The premise of the 100-age rule is straightforward: subtract your age from 100 to determine the percentage of your portfolio that should be allocated to equities (stocks), with the remainder allocated to fixed-income investments (bonds). For example, if you\’re 40 years old, the rule suggests that 60% of your portfolio should be invested in stocks, […]
The 114 rule, like its counterpart the 100-age rule, revolves around the concept of balancing risk and reward based on an individual\’s age. However, it takes a slightly different approach by factoring in increasing life expectancies and the desire for continued growth in retirement. The rule suggests subtracting your age from 114 to determine the
Direct Equity Direct equity involves investing directly in individual stocks of companies listed on the stock market. Direct equity has higher risk as the performance of the investment depends entirely on the performance of the stocks that you have chosen. Direct equity requires significant research and knowledge about the stock market and individual companies to
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Today, we\’re diving into a different kind of financial literacy journey—one that goes beyond just counting dollars and cents. Sure, budgeting and saving are important, but there\’s a whole world of financial know-how that doesn\’t always get the spotlight. So, grab your favorite snack and let\’s explore some uncommon but super useful tips to level
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In the realm of personal finance, there are numerous rules and principles designed to help individuals make informed decisions about their money. One such rule, often overlooked yet incredibly powerful, is Rule 72. Whether you are a seasoned investor or just starting your journey towards financial freedom, understanding, and applying Rule 72 can significantly impact
Choosing the right investment involves careful consideration of your financial goals, risk tolerance, time horizon, and investment knowledge. Here are some general steps to help you make informed investment decisions: Identify and Define your Goals: Clearly identify your financial goals, such as saving for retirement, buying a home, or funding education. Different goals may require
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Investing in financial markets involves navigating a complex landscape of risks, and two terms that frequently come up in this context are Permanent Loss and Quotational Loss. Permanent Loss: Permanent loss occurs when the value of an investment experiences a substantial and enduring decline that does not recover. This decline is often associated with fundamental
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In the dynamic world of finance, where markets fluctuate at the blink of an eye, savvy investors need a robust tool to steer through the stormy waters of investment. Portfolio Management System (PMS) – a comprehensive solution designed to streamline the management of investments, optimize returns, and mitigate risks. Understanding Portfolio Management System At its
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For those dipping their toes into the world of investing, understanding key metrics is essential. One such metric, often used by investors, is Discrete Annual Return. What is Discrete Annual Return? Think of Discrete Annual Return to measure how well your investment performed over a specific period – usually a year. Unlike some fancy calculations,
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Alternative Investment Funds Categories Alternative Investment Funds Categories (AIFs) have become integral components of modern investment portfolios, providing investors with diverse opportunities beyond traditional assets. Within the AIF framework, Category 1, 2, and 3 funds each carry distinct characteristics and cater to different risk appetites. In this exploration, we delve into the nuances of AIF
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