Meaning & Definition

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bond duration

Bond Duration – Risk, Maturity and Interest Duration

What is the effective duration of a bond? Effective duration is the sensitivity of the price of a bond against the benchmark yield curve. One can assess the risk of a bond by estimating the percentage change in the price...

investment income

Investment Income : Definition and How to Calculate it?

What is investment income? Income generated from stocks, mutual funds, bank deposits, money market or any similar form of investment can be considered as investment income. It can be in the form of regular interest payments, dividends or appreciation in...

open ended mutual funds

What are open ended mutual funds? Who should invest in it?

Investment in mutual funds is a method whereby an investor can invest in the securities market. Investors can get exposure to debt and equity-related securities. One has to understand the structure of funds before investing.  Mutual funds can be categorized...

dividend policy

Dividend Policy – Meaning, Types and Key Difference

Dividend policy is the guideline for dividend distribution drafted by the board of directors of the company. The policy includes parameters for sharing profits with the shareholders. It also includes how often and in which form the dividends are to...

corporate bonds

Corporate Bonds – Meaning, Type, Risk & Benefits of Investment

Investors who are looking for investment options that offer fixed returns in exchange for their capital opt for Investment Bonds. They may choose from Corporate Bonds, Central Government Bonds, State Government Bonds, and Public Sector Bonds. These investment instruments offer...

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absolute return

Absolute Return: Meaning, Formula and Calculation Procedure

Investors would want to periodically check how much their investment has grown or how much a potential investment would give. With technological advancements, one can easily use online calculators to estimate their returns. However, having the knowledge on calculating mutual...

credit score

Credit Score – Meaning, Myths and Calculation Process

A credit score is a measure of one's creditworthiness. A higher credit score indicates a better ability to repay a loan. Additionally, it can get faster loan approvals, cheaper interest rates and better bargaining power. Whereas, a lower score will...

growth funds

Growth Funds – Meaning, Types, Should You Invest?

What are growth funds? Growth funds are a type of mutual funds that invest in growth stocks. Growth funds aim to earn returns through capital appreciation than dividends. These funds majorly invest in companies with good revenue growth and proven...