What is an NFO?
Investorline Once the 3 – tier structure is in place, the AMC launches new schemes, under the name of the Trust, after getting approval from the Trustees and SEBI. The launch…
Why do shares of a close-ended scheme trade at discount to its NAV?
It is important know that the NAV and the market prices of close-ended schemes are never the same. Close-ended schemes always trade at a discount. What explains this discount? And…
What are the different schemes available under mutual funds?
The schemes or funds (often used synonymously) can be classified as : Growth Funds : They promise pure capital appreciation with equity shares. They buy shares in companies with high…
How does one choose the right fund?
A few tips : Acquaint yourself with the fund manager’s investment philosophy. Compare the returns he or she has generated on funds previously managed against funds with similar objectives. Both…
What is entry load and exit load?
The asset management company (AMC) that manages your mutual fund has to spend on people, technology and infrastructure to generate returns. So it recovers part of this regular expenses from…
How safe are Mutual Funds?
Just like any other financial instrument, mutual funds are not without risk. When defined in terms of chances of losing money, the risk in mutual funds is no different than…
What is a Mutual Fund?
A mutual fund collects money from various investors, and then invests this pool in various financial instruments. The fund managers attempt to generate returns superior than what the investors themselves…
Business model of a Bank
A bank can generate revenue in a variety of different ways including interest, transaction fees and financial advice. The main method is via charging interest on the capital it lends…
Equity (finance)
In accounting and finance, equity is the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid. If liability exceeds assets, negative…
Financial instrument
A financial instrument is a tradable asset of any kind, either cash; evidence of an ownership interest in an entity; or a contractual right to receive, or deliver, cash or…