Why Excel is important for Finance Professionals!

Posted on June 30, 2020Categories Short term programmes   Leave a comment on Why Excel is important for Finance Professionals!

Excel has been an integral part of most companies across the world. Excel is used for different activities by business entities. Some companies use this software for generating memos, tracking sales trends and other business data. One of the advantages of this spreadsheet software is, it has a million rows and it automates number crunching and it can do more than just figures! Excel is easy to understand and also performs basic activities.

Even after three decades, Excel is still the most preferred and used spreadsheet software around the world. The main reason for its popularity is that the user can define custom formulas for calculating quarterly, half-yearly and annual reports. It is a boon for finance professionals as they can create a basic accounting program or checkbook ledger that allows them to keep a track of the organization’s financial transaction.

Small and mid-sized organizations use Excel to carry out their accounting activities. It also has a feature of color-coding which is designed in such a manner that they get automatically updated if there is a change in the schedule of tasks and activities. Every organization today, is demanding an employee who is skilled in Excel or at least know its basics.

If you want to strengthen or learn Excel skills, BSE Institute offers a course on this.

To know more, please visit: http://www.bsebti.com/stp-online/Excel-for-Finance.html

Why you should invest in the Stock Market today!

Posted on June 27, 2020Categories Short term programmes   Leave a comment on Why you should invest in the Stock Market today!

We all know that investing is something we should do, but sadly, less than 1.5% of Indians invest in securities and only 2% invested in equities according to a report. On the contrary, competing economies like China and the United States stand at 10% and 18% respectively.

The preconception about the stock market which most of us have pertains to volatility and the mentality to get drawn towards a ‘get-rich-quick’ scheme. If something is too good to be true, it certainly is. Now, stock indices like SENSEX is not a scheme of any kind. With the technology being so advanced and easy today, almost everyone can invest.

So, if you are scared to invest in stocks, you are wrong! Historically, the market has always grown. To put that growth into perspective, SENSEX reported a +97.31% growth over a 10 year investment period, similarly, the BSE’s Consumer Durables reported a staggering +357% growth over that same period.

But once again the question of safety and security comes into the picture, right?

With equities like Index funds, investing has been made safer. Index funds are the best way to invest for a complete beginner. Overall, investments are more than just a means to make money. You are supporting businesses of your nation by giving your capital to expand their operations. So, if you want to learn how to double your hard-earned money, BSE Institute Ltd provides a course on Investment with the SENSEX. To know more, please visit: https://bsevarsity.com/products/investing-with-the-sensex…

How to manage your Investments amid COVID pandemic

Posted on June 25, 2020Categories Executive Courses   Leave a comment on How to manage your Investments amid COVID pandemic

The social and economic impact of COVID-19 is something unheard of. The market has also been reacting negatively to such news. In such uncertain times, all the investors are wondering what they should be doing next. As per the market experts, in times like this, the investors should think long-term rather than looking at near-term losses.

Whether the market is in crisis or not, an investor has to follow three things. One, he has to be a regular investor. Many people follow Income – Expenses = Savings. However, Income – Savings = Expenses are recommended by the investment experts. That way, you will always have some savings to do on a regular basis. Second, be a long-term investor. It is always the time in the market that makes the money for you. Third, please follow a disciplined asset allocation. Always maintain a balance between equities, debt and real estate. Now, bonds and real estate investments are volatile. But when you combine a portfolio with debt, equity, real estate and commodities, your returns will still be positive or moderate.

It is recommended that you stick to what you are doing and do not tinker too much with your investment right now. If you are a conservative investor, go into large caps. If you are an average investor, go for multip caps. And if you are an aggressive investor, invest in small and mid-caps. If you want to get into the nitty- gritties of Investment management, BSE Institute Ltd offers an Executive course on this.

To know more, please visit http://bsebti.com/…/investment-management-online-course.html

Here’s a quick to way become a Treasurer!

Posted on June 23, 2020Categories Short term programmes   Leave a comment on Here’s a quick to way become a Treasurer!

