Bitcoin: A Crypto Currency to Keep Your Money Safe in Future

Posted on February 27, 2018Categories General   Leave a comment on Bitcoin: A Crypto Currency to Keep Your Money Safe in Future

 It’s been only 8 years since the digital currency named Bitcoin was invented. In this short span, its staggering rise to prominence has been notable. 2017 was a seminal year for Bitcoin, during which a massive surge in its valuation was witnessed worldwide. It’s evident why this crypto currency is believed to be reshaping the global economy.

Some see this dramatic augmentation is being viewed as a positive sign for the market, but few people have expressed their doubts in this digital currency. According to ET, BTCChina – a Shanghai based Chinese Bitcoin exchange firm, most bodies have stopped trading in crypto-currency, citing tightening regulation as the primary factor. ViaBTC, YoBTC and Yunbi followed suit, announcing similar closures. This brings us to the question: How many of these concerns are really valid?

But before that, let us address a basal concern: What is Bitcoin?

Bitcoin, and How it Works

Invented by Satoshi Nakamoto in 2009, Bitcoin is a kind of a decentralized digital currency which aligns with the rules of cryptography for regulation and generation of units of currency. It’s a completely virtual currency, with no regulations from banks on how it can be stored or moved. This crypto currency can be used for purchase of goods and services online, or you can hold it in the hope of gaining higher value over the years. Bitcoins are traded from one wallet to another wallet.

Bitcoins in India

When INR 1000 and INR 500 lost its value in the famous demonetization ordeal, many people decided to minimize their dependency on the country’s legal tender, which is operated by government. The obvious alternative, the first choice was Bitcoin. This sudden upheaval led to an exponential level of interest being generated in the Bitcoin wave, which helped it gain value in virtually no time.

RBI and the central banks have been skeptical about the use of Bitcoin and its regulations. Currently, no centralized rulebook is in place, and there are no taxes applicable on the purchase of the crypto currency or holding it, unless it is sold or exchanged to avail other benefits in cash or kind.

Soon, the Ministry of Finance would introduce the Bitcoin regulations, in which any crypto currency related dealings will come under the purview of Income Tax Act. If the speculations are correct, then all crypto currencies would be eligible for capital gain taxes. Short-term holdings may incur a tax of 30% on profits, whereas gains from long-term holdings could be taxed at 20%.

The Rise of Bitcoin

When Mr. Nakamoto invented Bitcoin, he described it as an imaginary metal which has one magical property that it can be transported over a communication channel. Money becomes subjective and it will be valued as a medium of exchange. Investors jumped on this and started foreseeing Bitcoin as the first universal currency.

The gigantic rise of this digital crypto currency comes with an exponential increase in a network’s value for each additional participant or layer. Bitcoin has become the preferred brand amongst all crypto currencies available in the market only because it arrived first, like Google in search and Facebook in social networking site.

What’s Next

In the light of recent unbelievable upsurge in valuation, the Bitcoin phenomenon is speculated to be worth $10 trillion in the near future. Many organizations are moving towards crypto currency technology by hiring and motivating programmers and business people to dedicate time and effort in #Bitcoin-related projects. Companies like AngelList are starting #cryptocurrency-specific hedge funds. With so many new technologies emerging, Bitcoin’s market share is expected to be headed in only one direction – up north.

The biggest question perhaps is: Are you ready to take the proverbial leap of faith and start investing in a largely speculative but extremely rewarding construct? The ball is in your court!

 

 

What is a balance sheet and an annual report and how can you read it

Posted on February 16, 2018Categories General   Leave a comment on What is a balance sheet and an annual report and how can you read it

Master the art of reading an annual report by seeking expert guidance

Financial documents are the life-blood of any organization. Understanding them is the first step towards gaining cognizance of a company’s operations. Once you understand your financial position, you are in a better position to make better-informed decisions about your practice.

Some practitioners are more familiar with financial terminology than others. You may choose to scale up your knowledge progressively basis your domain understanding. Monitoring the financial pulse of your practice is a great way to stay cued into changes that might impact the business line you operate in.

Balance sheets and annual reports are key documents that best relay the financial standpoint of a company. So what goes into making them? Let’s revisit the very basics:

Balance Sheet Basics

Your balance sheet (sometimes called a statement of financial position) provides a snapshot of your practice’s financial status at any given point of time. This financial statement details assets, liabilities and equity, as of a particular date. Although a balance sheet can coincide with any date, it is usually prepared at the end of a reporting period, such as a month, quarter or year. This practice helps ledger managers keep periodic track of the company’s resources.

The main formula behind any balance sheet is: Assets = Liabilities + Shareholders’ Equity

Assets

Assets are the things your practice owns that have monetary value. Your assets include concrete items such as cash, inventory and property and equipment owned, as well as marketable securities (investments), prepaid expenses and money owed to you (accounts receivable) from payers. Assets also include intangibles of value, like patents or trademarks held.

