Investment Terms

Gold IRA vs Roth IRA

Investing in gold or Roth IRA would do any investor some good. No matter the type of investment, one should always try to put money to yield more returns in the future. If a low-stress and comfortable retirement are what you want, maybe it is time to set the ball into motion.

For some smart investors, Gold IRA vs Roth IRA is the best way to go. This type of account offers withdrawals that are tax-free once one reaches retirement age. One can also consider investing in gold which allows one to invest funds in many precious metals like silver, gold, palladium, and platinum.… Read the rest

Abey Francis

An Introduction to Hedge Funds

What are Hedge Funds?

A hedge fund is a type of private placement investment that is managed by investment management firms and is made up of sophisticated or institutional investors. The fundamental reason why various individuals participate in hedge funds is to protect themselves from losses in other assets. Managers of investment pools employ a variety of tactics, including leverage and esoteric asset trading, in an attempt to outperform the markets in terms of returns. Hedge funds invest in portfolios built with high risk management strategies in order to produce large returns even in the worst-case scenarios.

Hedge funds displays multiple characteristics which are discussed below:

  • Hedge funds are financial instruments which requires investment of large amount of capital and thus is not available to general public just as mutual funds are.
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Abey Francis

Socially Responsible Investment (SRI)

Socially responsible investment (SRI) can be defined broadly as an investment process that considers the social and environmental consequences of investments, both positive and negative, within the context of rigorous financial analysis. SRI funds aim to integrate personal, social and environmental concerns with financial considerations, their objective is to increase investors’ wealth while ensuring that the selected companies have a positive impact on people and the Planet. Often called ethical investments or sustainable investments, this type of investment has become increasingly popular in recent years.

The early stages of the SRI movement can be traced back to the nineteenth century, especially amongst religious movements such as the Quakers and Methodists.… Read the rest

Abey Francis

Impact of Interest Bearing Securities in Portfolio Management

Money market is a segment of the financial market where the securities are traded for shorter term and the risk associated with the money market is comparatively lower than the capital market. On the other hand, capital market is that section of the financial, market where the securities are traded for longer term and the risk is higher than the money market. The securities, which yield interest, are referred as the interest bearing securities. There are two types of interest bearing securities. One is fixed interest-bearing securities and the other is variable interest securities. The key interest rate in the capital market includes interest on public corporation bonds, government bonds, and rates on deposit of long-term debentures.… Read the rest

Abey Francis

Confirmation Bias – Understanding Behavioral Biases in Finance

Confirmation bias is the inclination to seek or make sense of news or facts in a way that validates one’s preconceptions. So, during the decision making process for psychologist they will refer to information that supports their decision more favorably. They will rarely give the obvious negative much consideration and since our beliefs and postulations are definitely prejudiced so the tendency to give more attention and weight to data that support our beliefs than we do to contrary data will subtly but gradually have a harmful effect.

An illustration of Confirmation Bias

A very real manifestation of this tendency can be observed in the virtual world.… Read the rest

Abey Francis

Learn about Securities Investments – Buying and Selling

Buying

Deciding on the proper time to purchase a security that you would like to add to your holdings can be a daunting task. If the price drops immediately after you buy, it may seem as if you missed out on a better buying opportunity. If the price jumps right before you make your move, you may feel as if you paid too much. As it turns out, you should not let these small fluctuations influence your decision too much. As long as the fundamentals that led you to decide on the purchase have not changed, a few points in either direction should not have a large impact on the long-term value of your investment.… Read the rest

Abey Francis
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