Different Types of Funds Content List
It is a type of fund that is designed to replicate the benchmark indexes which are S&P, DowJones, Sensex, Nifty etc. Most popular index fund is Standard & Poor 500 index which tracks 500 US listed companies from various industries. It can be done by selecting the same member securities which constitute the benchmark index […]Continue Reading... Comments Off on Index Funds
Leveraged Buyout (LBO) is a term which is used to indicate the leverage or loan taken to buy out a company by the current management or employees or any other private equity firm. The key idea is to fund the cost of acquisition mainly by taking loans from other financial institutions rather than using own […]Continue Reading... Comments Off on Leveraged Buyout (LBO)
There are some disadvantages involved in Private Equity fund investment. They are mainly Private equity fund investments are very much liquid in nature and the investors can’t sell or buy their investment whenever they want. It requires a very high initial investment amount which only the very high net worth investors can afford. It requires […]Continue Reading... No Comments.
There are some advantages involved in Private Equity fund investment. They are mainly Private equity funds always invest with the intention of very high return over the long term. They are always considered as the long term money enhancer. They have a very low and positive correlation with the stock market which enables them to […]Continue Reading... No Comments.
Private Equity Funds have different characteristics and they are specified below with the importantly used terms. A private equity fund maintained by some experienced and capable investment professionals of a private equity firm. Most of the private equity firms are formed by limited partnership. The company has some main partners who run the company and […]Continue Reading... No Comments.
The equity of the publicly traded companies on the stock exchanges is called the public equity or common shares which are available to everyone. The equity part of the privately (not traded on stock exchanges) held companies is called the private equity. These equities are not easily available in the market and the investors can’t […]Continue Reading... No Comments.
There are some limited numbers of stock and bond indexes that the ETFs track. Investors want to invest in ETFs have to choose from the limited list which reduces their options for investments. Some ETFs face low trading volume, where liquidity can be an issue for the investors and traders. Investors are exposed to the […]Continue Reading... No Comments.
Diversification: ETF provides proper diversification as it enables the investors to invest in broad market based stocks by buying only one unit of ETF. Investors can also invest in bonds through ETFs which help them to diversify the risk. Tradable: ETFs are traded same as shares and traders can perform short-sell and margin transactions as […]Continue Reading... No Comments.
Exchange Traded Funds (ETFs) can invest in different types of financial instruments like stocks, bonds and commodities. All these types are explained here Index ETFs: Index ETFs invest in the equity shares in order to replicate performance of any stock index. ETFs replicate the performance of a stock index by holding the portfolio of same […]Continue Reading... No Comments.
Exchange Traded Funds (ETFs) have the following characteristics It can replicate any stock index, any popular bond index or any commodity price. The ETF units are tradable on the exchanges just like other common shares. It has more liquidity than the other close-end funds in the secondary market because of unique mechanism adopted by the […]Continue Reading... No Comments.