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Mutual Fund Terms You Must Know before Investing

The difference between absolute returns and annualized returns in mutual funds is as follows: Absolute returns: This refers to the total return earned from an investment, without considering the investment period or comparing it to a benchmark. It is calculated by subtracting the purchase price from the selling price, dividing it by the purchase price, and multiplying by 100. Annualized returns: This is the amount of money your investment has earned on a per-year basis, considering the investment period. It is often referred to as the compounded annual growth rate (CAGR). It is calculated by using the absolute rate of return and the investment time horizon. When to use them: Absolute returns are useful when the investment time horizon is less than one year, such as calculating returns for a few months or up to one year. Annualized returns are more appropriate when the investment time horizon is more than one year, such as calculating returns for multiple years. Using th...

How to Invest in Mutual Funds?

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What is a Mutual Fund? Mutual funds are like a pool of money collected from many people who have a similar goal of investing. This money is then managed by professionals called fund managers who decide where to invest it. The advantage for individual investors is that they do not have to worry about selecting and managing investments themselves. Mutual funds offer a diverse mix of investments, such as bonds, stocks, and debentures, to help balance the risks and potential returns. The income earned from these investments is distributed among the investors based on how much money they have put into the fund. So, it is a way for busy individuals to invest their money and potentially earn returns without having to actively manage their investments. How to invest in Mutual Funds? Investing in mutual funds can be done by following a simple method: Understand your investor profile: Determine your risk tolerance level and investment goals. This will help you decide how much money you ...

Markets are believing to be in consolidation from this level

Introduction: Market experts suggest that the current bottom of 17,000 on the Nifty50 index appears to be strong, and there is a possibility of consolidation from this level. If the index continues to bounce from this level, it could indicate an upside and activate bullish counts on point-and-figure charts up to 17,800–18,000. However, they are also cautioning that there are still some downside counts open to 16,500, so it would be wise to be aware of this possibility if the price falls below 17,000. Furthermore, they suggest that there are opportunities in the healthcare, pharmaceutical, defence, and banking sectors. They also said to note that some stocks in these sectors are performing well, outperforming the major indices, and displaying a strong trend. Experts View about the current situation in Nifty 50 stocks: Market experts suggest that the Nifty index has reached a strong bottom at 17,000 based on various indicators. They note that the current uptrend is the fo...