Blog by PriyaSahu

Standard deviation is an important measure used in mutual fund analysis to assess the level of risk or volatility associated with a fund’s returns. It helps investors understand how much the returns of the fund fluctuate from its average performance. A higher standard deviation indicates g...

Statistical arbitrage is a popular strategy used by hedge funds to exploit small price discrepancies between related securities. By using complex mathematical models and algorithms, hedge funds identify and trade these inefficiencies. The significance of statistical arbitrage lies in its a...

Stock buybacks can have a significant impact on a company’s valuation. By reducing the number of outstanding shares, stock buybacks increase earnings per share (EPS), which often leads to a higher stock price. This can make the company more attractive to investors, improving its overall ma...

Stock buybacks are an important tool used by companies to buy back their own shares from the open market. This can boost the value of remaining shares and signals to the market that the company is confident in its future. Buybacks are often seen as a way to return capital to shareholders, ...

Stock correlation coefficients are vital in portfolio construction because they help investors assess how different stocks interact with each other. By understanding the relationships between stocks, investors can reduce risk, increase diversification, and optimize returns in their portfol...

Stock correlations play an important role in portfolio management because they help investors understand how different stocks move relative to one another. By considering these correlations, investors can create a more diversified portfolio, manage risk better, and improve the overall perf...

Stock indices like NIFTY and SENSEX are important tools for investors to track the performance of the stock market. These indices provide a snapshot of how the market or a particular segment of the market is performing, helping investors make informed decisions about their investments.

Stock liquidity plays a critical role in investment decisions. It refers to how quickly and easily a stock can be bought or sold in the market without affecting its price. High liquidity allows investors to move in and out of positions easily, making it a key factor when choosing investmen...

Stock market liquidity plays a critical role in trading decisions. It refers to how easily stocks can be bought or sold in the market without affecting their price. Higher liquidity means easier transactions, making it an essential factor for traders. Understanding liquidity helps traders ...

In technical analysis, stock volume shows how actively a stock is being traded. It helps confirm price trends and signals the strength or weakness of a move. High volume with price movement shows strong interest, while low volume suggests a weak trend. Volume is an important tool to a...

Stock volume shows how many shares are being traded during a specific time. It helps traders understand the strength of a price movement. High volume means strong interest, while low volume shows weak activity. Watching volume helps traders make better decisions about buying and selli...

STT or Securities Transaction Tax is a tax you pay when you sell mutual fund units, especially equity-oriented mutual funds. It is charged by the government and is included in your transaction cost. STT affects your total return, so understanding it is important before investing or re...

Supply and demand zones are important in trading because they show the price areas where big buying or selling happens. A demand zone is where buyers are likely to step in and push prices up, and a supply zone is where sellers come in and push prices down. These zones help traders dec...

Support and resistance levels are important in stock analysis because they help identify price points where a stock usually stops falling or rising. Support acts like a floor where buying interest is strong, and resistance acts like a ceiling where selling pressure is high. These leve...

Support and resistance levels are important in stock trading because they help traders know when to buy or sell a stock. A support level is where the stock usually stops falling and starts rising, and a resistance level is where the stock usually stops rising and starts falling. These...

Synthetic ETFs are important in portfolio construction because they help investors get exposure to different markets and indices without actually owning the underlying assets. These ETFs use derivatives like swaps to copy the performance of an index. This can reduce costs, improve ret...

Tax inversion strategies are a method used by corporations to reduce their overall tax burden by relocating their legal domicile to a country with a lower tax rate, while still maintaining operations in their original country. This strategy is commonly used by large multinational corp...

Tax-loss harvesting is a strategy used to reduce the taxes owed on capital gains by selling investments at a loss. In mutual funds, this can help offset taxable gains from other investments, ultimately reducing the investor’s overall tax liability. This strategy allows investors to ma...

The "hot-hand fallacy" refers to the belief that a person who has experienced success in a certain activity is more likely to continue succeeding, even if the outcomes are purely random. In trading, this can lead to overconfidence, where traders believe that their recent suc...