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...

What is Net Investment? Net investment is the difference between the total amount of money a company spends on capital assets and the cost of depreciation of those assets. It indicates how much a company is spending to maintain and...

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...

What is Hedging? Hedging is an investment strategy to protect profits or limit losses of one asset by buying or selling another asset. In other words, it is when investors protect their investments from future price movements.  It is a...

Mutual funds are gaining importance and have become a preferred investment option among investors. There is convenience and ease of investing and tracking the mutual fund investments. A mutual fund organisation aims to trade in stocks, bonds and other securities...