Financial Definitions
What Is Dollar Cost Averaging?
Sunday, July 20th, 2008We all know that every market has its ups and downs. If only we could all invest at market lows and reap the benefits when the markets go up… The reality though is that it is not easy to ‘time’ the market..This is where ‘Dollar Cost Averaging’ comes into play.
Dollar Cost Averaging simply means [...]
Open Ended Funds And Closed Ended Funds
Monday, June 23rd, 2008
Mutual Funds can either be closed ended or open ended. Open Ended funds are usually more common than the closed ended. Here is a brief post about the difference between these two types of funds:
Open Ended Funds
There is no limit to the size of the fund. You can apply or redeem more units/shares of the [...]
Peak Industry Bodies
Wednesday, May 14th, 2008In any financial transaction (from buying home to planning for your retirement to applying for car loan) make sure you only deal with a company/individual who is a member of the industry peak body. Every industry association has a code of ethics and code of conduct. All the members have to adhere to these codes. [...]
How To Calculate Rental Yield?
Monday, May 12th, 2008How To Calculate Rental Yields And How To Use Rental Yields To Compare Properties
Equity Warrants
Monday, February 11th, 2008Equity Warrants are short dated securities based on a underlying share that gives you the option to buy or sell the underlying share at an already decided price. With equity warrants you can trade at a much lesser initial investment than what you would with the underlying share on which this warrant is based. So [...]
Present Value Of An Investment Explained…
Thursday, January 17th, 2008Present Value Formula Explained - Find Out What your investment is worth
What Does Future Value Of An Investment Mean?
Tuesday, January 15th, 2008Future value of an investment is the value of a present day investment at a future date.
Example: Lets assume you invest 1000 dollars in a savings account today and plan to withdraw it in 5 years time. The value of the current day investment (1000 dollars) in future (5 years time) is the Future Value [...]
Nominal And Effective Interest Rate
Thursday, December 27th, 2007In the next two or three posts I am going to write about some basic definitions which are applicable to all investments.
Nominal Interest Rate: This is the interest rate that is quoted without taking into account the effects of compounding (number of times the interest is calculated in a year).
Effective Interest Rate: This is the [...]
