Equity or stock funds:
Aggressive Growth funds: These funds invest in stocks of fast growing companies or small companies like Internet companies or other type of firms which are new age technology firms. By investing in stocks of small to mid-sized companies these funds attempt long term growth. These companies’ stocks have greater capability than the market but these also have greater risk exposure
Growth funds: By investing in stocks of well known, large corporations, these funds get long term growth. These funds are less changeable than funds that invested in mid and small sized companies they don’t provide as much growth. These funds are stable than aggressive growth funds.

Combined or Hybrid funds:
Growth and income funds: These funds are invested in bonds and stocks. Bonds for their income producing and stocks for growth potential. These funds don’t have high growth potential as growth funds but they tend to be less changeable in price.

Bond or fixed income funds:
Income funds: These funds produce a stable stream of income, generally quarterly or monthly through investing in bonds or other income producing securities. These offer more income and low risk than funds which are invested in stocks or a combination of bonds and stocks.

So according to investor requirements, he can choose any one of these to invest his money to get good returns in future.

Advantages:
a. Fixed deposits are very safe investments which are from reputed banks, because those banks are regulated by Banking Regulation Act.

b. There is an option of receiving regular income by interest rate payments and they may pay every month or quarter. This option is very useful to retired people.

Disadvantages:
a. Company fixed deposits are not safe these are not like bank fixed deposits. You have to lose your money if company goes bankrupt.

b. Fixed deposit doesn’t give you the same returns which may get in the stock market. A stock portfolio may increase 20-30 percent in a year but fixed deposit give only 7-10 percent.

c. A fixed deposit doesn’t give protection from inflation. If inflation increases at the time of maturity of the fixed deposit inflation adjusted earnings will come down.

Rules of personal finance:
Having ability of maintaining money and making proper financial decisions with own common sense and is the first rule of personal finance. Money management and finance are not magic, and not so difficult. Following the others’ advice and developing self common sense regarding money skills is responsible for one’s personal financial growth.

Spending less than earning is the second rule. Setting long term goals for development with good financial habits and discipline, all comes under personal basics. Aiming success with steady focus on minimizing monthly spending and maximizing earnings. This must be steady for life long, by keeping maximum efforts.

Understanding how money works is the next basic rule that is important in life. Understanding the different financial instruments, successful business practices which exist today, investment tools can be done by allotting a little time in life. One should be aware of all the options available in order to maintain good personal finance record.

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The advantages and disadvantages of personal loan are,

Advantages:

• The personal loans do not require collateral and security.
• Banks are always prepared to recommend personal loans.
• The applications for the personal loans are approved with less time.
• Personal loans are provided or offered to people with bad credit.
• The personal loan can be used for educational and holiday purposes also.
• It requires fewer formalities when compared to other loans.
• There is no agent and middlemen while taking personal loan.

Disadvantages:

• Interest rates are very high; it could be ranges from 12 to 30 percent.
• The service charges and repayment penalty are also very high.

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Advantages:

• Professional Management – The primary advantage of funds is the professional management of your money. Investors purchase funds because they do not have the time or the expertise to manage their own portfolios. A mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments.
• Diversification – By owning shares in a mutual fund instead of owning individual stocks or bonds, your risk is spread out. The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains in others. In other words, the more stocks and bonds you own, the less any one of them can hurt you. Large mutual funds typically own hundreds of different stocks in many different industries. It wouldn’t be possible for an investor to build this kind of a portfolio with a small amount of money.
• Economies of Scale – Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than what an individual would pay for securities transactions.
• Liquidity – Just like an individual stock, a mutual fund allows you to request that your shares be converted into cash at any time.
• Simplicity – Buying a mutual fund is easy! Pretty well any bank has its own line of mutual funds, and the minimum investment is small. Most companies also have automatic purchase plans whereby as little as $100 can be invested on a monthly basis.

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• Set a Goal in your mind - This rule is very important for doing each work, not only trading. When you set a clear goal in your mind, your subconscious starts automatically working to achieve that goal. But consider that your goal must be realistic and attainable.
• Losing Trades is Part of Trading - It is important to keep in your mind that losing trades are part of trading. You should learn to feel comfortable when take a loss. However, you should try to get out of losing trades on time; it means that you have to exit of losing trades not very soon and not very late.
• Use Stop Orders - Using stop orders are a must. When you use them, you control and manage your losses. Many people don’t use stop. People who don’t use stop orders, aren’t sure about their prediction and don’t want to accept that they may make mistake.
• Take the Profit - When you got a decent profit, take your profit. A good way is to lock your stop order in profit. This is called trailing stop orders. Trailing stop orders is a good way to prevent losses, in this way when got some profits, trail your stop order to the same price where you got in the market.
• Be Patient - Many traders when lose money in a trade, tend to get the money back immediately in next trade, But this puts them in a bad situation and likely causes them make another wrong decision. After a losing trade, don’t decide immediately to get back the money. Review your wrong trade and try to find your mistake.
• Make your own Rules - Write a list of rules that must to follow them. Loser people trade without any rules. So, write a list of your rules and stick to apply them. Review the rules always, and try to keep them in mind. In bad situations, take a look at the rules and consider whether the rules need to be improved or you forget to use one of them.

Using this investment advice isn’t easy as much as you think. You must try in a regular way to apply this investment advice on your trading strategy.

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The first step will be to withdraw from investment into stock markets. And then hold back cash or invest into some reliable source.

Now let’s analyze what choices did they had to invest. Investment into oil will prove to be a bigger disaster than any thing. Because, when you had a look at the oil price, which once ruled the stock market, has simply burst like any soap bubble. Did any body imagine that the barrel’s price will fell lower than $100? I would have asked somebody to see a psychiatrist if they had said this even 5 months back.

And the very next choice will be gold. It is a terrific choice. You cannot find anything more reliable than gold. Though gold prices were disappointing when times were good, now the prices have raised to a decent level. Now you know why the demand of these metals increased so rapidly.

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Within few days, I will have my paycheck with good amount, and will be easily able to pay for it. But the situation was urgent and I had no option except to go for a payday loan.

I never had any personal experience with payday loans; but was aware of scams going on with respect to payday loans. At the same time, I need the money urgent and I have no time for big formalities.

Then my friend referred me to a firm named My-Cash-Company. It was an online loan provider. I reluctantly applied for the loan through their online application. They contacted me within an hour. Then there were minimal formalities that took not more than a few minutes. Then the cash was into my bank account.

Since then, I am not hesitating to get a loan at any point of time.

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