Liabilities

Liabilities are a reflection of all the money your practice owes to others. This includes amounts owed on loans, accounts payable, wages, taxes and other debts. Similar to assets, liabilities are categorized based on their due date, or the timeframe within which you expect to pay them.

Owners’ Equity

Owners’ equity (sometimes called net assets or net worth) represents the assets that remain after deducting what you owe. In simplified terms, it is the money you would have left over if you sold your practice and all of its assets and paid off everything you owe.

BSE Institute’s Art of reading an Annual Report

The above were merely the basics of a balance sheet. If you’d like to master this art, BSE Institute’s online ‘art of reading an annual report’ course can help you immensely. This course is designed based on the latest annual reports of many companies to enhance your confidence and make your experience more rewarding when reading and navigating annual reports.

What will I Learn?

You’ll gain sufficient practical knowledge on reading and understanding the Annual Report, Balance Sheet and Income Statements along with references to their related notes in the annual report of companies. Relevant concepts, principles and procedures, such as Double-entry (debit and credit) Accounting will be explained.

Course methodology

The course is conducted via a live webinar session by the faculty, which includes Mr. Shanin Thomas, the Managing Partner at Analyse Wise Investment Advisors. Mr. Thomas has worked as an investment banker with J P Morgan in New York and Mumbai and has worked on major billion $ mergers and acquisitions. He has also been a part of the 4 member family office of Michael Dell, the founder of Dell Computers.

Who can pursue the course?

The course is designed for Investment Bankers, Equity Analysts, Corporate Finance professionals, Mutual Fund, Broking, Houses, Financial Institutions, Equity Trader, Strategist, Consultants, High Net worth Investors, other capital market intermediaries, Students, Retail Investors. Participants will be awarded certificate of participation on completing the course.

In summary

Understanding and analysing annual reports can be an uphill struggle for newbies, especially those hailing from non-finance professionals and for investors of stock exchange-listed companies. Learn to weave past tangles of information and enhance your understanding and analysis of annual reports, by seeking expert intervention and guidance. To learn more about this course, visit bit.ly/2C3HmTN.

Professional Accounting: A shifting perspective and growing scope

Posted on February 14, 2018Categories General   Leave a comment on Professional Accounting: A shifting perspective and growing scope

Across the globe, professional accounting is going through a paradigm shift. While the world’s largest accounting firms have been urged to radically alter their recruitment policies, some of the leading lights of the industry continue to fiercely advocate the use of technology to gain competitive clout and source quality personnel. International Federation of Accountants (IFAC) President Rachel Grimes has endorsed the increased use of artificial intelligence and bots in the professional routines of accountants. She is of the view that the accounting industry need to embrace technology to work smarter and more efficiently.

The BSE Institute, with its thrust on technology, is not too far behind the global wave. It recently became the country’s first state-of-the-art Block Chain Lab in an institution, by signing an MoU with DLT Labs in Mumbai. The collaborative efforts are aimed at providing knowledge-driven and best in class education and training in the field of financial technology, especially Block Chain. It will provide excellent opportunities for students to develop sound understanding of finance, accounting, business information systems, and analytic methods.

The Master of Professional Accounting (MProfAcct) is a professionally accredited accounting programme aimed at graduates of any discipline who want to pursue a career in accounting. This degree helps you thrive successfully in a global environment which is constantly shifting shape and evolving.

Here are some of the course’s standout advantages:

  • Designed by both academics and practitioners
  • Accredited by professional accounting bodies, CPA Australia and Chartered Accountants Australia and New Zealand (CAANZ)
  • Special focus on developing strong technical and professional accounting skills, including communication and analytical skills
  • Open to graduates of any discipline
  • A complete and excellent exposure to Asian financial markets
  • Extensive support provided for Australian Regulatory Stock Brokers Certification Examinations
  • Exclusive support provided for internship with Financial Markets Industry in Australia
  • Training by our experienced faculty members who are renowned market practitioners and experts in their field
  • Support in preparation for a wide range of careers both inside and outside the financial markets industry
  • Experience the feel of live exchange environment
  • Benefits of exposure to two different market functions
  • An opportunity to look at cross border investments and trades

Read more about this unique course offering at bit.ly/2z8KPNE

#BSEIndia #BSE #BSEInstitute #ProfessionalAccounting #FinancialMarkets

What Is Mutual Fund? Is It Worth To Invest In Them?

Posted on February 12, 2018Categories General   Leave a comment on What Is Mutual Fund? Is It Worth To Invest In Them?

Can Mutual Fund really lead to mutual benefits?

Wikipedia defines Mutual Fund as:

“A Mutual Fund is a professionally managed investment fund that pools money from many investors to purchase securities. These investors may be retail or institutional in nature.”

