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. [...]
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 [...]
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 [...]
Introduction The Bombay Stock Exchange (BSE) is the first and largest security market in India. It was established in 1875. Based in Mumbai, the BSE lists 6,000 companies(approximately) and is one of the leading exchanges in the world along with the NYSE, NASDAQ, London Stock Exchange Group, Japan Exchange Group, and Shanghai Stock Exchange. There are approximately 6000 companies listed on BSE making it the world's No. 1 exchange in [...]
Simple interest and compound interest – these are the two methods of calculating interest charged on the loans taken, a deposit made in a bank, etc. Well, no matter whether you borrow funds from a bank or Non-Banking Financial Company(NBFC), the interest charge is always attached. So, the borrower needs to know simple and compound interest to make a sound decision. In this blog, we will be discussing the concept [...]
Overview on ULIP Returns ULIP returns stand for unit-linked insurance plans. ULIP is a combination of insurance and investment. Here policyholders can pay a premium monthly or annually. A small amount of the premium goes to secure life insurance and the rest of the money is invested just like a mutual fund does. Policyholder works on investing through the term of the policy – 5,10 or 15 years and collects [...]
Certainly, NRI mutual fund taxation is activated in mutual funds in India – as long as they attach to the Foreign Exchange Management Act (FEMA). A mutual fund in your home country can give you a diversified job with the desired mix of debt and equity securities. Even if you are careful and cautious and want a fixed income investment method, the Indian debt market comes with higher interest rates. [...]
Overview on NPS The National Pension System (NPS), earlier known as the New Pension Scheme, is a pension system open to all citizens of India. The NPS invests the contributions of its subscribers into various money market instruments linked such as equities and debts and the final pension amount depends on the performance of these investments options. Any Indian citizen in the age group of 18-60 can open an NPS [...]
