Banking and PSU debt funds are debt mutual funds that invest mainly in bonds and debentures issued by banks, public sector undertakings (PSUs), and public financial institutions. These funds aim to provide stable returns with lower credit risk by focusing on high-quality issuers backed by ...
Blog by PriyaSahu
Banking and financial sector funds focus only on companies within the banking and finance industry, while diversified funds spread investments across various sectors like IT, FMCG, pharma, auto, and finance. Sector funds can offer higher returns during sector booms but carry more risk. Diversi...
Balanced Advantage Funds adjust between equity and debt based on market conditions. When markets are high, they reduce equity exposure and move more into debt. When markets are low, they increase equity investments. This automatic adjustment helps manage risk while aiming for stable returns ...
Automatic Investment Plans (AIPs) help investors maintain financial discipline by enabling regular, systematic investments. By automating contributions, AIPs reduce emotional decision-making, promote consistency, and encourage long-term wealth creation through compounding, especially in mutual ...
AUM (Assets Under Management) reflects the total market value of assets a fund manager or mutual fund company manages on behalf of investors. Analysts and investors often use AUM to assess a fund’s size, stability, and potential impact on performance. Changes in AUM can influence fund selection by a...
Asset managers handle redemption pressure by maintaining adequate liquidity, setting exit load structures, using cash buffers, and deploying risk management tools. Their primary goal is to ensure that redemptions by investors do not disrupt the overall stability or returns of the fund, even during p...
AI-driven mutual funds use artificial intelligence and machine learning algorithms to analyze vast amounts of data and make investment decisions. Unlike traditional funds managed solely by humans, these funds rely on predictive models, sentiment analysis, and real-time market signal...
Arbitrage opportunities in stock markets arise when a security is priced differently in two markets or forms. Traders and funds exploit these price gaps to buy low in one market and sell high in another, locking in a near-risk-free profit. Arbitrage is widely used by mutual funds, es...
Arbitrage mutual funds make profits in volatile markets by exploiting price differences of the same security in different markets or forms. These funds buy stocks in the cash market and sell them in the futures market simultaneously, benefiting from short-term inefficiencies. Even in uncertain condi...
Arbitrage mutual funds generate returns by exploiting temporary price differences between equity cash markets and derivative markets. Fund managers simultaneously buy stocks in the spot market and sell equivalent futures contracts in the derivatives market to lock in profits. These op...
Arbitrage mutual funds work by taking advantage of price differences in the cash and derivatives (futures) markets. Fund managers buy a stock in the cash market and simultaneously sell the same stock in the futures market to lock in a risk-free profit. These funds are considered low-risk and are esp...
Arbitrage mutual funds exploit temporary price differences of the same asset in different markets to earn low-risk profits. These funds buy a stock in the cash market and simultaneously sell it in the futures market when there is a price gap. This strategy allows investors to benefit fro...
Anti-Money Laundering (AML) regulations are designed to detect and prevent the illegal process of making large amounts of money generated by criminal activity appear legitimate. In the context of stock market investments, AML regulations help ensure transparency, accountability, and in...
Anchoring effect in behavioral finance refers to the tendency of investors to rely heavily on the first piece of information they see (the “anchor”) while making investment decisions. In mutual fund selection, investors often get influenced by an earlier NAV, past returns, or rankings, and...
Analyst ratings can have a strong influence on stock prices because they reflect expert opinions on whether to buy, hold, or sell a particular stock. When well-known analysts upgrade or downgrade a stock, investors and institutions often react quickly—leading to price changes. These rat...
The Price-to-Book (P/B) ratio is a powerful valuation metric used by analysts to determine if a stock is undervalued or overvalued compared to the company’s book value. It helps investors understand how much they are paying for a company’s net assets and is especially useful in evaluating ...
Analysts use the PEG ratio to evaluate whether a stock is fairly valued by comparing its Price-to-Earnings (P/E) ratio to its expected earnings growth. A PEG ratio helps analysts judge if a stock's price reflects its future growth potential. A lower PEG usually indicates undervaluation, while a high...
PEG ratio (Price/Earnings to Growth) is a powerful valuation tool that analysts use to evaluate a stock’s worth relative to its earnings growth. It refines the traditional P/E ratio by factoring in expected future growth, helping investors understand whether a stock is truly overvalued o...
Analysts use macroeconomic data such as GDP growth, inflation, interest rates, unemployment levels, and consumer sentiment to forecast the overall direction of the stock market. These indicators provide insights into the health of the economy, helping analysts predict market cycles and make informed...
Free cash flow (FCF) is a key indicator analysts use to evaluate a company's financial health and its potential as a stock investment. It represents the cash available after the company covers its capital expenditures. A company with strong and consistent FCF is seen as financially sound...
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