Investment Patterns in India

The term `inflation' defines a situation in which prices are rising and the value of money is falling. The cause of inflation is due to too much money in the economy ben printed and the high rise in demand. too few goods. An inflationary spiral tends to set in. Increasing prices produce a demand for higher wages: higher wages mean that goods cost more to produce: prices must go up again to pay for the wage increases.

In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the Consumer Price Index) over time.

* Analyze the factors that influence investment decisions at different stages in an investor’s life cycle, and make a recommendation at which stage the average investor should consider financial investments. Provide support for your recommendation.

When dealing with interest rates and inflation the standard equation that is used is Fisher equation. What the fisher equation explains is that the real interest rate and expected inflation equals to the nominal interest rate (it = rt + Etπt+1) This means that a rise in expected inflation causes lenders to raise their nominal interest rates as there would be a decrease in the value of their loans due to purchasing power of repayments being lower and this causes the decline in investment as borrowing costs rise.

Inflation happens when there is more and more money being created, this lessens the value of each individual dollar. Inflation also lowers the standard of living because people decide to buy now and pay later, this also creates higher inflation. Inflation causes the business cycle to

In conclusion inflation is a increase in the general price level of goods and service. Inflation does not impact your life in the short run,

Understand investments can be difficult, it requires years of experience. One of the biggest advantages of investing in a mutual fund is that it is managed by experienced professionals. This allows you to focus on things that are important to you while the investment professional seek out opportunities to make your money work for you.

Inflation has been a problem for all of the world economies for many years causing a great deal of damage to stakeholders. Inflation is an increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service. As a result of inflation, the purchasing power of a unit of currency falls. For example, if the inflation rate is 2%, then a soft drink that costs $1 in a given year will cost $1.02 the next year. As goods and services require more money to purchase, the implicit value of that money falls. (Investopedia)

The research paper on “A Study on Individuals Investors Behavior in Stock Markets of India” by Rakesh HM aims to understand the behavior of individual investor in stock market, specifically their attitude and perception with respect to the stock market. A survey is conducted to collect data relating to the above subject. Respondents were classified into different categories like income, profession, education status, sex and age.

Investors are known to be constantly studying the market and observing the way it is being shaped daily to identify new outlets for investments and opportunities that allow them to expand their portfolio. In some cases, opportunities can suddenly appear without prior warnings or indications of their occurrences. When such events take place and an opportune investment suddenly appear, an investor would

With mutual funds, you invest in a collective group of securities, bonds, and stocks, unlike in dividends where you only get to invest in stocks from a specific company. If your collective group of stocks performs well, you are liable to even more revenue.

A mutual fund is an open-end investment company that invests money of its shareholders in a usually diversified group of securities of other corporations, as defined in the Merriam-Webster dictionary. Mutual funds help with financing and investing opportunities. They give the small investors a chance to invest their money in other areas besides stocks and bonds. There is multiple mutual funds to choose from and different reasons why shareholders should choose them. As popular as mutual funds have become, there is downfalls to them like most investment opportunities. In 2003, mutual funds were giving a bad name when a scandal was brought public. These opportunities and issues will be discussed.

Inflation tends to rise when at the current price level, demand for goods and services in the economy are greater than economy's ability to produce goods and services.

Inflation is an aspect of macroeconomic instability and is a rise in the general level of prices in an economy. When inflation occurs, every dollar of income buys fewer goods and services than before and reduces the purchasing power of money. Inflation doesn’t always mean all prices are rising, and during periods of rapid inflation some prices may be constant and others may fall. It is measured by the Consumer Price Index (CPI), the two types are demand-pull and cost-push, and affects the nominal and real interest rates, unanticipated and anticipated inflation, nominal and real interest rates, and hyperinflation.

Capital market play vital role in financial growth. Mutual fund is one of the securitization vehicles that commonly practice in today’s modern economics environment. Levy and Post (2005) mentioned investors, regardless of the type of investment they choose, have one common goal which is to get return out of their investment. Investors often have risk and return trade-off in determining their desire return. Thus, it is important to understand the financial stance of the investors in order to determine types of investments that suit them. This essay’s aim first to discuss 2 types of mutual funds, open end and close end investment. Going further is to relate them with the emerging Muslim’s economy conditions. It is believed that Muslim’s economy is way far behind due to their weakness in the capital market. Honohan (2008) discovered more than 70% Muslims do not utilize financial services due to their concern of the financial instrument principle which seems to them contradict with the Islamic law. Second to suggest the type of funds that suitable for the emerging Muslims economy in order to promote social wealth and long-suffered poverty issues amongst the country.