Financial Definitions

What Is Dollar Cost Averaging?

Sunday, July 20th, 2008

We 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, 2008

In 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, 2008

How To Calculate Rental Yields And Use Rental Yields To Compare Properties

Equity Warrants

Monday, February 11th, 2008

Equity 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, 2008

Present Value Formula Explained - Find Out What your investment is worth

What Does Future Value Of An Investment Mean?

Tuesday, January 15th, 2008

Future 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, 2007

In 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 [...]