One of the biggest mistakes an investor makes is not taking time to understand their company’s financial statements. A financial statement comprises of three main statements – Balance Sheet Income Statement Cash Flow Statement In our previous article, we understood how to read an Annual Report of a company and […]
How to Read an Annual Report of a Company
Would you buy an iPhone just because your friend asked you to do? Or would you do some research before spending your money? We check for reviews online and compare products to be sure that the seller can be trusted. Then why not do the same before buying a share […]
Arbitrage Funds – How Arbitrage Mutual Funds Profit from Price Differences in the Market
Do you remember the above game? Finding differences between two seemingly identical pictures? The differences were tiny but our happiness on discovering them was unparalleled. Let us revisit this game. Can you spot the difference between the below images? Image 1: Image 2: Both the snapshots show the share price […]
Index Funds – Index Mutual Funds – Meaning, Types & Performance
The first index fund in India was launched in 1999. In the same decade, world’s first index fund, Vanguard 500 Index fund reached an Assets Under Management (AUM) of $1 Billion Dollars! It’s been 22 years since and Indian index fund AUM stands at a disappointing Rs 16,867 crores! While […]
How Does a Mutual Fund Work? – A Detailed Explanation
‘We fear what we do not understand’. This quote perfectly sums up the relationship between mutual funds and Indian investors. Mutual fund is probably the most ‘misunderstood’ financial product. Majority of investors believe that mutual funds are too complicated. And what is complicated must be risky. Fortunately, this is not […]
Multi-Asset Allocation Funds – Do They Really Work?
A mutual fund investor is like a child in a candy shop. Everything looks delicious and everything must be bought. It doesn’t matter if you like the flavour or taste of the candy, you MUST have it. Similarly, investors are spoilt for choice. They are confused whether they should invest […]
Everything About Short Term Debt Funds in India
If you’ve ever been grocery shopping, then you are aware that everything comes with an expiry date. Green leafy vegetables expire within 1 day. Vegetables like tomatoes, brinjal remain fresh for 3-4 days. Onions and potatoes can remain fresh for months. Debt funds behave in the same manner. The debt […]
Mutual Funds vs FD (Fixed Deposits)– Which is the Best Option in 2021?
Mutual Funds Vs FDs is an age-old argument. Informed investors support mutual funds while conservative investors still think bank FDs are the best investment option. Even after countless proofs on why mutual funds are superior than bank FDs, investors still prefer bank FDs! Why do you think this happens? In […]
Measuring Mutual Fund Returns – CAGR, XIRR & Absolute Returns
What is the first question that you ask when investing in a mutual fund scheme? ‘Kitna returns milega? Mutual fund return is the most important factor that investors look at while investing. And rightly so. You are after all investing your hard-earned money. So, you have every right to know […]
Everything About Dynamic Bond Funds – The Virat Kohli of Debt Funds
Dynamic Bond Funds are the Virat Kohli of Debt Funds. Confused? Let me explain. Rohit Sharma, Cheteshwar Pujara or Virat Kohli – Who is the best batsman in India? We all have our personal favourites but let’s answer this practically. Rohit Sharma is a great ODI batsman. Cheteshwar Pujara is […]