how is the FDI $ FII best explained and its contribution to the indian economy?
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BY GROWING OF INVESTMENT IS MAIN ECONOMICAL ANSWER.TO GROW YOUR COUNTRY ECONOMY. FDI CONTRIBUTION DEVELOPED AND CAN EXPLAIN OTHER ECONOMICAL PROBLEM AND CONFLICT.IT GIVE MORE SPEED OF ECO DEVELOP RATE AND MORE COMPETITIVE .IT GIVE ADVANCE FOR DEVELOPING COUNTRY. SO, MANY COUNTRY OF THE WORLD INVITE FDI.
151876
Software industry is like turbo for the economic engine of the country. Its almost like an after burner in a rocket. It gives an impetus to the growth levels. The reason India's growth rate is going to touch double digit is because of the solid and growing Software industry.
146902
this will explain the economy.\nhttp://www.philipdru.com/griffin3_stream.html
754152
Try link: \nhttp://www.tribuneindia.com/2002/20020517/biz.htm .\n\nor\n\nhttp://mutualfunds.about.com/od/mutualfundfraud/ .\n\nIt might be of some help.
997933
If compound interest is so simple that it is taught in high school, how come it took Albert Einstein, arguably the greatest scientist in the world, to call it the 8th wonder of the world?\n\nWas it to remind us that we forgot about a magic theory? Really, understanding compound interest is very, very difficult. The human mind does not comprehend such growth so easily. We in our physical selves have a simpler type of growth. So we do not comprehend compounding of growth. A few old, really old stories might just help.\n\nLet us start with the famous story of the Persian emperor who was so enchanted with a new 'chess' game that he wanted to fulfill any wish the inventor of the game had. This inventor, a mathematician, decided to ask for one seed of grain on the first square of the chessboard doubling the amounts on each of the following squares.\n\nThe emperor, at first happy about such modesty, was soon to discover that the total yield of his entire empire would not be sufficient to fulfill the 'modest' wish.\n\nThe amount needed on the 64th square of the chessboard equals 440 times the yield of grain of the entire planet. Just try converting into money in any currency and you will realise the importance of compounding.\n\nA similar analogy is that one penny invested at the birth of Jesus Christ at 4% interest would have bought one ball of gold equal to the weight of the earth in the year 1750. In 1990, however, it would buy 8,190 such balls of gold.\n\nAt 5 per cent, interest it would have bought one ball of gold by the year 1466. By 1990, it would buy 2,200 billion balls of gold equal to the weight of the earth!\n\nThe example shows the enormous difference 1% makes. It also proves that the continual payment of interest and compound interest is arithmetically, as well as practically, impossible.\n\nJust see what a difference it would have made if your great grandfather had invested in a bank fixed deposit only Rs 100 say 150 years back. What it would have grown to?\n\nHere is a dream sheet. See for yourself. Imagine Rs 100 is invested and it grows at 10 per cent every year.\n\nColumn 2 is what it will grow to if it was held for the number of years in column 1. So if your great grandfather invested Rs 100, 150 years ago, you would have inherited Rs 16 crore (Rs 160 million).\n\nNo. of years it is invested for:\nWhat it would grow to\nin Rupees:\n\n1  110\n\n5  161\n\n10  259\n\n15  418\n\n25  1,083\n\n50  11,739\n\n100  1,378,061\n \n150  161,771,784\n\n200  18,990,527,646\n\n300  261,701,099,618,845\n\n400  3,606,401,402,752,540,000\n\n500  49,698,419,673,124,400,000,000\n\n\nSo what is the learning from this sheet? Even a 1 per cent difference can make a mountain of a difference, but the greatest difference is made by the number of years the money remains untouched. That is the key.\n\nFor those more mathematically inclined, I state below the formula:\n\nVn = Vo * (1+r)^n\n\n'n' in the compounding formula is the number of times the amount is compounded.\n\nBut for practical purposes if you take that as the time for which you stay invested in an instrument, you would not be too wrong either.\n\nWhat it means is that:\n\nThe amount of money that you require (Vn) is equal to the amount invested today (Vo) multiplied by [1+ interest rate (r)] raised to the number of times the amount is compounded (n).\n\nIn this formula you as a client can control how much money you want at the end of the waiting period (Vn), how long the money can be invested (n), and how much money you can invest today Vo.\n\nInstead of worrying about 'r', just start investing. That is the key.\n\nTakeaways:\n\nStart investing early.\nDo not touch the amount for a long time.\nDo not keep jumping from one investment instrument to another.\nLet the power of compounding work for you. It would have worked for your grand-dad, dad and you. If they knew it, great. If they did not, you can start the line. At least your grandchild will pra
669999
India because it has both Americans and Indians investing in it.
