Scratch of Fund Accounting! - what a regular investment looks like
In the world of investments a fund manager can use a number of instruments to invest the client's funds, here are a few- Preferences by popularity and exposure - 1. Equity (Shares) 2. Mutual Fund/ETF 3. Bonds 4. Derivatives (Futures & Options) Will start with Equity investment! When we buy a company's stock, we become a shareholder of that company because we have ownership (or a share) in it. So whenever we trade any stock, the broker will send us the contract note after the market close which contains all the stocks bought by us along with the quantity, cost and price Take a look below - it is a contract note and see the highlighted figures- First you see the name of the stock, followed by the transaction type (buy or sell), volume, gross price, brokerage per share and net price before taxes. And lastly we can see the taxes imposed like STT and GST etc. So here we need to understand two things- Gross Cost and Net Cost, l