investor

Advantages of Investing in a Mutual Fund are: Diversification: The best Mutual Funds design their portfolios so individual investments will react differently to the same economic conditions. For example, economic conditions like a rise in interest rates may cause certain securities in a diversified portfolio to decrease in value. Other securities ...

An Investment Company operates a Mutual Fund. The Investment Company pools shareholder or unit holder funds and invests in various securities. It raises money from shareholders and invests it in stocks, bonds, options, commodities or money market securities that meet the investment objectives of the fund and distributes the profits. ...

Zero coupon bond is a bond that generates no periodic interest’s payments during its life time. Zero coupon bonds are at a deep discount from their face value. The holder of a zero-coupon bond only receives the face value of the bond at maturity. When a zero coupon bond matures, ...

Capital market is the market which is concerned with long-term finance for industry and government.The savings of individuals and institutions are converted into investment through capital issued by companies and public loans floated by government and semi government bodies. Capital market facilitates dealings in financial assets that have a long ...

In order to raise funds for public purposes, the states, cities, or local government entities issue bonds or debt securities. These bonds or debt securities are called ‘Municipal Bonds’. Municipalities issue bonds to raise capital for their day-to-day activities and for specific projects such as --- building schools, hospitals, constructing ...

A Bond is a credit that an investor makes to a company, government, centralized agency, or other organization. Bonds are financial instruments that help large business houses and the state to rise finance on a large scale. It is a long-term debt security with a stated interest rate and fixed ...