Mention the different types of mutual funds A mutual fund is an investment vehicle that pools money from multiple investors and uses that pooled capital to invest in a diversified portfolio of stocks, bonds, or other securities. These funds are managed by professional portfolio managers or investment teams employed by the fund management company. Mutual…
Category: MANAGEMENT OF FINANCIAL SERVICES
Decisions Demystified: Financial Leases vs. Operating Leases
How does financial lease differ from operating lease? Financial leases and operating leases are two common types of lease agreements that businesses use to acquire assets. They differ primarily in terms of their accounting treatment, ownership transfer, and the nature of the lease. Here are the key distinctions between financial leases and operating leases: Ownership…
Unlocking Economic Growth: The Essential Role of Development Banks
Explain the role of Development Banks Development banks play a crucial role in fostering economic progress within a country or region. Their primary mission is to offer financial assistance and resources for initiatives aimed at promoting economic growth, infrastructure development, and job creation. Below, we outline the key functions and responsibilities of development banks: Infrastructure…
Unlocking the Secrets of Financial Markets: Your Guide to the Diverse World of Investment Opportunities
What is a Financial Market? What are the different parts of financial market? A financial market is a comprehensive term referring to a platform where buyers and sellers converge to engage in the exchange of various financial assets. These assets included stocks, bonds, currencies, commodities, derivatives, and other securities. Financial markets serve a critical role in…
Indian Insurance Industry Overview & Market Development Analysis
Indian Insurance Industry Overview & Market Development Analysis Introduction The insurance industry in India has 57 insurance firms. 24 of them are operating in the life insurance industry and 34 are non-life insurers. In the life insurance sector, Life Insurance Corporation (LIC) is the only public sector entity. Six public-sector insurers are within the non-life…
What do you understand by credit rating?
Credit Rating The term” Crédit rating” is a quantitative evaluation of the creditor’s financial strength generally, or with regard to a particular financial obligation or debt. A credit rating may assign to any organization that is seeking to borrow money – an corporate entity, an individual as well as a provincial or state authority or…
Empower Your Wealth: The Crucial Significance of Capital Market Knowledge
What Are Capital Markets? Capital markets are the place where the investment and savings are channeled between the suppliers – people or institutions that have the capital to invest or lend to those who are in need. The typical suppliers are investors and banks, as well as those seeking capital include governments, businesses and even…