If you’re new to investing or thinking about putting your money in mutual funds, you may have heard the term Net Asset Value (NAV) being used. Don’t worry if it seems confusing at first! NAV is actually a very simple and important concept to understand, and once you break it down, it becomes much easier to grasp. In this guide, we’ll explain exactly what NAV is, why it … [Read more...] about Understanding Net Asset Value (NAV) in Mutual Funds: A Simple Guide for Beginners
Finance
What Is a Mutual Fund and how it works
People have misconception that mutual fund is like a share or stock of a company where you invest to make profit. To get clarity on this topic let us understand what is mutual fund and how to make money out of it. Mutual fund is a company that has set some portfolio of stocks, bonds and other securities of different listed companies traded in stock market or available in … [Read more...] about What Is a Mutual Fund and how it works
What is Credit Reserve Ratio and Statutory Liquidity Ratio – CRR vs. SLR
RBI being a central bank of India has the responsibility to control supply of money as well as cost of credit in India. In the process of controlling or managing money in India, RBI maintains Credit Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) of banks. In this article, we will learn the meaning of Credit Reserve Ratio, Statutory Liquidity Ratio and the difference … [Read more...] about What is Credit Reserve Ratio and Statutory Liquidity Ratio – CRR vs. SLR
Balance sheet: A beginners guide to understand company’s financial position
Balance sheet is prepared by accountants to present the balances of company's asset, liabilities and owner's equity on the last day of the profit period. Therefore, Balance Sheet can be defined as a snapshot statement that shows what a company’s assets are, what its liabilities are, and what its equity is at a specific point in time. Balance sheet show the financial … [Read more...] about Balance sheet: A beginners guide to understand company’s financial position
A Beginner’s Guide to Financial Statements
In a company, shareholders provide funds to buy equipment, inventory and other assets to get started the business. Managers, in conjunction with shareholders, run the business for profit. The business can be anything either buying and selling goods or rendering services to customers. In a business, revenue comes from the sale of goods and services. After deducting the cost … [Read more...] about A Beginner’s Guide to Financial Statements
What Is Defensive stocks for investors?
Defensive stocks are those types of stocks which are consistently showing stable and predictable earnings irrespective of economic instability. Owners of these companies always get constant dividend and stable earnings. During a bad economic conditions, generally consumers use to avoid costly items, entertainment, travel or any other luxury items. They only buy necessary … [Read more...] about What Is Defensive stocks for investors?
How to define financial goals for your future
Financial success requires thought and planning. Setting financial goals in advance will help you to define where you want to go and how you are going to achieve it. If you do not have a clear view on your financial goals, then your aim is very less likely to be achieved. There are three major types of financial goals: near-term or short term, Mid-term or intermediate … [Read more...] about How to define financial goals for your future
Understanding reverse stock split for investors
In reverse stock split, total numbers of outstanding shares are reduced to a lower number and the share price is proportionately increased to compensate the shareholders. This process takes multiple shares from investors and replaces them with a smaller number of shares in return. Reverse stock split does not add any real value to the company and investors. It’s also known … [Read more...] about Understanding reverse stock split for investors
What Is Stock Split for investors ?
To have a wide investor base, companies attract individual investors to invest in their company. If shareholder base is bigger, chances of getting companies ownership to small group of investors is less. In order to attract small investors, companies go for stock split. Stock split means dividing company’s current outstanding number shares into multiple numbers of shares and … [Read more...] about What Is Stock Split for investors ?
Dividend Payout Ratio – DPR Calculation with Example
In our previous article, we have discussed how to calculate dividend per share and the difference between DPS & EPS. In this article, we will be discussing how to calculate dividend payout ratio and what DPR tells you. A company either pays a portion of its net profit as dividend to its shareholders in proportion to the number of shares held and retains a balance amount to … [Read more...] about Dividend Payout Ratio – DPR Calculation with Example