The corporate Treasurers’s breed has always been considered elite, bestowed with the strategic and efficient management of corporate finance and risk functions. It is no surprise and a known fact that today, the Corporate Treasury evolved to be a fundamental function of the Forex markets.

Digitization has transformed various businesses and Treasury is not aloof from this transformation. The treasuries in India are becoming more technologically oriented, too ensure improved results and enhanced performance of the treasury function.

Globally the markets continue to remain volatile. Stepping up the roles, today’s CxOs and treasurers have reprioritized their priorities and have become the partner in the organization’s overall growth!
In the last few years, India has also observed a serious shift and has become an attractive destination for large-scale shared service centers.

The scope of the treasury in India is flourishing as the MNC’s in India are focusing on integrated Treasury and Trade Finance Management Solution.
If you want to learn advanced treasury in detail, BSE Institute Ltd offers a course on this. to know more, please visit http://www.bsevarsity.com/…/Certificate-Program-on-Advanced…

How to become an expert stock picker…

Posted on June 22, 2020Categories Short term programmes   Leave a comment on How to become an expert stock picker…

Fundamental analysis has always been the best way of stock picking. Some of the most successful investors across the world such as Warren Buffet, Peter Lynch and John Templeton practiced it. Warren Buffet’s company Berkshire Hathaway, over the past 50 years, has compounded their investor’s wealth by 20.9%. In other words, Rs. 1,000 invested in Berkshire Hathaway 50 years back would become Rs. 1.30 crores. Similarly, Peter Lynch, fund manager of Magellan fund Under Fidelity Investment from 1977 to 1990 gave a compounded return of 29.2%.

The phenomenal success achieved by these investors shows that fundamental analysis has been a time tested, proven and the best way of analyzing and picking stocks. Fundamental analysis is not just a term that can be defined in a single line. It refers to a method for the thorough research of a company carried out with the intention of making an investment.

With this method, one can analyze the overall health of a company by analyzing its income tax statements, cash flow, balance sheets and other publicly available data and documents. It can be a great way of investment as it will help you to identify overvalued and undervalued stocks. So if you are interested to learn Fundamental Analysis, BSE Institute offers a course on this. To know more please visit: http://www.bsevarsity.com/Mastering-Fundamental-Analysis-id…

Why traders prefer Swing Trading?

Posted on June 20, 2020Categories Short term programmes   Leave a comment on Why traders prefer Swing Trading?

Do you know which is the best pattern-based technique for part-time traders or beginners? Well, the answer is Swing Trading! In India, most traders are still working in trend following techniques like candlesticks and stock charting. Swing trading is in fact best for retail traders as institutional investors and professional big-ticket traders follow this trading style.

Swing trading is short term strategies to take advantage of price swings, either reversing back to the median or fading a rally. Swing trades last anywhere from one day to a few weeks. The most important characteristic of a swing trade is that these are generally played in the most liquid stocks or indices.

A swing trader intends to capitalize on the point from where the stock will again move in line with the trend. The advantage of this point is that it offers the best risk-reward ratio as well as the optimum use of capital. Swing trading is one of the most rewarding techniques, both-monetarily as well as in terms of developing skills for someone who is keen on making trading either as a full time professional or supplementing their income stream.

If you want to learn the specifics of Swing Trading, BSE Institute offers a course on this. To know more, please visit http://www.bsevarsity.com/effective-swing-trading-strategie…

Commodity derivative trading set for rapid expansion in India!

Posted on June 18, 2020Categories Advanced Marketing   Leave a comment on Commodity derivative trading set for rapid expansion in India!

Despite witnessing a terrible phase internationally due to the pandemic, India is now one of the largest commodity trading markets in the world. Globally, the size of the commodity derivatives market is many times larger than the underlying physical commodity trade. As per reports, the Indian commodity market will generate tons of revenue as well as employment in the near future.

However, SEBI; the share market and the commodity market watchdog has recently initiated several measures to stimulate active trading interests in commodities. Steps like strengthening of exchanges and intermediaries through policy changes, adding new entities like mutual funds and Portfolio Management Service (PMS), has increased the scope of commodity trading in the country. These measures by SEBI has removed the obstacles and made it a viable platform for genuine participants.

