Debt funds apply 2 strategies to assure higher returns. They are duration strategy and accrual strategy. But both strategies have a vast difference between them. The accrual vs duration funds is all we going to discuss in this blog. Lets first understand what are these funds and what are their strategies. Accrual Funds This mutual fund intends to invest in companies that have a least credit rating but are well-managed. [...]
Asset allocation funds were generated from modern portfolio theory. Modern portfolio theory explains that investors can obtain optimal returns by spending in a diversified portfolio of investments involved in an effective frontier. Moreover, modern portfolio theory describes how a portfolio can change its asset mix to tailor to the risk tolerance of the investor. Introduction to Asset Allocation Funds It is a fund connecting the bonds and equities and that [...]
Introduction to hedge vs mutual funds Hedge vs mutual funds are 2 general pooled investment means, wherein several investors trust their money to a fund manager, who invest the same in various classes of publicly traded securities. A mutual fund is an investment, that allows the investor to invest in a diversified and professionally handled basket of securities, at relatively low cost. On the other hand, the hedge fund is nothing but unregistered personal [...]
We do see these 2 terms as the same meaning the same thing, but in the link with investing in a mutual fund, they have diverse meanings. Global vs International Funds have a basic difference in their investment goals and give investors with various kinds of investing chances. It is up to the investor to conduct due persistence and understand the types of investments all of these types of mutual [...]
Mutual Fund Companies or Mutual Fund Distributors who sell Mutual Funds are required by law to send out a prospectus to their clients. A prospectus contains a lot of information. Such as the fund’s investment objective, strategies, holdings, information on the fund manager, risks, past performance, benchmark information, fee structure, and minimum investment amounts, etc. It can also include any disclosures that the Asset Management Company feels is necessary for [...]
The price-earnings ratio, often known as the PE ratio, P/E ratio or price to earnings ratio, is a market prospect ratio. It calculates the market value of a stock of a company, as relative to its earnings by comparing the market price per share by the earnings per share (EPS). This ratio shows what the market is willing to pay for a stock based on its current earnings. PE is [...]
A Bluechip fund is a term used to indicate investments in stocks of well-established and financially sound companies. These companies have a credible track record with sound financial performance. Along with regular dividend payments and profitability over the years. The mutual funds investing in bluechip stocks or shares are also known as Bluechip Fund. In the market terms, a bluechip is a company renowned by its name, brand or goodwill [...]
What are Assets Under Management (AUM)? Asset under management is all over the market value of assets or capital that a mutual fund keeps. The fund manager handles these assets and takes investment decisions on behalf of investors. AUM is a sign of the size and progress of a fund house. One can easily match its assets under management in multiple timelines and market conditions performed as denied to its [...]
The full form of CAGR is a Compound Annual Growth Rate. It measures the annual growth of an investment over some time. It is used to ascertain and compare the past performance of investments, or to project their expected future returns. An investment that works on the principle of Power of Compounding, is the only investment that lets your investment grow manyfold and build wealth for you. You can say [...]
Understanding asset classes is very important for an investor because when we are putting our money in some financial product, then it will ultimately go to a specific asset class only. An asset class is a particular category of investment such as stocks, bonds, real estate or cash. Investing is a trade-off between risk and returns. Depending on our risk appetite, we choose to invest in a combination of asset classes [...]
