Investment word of the day: Fund of funds —what is FoF and how does it work? Types, advantages and more | Mint

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 as … Read more

Investment word of the day: ETFs — what are exchange-traded funds and how do they work? | Mint

Investment word of the day: An exchange-traded fund (ETF) is a combination of securities that provides diversification benefits of mutual funds with the ease of trading equities. It works similarly to an index mutual fund; the only key difference is it can be bought and sold on a stock exchange just like individual stocks. Unlike … Read more

Investment word of the day: Active funds – How they work and can help you beat markets | Mint

Investment word of the day: Investing in the stock market may be intimidating, especially for beginners. Many struggle with understanding essential stock market terms, making the process complex. Here’s a simple guide to one such term: active funds. Let’s see what active funds are, how they work, and why they matter. What are active funds? … Read more

Investment word of the day: Passive funds — a low-risk option for investors; how do they work? | Mint

Investment word of the day: The volatility and risk in the equities market are known to all, which often prevents people from investing in stocks. However, there is a way to invest in the equities market without the stress of selecting individual stocks and depending on market gains or losses. This simpler way of investing … Read more

Investment word of the day: Extended Internal Rate of Return — what is XIRR and why is it crucial for MF investors? | Mint

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 Extended … Read more