What We Do
Investment
Investment
At Bimano Financial Solutions, we offer a comprehensive range of investment services to help our clients achieve their financial goals. Our team of investment experts has extensive experience and a deep understanding of the financial markets, and we use this expertise to develop customized investment strategies that align with our clients’ individual needs and risk tolerance.
We offer a diverse range of investment products and services, including mutual funds, stocks, bonds, exchange-traded funds (ETFs), and alternative investments. We work with our clients to create a tailored investment portfolio that is designed to optimize returns while minimizing risk.
In addition to our investment services, we provide ongoing monitoring and management of our clients’ portfolios to ensure that they remain aligned with their goals and risk tolerance. We also provide regular reporting and communication to keep our clients informed of their portfolio performance.
At Bimano Financial Solutions website, we also offer a range of educational resources to help our clients understand the investment process and make informed decisions about their investments. Our website features a range of investment-related articles and videos, and we also offer workshops and seminars on a variety of investment topics.
Overall, our investment services are designed to help our clients achieve their financial goals and maximize their returns. Contact us today to learn more about our investment services and how we can help you achieve your financial objectives.
Stocks
A share is a financial instrument that represents the part ownership of a company. A stock is a financial instrument that represents part ownership in one or more organisations. The value of two different shares of a company can be equal to each other. Stocks can be a valuable part of your investment portfolio. Owning stocks in different companies can help you build your savings, protect your money from inflation and taxes,
and maximize income from your investments. It's important to know that there are risks when investing in the stock market. Like any investment, it helps to understand the risk/return relationship and your own tolerance for risk.
Historically, long-term equity returns have been better than returns from cash or fixed-income investments such as bonds. However, stock prices tend to rise and fall over time. Investors may want to consider a long-term perspective for their equity portfolio because these stock-market fluctuations do tend to smooth out over longer periods of time.
Mutual Funds
Mutual Funds are often misunderstood as a complex investment vehicle. However, in reality, they are pretty simple in their investment philosophy and offer investors a host of benefits such as diversification, professional money management, economies of scale, transparency, and liquidity, to mention a few. In simple words, mutual funds are a pool of investments comprising different securities such as equities, debt instruments, and money market instruments, etc.
Advantages and Benefits of Investing in Mutual Funds in India The following are explain about the advantages of mutual funds.
- Liquidity
- Diversification
- Expert Management
- Flexibility to invest in Smaller Amounts
- Accessibility – Mutual Funds are Easy to Buy
- Schemes for Every Financial Goals
- Safety and Transparency
- Lower cost Best
- Tax Saving Option
- Lowest Lock-in Period
- Lower Tax on the Gains
Future & Options (F&O)
What Is a Futures Contract?
A futures contract is an agreement between two parties to exchange a specific asset at a predetermined price on a specific date in the future.
The buyer of the futures contract agrees to purchase the asset from the seller at the agreed-upon price. The seller agrees to sell the asset to the buyer at the agreed-upon price.
Who Trades Futures? Futures contracts are traded by professional traders and investors, as well as individual investors. Mostly, they are traded by institutional investors. Institutional investors refer to a group of investors who have a large amount of capital that they want to invest. They use futures contracts as a way to manage their funds, or as part of asset management strategies.
Mostly, they are traded by institutional investors. Institutional investors refer to a group of investors who have a large amount of capital that they want to invest. They use futures contracts as a way to manage their funds, or as part of asset management strategies.
Example of Futures Contract
An institutional investor may buy a futures contract on wheat. The price of the wheat will be set at the time the contract is bought, and the contract will expire at a specific date in the future. The investor will then need to find someone to sell the contract to if they want to exit their position before the expiration date.
An example would be:
A futures contract to buy 100 bushels of wheat for $5 on April 1, 2030. This means that the person on the other end of the contract has to buy 100 bushels of wheat and sell them at $5 per bushel.
If the price of wheat goes higher than your set price at $5, this would entail a profit because you have purchased the bushel of wheat for less than its price. But, if the price of wheat hits lower than the price you have set at $5, this would be a loss on your part because you have to pay the agreed price at $5 which is higher than the market price.
