The Nifty 50 is a diversified 50 of the blue chip largest and liquid Indian companies listed on the National Stock Exchange, accounting for 13 sectors of the economy. Nifty 50 Index has an inception date of November 3, 1995. The index was constructed using a unique concept of impact cost, which helps in the […]
A debt spiral is when one falls deeper and deeper into debt, despite staying current on payments. It can happen when there is high-interest debt, or if there is sudden need of more debt or one loses income. In a debt spiral, a person is so deep in debt, he needs to borrow even more
There was a man named Hari who was taking a stroll when he came across a bunch of ragpickers. They were scanning through piles of garbage and waste. He realized they were searching for valuable stuff that sometimes accidently makes their way into the garbage. This practice of the ragpickers reminded him of a term
EBITDA play important role when it comes to gauging a company’s financial success. Even though it cannot be considered a potent parameter to measure company’s overall profitability, it is reliable indicator of business’s operating performance. EBITDA Stands for Earning Before Interest, Taxes Depreciation and Amortization. It can be seen as a proxy for cash flow
Stagflation is characterized by slow economic growth and relatively high unemployment or economic stagnation, which is at the same time accompanied by inflation. Stagflation is a period of rising inflation but falling output and rising unemployment. Stagflation is often a period of falling real incomes as wages struggle to keep up with rising prices. A
The Reserve Bank of India mandates that banks store a proportion of their deposits in the form of cash so that the same can be given to the bank’s customers if the need arises. The percentage of cash required to be kept in reserves, vis-a-vis a bank’s total deposits, is called the Cash Reserve Ratio.
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The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings needed by the government. While calculating the total revenue, borrowings are not included. The government needs money for its huge expenses. We can broadly divide government expenses into two types: Revenue
Just like companies are rated by rating agencies so are countries rated. Let’s understand how this is done. Sovereign ratings are needed for those who plan to invest in a foreign country. If the country does not enjoy a good rating, such investments are considered risky. Till 2008 sovereign default was not considered a real
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The Treynor Ratio is also known as the “reward-to-volatility ratio”. It measures the returns a funds gives with respect to its volatility. A higher Treynor ratio means that the fund not only performs well but is less risky than the general market. The following example should help you understand the concept of “Treynor Ratio”. There
Myths about investing in Mutual Funds One of the biggest hurdles in the journey of investing is getting over the myths that bear no foundation or truth. But we believe it because everyone does. Here are some of the most common myths and facts of investors about investing in mutual funds. Mutual Funds need large
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