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Showing posts from February, 2020

Go International in Your Mutual Fund Investment

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A retail investor is bemused when he hears Dow Jones, NASDAQ or Nikkei.  Dow Jones Industrial Average (DJIA) is an index that tracks 30-large, publicly-owned companies trading on the New York Stock Exchange (NYSE) and the NASDAQ. The DJIA, commonly referred to as Dow Jones, gets its name from Charles Dow, who created it in 1896, and his business partner, Edward Jones. Originally, NASDAQ was an acronym for the National Association of Securities Dealers Automated Quotations. It is now the second-largest stock exchange in the world by market capitalization, behind only NYSE. NASDAQ Composite is the stock market index of the common stocks and securities listed on the NASDAQ stock market. It is one of the three most-followed indices in US stock markets, the others being the Dow Jones Average and Standard &Poor (S&P) 500. Closer home in Asia, the SSE Composite Index is also known as SSE Index is a stock market index of all stocks that trade at the Shanghai Stock Exchange. Nikk...

FINANCIAL ADVISERS BRING A LOT TO THE TABLE

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A person suffering from an ailment or involved in a legal wrangle seek a doctor or a lawyer for professional help. However, if he must invest his hard-earned money then he will shy away from seeking a financial adviser. A financial advisor in jaipur is a professional who provides financial guidance to clients based on their needs and goals and helps manage their money including investments and other accounts. There are two types of advisers: Fiduciaries are the ones who charge a fee for their advice and holds assets in trust for a client; the others are distributors who earn commissions from the products they sell to their clients. Then there are financial planners who are professionals helping companies and individuals create a program to meet long-term financial goals. In India, due to the proliferation of the financial industry, the same entity performs the dual task of planning and advising the clients. Financial Planner in Jaipur choose investments for a client by assessing th...

Importance of side pocket in debt mutual funds

SEBI, the mutual fund regulator, tightened its mechanisms, since the global financial crisis of 2008, to ensure fair treatment to all unit holders in case of a credit event through various orders like modification of its valuation guidelines and restrictions on redemption in mutual funds (Redemption Gate). The recent defaults on debt obligations by a few entities particularly in September 2018 and subsequent volatility in the debt and money market instruments issued by NBFCs and HFCs resulted in redemption pressures in debt mutual fund schemes, more specifically in liquid schemes. An analysis of Asset under Management (AUM) of all debt-oriented schemes indicates that their AUM declined from ₹ 12.13 Cr to ₹9.9 Cr over a period of two months with effect from 31 Aug 2018 i.e. a decline of around 18%. The Indian bond market has relatively lesser depth and width than developed markets that permit side pockets of non-retail funds. More so, Indian mutual funds that invest in debt ...