What Is an Options Contract?
An options contract is a type of derivative security. A derivative security is a financial instrument whose value is based on an underlying asset. Options contracts give the holder the right, but not the obligation, to purchase or sell an underlying asset at a predetermined price on or before a specific date in the future.
Types of Options There are two types of options: call options and put options.
Call Options
A call option is a type of options contract that gives the holder the right to purchase an underlying asset at a predetermined price on or before a specific date in the future. The holder of a call option has the right, but not the obligation, to purchase the underlying asset at the specified price on or before the expiration date.
Put Options
A put option is a type of options contract that gives the holder the right to sell an underlying asset at a predetermined price on or before a specific date in the future. The holder of a put option has the right, but not the obligation, to sell the underlying asset at the specified price on or before the expiration date.
Commodity
What Is a Commodity Market?
A commodity market is a marketplace for buying, selling, and trading raw materials or primary products. Commodities are often split into two broad categories: hard and soft commodities.
Hard commodities include natural resources that must be mined or extracted—such as gold, rubber, and oil, whereas soft commodities are agricultural products or livestock—
such as corn, wheat, coffee, sugar, soybeans, and pork.For spot markets, buyers and sellers exchange cash for immediate delivery of the physical product. In derivatives markets, buyers and sellers exchange cash for the right to future delivery of that product. Oftentimes, derivatives holders will roll over or close out their positions before delivery can happen. Forwards trade over-the-counter and are customized between counterparties. Futures and options are listed on exchanges and have standardized contracts that are more highly regulated.
Currency
Advantages of Forex Market
The biggest financial market in the world is the biggest market because it provides some advantages to its participants. Some of the major advantages offered are as follows:
Flexibility:
Forex exchange markets provide traders with a lot of flexibility. This is because there is no restriction on the
amount of money that can be used for trading. Also, there is almost no regulation of the markets. This combined with the fact that the market operates on a 24 by 7 basis creates a very flexible scenario for traders. People with regular jobs can also indulge in Forex trading on the weekends or in the nights. However, they cannot do the same if they are trading in the stock or bond markets or their own countries! It is for this reason that Forex trading is the trading of choice for part time traders since it provides a flexible schedule with least interference in their full time jobs.
Transparency:
The Forex market is huge in size and operates across several time zones! Despite this, information regarding Forex markets is easily available. Also, no country or Central Bank has the ability to single handedly corner the market or rig prices for an extended period of time. Short term advantages may occur to some entities because of the time lag in passing information. However, this advantage cannot be sustained over time. The size of the Forex market also makes it fair and efficient!
Trading Options:
Forex markets provide traders with a wide variety of trading options. Traders can trade in hundreds of currency pairs. They also have the choice of entering into spot trade or they could enter into a future agreement. Futures agreements are also available in different sizes and with different maturities to meet the needs of the Forex traders. Therefore, Forex market provides an option for every budget and every investor with a different appetite for risk taking. Also, one needs to take into account the fact that Forex markets have a massive trading volume. More trading occurs in the Forex market than anywhere else in the world. It is for this reason that Forex provides unmatched liquidity to its traders who can enter and exit the market in a matter of seconds any time they feel like!
Transaction Costs:
Forex market provides an environment with low transaction costs as compared to other markets. When compared on a percentage point basis, the transaction costs of trading in Forex are extremely low as compared to trading in other markets. This is primarily because Forex market is largely operated by dealers who provide a two way quote after reserving a spread for themselves to cover the risks. Pure play brokerage is very low in Forex markets.
Leverage:
Forex markets provide the most leverage amongst all financial asset markets. The arrangements in the Forex markets provide investors to lever their original investment by as many as 20 to 30 times and trade in the market! This magnifies both profits and gains. Therefore, even though the movements in the Forex market are usually small, traders end up gaining or losing a significant amount of money thanks to leverage!
FD & Bonds
Fixed deposits (FDs) are provisions in which investors invest a fixed sum of money for a specified period to earn a pre-fixed return. FDs are provided by banks, post offices and non-banking financial companies. They offer a fixed rate of interest for a fixed tenure.
