The Department of Commerce & Management organised a Buddy Session on ‘Practical Aspects of Personal Financial Planning’ for the students of the subject in the SY B.Com class. The session was conducted by three students of the class; Parag Naik Dessai, Gopal Poy Raiturcar, Vishal Ajarekar, who have been actively investing in the stock market for the past year. The session was conducted on 3rd September 2024 at 10.45 am in Classroom No. 201 under the guidance of the faculty in-charge Asst. Prof. Sheryl Sanches.
The session covered various practical aspects in personal financial planning, including investing in the Indian stock market, understanding equity shares, mutual funds, Initial Public Offerings (IPOs), and Exchange-Traded Funds (ETFs).
Vishal Ajarekar explained the fundamentals of investing in the Indian stock market, focusing on its benefits. He emphasized the importance of understanding the difference between ‘cheap’ money (FD interest) and ‘expensive’ money (inflation). Vishal also explained the concept of compounding, which makes investing in the Indian stock market even more powerful. Additionally, he discussed ETFs and their various forms, including index ETFs, sector-specific ETFs, commodity ETFs, bond ETFs, thematic ETFs, international ETFs, and currency ETFs.
Gopal Poy Raiturcar explained the concept of equity shares, its benefits, and key considerations for investment, such as business performance, PE ratio, and financial statements. He also used website www.screener.in to explain the concepts. He advised new investors to avoid futures, options, and day trading, as well as misleading online information. Gopal also showcased the process of purchasing shares and starting SIP and lump sum investments in mutual funds.
Parag Naik Dessai covered procedure and requirements for opening a Demat account, including necessary documents like PAN, Aadhaar, and bank details. He discussed the various types of mutual funds, including types such as small, mid, and large-cap funds, and debt funds. Parag discussed IPOs, including application processes and types, sharing his personal experience.
Overall, the session aimed provide the participating 29 students (12 male, 17 female) with practical insights and guidance on personal financial planning, investing, and navigating the stock market.
Expected Outcome of the Activity:
The Buddy Session was conducted with the objective of motivating the students to begin investing in mutual funds or in the stock market from a young age. The students are expected to open a demat account and make a minimum investment to gain practical understanding and experience in personal financial planning.
