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...

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...

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 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...

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...

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...

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...

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...