Over the past few years, Exchange Traded Funds (ETFs) seem to have been adopted by many Indian investors since they provide exposure to broad segments and sub-segments of Indian markets. ETFs are the funds that trade on exchanges, generally tracking a specific index. ETFs provide investors with exposure to broad
Large cap, Mid cap, and Small cap are categories used to classify companies based on their market capitalization. Market capitalization (market cap) can be defined as the market value of all the company's shares, calculated by multiplying the total number of Company’s outstanding shares by the current
An Exchange Traded Fund, popularly known as an ETF is a passively managed investment. Unlike traditional mutual funds, ETFs are traded on stock exchanges like other stocks. This means that their price fluctuates throughout the trading day as they are bought and sold. What are Exchange Traded Funds (ETFs)? An
Mutual funds may be considered as a mechanism to take exposure to the stock market. It offers an opportunity to invest in a diversified, professionally managed basket of securities. In this article, we will break down two of the commonly known categories of mutual funds - equity and debt funds.
The full form of TREPS is Tri-Party Repo Dealing System which means a repo contract where a third entity (apart from the borrower and lender), called a Tri-Party Agent, acts as an intermediary between the two parties to facilitate services like collateral selection, payment and settlement, custody and management during
Asset Allocation Asset allocation can be defined as a process of investing in a range of assets or investments in order to diversify and reduce the risk of the overall portfolio. Hence an investor may try to balance risk versus return by using a combination of different asset categories keeping
What is Total Expense Ratio (TER) in Mutual Funds Total Expense Ratio or Expense Ratio in Mutual Funds is the measure of the total cost of investing in a mutual fund to the investor. It can also be defined as the total fees charged by the asset management company (AMC)
What are Index Funds? Index Funds are investment funds that follow a benchmark index. They aim to mirror the overall performance of the underlying index. When an investor puts money in the index fund, the said amount will be then invested in all the companies that make a particular index
What is XIRR in Mutual Funds? XIRR, also known as Extended Internal Rate of Return, is an essential tool for figuring out how well your investments are doing, especially when money is deposited and withdrawn at different intervals. XIRR may be a complex term that helps you calculate the annualized
Entry and Exit Load in Mutual Funds Asset Management Companies may collect a charge from investors when they enter or exit a mutual fund scheme. That is, each time one buys or sells units in the mutual fund, a charge will be payable and this charge is of two types
One of the top queries1 of the investors is around the date and the frequency of doing SIP investments. Many investors believe that a particular day of the month, or a particular frequency can help them optimize their investment returns. But is it really the case? Let's dive
Gold - viewed as a valuable commodity has played an important role in portfolio diversification. Let’s look at a few factors that affect gold prices. 💡Did you know? [1] More than 75% of the households agreed to be owning gold in some form or another 1. Central Bank Buying:
What is Net Asset Value (NAV) in a Mutual Fund? One of the most fundamental concepts to understand while investing in mutual funds is NAV which stands for Net Asset Value. This is the value assigned to every mutual fund unit that investors buy. Before we break down the concept
What is an AMC The full form of an AMC is Asset Management company. In the finance world, an Asset Management Company (AMC) is a Securities and Exchange Board of India (SEBI) registered intermediary that is allowed to accept money from different investors and then allocates that to mutual fund
What is a Benchmark Index A benchmark index is a reference point that helps you understand how the corresponding fund is performing. Let’s understand this concept in more detail and see how it can be used to measure fund performance. Benchmark in Mutual Funds When it comes to mutual