591275
I think a lot of steam is left in Indian Stock Market..We have seen the tremendous "Bull-Run" in past few months..I believe its not just the charge of Bulls, but it has a fundamental base as Indian Economy is growing in all the sectors and not just limited to IT in which we still have command over the world..Now the whole world is watching India as a great opportunity..However we have stiff competitions from China in some sectors..but still India has a great future ahead..\nHowever at this point of time one need to be very careful regarding Stock Market..we may see some corrections but again one should use that as opportunity..At present buying is happening not only from FIIs but our own Indian Institutional Buying is making a lot of difference..n also retail investors have a great share of it..Huge buying by Mutual funds has also boost up a lot of confidence in the market..time to time actions taken by SEBI (as recently in DMAT scam) has also played a great role to boost the confidence of the investors..\nSo be cautious, move with the steam of market n use the opportunity carefully..Indian Stock Market has a long way to go..
18933
The cash flow return on investment (CFROI) for a firm is the internal rate of return on existing investments, based upon real cash flows.\n\nThe cash flow return on investment for a firm is calculated using four inputs:\ni) Gross investment (GI) the firm has in its existing assets, obtained by adding\nback cumulated depreciation and inflation adjustments to the book value. \nii) Gross cash flow (GCF) earned in the current year on gross investment, which is usually defined as the sum of the after-tax operating income of a firm and the non-cash charges against earnings, such as depreciation and amortization\niii) Expected life of the assets (n) in place at the time of the original investment\niv) The expected value of the assets (SV) at the end of this life, in current dollars, is the final input.\n\nThe CFROI is the internal rate of return of these cash flows, i.e, the discount rate that makes the net present value of the gross cash flows and salvage value equal to the gross investment.\n\nFor a simplified CFROI valuation model, check out http://www.exinfm.com/excel%20files/cfroi_holt.xls, which has a spreadsheet.
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Investing directly in production in another country, either by buying a company there or establishing new operations of an existing business. This is done mostly by companies as opposed to financial institutions, which prefer indirect INVESTMENT abroad such as buying small parcels of a country's supply of SHARES or BONDS. Foreign direct investment (FDI) grew rapidly during the 1990s before slowing a bit, along with the global economy, in the early years of the 21st century. Most of this investment went from one OECD country to another, but the share going to developing countries, especially in Asia, increased steadily.\n\nThere was a time when economists considered fdi as a substitute for trade. Building factories in foreign countries was one way of jumping TARIFF barriers. Now economists typically regard FDI and trade as complementary. For example, a firm can use a factory in one country to supply neighbouring markets. Some investments, especially in SERVICES industries, are essential prerequisites for selling to foreigners. Who would buy a Big Mac in London if it had to be sent from New York?\n\nGovernments used to be highly suspicious of FDI, often regarding it as corporate imperialism. Nowadays they are more likely to court it. They hope that investors will create jobs, and bring expertise and technology that will be passed on to local FIRMS and workers, helping to sharpen up their whole economy. Furthermore, unlike financial investors, multinationals generally invest directly in plant and equipment. Since it is hard to uproot a chemicals factory, these investments, once made, are far more enduring than the flows of HOT MONEY that whisk in and out of emerging markets (see DEVELOPING COUNTRIES).\n\nMERGERS AND ACQUISITIONS are a significant form of FDI. For instance, in 1997, more than 90% of FDI into the United States took the form of mergers rather than of setting up new subsidiaries and opening factories.
