Investment in Mutual fund

Mutual Fund is an Investment Scheme in which money is pooled from different sources (Investors) and is used to buy Stocks, Bonds and other securities in the market.

If you want to invest in the stock market but do not want to be bothered with following the stock market regularly,you can opt for Mutual funds.Mutual fund is run by professionals and investors do not have to bother about the day to day functioning of the mutual fund.

Some of the terminologies related to Mutual Fund which you should be aware of are

NAV –(Net Asset Value) –In the context of Mutual funds, NAV is per share market value of the fund.

Units – You can think of it as the no. of shares of Mutual fund. Continue reading

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Short Selling

Short selling in stock market is selling of stocks that you do not possess at the time of selling.You might be wondering that why will someone sell the stocks which he does not owns.This is done if someone expects a fall in price of the stocks and he wants to make a profit from it.

Lets explain Short Selling using a very simple real world example:

Current Price of  Item A (Lets say Soap Box)  is Rs.100 and you expect a fall in the price of Item. Continue reading

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What is your risk appetite

What is my risk appetite? Have you ever thought about this question in financial aspects? You might be wondering what it has got to do with the finances of a person.

This is a very important questions which needs to be thought over by every person irrespective of where he is investing (Financial market, gold, Land …anything).You should always have an idea about how much you risk you can take to increase the monetary gains. Let’s explain this with a real life scenario – Continue reading

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