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Invest in mutual funds or bonds?
It depends on your investment goals and risk apetite. If you are a high risk investor willing to take a few risks with your investment for higher returns go for Mutual funds. If you are a safe investor willing to compromise on returns for safety then go for bonds. Bonds are debt instruments and hence safe whereas mutual funds are stock market instruments and hence carry a risk.
What is the risk involved in business debt?
Mainly 3 types of risks are involved in the debt ie. interest rate risk,Liquidity risk & credut risk. Remeber that debt doesn't mean the risk free investment.
Is the investment of mutual funds risky?
Yes they are. Since mutual funds invest in the stock market they carry the same risk that stock market has. If the price of stocks tumbles due to some reason, the value of a mutual fund goes down and hence our investment worth also goes down. Certain type of funds like debt funds and balanced funds do not bear the brunt of a stock market collapse but they suffer losses too, during an economic crisis.
What are debt funds in mutual funds?
Debt funds are specialized types of funds that invest in bonds and other debt instruments. Since they invest in debt instruments like government bonds, corporate bonds, debentures etc the returns are nearly guaranteed and at the same time, since they are safe instruments their returns are also only equivalent to bank deposits. Around 8-9% per annum.=======================Debt funds are funds that invest in long, medium or short-term income bearing instruments like corporate bonds, debentures, fixed deposits, treasury bills, commercial papers, etc. Debt funds guarantee a constant flow of returns and are less volatile than other equity funds that also form part of mutual funds investment.=======================Debt mutual funds are simply mutual funds that invest in an assortment of debt instruments like government bonds, fixed deposits and approved private deposits. Debt funds are primarily focused on getting regular returns. The fund invests in deposits with maturing tenures and varying interest rates. So when investing in these funds you should take care to match your individual time frame to that of the fund. The current income is also received in the form of dividend so the cash flow is generally tax free in the hands of investors.Debt funds are also highly liquid as they can be converted to cash easily and are useful in creating a well balanced portfolio.=======================Debt mutual funds are identical for parking time bound funds at minimal or no risk. Debt funds are useful for very conservative investors who don't want to take equity risk and want to keep their principal safe and earn decent return similar or slightly higher then bank fixed deposit or want to park their short term liquid funds. While investing in debt fund, one should be aware of the time horizon of investment after which he may require the funds for meeting his approaching goals.
What does Aim Mutual Funds do?
Aim Mutual Funds provides a variety of Mutual Funds to suit various investment objectives. These funds would include stock and bond funds with various amounts of risk and return ratios for different types of investors.
Invest in mutual funds or bonds?
It depends on your investment goals and risk apetite. If you are a high risk investor willing to take a few risks with your investment for higher returns go for Mutual funds. If you are a safe investor willing to compromise on returns for safety then go for bonds. Bonds are debt instruments and hence safe whereas mutual funds are stock market instruments and hence carry a risk.
What is the risk involved in business debt?
Mainly 3 types of risks are involved in the debt ie. interest rate risk,Liquidity risk & credut risk. Remeber that debt doesn't mean the risk free investment.
A risk of money to get something in return is called?
An investment.
The risk of Lower tier II debt investment?
http://en.wikipedia.org/wiki/US_emission_standard
Is the investment of mutual funds risky?
Yes they are. Since mutual funds invest in the stock market they carry the same risk that stock market has. If the price of stocks tumbles due to some reason, the value of a mutual fund goes down and hence our investment worth also goes down. Certain type of funds like debt funds and balanced funds do not bear the brunt of a stock market collapse but they suffer losses too, during an economic crisis.
What are debt funds in mutual funds?
Debt funds are specialized types of funds that invest in bonds and other debt instruments. Since they invest in debt instruments like government bonds, corporate bonds, debentures etc the returns are nearly guaranteed and at the same time, since they are safe instruments their returns are also only equivalent to bank deposits. Around 8-9% per annum.=======================Debt funds are funds that invest in long, medium or short-term income bearing instruments like corporate bonds, debentures, fixed deposits, treasury bills, commercial papers, etc. Debt funds guarantee a constant flow of returns and are less volatile than other equity funds that also form part of mutual funds investment.=======================Debt mutual funds are simply mutual funds that invest in an assortment of debt instruments like government bonds, fixed deposits and approved private deposits. Debt funds are primarily focused on getting regular returns. The fund invests in deposits with maturing tenures and varying interest rates. So when investing in these funds you should take care to match your individual time frame to that of the fund. The current income is also received in the form of dividend so the cash flow is generally tax free in the hands of investors.Debt funds are also highly liquid as they can be converted to cash easily and are useful in creating a well balanced portfolio.=======================Debt mutual funds are identical for parking time bound funds at minimal or no risk. Debt funds are useful for very conservative investors who don't want to take equity risk and want to keep their principal safe and earn decent return similar or slightly higher then bank fixed deposit or want to park their short term liquid funds. While investing in debt fund, one should be aware of the time horizon of investment after which he may require the funds for meeting his approaching goals.
Is a bank fixed deposit the safest investment option in India?
The role of FDs in an investor's portfolio is something that needs to be carefully considered. While you can earn better returns than an FD by investing in debt mutual funds, but ensure that you take the right kind of debt fund based on your needs and risk profile.
What does Aim Mutual Funds do?
Aim Mutual Funds provides a variety of Mutual Funds to suit various investment objectives. These funds would include stock and bond funds with various amounts of risk and return ratios for different types of investors.
What do you call the chance that an investment's value will decrease?
The chance that the value of an investment will decrease is called risk.
Do Emirates Banks offer Equity fund investment facility?
Yes, most Emirates banks offer wealth management services under which they offer different investment funds such as equity funds to invest in depending on your risk appetite and financial capability.
What is difference between growth fund and debt fund?
A growth fund focuses on stocks that do not pay dividends, the company's are instead focused on re-investing any profits into the growth of their business. Debt funds are focused on bonds. They typically pay interest and are much more stable than growth equities. Growth is usually higher risk, bonds or debt funds are lower risk.
Is there such thing as a non lose no risk investment?
No monetary investment is risk free. All investments carry some degree of risk, even government issued debt. However some investments are LESS risky than others...or the PROBABILITY of loss is lower than others.
