World Of Finance

          World Of Finance by Vijaya Sai.M Debt funds are funds that invest in “debt instruments”, which include government securities, corporate bonds and money market instruments . These are called debt instruments because the issuers have borrowed money from the lender (investors) by issuing these securities. These “debts”, mainly known as “bonds”, are income generating properties i.e. investors receive regular interest payments on them. These payments could be monthly, semi-annually or annually. However, many of the most attractive debt instruments are unavailable directly to the retail investors. But, they can invest in those debt instruments indirectly through debt funds. For retail investors Debt Mutual Funds are the best way to invest in debt i.e. income generating instruments. Ideally debt funds are of three main types:   1.       Income/bond schemes  They invest in long- and medium-term instr...

            World of Finance by M.Vijaya Sai In selecting any Mutual Fund as a investment, there are some very basic premises that need to be researched before actually going into investing. The fund should be analyzed for: How easy it is to understand Its consistency Its definability Its soundness First and foremost, the investment process should be simple to understand. As simple as seems it sounds, it is an important starting point. It might take a little work , but tracing the investment process back in time will determine whether the fund's manager is reliable with his or her strategy. For instance, making major changes in beliefs as the tastes of investors change may indicate a manager who chases trends. The misunderstanding can be magnified by the dizzying array of mutual fund names like "Select Intermediate Growth Opportunities Fund" or the "International Direct Select Diversified Balance Fund". At the ...

        World of Finance by M.Vijaya Sai Definition: A mutual fund is a professionally-managed firm of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. In a mutual fund, the fund manager, who is also known as the portfolio manager , trades the fund's underlying securities, realizing capital gains or losses, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors. The value of a share of the mutual fund, known as the net asset value per share (NAV), is calculated daily based on the total value of the fund divided by the number of shares currently issued and outstanding. Concept: A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such a...