Meaning of Mutual Funds A Mutual fund is a trust that attracts savings which are then invested in capital markets. A Mutual fund is an investment vehicle for investors who pool their savings for investing in diversified portfolio securities with the aim of attractive yields and appreciation in their value.Read More →
Investment: It refers to the employment of funds on assets with the aim of earning income or capital appreciation. It has two attributes i.e. Time & Risk. It is essentially a sacrifice of current money or other resources for future benefits. Speculation – It involves taking calculated business risks forRead More →
Portfolio construction refers to a process of selecting the optimum mix of securities for the purpose of achieving maximum returns by taking minimum risk. A portfolio is a combination of various securities such as stocks, bonds and money market instruments. Diversification of investments helps in spreading risk over many assets;Read More →
The Efficient Market Theory states that fluctuations in price of a share are random and do not follow a regular pattern. Hence, the amount paid for a stock or security and the return when discounted based on the amount of risk it involves will give a Net Present Value equalRead More →
A derivatives market is a market where derivatives are bought and sold by investors. Derivative A derivative is a financial contract, the value of which, is derived from an underlying asset (share, commodity, currency, security etc.). If the value of underlying asset declines the value of the derivative also decreases andRead More →
An investor conducts fundamental analysis and technical analysis to predict the future price movements of securities by analyzing the Economic factors, Industrial factors and Company specific factors. Various economic, industrial and company specific factors can have a direct bearing on prices of securities. A fundamental analysis helps an investor to understand theRead More →
Technical analysis is conduct by an analyst to study the price movements of stocks in the security market. An investor buys securities when there is an upward price movement and sells securities when there is a downward price movement. Technical Analysis is the process of identifying trend reversals at anRead More →
Risk – It refers to the degree or probability of loss in the future. Causes of Risk Wrong decision or Wrong timing Term of Investment – Long term investments are more risky than short-term investments as future is uncertain. Level of Investment – Higher the quantum of investment the higherRead More →
Stock Market Indices are the barometer of the stock market which mimic the stock market behaviour and help to determine the upward and downwards movements in the stock market. The Stock Market Indices give a broad outline of the market movement and also represent the market. As it is notRead More →
Investment refers to employment of funds on assets with the aim of earning income or capital appreciation.It is essentially a sacrifice of current money or other resources for future benefits.There are various Investment Alternatives available with an investor. An investor has to carefully choose between different investment alternatives like negotiable securitiesRead More →
Securities refer to an investment that can be freely traded in the market and provides a right or claim on an asset and all future cash flows generated by that asset. According to Securities Contracts Regulation Act, 1956, “securities include shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities ofRead More →