Finance

The specialised study of how an individual or a company manages its funds is known as Finance. It refers to the money required for carrying out business activities. It involves all activities right from the estimation of funds to their acquisition, utilization and disposal. Finance is the lifeblood of any business. 

According to Guthumann and Dougall, “The activity concerned with planning, developing, managing, administering and increasing of the capital used for business purposes is known as finance.”

The mere inception of a business idea is not enough, it can only be brought to fruition given there are enough funds to enable all such functions. The basic function of every organization is to either manufacture goods or offer services. This function can only be met when there is enough money to bear all such expenses. Similarly, all the goals of expansion and growth are only possible when there are enough funds in the firm. The financial requirements of a business can be categorized as follows:

1. Fixed Capital: Such funds are used for investments to be made in long-term projects and assets the benefits from which would be reaped by the firm over a long period of time. Such capital is used to purchase land and building, fixtures and other such long-term assets.
2. Working Capital: Such funds are used in the day-to-day operations of a firm. Such operations include holding current assets and settlement of current liabilities.

It is noteworthy that only the estimation of funds does not suffice, but the decisions pertaining to raising, utilizing and controlling such funds also have to be made.

This part is about the organization, operation and growth of the finance and financial system. It provides an understanding of the working of financial markets and institutions.

Personal Finance

A. Investment

1. Investment Basics: Works, Types & Examples
2. 10 Best Investment Options
3. 10 Essential Financial Tips for Young Adults
4. Top 10 Best Personal Finance Apps in India 2023
5. Taxes: Meaning, Types, Calculation & How to File
6. Credit Score: How to Improve Your Credit Score?
7. CIBIL | Full Form, Importance, Benefits and Factors
8. Who is Investor & What an Investor Do?
9. How I invested my 10 lakhs salary to get the maximum return in 2023?

B. Pan Card

1. Permanent Account Number | Full Form of PAN, Format, Eligibility and Types

C. Aadhaar Card

1. Aadhaar Card : A Complete Guide
2. UIDAI | Full Form, Features and Importance

Banks

1. Top 10 Best Private Banks in the World 2023
2. Bank Identifier Code | Full form of BIC, Need and Benefits
3. Bank Overdraft: Types, Advantages and Disadvantages

A. Debit Card

1. Credit Cards vs. Debit Cards: Pros & Cons

B. Credit Card

1. 10 Best Credit Cards in India

C. Fixed Deposit

1. Fixed Deposit | Features, Benefits and How to Invest
2. SBI FD Interest Rates 2023 | Fixed Deposit Calculator
3. ICICI FD Interest Rates 2024
4. Indian Bank FD Interest Rates 2024
5. Bank of India (BOI) FD Interest Rates 2024
6. HDFC FD Interest Rates 2024
7. IDFC FD Interest Rates 2024

D. Recurring Deposit

1. SBI RD Interest Rates 2023 | Recurring Deposit Calculator
2. Yes Bank RD Interest Rates 2024
3. Union Bank RD Interest Rates 2024
4. PNB FD Interest Rates 2024
5. Axis Bank RD Interest Rates 2024
6. PNB RD Interest Rates 2024
7. Bank of Baroda RD Interest Rates 2024

E. Net Banking

1. SBI Net Banking: Personal Banking, Registration & Login

F. Payments

1. Payment Banks in India
2. Bank for International Settlements (BIS): Full Form, Role and Functions
3. Merchant Banks: Features, Functions, Works, Benefits, Risks & Examples
4. Electronic Payment System: Types, Advantages, Disadvantages and Regulatory Bodies
5. Top 10 Best Payment Gateways in India 2023
6. NPA: Full Form, Types, Impact and Examples

• RTGS

1. RTGS: Full Form, Limits and Charges

• NEFT

1. NEFT : Works, Features, Advantages, Timing, Limit & Charges
   

• IMPS

1. Immediate Payment Service (IMPS): Full Form, Features, Procedure and Charges

• Cheque

1. Cheque Truncation System (CTS): Full Form, Working, Role and Advantages
2. Types of Crossing of Cheques

G. Loan

1. Home Equity Loan: Meaning, Works & Requirement
2. What is Payday Loan and How it Works?

Startup

1. Unicorns: Meaning, Valuation & Examples
2. Seed Financing: Meaning, Types, Stages & Sources
3. Angel Investment: Meaning, Working and Types
4. Difference between Angel Investors and Venture Capitalists
5. What are Venture Capitalists & How it Works?
6. Venture Capital Funding | Characteristics, Investment Process, Advantages and Disadvantages