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Advisor to the finance minister, Mohan Guruswamy, has come up with a new angle to the 224-point crash in the Sensex on Monday. According to him, a foreign mutual fund had sold stocks to the extent of Rs 100 crore, which could have triggered the fall.\nOn the other hand, the Securities and Exchange Board of India (SEBI) has decided to probe the stock crash on Monday and the role of a bear cartel in pulling down share prices. SEBI officials said a bear cartel might have engineered the crash which created panic in the market.\n\nSpeaking to reporters after attending a presentation on Sebi, Guruswamy denied that his visit to the commercial capital had anything to do with the Unit Trust of India (UTI). He did not identify the name of the FII which sold stocks on Monday.\n\n"This visit was planned over two weeks back to familiarise myself with Sebi's functioning. I have not even talked to the UTI chairman, leave alone visit him. Regarding Sebi, they seem to be doing a good job. The idea was to beaware of the issues and see how they could be further empowered," said Guruswamy.\n\n"There does not appear to be any crisis in UTI. The fall could have been owing to a foreign mutual fund selling almost Rs 100 crore on that day. This aspect should also be looked into," he said. "One does not know why the media is making so much out of this. There does not appear to be any crisis," Guruswamy added.\n\nMeanwhile, the regulatory body Sebi also woke up saying that it might probe the Monday's crash. ``We want to know which FIIs and the role of bear cartels in pulling the markets down by 224 points,'' said a top SEBI official.\n\nBSE officials say that they have received a communication from the SEBI asking it furnish details of large scale trades executed by institutions as well as individuals on Monday. The figures were sought from the exchanges by today itself. A similar communication has been sent to the other stock exchanges, including National Stock Exchange (NSE).\n\n``We want to know who are the heavy sellerson Monday. There could be a concerted attempt by some market participants to pull down the market,'' officials told this newspaper.\n\nOn Monday, the market was agog with rumours that FIIs sold stocks worth Rs 200-250 crore. However, the official figures released by the two exchanges, BSE and NSE, shows that FIIs sold stocks worth Rs 136.7 crore only.\n\nMorgan Stanley, Capital International, Kleinwort Benson and Schroeders were among the funds rumoured to have pressed huge sales at the counters of Reliance, Satyam Computers, HLL, SBI, Bhel, BPCL, HDFC and ITC on Monday.\n\nSebi is looking at details on the role of institutions on that day as foreign institutional investors had dumped stocks in excess of Rs 100 crore on that day. Of this, unconfirmed reports say that figure for a US-based FII could be as high as 90 per cent of the total amount. ``A bear cartel deliberately planted stories in a section of media to make quick money. A probe will certainly bring out the truth,'' SEBI officials said.\n\nSebi is alsokeen to find out to what extent the fall could be attributed to developments at UTI when FIIs themselves had sold so heavily. This aspect would could be looked only once the details of the high traders on that day have been scrutinised.\n\nCopyright © 1998 Indian Express Newspapers (Bombay) Ltd.
663165
If not exactly, yes they are interelated, reason being, that when Fed hikes interest rates people tend to put money in the local interest earning instruments because of low risks (Obviously) and Better&Assured returns (Due rise in interest rates) consequently the money flowing towards indian equity/capital markets, in pursuit of higher returns, gets diverted towards american money markets because of more security.\n\nThe above one is a general view, if we look in particular, the real effect comes from lowered consumption caused in the domestic markets of america, because people tend put more money in savings in pursuit of higher returns over period of time. \n\nThis fall in comsumption in the largest consumer market in the world may cause disturbances in other countries India and especially China (For whom america is the single largest for its cheap low quality goods, due openness of the  american markets) due to this corporates may take a blow and sensex falling down is just a reaction to it.\n\nI would like you to note that a hike in FED has a more Global effect than the hike in indian or any other countries rates. \n\nThis is one topic on which you can write & write & write as much as you can so i wont bore further but rather leave it to you to deduct the further consequences.
