How does an investment fund work? Investment funds pool money from various investors with similar interests and purchase securities. Fund managers manage these funds. Each investor retains the ownership of the securities that the fund invests in. Investment funds provide...

What is Liquid Asset? A liquid asset is an asset that can be easily, quickly and securely sold and converted into cash in hand. In other words, liquid assets are seen as cash, as their value remains more or less...

What is Expected Value? Expected Value (EV) is a forecasted value of an investment. It is calculated by multiplying the possible outcomes by the probability of their occurrence and then adding all those values. EV is the long-run average of...

How often do dividends payout? Most companies pay dividends every quarter (four times a year). They often pay upon declaring their quarterly account. However, dividend payout frequency may vary from company to company. Some companies may pay every six months...

What is Dividend ETF Dividend ETFs are a type of Exchange Traded Funds that invest in stocks with a potential to offer a high dividend. These are passively managed funds and track a particular index. An individual doesn't need to...

What is debt? The definition of debt is 'an obligation that requires the debtor to pay the money to their creditor.' Debt is nothing but the amount of money one borrows. In other words, it is the money one spends...

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...

What is the difference between annual rate and annual yield? Annual yield is the earnings from an investment over a specified period of time. The yield includes investor's earnings, such as dividends and interest received for holding an investment. In...