Investment

1. Portfolio Management: Concept, Objectives, Process and Types
2. Professional Corporation: Works, Requirements, & Formation
3. Business-to-Business (B2B): Works, Importance, Types & Challenges
4. What is Investment Banking?
5. Real Estate Investment Trust (REIT): Criteria, Working, Types, Advantages and Limitations
6. Real Estate Investment: Features, Types, Examples & Careers
7. Compound Annual Growth Rate (CAGR): Formula, Calculation & Uses
8. Real Estate Agent: Meaning, Types & Need
9. Return on Capital Employed (ROCE): Full Form, Formula, Importance & Examples

Corporate Finance

1. Finance: History, Types, Purpose and Careers
2. General Obligation Bond: Features, Works, Benefits & Types
3. What is an Elevator Pitch?
4. Employee Stock Option Plan (ESOP): Full Form and Working
5. Annual General Meeting (AGM): Full form, Purpose and Objectives
6. Goods Received Note | Full Form of GRN, Importance and Process
7. Cost, insurance and freight (CIF): Full Form, Advantages and Disadvantages
8. Cost of Goods Sold (COGS): Formula, Examples, Importance & Limitations
9. Types of Company: Companies Act, 2013
10. Negotiation: Meaning, Process, Skills Required & Tips
11. Holding Company: Features, Structure and Types
12. Mergers and Acquisitions (M&A): Process, Reasons, and Types
13. What is Market Share and How to Calculate it?
14. Firm: Definition, Working, Purpose & Types
15. What is Market Capitalization and How to Calculate it?
16. Types of Financial Models
17. What is Financial Modeling and How to Build it?
18. What is Forex (FX) Trading and How Does it Work?
19. Fair Value Accounting | Principles, Advantages and Disadvantages
20. Types of Audit
21. Difference between KPI and KRI
22. Difference between Forfaiting and Factoring
23. Treasury Bill: Features, Types, Examples, Advantages & Disadvantages
24. Advantages of Internal Audit
25. Business Finance and Its Sources

Mutual Funds

A. Mutual Funds Basics

1. What are Mutual Funds?
2. How to Invest in Mutual Funds?
3. Systematic Investment Plan (SIP) | Meaning, Benefits and How it Works?
4. Systematic Withdrawal Plan (SWP) | Meaning, Working and Benefits
5. Assets Under Management (AUM) – Meaning, Impacts & How to Calculate
6. Asset Management Company (AMC) – Meaning, Functions, Fees, Examples
7. Expense Ratio | Meaning, Components, Restrictions and Examples

B. Mutual Fund Types

1. Types of Mutual Funds
2. Exchange Traded Funds (ETF) : Meaning, Types & Benefits
3. Emerging Market Funds: Features, Suitability and Advantages
4. Banking and PSU Funds: Features, Suitability & Advantages
5. Credit Risk Mutual Fund: Features, Suitability, Advantages & Disadvantages
6. Conservative Mutual Funds: Features, Suitability & Advantages
7. Commodity Mutual Funds: Meaning, Features, Suitability & Types
8. Money Market Funds: Features, Suitability & Benefits
9. Medium Duration Mutual Funds: Features, Suitability & Benefits
10. Ultra Short-Term Mutual Funds: Features, Suitability & Benefits
11. Closed Ended Mutual Funds: Meaning, Features & Suitability
12. International Mutual Funds: Types, Benefits & Factors
13. Value Mutual Funds: Suitability, Factors & Benefits
14. Corporate Bond Debt Funds – Meaning, Features & Suitability
15. Interval Funds – Features, Suitability and Taxation
16. Dynamic Asset Allocation Funds – Features, Suitability, Advantages & Disadvantages
17. Gilt Funds – Meaning, Features, Suitability, Advantages & Disadvantages
18. Aggressive Mutual Funds – Features, Suitability, Advantages and Disadvantages
19. Equity Mutual Funds – Features, Types & Benefits
20. Liquid Mutual Fund – Features, Suitability, Advantages and Disadvantages
21. Dynamic Mutual Funds – Features, Suitability, Advantages and Disadvantages
22. Overnight Fund – Features, Suitability, Advantages & Disadvantages
23. Balanced Fund | Meaning, Factors, Advantages and Disadvantages
24. Index Funds | Working, Factors and Advantages
25. Income Funds | Meaning, Features, Working and Benefits
26. Arbitrage Funds | Working, Features, Advantages and Disadvantages
27. Sector Mutual Funds | Meaning, Types and Factors
28. Small-Cap Mutual Funds | Features, Benefits and Taxation Rules
29. Mid Cap Mutual Funds | Concept, Features and Benefits
30. Large Cap Mutual Funds | Features, Benefits and Taxation Rules
31. Multi Cap Funds |Types, Factors and Risks
32. Global Mutual Fund | Features, Structure, Pros & Cons and Taxation Rules
33. Multi-Asset Allocation Fund | Purpose, Factors, Advantages and Disadvantages
34. Real Estate Funds | Meaning, Features, Advantages and Risk Associated
35. Contra Mutual Funds | Meaning, Factors and Benefits
36. Difference between Dividend Yield Mutual Funds and Dividend Options
37. Low Duration Mutual Funds | Working, Advantages ad Disadvantages
38. Equity Savings Schemes Funds | Features, Purpose, Advantages and Disadvantages
39. Open Ended Funds | Features, Advantages and Disadvantages
40. Dividend Yield Mutual Funds: Working, Factors and Benefits
41. Focused Fund | Concept, Purpose and Benefits
42. Hedge Funds | Features, Benefits and Working
43. Difference between Hedge Funds and Mutual Funds