775445
The growth of an economy can come from two sources.  Government investment or entrepreneur investment.  Although government investment can facilitate economic growth as in building new roads and water supply systems many times government development money is not put to the best economic use because that development money is dictated not by best use but by political and self interest considerations. \n\nEntrepreneur investment on the other hand tends to be much more efficient in promoting economic development because the main consideration in that investment is only return on investment.  The investment tends to gravitate toward where it can make the highest return and thus generate the highest economic benefit to the economy.  \n\nThat is why free market economies tend to outperform planned economies in general, because the free market tends to know better where the highest economic returns are located whereas the planners tend to funnel investments for their own personal interests.
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Every other how Globalizatin is affecting India and U.S\n                   \n                        INDIA\n1) Stock Market: - Because of Globalization, FII's And FDI's are investing in our country in a huuge way, this leading to a boom in the stock market and strenghthening our economy.\n2) Higher Standard Of Living: - With multination companies coming in India after Globalization our living standard has risen due to better products being provided by them at nominal rates.\n3) More Employment: though our unemployment rate is still high, but as multinational companies are able to set up there offices over here, they are able give good job oportunities and are creating more jobs.\n\n                          U.S\n1) Offshoring of business: - Due to globalization, many of the U.S Busineses are being offshored to various other countries where there are cheap labour, as labour in U.S is very expensive.\n2) Reduction In Job Opportunity: - It can be logically followed from the first point that due to offshoring of business, the job opportunity in U.S have reduced considerably.\n3) Brain Drain: - Though businesses are being offshore to other countries, still there are a few jobs for which one has to go to U.S to achieve his/her dreams. Jobs related to astronomy is a example. People who need better infrastructure for their jobs are shifting to U.S.\n\nThere you have your answer.
1173688
You'll find plenty of interesting and relevant info. from this link. Just scroll down to Article links.\n\nhttp://www.wholesalecentralair.com/newsletters/Fibonacci_series.htm
205291
I'm no expert but I did a degree in Business and have read a lot of international development literature...\n\nFirst I would ask if financial wealth is the important thing - and if so, when is a country seen as wealthy? If you look at GDP this doesn't show the distribution of wealth very well.\n\nMany richer countries have progressed up the ladder from mainly primary to secondary to tertiary to mainly service jobs. Now in the UK for example, the banking area is well known and a lot of money comes out of this service industry, whereas before many people were employed in coal mining or manufacturing.\n\nIn other countries they may rely more on agriculture and mining and use their land in this way. What I would say is that it's probably a long road between relying mainly on land for your income and relying on knowledge services for your income. Many rich countries including England, France, and the USA progressed through the different stages by exploting human labour of other people (slavery, and colonisation for example), but now want to deny countries such as China their desire to attack human rights in the name of creating wealth.    \n\nIf I was a small country, I'd find my biggest asset, make the most of it and try to become self-sufficient. I would work first on infrastructure, primary health, primary education, stopping internal conflict, and increasing awareness of diseases if I was susceptible to that. I would look at building long term diplomatic relations with neighbouring states, and make decisions about who I want to ally with strategically.\n\nThis could have been a one sentence answer but I felt like writing. Good luck!
1105276
You will have to do the AMFI certification exam..\n\nvisit www.nseindia.com and go to NCFM section where u will have details on AMFI\n\nDistribution of MF is a good business provided u have large investor base and some HNI clients, else i am not sure if the commission u will receive would be worth the efforts.
241899
Totally disagree with taran goyal. Valuation of a mutual fund's NAV never depends on what's happening in the holding company but on what's happening in those companies/sectors where the mutual fund has made its investments.\n\nAtleast 10 of Reliance MF schemes are doing very well, top ones being Diversified power sector, growth, equity opportunities, media & entertainment, vision, index sensex and pharma. Then the newly launched Equity fund NFO has been the most successful NFO of all time in India in terms of highest collections during NFO period (Rs. 5000 crores).\n\nThe AMC is using some experienced brains out there.. See if you can use yours :)