Finance

Definition: The Pyramid Scheme is a pyramid like a business model that recruits people with a promise of guaranteed high returns through the recruitment of other people into the scheme. The Pyramid Scheme is an illegal form of investment where people are misled that by giving money they can make more money, but however, no investments, products or services have been sold, … [Read more...] about Pyramid Scheme

Definition: The Special Funds are those kinds of mutual funds that can neither be categorized as equity funds nor as the debt funds. These funds are unique and work well for those investors who have specific financial objectives. The following are the different types of Special Funds: Index Funds: These funds track and replicate the performance of a particular index … [Read more...] about Special Funds

Definition: The Debt Funds are a kind of mutual funds that invest majorly in the fixed income instruments. The objective of the debt funds is to seek current income and preserve the capital. The debt funds are comparatively less volatile than the equity funds and provide a steady income to the investors. The Debt funds are of following types:   Liquid … [Read more...] about Debt Funds

Definition: The Equity Funds are the mutual funds that predominantly invest in stocks. The purchase of each share of stock represents the unit of ownership in the company. With the purchase of every unit of share of stock, the investor becomes the owner of the company and enjoy the profits in any of the following forms: An increased share value Dividends In case … [Read more...] about Equity Funds

Definition:  The Mutual Fund is an investment organization that pools the resources of several investors who shares the common financial objectives. These pooled resources are then invested by the fund manager in different securities ranging from shares to debenture to money market instruments based on the objectives as stated in the fund scheme. Types of Mutual … [Read more...] about Types of Mutual Funds

Definition: The Exchange Traded Funds or ETF  is the alternative investment fund that trade on the stock exchange very much like other stocks. These own the underlying assets such as shares of stocks, oil, futures, bonds, foreign currency, etc. and divide the ownership of these into shares which is then traded on the stock exchange. The Exchange Traded Funds are hybrid in … [Read more...] about Exchange Traded Funds

Definition: The Hedge Funds are the investment funds that pool the resources of wealthy investors to reinvest these into an array of complicated financial instruments, using the wide range of investment techniques to generate higher returns for a given level of risk. The term “hedge” is derived from the word “hedging” which means “to reduce risk”. Therefore, the primary … [Read more...] about Hedge Funds

Definition: The Arbitrage Funds are the equity-based mutual funds that try to take the advantage of price differentials (of the same asset) in the cash and derivative markets to generate returns. Simply the funds that generate money from the difference in the price of the same security in different markets are called as arbitrage funds. The fund manager checks the difference … [Read more...] about Arbitrage Funds

Definition: The Thematic Funds are a kind of mutual funds that invests across the sectors related to the common theme. This means, if the fund is built on an infrastructure theme might invest equities in construction companies, cement companies, steel companies and the other companies that are related to the infrastructure sector. Unlike sector funds, the thematic funds are … [Read more...] about Thematic Funds

Definition: The Sector Fund is a kind of mutual fund that invests in a particular sector or industry of the economy. Simply, the sector-specific mutual funds such as banking funds, real-estate funds, etc. are called as sector funds. The Sector Funds are more volatile and riskier than the other market funds as their portfolio contains all the investments in a particular type … [Read more...] about Sector Funds