While the classical definition is comprehensive enough, the question that springs to our mind is, what is the hoopla surrounding mutual fund all about? In simple words, we can say that mutual fund gathers money from investors, which is then collectively invested on their behalf. A small fee is charged to manage the money. However, one cannot consider it as a substitute investment option for bonds and stocks, since the pooled funds are invested in bonds, stock and other sort of securities.

Mutual fund help you to fulfill your financial goals. No matter whether you are planning to own a house or car or your child’s education or marriage, mutual fund can provide answers to your financial woes. Further, if you don’t have much knowledge about them, you can take help of experts. Or if you are confident about your knowledge, then you can invest directly by visiting the relevant websites or visit its authorized branches with appropriate documents.

Of course, mutual fund come with their set of pros and cons:

Advantages

  • They provide economies of scale
  • Higher level of diversification
  • More liquidity
  • Professional investors manage it

Disadvantage

  • Investors have to pay different fees and expenses

Also, you have the option to choose mutual fund according to your requirements. The types of mutual fund are listed below:

  1. Fixed income funds 
  • It pays a fixed rate of return as government bonds
  • These bonds are held till its maturity period
  • The main aim of these funds is to offer steady cash flow to investors
  • High-yield corporate bond funds are risky than those funds that hold investment grade and government bonds
  1. Money market funds
  • It is considered as an open-ended mutual fund
  • These are invested in short-term fixed income securities like govt. bonds, bankers’ acceptances, etc.
  • Generally considered as safer investment, but has lower potential return as compared to other types
  1. Balanced funds
  • Balanced funds are invested in fixed income securities and mix of equities
  • They aim to achieve higher returns besides the risk of losing money
  • A formula is followed to divide money among various types of investments
  • They have more risk than fixed income funds and less risk than pure equity funds
  1. Equity funds
  • They are invested in stocks
  • Equity funds aim to grow fast as compared to fixed income funds or money market
  • You are free to choose from the available types of equity funds like income funds, value stocks, small-cap stocks, mid-cap stocks, large-cap stocks or group of these
  1. Specialty funds
  • As the name suggests these funds focus to invest within a certain sector or industry of the economy like socially responsible investing, commodities, real estate, etc.
  • These funds may invest in companies that assist human rights, diversity, etc. avoiding companies which involve tobacco, alcohol, weapons, etc.
  1. Fund-of-funds

Fund-of-funds are also referred as a multi-manager investment

  • Fund-of-funds invest in different funds
  • Before investing in these funds, make sure you are aware of its risk levels and goals. For example, if you have two funds which are of the same type you shouldn’t suppose it to have same risk levels and goals as both will show different results
  • Also, it is advised to have a word with your financial advisor and then decide which one is best for you
  1. Index funds

An index fund is also known as index tracker or exchange-traded fund. It has to follow certain pre-set rules.

  • Index funds track performance of certain index
  • A mutual fund is directly proportional to index. If it will go up the index will also go up
  • These funds have lower cost as compared to those mutual fund which are managed actively and this so because the manager don’t have to do much research or have to make more investment decisions

Do you feel you need academic guidance to gain necessary expertise? Well, you can choose a certificate program on mutual fund to get started. BSE Institute Limited provides a comprehensive certificate program on mutual fund. It aims to:

  • Offer learning opportunity to manage and organise mutual fund
  • If you are a mutual fund distributor, you will get insights and knowledge required to be an informed investment advisor and better agent
  • Help mutual fund employees to understand the complexities and functionality (both internally and externally)
  • If you are an investor you will get knowledge on rewards and risks of investing in mutual fund
  • It helps to equip financial intermediaries like brokers, agents, etc. to pass the AMFI Certification Test

Interested? Visit bit.ly/2nlDfJs to learn more. May this be the beginning of a ‘mutually beneficial’ journey for you!

FinTech emergence and the future

Posted on February 8, 2018Categories General   Leave a comment on FinTech emergence and the future

FinTech: its emergence, percolation and impact on global economy

FinTech is driving the financial service sectors from banking, investment and retail to education and even crypto-currencies today. The term is derived by combining two words: Finance and Technology. Its relevance can be found in most business transactions, from digital money to double-entry bookkeeping. In simple terms, FinTech provides several apps, sites and services, which are designed to help consumers pay for goods, get loans and manage their accounts.

FinTech – its rise in prominence

What has fueled the gradual upsurge? FinTech‘s growth quotient can be correlated with the rise in Big Data and Internet of Things (IoT). Did you know that out of the 2.4 quintillion megabytes data generated in the last decade, 90% of it emerged in the last two years itself? We are surrounded by data points in all walks of our life, from the devices we access to the services we cater to, to everything in between. This phenomenon has forced institutions to revisit their structures and make space for automation. The FinTech wave has gone past its primary strongholds – banking and finance – and penetrated across all industry verticals. This is exactly makes FinTech an undeniable force.