These steps have seen a giant leap for commodity market reform which is in line with the transformation witnessed in the Indian stock trading strategy. So, if you want to learn more about Commodity trading as well as currency trading, BSE Institute Ltd offers a course on this. To know more, please visit: http://www.bsebti.com/…/certificate_program_on_currency_and…

India’s Forex trade upsurged to $493.5 billion! 

Posted on June 15, 2020Categories Short term programmes   Leave a comment on India’s Forex trade upsurged to $493.5 billion! 
Even as the pandemic has impacted the stock markets globally and the inflow of funds by foreign portfolio investors, India’s foreign exchange reserves surged $3.43 billion to a fresh all-time high of $493.48 billion by the end of May. During the last week of May, foreign currency assets, an important element of the overall reserves, increased by $3.50 billion to $455.21 billion, RBI stated. The rise in foreign exchange reserves has boosted the value of the rupee against the US dollar and also the transactions in the Bombay Stock Exchange!
Since September 2020, when Finance Minister Sitharaman announced a cut in corporate tax, the forex trading has been rising week-on-week. A sharp decline in global crude oil prices subsequently was a blessing in disguise for the stock market in India during this period. If you are interested to learn about the enthralling Forex Market, BSE Institute Ltd offers a course on this. To know more, please visit: http://www.bsevarsity.com/Capital-Markets/A-Guide-to-Forex-Trading-id-4133016.html

Why you should delve into the world of Applied Finance!

Posted on June 13, 2020Categories Global finance   Leave a comment on Why you should delve into the world of Applied Finance!

An important question for all the people related to finance is how the current pandemic will affect the financial markets in the near future? Research shows that the price will move over the next 12 months and it is worth assessing to withstand the economic shocks and market volatility. So, the people who have a keen interest in applied finance, economy and investments and have an inquisitive and analytical mindset, you can choose a career in finance as it holds a bright scope globally! The world is in need of finance professionals, so if you study finance, you will always be in high demand. With the unique skillset and industry knowledge you’ve built over the years, you’ll be considered a very attractive hire to prospective employees.

Finance is very much a vocational subject that can open many doors to various career opportunities around the world, from financial management or insurance, to commercial banking and hedge funding. Although working in finance can be challenging, but if you get expertise in this field, you can be the highest-paid professional! So, if you want to learn more about Finance and obtain foreign education as well, BSE Institute in collaboration with Western Sydney University offers a course; Masters in Applied Finance! To know more, please visit: http://international.bsebti.com/western-sydney-u…/index.html

Brand investment in times of crisis: “Time to go in for the kill”

Posted on June 10, 2020Categories Education   Leave a comment on Brand investment in times of crisis: “Time to go in for the kill”

By Gabriela Salinas

Global Managing Director, Brand Finance Institute

Wiston Churchill once said, “the farther back you can look, the farther forward you are likely to see.” It is key to understand that there are so many lessons buried in historic crises and we should have them present not to repeat the same mistakes other brands have incurred during past financial crises.

This is why, in this article, we will review some publications and studies that illustrate two lessons:

  • Link between brand investment and brand strength during crises
  • Link between brand strength and business performance during crises
  1. Link between brand investment and brand strength during crises

During times of crisis, many companies resort to systematic marketing spend cuts, without considering the long-term consequences of this action.

The current crisis is no exception. According to an IAB suvery (IAB, 2020), “nearly a quarter (24%) of respondents have paused all advertising spend for the rest of Q1 & Q2.”

But what we are really interested in exploring is why companies systematically cut their investment in Communication at times like this. We can think of many reasons, but I think we can highlight five key reasons that explain this behaviour:

  • Because it´s easier to cut the marketing budget than firing people, for example.
  • Because brands are not considered as long-term assets that require continuous investment to protect their value.
  • Because it is wrongly believed that, after “going dark”, marketing investment can be increased again without any long-term harm. In reality, the problem is that the long-term effect that these cuts can have is not understood.
  • Because, generally, the key communication performance metrics (if any used at all) are not linked to value creation. If the metrics of the marketing measurement system do not explain the profitability of the investments, it is very difficult to justify why the investment should be maintained in times of crisis.

