What is a Hedge fund

Hedge fund is a type of private and unregistered investment-pool that employs sophisticated hedging and arbitrage techniques in blogboth domestic and international markets to generate high returns.

Traditionally Hedge funds have been limited to sophisticated, wealthy investors because they required a large initial investment.

Earlier most of the hedge funds strategies such as leverage, long, short and derivative positions were focused on corporate equity markets. But now hedge funds new focus areas are commodities and money markets.

Because hedge funds are unregistered, they can use securities and strategies that are either prohibited or restricted in registered funds. Continue reading “What is a Hedge fund”

Fixed Maturity Plans V/s Fixed Deposits

I hardly write on personal finance but suddenly thought of doing a story over it as one of my very good friend explored this part.

The point raised was whether FMP ( Fixed maturity plans ) or FD ( Fixed deposits) who offers best returns ?

Lets try to understand the fundamental difference and similarities between them before jumping to the conclusion.

  •  FMPs are issued and managed by mutual funds while bank fixed deposits are managed by banks
  • While bank fixed deposits (FDs) are deposits in bank debt instruments

Continue reading “Fixed Maturity Plans V/s Fixed Deposits”