Why FinTech

Earlier, Financial Technology was applied only for the back-end of established and trade financial institutions. With the mobile internet boom, however, FinTech has come to include many technological innovations in personal and commercial finance, providing the ease in the daily transactions for all consumers at large. Almost all FinTech products and services which relied on its branches, salesmen and personal computers are now embracing tech-driven solutions as the new way of life. And why not, after all, they are easy to access and use, and act as ‘perfect assistants’ in helping customer’s make financial decisions. FinTech incorporates many new technologies like machine learning, predictive behavioral analytics and data-driven marketing, which track and analyze the user’s transaction or investment activities and read the current market data to suggest the next move to them.

Where FinTech stands now

As of now, FinTech has become a multi-billion dollar market, with many startups in verticals ranging from stock brokerage, loan and cryptocurrency to healthcare, insurance, digital transaction services and cyber security, jumping on the bandwagon. Some of the innovations that FinTech made popular are seamless digital onboarding, rapid loan approvals and free person-to-person payments.

Future of FinTech

Putting these innovations in perspective, it is safe to say that FinTech‘s future developments will certainly prove disruptive yet constructive. For example, we can already see that e-shopping is growing exponentially, and economies are going cashless. Like the retail sectors, trading platforms and insurance products are luring their consumers to use their data driven tech for making better decisions. Clearly, there is a gradual shift of power from the banking and financial sectors to the organizations which can provide customer services. On the contrary, banking firms have challenged the FinTech firms by becoming technology providers. They utilize PayPal or Square or sometimes, collaborate with shared platforms to enable services. For instance, Early Warning Services – a technology provider owned by Bank of America, BB&T, Capital One, JPMorgan Chase and Wells Fargo – launched the all-new “Zelle”, a person-to-person payments service. The technology, supported by 30 banks, will provide a platform to almost 86 million U.S. mobile banking customers to send and receive payments. Developments like these will help transform markets faster and help bring economic parity.

FinTech have ushered in a new age that can help institutions achieve their monetary and non-monetary goals with greater clarity. The future will reveal whether they can do more good than harm.

$110,000 reasons why New Zealand is the best nation for Finance Executives

Posted on February 5, 2018Categories MBA   Leave a comment on $110,000 reasons why New Zealand is the best nation for Finance Executives

One may wonder how, a country, with a population less than that of Bengaluru, can be the best bet for building a career in Finance? Your query is not unfounded, but there are sound reasons for this statement.

With a population of just 4.7 million, New Zealand is one of the most sparsely populated countries that depends heavily on its exports and its service sector to sustain its economy. With 71% of its population living in urban areas (53% of all people in NZ live in Auckland, Christchurch, Wellington & Hamilton), New Zealand has an abundance of landmass for all kinds of business and trade activities. As an advanced OECD country, NZ is one of the first countries to have any new technology/ innovation tested in its markets.

A small population has allowed successive NZ governments to adopt some of the most liberal, trade friendly policies that make it an attractive option for pursuing business opportunities. New Zealand is one of the most trade friendly countries in the world.

Despite having a small population, New Zealand’s geographic location makes it an attractive hub for investors and manufacturers. New Zealand is located to the east of Australia, which gives it direct access to the lucrative markets of the Americas on its East and the continents of Asia and Africa on its west. Due to its small population, businesses have invested heavily in modern factories that allow them to maximize production with a minimum head count.

Having a vibrant and thriving economy is a major reason for NZ to have a strong services sector, with many of those jobs in banking and financial services. Any major economy needs a strong banking and financial services network which can support it for providing loans, insurance, underwriting services, etc.

Additionally, there are many skilled professionals and freshers who are readily available due to the excellent quality of education that is provided by its Universities. This makes it easier for the organizations to recruit locally & spares them the trouble of moving executives globally (which is quite expensive).

The University of Otago, New Zealand is one of these Universities that are well known for turning out competent professionals consistently year after year. One such course that offers a promising career is the Masters in Finance that is offered in partnership with the BSE Institute Limited. Studying at the University of Otago can really help one secure a coveted job in the Banking & Financial Services sector.

New Zealand offers some of the highest salaries, primarily to Finance Executives. The city of Auckland has the highest average salary in NZ at $71,817/ year. The lowest average salary is $50,230/ year in remoter rural areas.

Coming to Finance, Financial Analysts earn the most in NZ at $110,000/ year. Entry level Banking/ Equity Analysts are paid a staggering $80,000/ year. Entry level Credit Risk Analysts are paid a huge $95,000/ annum.

It’s not just the salary, but also the standard of living that is World class. As an advanced OECD country, New Zealand has one of the highest standards of living in the World. As a country that is always in sync with the latest that the World has to offer, New Zealand is truly a great place to study, learn & earn!