strategic asset allocation – All You need to know
Strategic asset allocation is a portfolio strategy In addition, the investor sets a target asset allocation and rebalances it periodically. Moreover, the portfolio will be rebalanced to bring back the asset allocation percentage, which was the original allocatin. As the returns from the different asset classes are different, their weights will change after a period of time. In order to bring back the weights to the original, rebalancing will be done. strategic asset allocation In this strategy, the allocation will depend on several factors like investors risk appetite, age, time horizon, investment objectives, etc. In addition, the allocation may change …
Asset allocation and its importance – All you need to know
Asset allocation and its importance, you should know in order to manage your investments better. In addition, Asset allocation means allocating your money to different assets like gold, equity, fixed-income securities, etc. Moreover, investors should do asset allocation to reduce risk in their portfolio based on their risk profile and to achieve their future financial goals. Why asset allocation is important?… There is no fixed asset allocation for you to follow. You can do any asset allocation as per your needs and risk appetite. Every asset class has risk; some may carry high risk and some low risk. And this …
Market Up and Down Capture Ratios – All you need to know
Market-up capture ratio is a statistical measure that will tell us how well the mutual fund scheme fund manager outperformed the index in the up market. Similarly, we can use the down capture ratio also to show the fund manager how well he protected the scheme nav in a downtrend market. So, these two ratios are very important to measure the fund managers outperformance. Let’s discuss about the Market up and down capture ratios in detail. Calculating the up-market capture ratio… The market-up capture ratio is calculated by dividing managers returns with the returns of the index during an uptrend …
Liquid funds in mutual funds – All You need to know
Liquid funds in mutual funds are good for your short-term financial needs and have a low risk In addition, these funds are designed in such a way that they will provide quick access to the capital and offer greater liquidity. Moreover, they will invest primarily in low-risk debt instruments. And these funds invest in low-risk instruments. Hence the market fluctuations will not be that much in these funds. What is a liquid fund?… These funds are ideal for investors who want to park their money for short-term needs. In addition, they offer somewhere that a bank savings account gives or …
Nifty 50 investment – what is the Best time to buy and sell
Nifty 50 investment, if you are planning to do? Then you know that securities market investment is subject to market risk. In addition, volatility is one such risk. Moreover, standard deviation is a statistical formula that tells us that the price of a data set will move away from its (data set) average or mean. In addition, the epirical rule is also a statistical formula, which is also known as the 3 sigma rule, or 68%-95%-99.7% rule, and says that most of the data points will return within the values stated above. And we can use this rule to nifty …
Gold Investment – What is the best time to buy and sell?
Gold investment, are you looking to buy? worried about the price fluctuations and return on investment? Then you are at the right place to learn some knowledge about this investment. How can the volatility in gold be analysed? … Gold price volatility can be analysed easily with the help of statistical measures such as the standard deviation. In addition to SD, by applying statistical formulae empirically, you can explore much more than the standard deviation. Moreover, this rule will help you in identifying high-probability opportunities for buying gold and selling gold. What is an empirical rule? … First, you should …
Empirical Rule – All You need to know
The empirical rule is also known as the 3 sigma rule. In addition, this rule helps you analyse the market and will tell you where the probabilities are high to enter and exit the market for maximum profits. What is an empirical rule? … In standard deviation, we already understood that it is the % deviation +/- from the average of the data set that we took. When it comes to this rule, it talks about it further, and it tells what if there is a 2 times SD and a 3 times SD. You can see a pendulam in …
Measuring Volatility in Investment – How to do?
Measuring volatility in investment assets is an important process before you plan to invest. In addition, especially while considering equity or equity mutual funds, you have to be cautious about the risks. Moreover, one such risk I am talking about in this article is volatility. What is volatility risk?… Everyone wants to ride their vehicle on a highway, right? in order to reach your destination. But the fact is, all the roads that come in your way before reaching your destination will not be smoother like High Way. And while driving your vehicle on these dirt roads, you must be …
Standard Deviation – All you need to know
A standard deviation is a statistic that measures the dispersion of a data set relative to its mean. In addition, it is calculated as the square root of variance. What is a standard deviation? … A standard deviation is a statistical measurement. that highlights that individual data points of a data set are deviated from their mean. In addition, if the data point is away from its mean, there is a high deviation or volatility. and if the data point is near its mean, which means low volatility or low deviation from its mean. Moreover, it is calculated as the …
sukanya sammridhi yojana – All you need to know
A Sukanya Sammridhi Yojana account can be opened for two girls. In addition, if you have twins or triplets, you can even open a third SSY account. Now let’s explore further about this scheme, which is launched by the Government of India to encourage savings by parents for her education and marriage. What is the SSY scheme? … This scheme is a government-backed small savings scheme for girls. In addition, it is part of the Beti Bachao and Beti Pado yojana initiatives. And this account can be by parents of girl children; the age of the girl must be below …
