Performance-based fees in mutual funds are charges that fund managers earn only if the fund performs well, usually beating a specific benchmark or achieving set returns. These fees motivate managers to work harder to grow investors' money because their pay depends on the fund's success.
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Physical delivery in futures contracts means the actual transfer of the underlying asset from the seller to the buyer when the contract expires. This ensures that the buyer receives the real commodity or asset agreed upon, not just cash. Physical delivery is important for those who want th...
Pivot points help day traders identify important price levels that act as support and resistance during the trading day. These levels guide traders on when to enter or exit trades, helping them make quick decisions and improve their chances of profit. Using pivot points in day trading simp...
Pivot points help intraday traders identify key price levels where the market may reverse or continue its trend within the same trading day. These levels act as support and resistance, guiding traders on when to enter or exit trades quickly. Using pivot points in intraday trading helps man...
Pivot points help traders identify important price levels where the market might change direction. They act as support and resistance levels, which means prices may stop falling or rising at these points. Traders use pivot points to decide when to buy or sell, helping them make better deci...
Portfolio overlap analysis helps investors understand how much the stocks in one mutual fund are similar to those in another. It shows the percentage of common stocks between funds, which helps you avoid putting all your money in similar investments. This is i...
Portfolio rebalancing means adjusting the mix of assets in your portfolio to keep your investment goals on track. It helps maintain the right balance between risk and reward by buying or selling assets when their proportions change due to market movements. This keeps your portfolio aligned...
Position sizing helps manage risk by controlling how much money you put into each trade. It limits potential losses and protects your investment capital. Using the right position size makes sure that even if a trade goes wrong, you don’t lose too much, which is essential for long...
Position sizing is the process of deciding how much money to invest in a particular trade. It plays a key role in trading success by helping traders manage risk and protect their capital. Proper position sizing ensures you don’t lose too much on any single trade, which helps you stay in th...
Pre-market and after-hours trading are sessions that happen outside the normal stock market hours. They allow investors to buy and sell stocks before the market opens and after it closes. These sessions affect stock price movements because traders react to news or events that hap...
Predictive analytics plays an important role in algorithmic trading by helping traders forecast future price movements using data, statistics, and machine learning. It analyzes past market data and patterns to predict what might happen next. This helps algorithms decide when to buy or sell...
Price action is the study of how prices move on a chart, and it helps traders understand market trends and make decisions. It focuses on analyzing past price movements without relying on indicators or complicated formulas. Price action helps traders identify entry and exit points...
The price-to-earnings (P/E) ratio helps investors evaluate if a stock is fairly priced by comparing its current price to its earnings per share. A lower P/E may indicate an undervalued stock, while a higher P/E might mean the stock is expensive. It is a simple and useful tool to assess the...
Prime brokers help institutional traders by providing important services like trade execution, financing, and custody of securities. They make trading easier for big investors such as mutual funds, hedge funds, and pension funds. Prime brokers offer tools and support that help institutions...
Private equity firms play a key role in public market exits by helping companies transition from private to public ownership through processes like IPOs (Initial Public Offerings). They prepare companies for listing on stock exchanges, enabling founders and early investors to sell shares a...
Private equity investments in mutual fund portfolios help add opportunities for higher returns by investing in private companies that are not listed on stock exchanges. These investments can offer growth potential beyond public markets and diversify the portfolio to reduce risks. They usua...
Probability analysis plays a vital role in risk management by helping investors and traders understand the chances of different risks occurring. It allows them to measure how likely losses are and prepare strategies to reduce or control those risks. By using probability, they can plan bett...
Probability plays a key role in trading success by helping traders estimate the chances of different outcomes. It allows traders to make decisions based on likely results instead of guesses. By understanding probability, traders can manage risks better and improve their chances o...
Probability weighting helps investors understand and evaluate risks by giving different importance to possible outcomes. Instead of treating all outcomes equally, investors weigh the chances of each event happening. This helps them make better decisions by focusing more on likely results a...
Promoters are the people or group who start and set up a company. They play a key role in planning, financing, and managing the company’s early stages. Promoters bring the idea to life, arrange funds, and handle all legal steps needed to register and launch the business. Their decisions sh...
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