Blog by PriyaSahu

Decentralized oracles enhance smart contract security by providing tamper-proof, trust-minimized data feeds from multiple independent sources. Unlike centralized oracles, they reduce the risk of manipulation, single points of failure, and ensure the integrity of data used in blockchain-based agr...

Decentralized finance (DeFi) trends are reshaping the mutual fund industry by influencing product innovation, encouraging blockchain-based fund structures, and pushing traditional fund managers to explore crypto-linked opportunities. DeFi also challenges mutual funds to adapt to changing investo...

Decentralized Finance (DeFi) platforms work by using blockchain technology and smart contracts to offer financial services like lending, borrowing, trading, and saving—without relying on traditional banks or brokers. These platforms are open, transparent, and allow users to directly interact wit...

Decentralized finance (DeFi) mutual funds work by pooling investor money to invest in DeFi projects and assets like lending protocols, staking platforms, and decentralized exchanges. These funds aim to give exposure to the high-growth DeFi space while spreading risk across various crypto-based o...

Decentralized Finance (DeFi) lending protocols allow users to lend or borrow cryptocurrencies without intermediaries like banks. These protocols use smart contracts on blockchain platforms like Ethereum to automate lending, borrowing, interest payments, and collateral management.

Decentralized exchanges (DEX) allow users to trade directly through smart contracts, while centralized exchanges (CEX) are managed by a central authority. DEXs offer better privacy and control, while CEXs provide speed, liquidity, and customer support, making each ideal for different user prefer...

Decentralized Autonomous Organizations (DAOs) impact crypto governance by giving users direct control over decisions using blockchain-based voting. Instead of relying on a central authority, DAOs allow token holders to vote on proposals, enabling transparent, democratic, and decentralized decisi...

Debt mutual funds use Credit Default Swaps (CDS) to manage and reduce credit risk in their portfolio. A CDS is like an insurance contract that protects against default on a bond or debt instrument. If the issuer defaults, the seller of the CDS compensates the buyer, helping the fund mitigate pot...

Debt mutual funds qualify for indexation benefits if they are held for more than 3 years. This means investors can adjust the purchase price using the cost inflation index (CII), which reduces taxable capital gains and overall tax liability. Indexation is a key tax-saving feature that makes long...

Debt mutual funds manage exposure to hybrid securities by carefully assessing the credit risk, liquidity, and subordination of these instruments, while complying with SEBI regulations on investment limits and disclosures. Hybrid securities offer higher yields but come with added complexities, so...

Debt mutual funds handle liquidity mismatches by maintaining cash buffers, investing in highly liquid instruments, using staggered redemption strategies, and complying with SEBI's risk management rules. These measures help ensure smooth investor redemptions without significantly affecting the fu...

Debt mutual funds used to offer indexation benefits if held for more than three years, making them tax-efficient compared to fixed deposits. However, from April 1, 2023, indexation benefits are no longer applicable for debt funds that invest less than 35% in equity. Now, all capital gains from s...

Debt mutual funds and fixed deposits (FDs) differ mainly in terms of returns, liquidity, tax efficiency, and risk. While fixed deposits offer stable guaranteed returns, debt mutual funds provide the potential for better post-tax returns with some market-linked risk. Choosing between the two depe...

Debt funds generally underperform in a rising interest rate environment because bond prices tend to fall when interest rates rise. This inverse relationship leads to a decline in the Net Asset Value (NAV) of debt mutual funds, especially those holding long-duration bonds. Short-duration and floa...

Data analytics improves mutual fund investment decisions by enabling fund managers and investors to identify trends, analyze risks, optimize portfolios, and forecast future performance with precision. It empowers better decision-making through real-time data and predictive insights, ultimately e...

Dark pools impact stock trading by allowing large institutional investors to buy or sell large volumes of shares privately without affecting market prices. While they reduce market impact and protect trade intentions, they also reduce transparency, which may hinder price discovery and fairness i...

Dark pools impact price discovery in equity markets by allowing large trades to occur privately without immediately influencing market prices. While they help prevent market disruptions from bulk transactions, excessive dark pool activity can reduce transparency and hinder accurate price formati...

Dark pools affect price discovery in stock trading by allowing large trades to occur away from public exchanges, which can reduce market transparency. While they help prevent large price swings during bulk trades, they also limit real-time information for retail traders, potentially distorting t...

Cyclical stocks perform well during economic booms but tend to underperform during slowdowns or recessions. These stocks are sensitive to the overall health of the economy and move in sync with the business cycle. Investors often use them to capitalize on market upturns and rotate out during dow...

Currency-hedged mutual funds are designed to protect investors from the impact of foreign exchange fluctuations when they invest in international assets. These funds use strategies like currency forwards or options to neutralize currency risk and ensure returns are more reflective of the underly...