What Are Inverse ETFs? An inverse ETF is a type of Exchange Traded Fund (ETF) that gains from a drop in the value of an underlying benchmark. Similar to leveraged ETFs, inverse ETFs also deal in financial derivatives. Inverse ETFs...

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...

What is R Squared? R-Squared measures the extent of variation in the dependent variable due to the independent variable. In other words, it tells how much a variable's performance can be due to the behaviour of another variable. The value...

What is a Sharpe Ratio in Mutual Funds? Sharpe ratio helps measure the potential risk-adjusted returns from a mutual fund or any investment portfolio. Risk-adjusted returns are returns that an investment generates over and above the risk-free return. It is...

What is Treynor Ratio in Mutual Funds?  The Treynor ratio is an essential ratio for evaluating mutual funds. It measures the excess return over the risk-free return to the market risk that an investment portfolio can earn. In other words,...

Bonds are a type of debt instrument in which the investor loans money to an entity. The entity borrows money at a fixed interest rate for a specific time duration where an entity can be government, banks or corporates. One...

Zero coupon bonds are fixed income securities that don't pay any interest. At the time of maturity, the investor is paid the face value or par value. These bonds come with 10-15 years maturity. Hence, they trade at a deep...

What is Liquidity? In simple words, liquidity of any investment or asset refers to the ability or ease with which it can be converted into cash. Moreover, cash is the most liquid asset that an individual can hold. Simply put...