially responsible investing is now a subsector of sustainable and responsible investing—which still excludes owning some categories of assets. Today, fund managers who are involved in SRI search for companies that are looking to minimize the carbon footprint. The synonyms used for sustainable and responsible investing are ethical investing, green investing and impact investing. 

There are innumerous investment opportunities for SRI investors. In fact, there are hundreds of SRI mutual and exchange traded funds that are offering the vivid investor fantastic investment opportunities in different areas of the market. It is important to have a deep understanding of SRI funds before investing in them. These funds generally invest in two types of stocks—growth stocks and value stocks. The main categories of SRI funds are large, small and mid-cap SRI funds. In addition to these, you will also find categories of domestic, foreign and global SRI funds.

SRI managers are an elite class of fund managers who believe in avoiding companies that don’t have potential to effect change. There are many investing companies that have SRI focused funds—in which you can invest. Before you get enthralled by the idea of investing in SRI funds, you will have to perform negative screening and perform an ESG indicators analysis. This involves in-depth screening of firms on different ESG parameters or criteria. You may have to also look at some growing trends in the European markets if you want to invest in the European firms.     
Read more ...