Investment

Definition: Blue chip stocks are the secured, stable and less volatile shares of those reputed and well-established companies which have huge market capitalization and are considered to be the industry leaders. Example; some of the high valued blue chip stocks are Bosch Ltd., Maruti Suzuki India Ltd. and Bajaj Finance Ltd. What are Blue Chip Companies? Blue chip companies are … [Read more...] about Blue Chip Stocks

Definition: Real estate investing refers to the purchase of property as an investment to generate income rather than using it as a primary residence. Real estate refers to any land, building, infrastructure and other tangible property which is usually immovable but transferable in nature. Classification of Real Estate Real estate includes various properties which can be … [Read more...] about Real Estate Investing

Definition: A monthly income plan (MIP) is a debt oriented hybrid mutual fund scheme generating monthly returns in the form of a dividend, by investing more than 60-80% of the amount in debts and the remaining amount in equity, cash or money market. These funds reduce the level of risk on the one hand by investing majorly in debts and increases the possibilities of high … [Read more...] about Monthly Income Plan (MIP)

Definition: A stock warrant is an investment tool which provides the holder with the right (although not the obligation) to purchase or sell back the stock at the specific quantity and price within the stipulated future period. The stock warrants are issued by the company directly. They are very similar to the options but involves higher risk and yields a better return to … [Read more...] about Stock Warrants

Definition: Mutual fund is an investment opportunity which sums up the limited capital of various small investors to invest in different investment options like equities, bonds, cash and other money market instruments. An investor can either invest the whole amount in a lump sum or can opt for systematic investment plan (SIP) where he can contribute in a small amount each … [Read more...] about Types of Mutual Funds

Definition: A mutual fund is an investment scheme which gathers money from various investors to pool in the collected amount into the equity, debt and other money market instruments. The Asset Management Companies (AMC) are the registered organizations which offer a variety of mutual funds for the investors. The Asset Management Companies hire fund managers to plan, invest … [Read more...] about Mutual Fund

Definition: Exchange-traded funds are the stocks which track the performance of a particular index which comprises a set of different securities, allowing the investor to diversify his limited funds into multiple investment options. It provides small investors with exposure to the whole sector in which they are interested in pooling their funds. Just like mutual funds, … [Read more...] about Exchange-Traded Funds (ETF)

Definition: Hedge funds are the pooled sum gathered from the accredited investors to be invested strategically and managed aggressively to earn high returns and mitigate chances of loss. These are not regulated by any securities market regulators and therefore hold high risk and are more volatile. Example; An iron producer may face loss if he relies only on the cash market … [Read more...] about Hedge Funds

Definition: Employees' Provident Fund (EPF) commonly known as PF is the scheme initiated by the government with the motive of providing post-retirement financial aid to the salaried employees. It applies to most of the companies belonging to the organised sector. In this scheme, the employer needs to register with the Employees' Provident Fund Organisation (EPFO) which is … [Read more...] about Employees’ Provident Fund (EPF)

Definition: Long-term investing refers to the acquisition and holding of the assets for at least three years or more for the purpose of generating wealth in the future. Long-term investing needs patience, strategy, foresightedness and commitment. It maximises the possibility of higher returns and minimises the risk and uncertainties. There are various options for long-term … [Read more...] about Long-Term Investing