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What is a Non-Convertible Debenture? Features, Risks and Rewards Explained
21 May 2025 | 6 mins read
Non-Convertible Debentures (NCDs) are an attractive fixed-income instrument that allows companies to raise funds while offering investors the opportunity to earn stable and predictable returns. Unlike convertible debentures, NCDs cannot be converted into equity shares of the issuing company, which makes them a preferred choice for investors looking for secure, interest-based income rather than potential capital gains through shareholding. This article explains what a non-convertible debenture is, how it works, its benefits, risks, and important factors to consider before investing.
The Impact of Market Volatility on Low-Cost Index Funds
19 May 2025 | 7 mins read
Investors seeking a less expensive, passive investment strategy often turn to low-cost index funds. These funds track market indices and offer diversification at minimal expense. However, market volatility — the rapid and unpredictable movement of stock prices — can significantly influence their performance. While these funds aim to provide stable, long-term returns, understanding how they react to market fluctuations is essential for making informed investment decisions.
Growth Option vs IDCW: Which Mutual Fund Investment Strategy is Right for You?
19 May 2025 | 6 mins read
Before investing, selecting the appropriate mutual fund investment strategy is crucial to achieve your financial objectives. Among the various options, two stand out – the Growth Option and the Income Distribution cum Capital Withdrawal (IDCW) Option. Understanding the distinctions between these strategies will help you in making informed investment decisions.
Mid Cap Stocks: Benefits, Risks & Growth Potential
15 May 2025 | 6 mins read
If you're an investor seeking a balance between stability and high returns, mid cap stocks might be a good addition to your portfolio. While large cap stocks offer security and small cap stocks promise rapid growth, mid cap stocks are placed in the middle, offering a balance of both worlds. But like any sound investment, you need to understand their various aspects and nuances before deciding.
What Is Growth Rate? Definition, Formula & Importance
15 May 2025 | 6 mins read
Growth rate is a fundamental metric used to measure the expansion of a company, investment, or economy over time. Whether you are an investor analysing stock performance or a business assessing revenue growth, understanding growth rates can help in making informed investment decisions. This blog explains growth rate meaning, its formula, types, and how it applies to investments such as mutual funds and stocks.
Call Ratio Backspread Strategy: A Smart Approach to Options Trading
8 May 2025 | 9 mins read
The Call Ratio Backspread is an advanced options strategy often used by traders seeking to capitalise on significant price movements in a stock or asset. It's particularly useful when you expect high volatility but are unsure of the direction. This strategy involves a combination of buying and selling calls in a ratio, allowing traders to profit from sharp price movements while limiting initial risk exposure. This guide will explore how the Call Ratio Backspread works, when to use it, its profitability, and more.
What is the Physical Settlement of Futures & Options Contracts?
8 May 2025 | 8 mins read
Futures and options (F&O) contracts are derivatives that derive their value from underlying assets such as stocks, commodities, or indices. Traditionally, many F&O contracts were settled in cash, meaning traders received or paid the difference in price instead of taking possession of the asset. However, in recent years, regulatory bodies like SEBI (Securities and Exchange Board of India) have mandated physical settlement of stock derivatives to curb excessive speculation and improve market stability. In this article, we will explore physical settlement of F&O contracts, its working mechanism, margin requirements, advantages, and disadvantages, along with key differences from cash settlement.
Stock Vs ETF: Difference Between ETF and Stock
8 May 2025 | 8 mins read
When it comes to investing in the stock market, two popular choices are stocks and exchange-traded funds (ETFs). While both offer opportunities for wealth creation, they differ in structure, risk level, diversification, and overall investment strategy. For beginners, understanding stock vs ETF can help in selecting the right investment option based on financial goals, risk appetite, and market knowledge. This article provides a detailed comparison between stocks and ETFs, including their features, advantages, disadvantages, and key differences.
Discounted Cash Flow (DCF): Calculation & Analysis with Examples
24 April 2025 | 5 mins read
If there is one thing certain in the investment world, it is uncertainty—you can never be sure of the results. However, there are strategies and financial models that you can use to estimate the return potential of investments. One such valuation method is the Discounted Cash Flow or DCF analysis. This article explores the meaning, calculations, benefits and challenges of DCF analysis.
What Are Growth Stocks & Why Investors Prefer Them
24 April 2025 | 5 mins read
Investors seeking to invest in companies with high potential for expansion and success often turn to growth stocks. These companies grow rapidly, reinvesting profits to fuel further growth. While these companies’ shares carry risks, their potential for substantial gains makes them attractive. But what exactly are growth stocks, and how can you identify the best opportunities? Let’s find out.
Price-to-Sales Ratio: Definition, Formula & How It Works
24 April 2025 | 6 mins read
Investors use various financial metrics to determine whether a stock is overvalued, undervalued, or fairly priced. One such ratio is the Price-to-Sales (P/S) ratio, which helps assess a company's valuation in relation to its revenue. Unlike earnings-based ratios, the P/S ratio is particularly useful for evaluating companies that may not yet be profitable but have strong revenue growth potential. In this guide, we will explain the price-to-sales ratio, its formula, its significance, and how to use it effectively in investment decisions.
Treasury Bills vs. Bonds vs. Notes: What’s the Difference?
24 April 2025 | 5 mins read
With more choice comes greater dilemmas. The wide range of investment options in the debt category creates more opportunities but can also lead to confusion. It is not always easy to determine what suits your needs, and selecting the right option can be tricky. However, understanding the differences can make the decision clearer. This article explores the distinctions between three key debt instruments - Treasury bills, Treasury bonds, and Treasury notes.
What Is Risk Tolerance and How to Determine It Before Investing?
8 April 2025 | 6 mins read
Ever wondered why some people jump off planes and dive into the deep ends of the ocean while others find joy in curling up on the couch with their pets? It all comes down to how much risk they are comfortable with. The same holds true for investing. Some investors are willing to put their hard-earned money into high-risk investments in the pursuit of bigger rewards, while others prefer safer options that protect their capital, even if it brings them lower returns
Debt Instruments: Types, Features & How They Work?
11 April 2025 | 6 mins read
Just like a balanced meal has different food groups - proteins, carbs, and fats, a well-structured portfolio has different asset classes. The three main asset classes include equity, cash, and debt. This article can help you understand more about debt instruments, their types, the advantages they offer, and the risks they carry.
What are Government Bonds & How Do They Work?
11 April 2025 | 6 mins read
Low-risk investments are not only suitable for risk-averse investors looking for fixed-income opportunities; they can also be used by all types of investors looking for portfolio diversification and balanced returns. If you are looking for some fixed-income options, government bonds can be a choice. Let’s find out more about them in this article.