Finanthropedia

  Everybody wants to have a good income and a place where he can invest his savings and will get good returns. That’s why some people put their money in bank so that they can get fixed income. Some people make Fixed Deposits, Some invest in gold or share market, While some are confused where to invest their savings. So here it is the best option for you all – MUTUAL FUNDS. How many of you’d invested in mutual funds? I’m sure the number will be low. Do you question yourself, why you had not invested in mutual funds? Simply because -          you get scared -          you don’t have correct information. -          you think that it is just an another scheme that will collect money and eventually will defraud you? But let me tell you that mutual fund is 100% safe because it is regulated by Securities and Exchange Board of India (SEBI). There is nothing to get scared. You just have to play smartly. So now let’s understand what is mutual funds?  The meaning of mu

  Churning! We come across this term in our everyday life. It means to produce something at a frequent rate. Like we shake milk rapidly to produce butter. That’s what it is in finance. Commission churning means unnecessary executing trade in a customer’s investor account by a broker for earning commission frequently. Now you would wonder why brokers do commission churning? Well that’s simple. Just to earn more commission. Sometimes a broker along with your account, churns accounts of his other clients. It clearly affects the trustworthiness of stockbrokers. The more he does this practice, the more he is filling in his pockets. The key to identify it is that the trades that are placed are not increasing your account value. If you have given your broker trading authority over your account, then the possibility of churning can only exist if they are trading your account heavily, and your balance either remains the same or decreases in value over time All this is fine. But exactly how