Tag: Investment Advice
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What Are The 3 Basic Structure Of Mutual Funds
Introduction Before understanding the structure of mutual funds, let us get a quick introduction. Mutual funds are investment tools for people from the non financial background in order to aid them in their investment in the securities markets. These funds are managed by Asset Management Company on behalf of the investors. Mutual funds indirectly invest…
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Why Are Mid Cap Mutual Funds Better For Long Term Investment
Introduction Mutual funds provide a great tool for investors from non-financial background. These tools allow such investors to participate indirectly in the stock markets. One needs to ensure that an investor has some of its investments parked in mutual funds for long term wealth creation. What are mutual funds Mutual funds are investment tools set…
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How Can Book Value Of A Company Be Negative
Introduction Book value is a financial ratio to identify the fundamentals of the company. Although there are several criteria that investors can use to determine the worth of a company’s shares, one of the most prominent way is book value. The book value of a company can be used to determine whether a stock is…
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What Is The Difference Between Preferential Issue And Rights Issue
Introduction Preferential issue and rights issue are some of the ways equities are introduced for sale in the primary market. From the primary markets, the investors can decide whether they want to sell off in the stock exchange or hold for further capital appreciation. What is preferential issue Under Section 81 of the Companies Act,…
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What Is The Difference Between Primary Market And Secondary Market
Introduction The markets in which the securities are generally traded are majorly divided into two segments: The primary market & the secondary market. Each of these market segment are equally important in smooth transfer of equity from one investor to another. What is primary market The primary market is a place where equities and securities…
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How Does Inflation Affect The Mind Set Of Long-Term Investor
What is Inflation Inflation is the rise in the value of commodities over a period of time. It is a quantitative way to estimate the rise in day to day prices. The rate of change of inflation plays a major role in deciding our day to day activities along with our investment mindset. Prices rise…