Finance US

1. What is Probate & How it Works?
2. Modern Monetary Theory: Principles, Origin & Criticism
3. White Paper: Features, Purpose, Types & Examples
4. What is Scarcity and How it Works?
5. Carriage and Insurance Paid | Full Form of CIP, Features, Working and Benefits
6. What is Individual Retirement Account (IRA) and How it Works?
7. NASDAQ: Full Form, Working and Requirements
8. American Depository Receipts (ADRs): Full Form, Types, Advantages and Disadvantages
9. NASDAQ Composite Index: Measure & Performance
10. What is SPY ETF and How it Works?
11. Financial Engineering: Meaning, Types & Uses
12. Transfer Pricing | Concept, Purpose and Importance
13. Transfer Pricing Methods
14. What Is a High-Yield Savings Account? [July 2023]
15. Decentralized Finance (DeFi) and Challenges to Traditional Financial System

Stock Market

A. Stock

1. How to Invest in Share Market or Stock Market?
2. Blue Chip Stocks: Meaning, Features and Risks
3. Difference between Stock Dividend and Stock Split
4. What is Call Option & How it Works?
5. Bombay Stock Exchange (BSE): Full Form, Features, Functions and Importance
6. National Stock Exchange Fifty (NIFTY): Full Form, Calculation, Advantages and Disadvantages
7. Futures in Stock Market: Futures Contracts & Trading
8. What is Stock Market and How it Works?
9. What are Options and How it Works?
10. What is Paper Trading and How it Works?
11. Primary Market: Functions, Types, Advantages & Disadvantages
12. Secondary Market: Functions, Types, Instruments & Importance
13. What are Dividend Stocks and How it Works?
14. What is Equity Crowdfunding and How it Works?
15. What is Sweat Equity and How it Works?
16. Stockbroker: Meaning, Work, Types & Qualifications
17. Over-Hedging: Meaning, Causes, Effects & Examples
18. Intraday Trading: How to do, Benefits and Risks
19. Top 10 Best Value Stocks in India 2023
20. Penny Stocks | Meaning, Working, Advantages and Disadvantages
21. How to make money from Share Market?
22. Types of Capital Market
23. Multibagger Stocks | Concept, Characteristics and Risk Associated
24. Securities: Types, Investment, Regulation, Examples & Advantages
25. Small-cap Stocks | Meaning, Features and Advantages
26. Difference between Cash Market and Derivative Market
27. Top 10 Best Trading Apps in India 2023

B. Bonds

1. Bonds: Meaning, Types, Categories & Advantages

Schemes, Applications, & Agencies

A. Schemes

1. Atal Pension Yojna (APY): A Complete Guide
2. Equity Linked Saving Schemes (ELSS): A Complete Guide
3. National Pension Scheme (NPS): A Complete Guide
4. Sukanya Samriddhi Yojana (SSY): Features, Eligibility & Benefits
5. National Savings Certificate (NSC) – A Complete Guide
6. Voluntary Provident Fund (VPF) – Interest Rate, Benefits, Limit, Withdrawal Rules
7. Employees’ Provident Fund (EPF) | A Complete Guide
8. Post Office Saving Schemes | Advantages and Documents Required

B. Applications

1. NPCI: Full Form, Objective, Formation & Services
2. NACH: Full Form, Features, Objectives and Benefits
3. ECS: Full Form, Objectives, Types, Merits and Demerits
4. Applications Supported by Blocked Amount (ASBA): Full form, Benefits and Working

