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What are some of the best investment options for someone who is just starting out and has a limited budget?
If you're just starting out with a limited budget, there are several investment options that can be suitable for you. Here are some suggestions: Exchange-Traded Funds (ETFs): ETFs are a type of investment fund that are traded on stock exchanges like individual stocks. They offer diversification by iRead more
If you’re just starting out with a limited budget, there are several investment options that can be suitable for you. Here are some suggestions:
It’s important to remember that investing always carries risks, and it’s crucial to carefully consider your financial goals, risk tolerance, and do your research before making any investment decisions. Consulting with a qualified financial professional can also be beneficial, especially if you are new to investing.
See lessHow does interest rate risk affect fixed income securities?
Interest rate risk is a major factor that affects fixed income securities. When interest rates rise, the value of fixed income securities falls, and vice versa. This happens because fixed income securities, such as bonds, have a fixed coupon rate that is set when the security is issued. If interestRead more
Interest rate risk is a major factor that affects fixed income securities. When interest rates rise, the value of fixed income securities falls, and vice versa. This happens because fixed income securities, such as bonds, have a fixed coupon rate that is set when the security is issued. If interest rates rise above the coupon rate, the security becomes less attractive to investors, and its value decreases.
On the other hand, if interest rates fall below the coupon rate, the security becomes more attractive to investors, and its value increases. However, the issuer of the security may call it back and reissue a new one at a lower coupon rate, resulting in a lower yield for the investor.
The impact of interest rate risk is more significant for longer-term fixed income securities than shorter-term ones. This is because longer-term securities have a longer duration, which means that their prices are more sensitive to changes in interest rates.
Investors can manage interest rate risk by diversifying their fixed income portfolio across different maturities and by using strategies such as laddering, which involves investing in securities with different maturities to reduce exposure to interest rate risk. They can also consider investing in floating rate securities, which adjust their coupon rate periodically based on prevailing interest rates, thus reducing interest rate risk.
In summary, interest rate risk is a significant factor that affects the value of fixed income securities. Investors need to be aware of this risk and manage it effectively by diversifying their portfolio and using appropriate strategies to minimize its impact.
See lessWhat is the main difference between BSE and NSE?
What is difference between BSE And NSE trades in GS series bond of NSE.
What is difference between BSE And NSE trades in GS series bond of NSE.
See lessWhy should I consider investing in bonds?
Bonds can be a useful addition to a diversified investment portfolio. They can provide a steady stream of income through interest payments, and can offer a level of safety and stability compared to stocks. Additionally, bonds can help to balance out the volatility of a portfolio that is heavily inveRead more
Bonds can be a useful addition to a diversified investment portfolio. They can provide a steady stream of income through interest payments, and can offer a level of safety and stability compared to stocks. Additionally, bonds can help to balance out the volatility of a portfolio that is heavily invested in stocks.
See lessHow to buy Tax Free Bonds from Secondary Market in India?
You can buy tax-free bonds from secondary market in India by registering with Central Government Securities Clearing and Depository Services (CGSDDS) as a primary member. Before you're able to register, you need to fill an application form, pay the registration fee, and provide the necessary KYC docRead more
You can buy tax-free bonds from secondary market in India by registering with Central Government Securities Clearing and Depository Services (CGSDDS) as a primary member. Before you’re able to register, you need to fill an application form, pay the registration fee, and provide the necessary KYC documents. Once you’ve done this, your application will be processed within 10 days. You’ll have the option of buying bonds directly or through an authorized dealer. As soon as this process is completed, you’ll be able to trade on the secondary market.
See lesswhat is the goal of the young investor?
The goal of the young investor is to invest in order to create wealth.Editor's note: I have included more than one answer to this question because it received so many responses and all answers are great.There is no set way to become a billionaire, but the first step for many people is having an ideaRead more
The goal of the young investor is to invest in order to create wealth.Editor’s note: I have included more than one answer to this question because it received so many responses and all answers are great.There is no set way to become a billionaire, but the first step for many people is having an idea for a business that can turn into a profitable venture. Once you’ve come up with your plan, it’s important to know how much money you’ll need and from where you’ll get it.
See lessCan you tell me how zero coupon bond work in India?
On the maturity date, the zero-coupon bond will be redeemed at its face value. The holder will get back Rs 10,000 after the bond matures. In India, there are three categories of bonds: government securities, corporate securities and debentures. If a person purchases a government security or a corporRead more
On the maturity date, the zero-coupon bond will be redeemed at its face value. The holder will get back Rs 10,000 after the bond matures. In India, there are three categories of bonds: government securities, corporate securities and debentures. If a person purchases a government security or a corporate security, he/she is entitled to a fixed interest rate that is paid on every coupon date. This is quite different from an Indian government bond or a municipal corporation bond which offers zero coupon interest in its initial years of issuance before paying interest on each coupon date.
See lessHow do capital gain bonds help in saving tax?
Capital gain bonds allow you to save taxes on the capital gains tax, which is a tax that is applied when you sell an investment at a profit. The tax on capital gains can be as high as 25%. Capital gain bonds work by deferring taxation through the use of a bond. You invest in a bond and when you cashRead more
Capital gain bonds allow you to save taxes on the capital gains tax, which is a tax that is applied when you sell an investment at a profit. The tax on capital gains can be as high as 25%. Capital gain bonds work by deferring taxation through the use of a bond. You invest in a bond and when you cash it in or redeem it, the issuer pays your taxes upfront. You then pay those taxes at your normal income tax rate, which will typically be lower or equal to what your capital gains rate would have been.
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