At the maturity of FD, the investors are paid the interest and the principal. FD comes with the flexibility of easy withdrawal at any time. However, premature withdrawal is
subject to penalty charges or reduced interest rates. Bonds are a type of debt instrument used by companies and government bodies to raise funds in order to fund ongoing operations, new projects, acquisitions, etc. Bond issuers borrow money from investors for a particular tenure, in exchange for periodic interest payments (monthly, quarterly, or annually). At the time of maturity, the investor is also re-paid the principal amount. The interest rate can be either fixed or floating, based on the terms of the contract between the issuer and the lender. Bonds are generally less risky than equities, making them an important component of a well-diversified investment portfolio. However, they are not entirely risk-free as they carry inflation risk, credit risk and interest rate risk.
Initial Public Offer (IPO)
An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance for the first time. An IPO allows a company to raise equity capital from public investors. When you participate in an IPO, you agree to purchase shares of the stock at the offering price before it begins trading on the secondary market. This offering price is determined by the lead underwriter and the issuer
New Fund Offer (NFO)
Any asset management company launching a new mutual fund in the market can raise capital for the same by announcing a new fund offer (NFO). Similar to the concept of an initial public offering (IPO), details of the portfolio such as the company shares to the purchased, kind of securities to be procured, fund manager, etc. are incorporated in such new fund offers. The fund houses make use of NFOs to raise money from the public to
purchase securities such as equity shares, bonds, etc in the market. Moreover, New Fund Offeringis usually cheaper as it is new to the market. They are often matched compared to Initial Public Offering (IPO) in which investors can purchase shares before getting listed on the exchange. Also, NFOs are marketed quite well which definitely tempts you to not miss it. However, it’s your hard-earned money and you must do thorough research and out in a well-researched judgement before proceeding with the investment.
National Pension Scheme (NPS)
National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme designed to enable the subscribers to make optimum decisions regarding their future through systematic savings during their working life. NPS seeks to inculcate the habit of saving for retirement amongst the citizens. It is an attempt towards finding a sustainable solution to the problem of providing adequate retirement income to every citizen of India.
Under NPS, individual savings are pooled in to a pension fund which are invested by PFRDA regulated professional fund managers as per the approved investment guidelines in to the diversified portfolios comprising of Government Bonds, Bills, Corporate Debentures and Shares. These contributions would grow and accumulate over the years, depending on the returns earned on the investment made. At the time of normal exit from NPS, the subscribers may use the accumulated pension wealth under the scheme to purchase a life annuity from a PFRDA empaneled Life Insurance Company apart from withdrawing a part of the accumulated pension wealth as lump-sum, if they choose so
Corporate Bonds
Corporate Bond funds are debt mutual fund schemes which invest at least 80% of its assets in high rated corporate bonds which can offer high safety. These funds primarily invest in AA+ and above rated corporate bonds or non- convertible debentures. Since these funds invest in the high rated debt securities, credit risk is low, but these funds may be subject to interest rate risks depending on their duration profiles. Usually, corporate bond funds have moderate interest rate risk.
Government Securities
Government Securities are securities issued by Central Government to borrow from financial market to meet its fiscal deficit. Securities are issued for short term as well as long term. Short term securities with maturity less than 1 year are called Treasury Bills. (T-Bills) while Long term securities with a maturity of one year or more are called Government Bonds or Dated Securities.
They are considered as safe investments, as Investors are guaranteed return of both interest and principal, from Government of India. State Development Loans (SDL) are securities issued through RBI on behalf of State Governments to meet their borrowing requirements and form part of the government securities market. SDLs are issued by State Governments to manage their own finances.
Capital Gain Bonds
Long-term capital gain is the gain that is derived out of a sale of an asset (Land or Building) that has been held for more than two years. You can invest the gain in certain specified bonds to claim tax exemption within 6 months of the date of sale of the asset. 54EC bonds, or capital gains bonds, are one of the best way to save long-term capital gain tax arising out of sale a capital asset. The maximum limit for investing in 54EC bonds is Rs. 50,00,000.
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