C. Agencies

1. NBFC: Full Form, Role, Objectives, Functions and Examples
2. MUDRA: Full Form, Objectives, Functions, Advantages and Disadvantages
3. International Finance Corporation (IFC): Full Form, Purpose & Objectives
4. ESI – Full Form, Registration Process and Benefits
5. CRISIL | Full Form, Functions and Effects
6. SWIFT: Full Form, Functions and Importance
7. FIPB : Full Form, Roles, Functions and Need

Financial Crimes

1. What is Money Laundering and How it is Done?
2. What is Ponzi Scheme and How it Functions?

Frequently Asked Questions (FAQs)

1. What is the importance of financial literacy?

Answer:

Financial literacy involves understanding basic financial concepts and making informed financial decisions. It empowers individuals to manage their money wisely, plan for the future, and navigate complex financial systems.

2. What is a credit score, and why is it important?

Answer:

A credit score is a numerical representation of an individual’s creditworthiness. It reflects your credit history and helps lenders assess the risk of lending money to you. A higher credit score is generally beneficial for obtaining favorable loan terms.

3. How can I improve my credit score?

Answer:

To improve your credit score, pay your bills on time, reduce outstanding debt, and monitor your credit report for inaccuracies. Avoid opening too many new credit accounts in a short period.

4. What is the difference between a debit card and a credit card?

Answer:

A debit card is linked to your bank account, and purchases are directly deducted from your account. A credit card allows you to borrow money up to a certain limit, and you need to repay it by the due date to avoid interest charges.

5. How can I create a budget?

Answer:

Start by tracking your income and expenses. Categorize your spending, identify areas where you can cut back, and allocate funds for savings and debt repayment. Regularly review and adjust your budget as needed.

6. What is the importance of an emergency fund?

Answer:

An emergency fund provides a financial safety net for unexpected expenses, such as medical bills or car repairs. It helps prevent reliance on credit cards or loans during emergencies, promoting financial stability.

7. How does compound interest work?

Answer:

Compound interest is interest calculated on the initial principal and the accumulated interest from previous periods. It can significantly boost savings or increase debt over time. Investments benefit from compound interest, while loans accrue compound interest.

8. How can I start investing if I’m a beginner?

Answer:

Begin by educating yourself about different investment options. Consider low-cost index funds or seek advice from a financial advisor. Start with a diversified portfolio and gradually increase your investment knowledge.

9. What is the rule of 72 in finance?

Answer:

The rule of 72 is a formula to estimate how long it takes for an investment to double in value. Divide 72 by the annual rate of return to approximate the number of years required for doubling.

10. How can I protect myself from identity theft?

Answer:

Safeguard personal information, use strong passwords, monitor financial accounts regularly, and be cautious about sharing sensitive details. Consider using credit freezes and monitoring services to enhance security.

11. What is the difference between a savings account and a fixed deposit?

Answer:

A savings account offers liquidity, and funds can be withdrawn at any time. A fixed deposit (FD) has a fixed tenure, and funds are deposited for a specified period at a predetermined interest rate, providing higher interest compared to a savings account.

12. What is diversification in investment?

Answer:

Diversification involves spreading investments across different asset classes (e.g., stocks, bonds, real estate) to reduce risk. It helps mitigate the impact of poor performance in any single investment.

13. What is the 50/30/20 rule in budgeting?

Answer:

The 50/30/20 rule suggests allocating 50% of income to needs (e.g., rent, utilities), 30% to wants (e.g., entertainment, dining out), and 20% to savings and debt repayment. It provides a simple guideline for budgeting.

14. How does inflation impact savings?

Answer:

Inflation erodes the purchasing power of money over time. If the interest earned on savings is lower than the inflation rate, the real value of savings decreases. It’s essential to consider inflation when planning for long-term financial goals.

15. How can I reduce debt effectively?

Answer:

Create a debt repayment plan by prioritizing high-interest debts first. Consider strategies like the debt snowball (paying off smallest debts first) or the debt avalanche (paying off highest-interest debts first). Cut unnecessary expenses to allocate more towards debt repayment.

16. What is the role of an emergency fund in financial planning?

Answer:

An emergency fund acts as a financial safety net, providing funds for unexpected expenses. It helps avoid financial stress and prevents the need to rely on credit cards or loans during emergencies.

17. How does the stock market work?

Answer:

The stock market is a marketplace where buyers and sellers trade shares of publicly listed companies. Stock prices are influenced by various factors, including company performance, economic conditions, and investor sentiment.