India is predominantly an agrarian economy, ranking second in farm production in the world. While keeping pace with the increasing population, the growing agricultural production over the past several decades has thrown up major challenges in marketing, as well as supply, storage, and distribution. Agri commodity trading takes place via future contracts. These contracts can be used […]
A commodity exchange is an exchange where various commodities, agricultural and non-agricultural, tangible or intangible, including their derivate products and other raw materials are traded. The commodity exchanges in India are regulated by the Securities and Exchange Board of India (SEBI) since 2015. Prior to this, the FMC or Forwards Market Commission, overseen by the
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Target Maturity Funds are type of debt fund, invests in bonds of defined maturity, have gained in popularity as a higher return safe investment. While traditional investment avenues offer stable returns, they do not readjust with the changing interest rate scenarios on a real time basis. This is where target maturity funds can be a
From the moment a child is born, parents wonder about the role they will play in shaping their child’s outlook on life. School admissions don’t decide the course of just the child’s life. They significantly impact the parents lives as well. Raising a child is not just an emotional and physical investment for parents, but
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Pass Through Certificates (PTCs) are issued by banks as a safeguard against risks. Simply put, the banks, through PTCs, transfer some of their long-term mortgaged assets (receivables) on to other investors like NBFCs and Mutual Funds. Why do they do this? They do this because they want to share some of their risks with other
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An Off-Balance Sheet (OBS) usually means an asset or debt or financing activity that is not reflecting on a company\’s balance sheet. In other words, it is a form of financing in which large capital expenditures are kept off a company\’s balance sheet through various classification methods. Companies will often use off-balance sheet financing to keep their
Accounting rules are the favourite whipping boys of the financial market during bad times. These days too, it is the presence of what is called ‘the mark-to-market accounting rule’ that is being touted as one of the culprits behind much of the write-downs seen in the financial market. However, before forming any opinion let’s try
Understanding why one moves into long term debt funds when interest rates begin to fall. Everyone knows that prices rise when there is increase in demand and fall with the fall in demand. The same is applicable to Bonds with long durations. Let’s revisit the basics of Bond price and Interest relationship: When Interest rates
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Hedge funds are like mutual funds in some ways. Investment professionals in a hedge fund pool in money from investors to be managed, exactly like the mutual funds do. And, subject to some minor restrictions, investors in hedge funds can withdraw their money as they can in a mutual fund. Nothing else is similar. In
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Application Amount for Fresh Subscription : This is the minimum investment amount for a new investor in a mutual fund scheme. Minimum Additional Amount : This is the minimum investment amount for an existing investor in a mutual fund scheme. Fund Manager : An employee of the asset management company such as a mutual fund
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