But academic and empirical evidence shows that crises represent the ideal time to take advantage of opportunities in a market in which most competitors are cutting back.

Peter Field (2008) analyzed 880 companies from the IPA database and showed that brands that increase their Share Of Voice (during recessions and boom periods) are more likely to increase their market share. The short-term benefits of reducing budgets in a recession were offset by the drop in long-term profitability (which was most acute after the third year of reduction).

But while some companies cut down on their marketing spend, others have historically gone in for the kill and took the opportunity “steal market share” during financial crises. A.G. Lafley, ex CEO of Procter & Gamble, used to say that at P&G they had “a philosophy and a strategy: when times are tough, we build market share.”

The Drum has recently reported that P&G have committed to continue investing in communications to retain the “mental availability” of its brands (Deighton, 2020). Increased media consumption creates an opportunity to “double down” on brand visibility.

So, the first lesson learned from past crises: maintaining or increasing advertising investment during a recession, increases market share during the recession and the profitability in the long run.

  1. Link between brand strength and business performance during crises

Brand Finance conducted an analysis of the brands that had been most affected during the 2008 crisis in terms of negative impact n brand value (see Figure 1).

Figure 1. Sector Performance During the 2008 Financial Crisis

Source: Brand Finance

Within these sectors, not all brands performed equally. Our analysis reveals that during past crises, stronger brands are consistent winners during a recession (see Figure 2).

In addition to measuring overall brand value, and to understand brand resilience through crises, Brand Finance also evaluates the relative strength of brands, based on factors such as marketing investment, familiarity, loyalty, staff satisfaction, and corporate reputation. Alongside revenue forecasts, brand strength is a crucial driver of brand value. Brand Finance has tracked how brand values have fluctuated during the three major economic downturns experienced in 2009, 2012, and 2016.

 

The key take away of this long-term analysis is that strong brands, as measured by Brand Finance, perform better during crises, across all sectors. Considering brand strength, over the period from 2008 to 2019, the Consistent 100 Fallers have average Brand Strength Index (BSI) scores of 66 while the Consistent 100 Winners have average BSI scores of 72.

Figure 2. Average Brand Strength of Consistent Winners and Fallers in Time of Crisis

Source: Brand Finance

Two key learnings

En definitiva, invertir en comunicación (entendida en un sentido amplio, no sólo como inversion publicitaria) es rentable, porque aunque pueda impactar negativamente la rentabilidad a corto plazo, incrementa la fortaleza de marca, y de este modo, impacta positivamente la rentabilidad de largo plazo. El mecanismo es simple: invertir en marca incrementa la fortaleza de marca, y la fortaleza de marca está positivamente relacionada con el desempeño financiero de las compañías.

In short, investing in communication (understood in a broad sense, not only as an advertising investment) is profitable. Although it may negatively impact profitability in the short term, it increases brand strength, and thus, positively impacts profitability in the long term. The mechanism is simple: investing in marketing increases brand strength, and brand strength is positively related to the financial performance of companies.

As The Economist recommended back in the 2008 crisis, “it is time to go in for the kill.”

About the author

Gabriela Salinas es Global Managing Director of the Brand Finance Institute. Gabriela is a Global Managing Director of the Brand Finance Institute. She has a broad international experience, having worked for clients such as Bank of America, Repsol, YPF, Telefónica, Terra Networks, Bausch & Lomb, Johnson & Johnson, Roca, GM, Great Eastern Life. In addition to her everyday work, she lectures on Brand Valuation, Management and Strategy at several business schools in Europe and Latin America. Gabriela has written numerous academic articles and books on brand valuation, among others: “Brand Valuation: a review of approaches, providers and methodologies” (2007, Deusto, Spain), “Brand Valuation: measuring to create value” (2008, Deusto, Spain) and “The International Brand Valuation Manual” (2009, Wiley, United Kingdom).

 

References