A mutual fund investor can decide to reinvest the dividends declared by the scheme in order to purchase more units of the scheme. This is called the 'dividend reinvestment option'.

What is the dividend distribution tax? A dividend is nothing but a distribution of a portion of a company’s earnings. While, dividend distributions tax is nothing but a tax on the distribution of profits by the company to its shareholders....

What is the concept of diversification? Diversification is a risk management strategy. It is an approach to reduce risk by investing in different asset classes. Diversification aims to maximise returns by investing in multiple avenues that would each have a...

The process of converting physical share certificates into electronic form.

Any investment that offers you the benefit of compounding can help you double your investment and build wealth. CAGR shows how much a person’s investment grew over a specific period. In other words, it is the average returns an investor...

The interest rate that a bond or debenture pays (indicated as a percentage of its face value). For example, if the face value of a bond is Rs 100 and it pays interest at 8%, this interest rate is called...

Close-ended funds exist for a fixed period of time.

It is a grade assigned to a bond indicating its credit quality. Bonds of blue-chip firms have a higher bond rating, which indicates the safety of the investment.