FLAME Newsletter - May 14, 2014


"Insurance is just another financial instrument amongst many others. Do not evaluate insurance as an ‘either-or’ option but as an important component of your financial portfolio. If nothing else be adequately protected" — Yateesh Srivastava, COO, Aegon Religare Life Insurance


Know the basics of commodity trading

Commodities are actual, tangible products or goods which can be physically stored. Gold, cosmetics, books etc. are some of the examples for commodities. Investing in them with a commodity trading company is called commodity trading. Many investors make quick money from it by putting in any minimal capital they wish to invest.

Some experts suggest that commodity trading is not for regular investors. It is risky to some extent but if you are careful and can control your greed, it can be safe enough and work for you like any other investment option. You need to determine your risk appetite and not directly aim for high returns in order to lower the risk.

In commodity trading, you do not actually own any commodity. The process is is to bet on the future price of a particular product depending on global and domestic demand-supply situation, weather, output etc. If you think that price of a product will rise in future, you can buy it now and sell when the price is high. When you think the price is going to go down then you may sell it... Read more

Understanding concept of online commodity trading

Broadly speaking, commodity trading is an activity which involves investing/trading in commodities. It is similar to stock trading but instead of buying and selling shares of companies, a trader buys and sells commodities. Commodities traded are often goods of value, consistent in quality and produced in large volumes by different suppliers such as wheat, coffee and sugar. Trading is affected by supply and demand, thus, limited supply causes a price increase while excess supply causes a price decrease. Therefore, the process of commodity trading is directly or indirectly affected by the demand and supply in the market.

Commodity trading is an investing strategy wherein goods are traded instead of stocks. Commodities can be traded on a spot level or on the futures exchanges as futures contracts. A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. A commodity future contract is a future contract which has a commodity as underlying asset. A commodities exchange is an exchange where various commodities and derivatives products are traded. If you take a look at a typical trading platform, you will see commodities listed as tradable contracts. Commodity trading is not limited to a particular exchange... Read more


What is Forward Markets Commission?

Rules are part of everyday human life and we find them in schools, at work place, and in general society. Rules are like guidelines, and help people to understand what is acceptable and what is not. Without rules, the world would probably be chaotic.

Similarly, our financial system is also regulated by independent regulators in the field of banking, insurance, capital market, commodities market and pension funds.

The Reserve Bank of India regulates the banking system, while Securities and Exchange Board of India (SEBI) regulates the securities market. The Insurance Regulatory and Development Authority (IRDA) regulates the insurance sector... Read more


Golden Crossover

A crossover involving a security's short-term moving average (such as 15-day moving average) breaking above its long-term moving average (such as 50-day moving average) or resistance level. As long-term indicators carry more weight, the Golden Cross indicates a bull market on the horizon and is reinforced by high trading volumes. Additionally, the long-term moving average becomes the new support level in the rising market. Technicians might see this cross as a sign that the market has turned in favor of the stock. — Investopedia  


MF assets at a new high: CRISIL  

MFs offload equities worth Rs. 3,890 crore in March

Pay IT dues in advance at RBI, bank branches


FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.

In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country. IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.

Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.

This portal is but one of the various IIFL initiatives that would be part of FLAME.

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