Investment word of the day: Factor investing β€” meaning, types, significance & more; all you need to know

[ad_1] Investment word of the day: An investment approach that chooses securities based on specific characteristics that determine risk and return is known as factor investing. It aims to boost returns, manage risks and enhance diversification by strategically focusing on particular factors. Types of factors The two major types of factors that influence investments are…

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Investment word of the day: Fund of funds β€”what is FoF and how does it work? Types, advantages and more

[ad_1] A Fund of Funds (FoF) allows investors to make a single investment while giving them access to a diversified portfolio across multiple securities. It invests in multiple mutual funds, allowing investors to diversify their portfolios and distribute risks. What is a Fund of Funds? The Association of Mutual Funds in India (AMFI) defines FoF…

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Investment word of the day: Earnings momentum β€” how is it calculated and what are its drawbacks? All you need to know

[ad_1] Investment word of the day: The earnings of a company are the first metric that investors check before investing. Whether you are a beginner or an expert, earnings are a significant indicator that can help you make investment decisions. However, it is also important to understand how the earnings have performed over a period…

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Investment word of the day: Alpha β€” what is it, how is it calculated and why is it crucial for active investing?

[ad_1] Investment word of the day: Most investors track their investments’ performance to determine whether their strategies are achieving the desired results. Along with aligning with personal financial goals, checking an investment’s performance helps understand its relative performance to the benchmark index. One key measure to check this is alpha. What is alpha? Alpha, a…

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Investment word of the day: Extended Internal Rate of Return β€” what is XIRR and why is it crucial for MF investors?

[ad_1] Anyone investing in various instruments, including a Systematic Investment Plan (SIP) or regular deposits in mutual funds, will need to consistently track returns to assess the performance of their investments and make informed decisions. Tracking investments may seem straightforward initially; however, when multiple investments are involved, looking at returns may become complicated. Hence, the…

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