Growth vs Dividend Reinvestment
Fund houses offer multiple options for investing in mutual funds based on investor’s needs. Investors who prefer getting regular income have the dividend option. While investors who want to stay invested for long horizons have the growth and dividend reinvestment...
Difference Between Bonds and Bond Funds
Bond and bond funds are debt schemes. Bonds are debt instruments that earn fixed income, i.e., generate stable returns for the investors. The investor buys bonds from the bond issuer for a predetermined duration. The bond issuer promises to pay...
Balanced Fund
What is Balanced Fund? Balanced funds or Balanced Hybrid Funds are a type of hybrid fund. They are open-ended balanced schemes investing in both equity and debt instruments. As per SEBI regulations, these funds have to invest 40%-60% of assets...
NPS Tier 2 vs Mutual Fund
NPS Tier 2 account is purely an optional account. Only customers with NPS Tier 1 accounts are eligible to open a Tier 2 account. Four asset types are available in the NPS Tier 2 account: stock, government securities, corporate bonds,...
What are Target Maturity Funds – Advantages & Disadvantages
What are Target Maturity Funds? Target Maturity Funds (TMF) are index-tracking debt funds that invest in bonds. Target maturity funds assist investors in navigating the risks associated with debt funds. These funds align their portfolios with the fund's maturity date....
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Dividend Payout Ratio
A company’s dividend payout policy is the decision about the distribution of the company’s profits to its shareholders. A dividend payout policy of a firm is a financial decision that involves decisions on dividend payout ratio, and the frequency of...
Closed Ended Funds
Closed-ended funds are mutual funds that have a fixed lock-in period and maturity. Unlike open-ended funds, the units of these funds trade on the stock exchanges just like shares. Though the value of the fund is derived through NAV, the...
Blue Chip Stocks
What are Blue Chip Stocks? Blue Chip Stocks are shares of Blue chip companies that are well established and mature companies. These companies have made their mark in their industry or sector. People often consider them as pillars of the...