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…
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…
The Art of Financial Management: A Guide to Meaning, Objectives, and Functions
Definition and Scope Financial management encompasses coordinating, planning, supervising, and controlling financial activities, including acquiring and utilizing an organization’s funds. It applies fundamental management principles to the financial resources of a company. Elements of Financial Management Investment Decisions involve allocating resources to fixed assets (capital budgeting) and current assets, known as working capital decisions. Financial Decisions: These…
Definition of Product and Importance
Definition of ‘Product’ A product is an item that is offered to purchase. A product could be an item or service. It may be physical or in cyber or virtual forms. Each product is created at a cost, and everyone is offered at a cost. The price set is based on the market and the…
Mastering the Art of Consumer-Centric Marketing: A Guide to Winning at Each Stage of the Buying Process
The Six Stages of the Consumer Buying Process and How to Market to Them Many times, sellers believe that buying from consumers is random. That certain products appeal to certain people and the purchase will either happen or isn’t. They approach to service and product marketing the same way that is based on trial and…