While generally, all investors would swear by the benefits of diversification in a portfolio, it is very critical to understand the thin line between diversification and over-diversification. It is easy to be overwhelmed by the influx of capital gains and reduced risk and make that momentary mistake of stretching the diversification strategy to the far-end. ...

Individual bonds and bond funds are two fundamentally different instruments that work well in different market situations. Bonds are secure investments that generally come with a fixed return and in most cases, with a predetermined maturity amount. Bond funds or bond mutual funds, on the other hand, are mutual funds that invest exclusively in such ...

Parenting is both a joy and an ocean of responsibilities. Parents constantly worry about the well-being of their child, in their presence as well as when they are no longer around. Estate planning is one important measure to ensure the well-being of your children in case of your demise, incapacity, or disablement. Such situations massively ...

Investors must periodically review, re-evaluate, and revamp their investment portfolio. This is necessary because depending upon the returns offered by each asset over time, the original composition of investment changes. Subsequently, all the factors associated with the portfolio, like absorbable risk, tax liability, etc. gets modified. During these times, tactful improvisations in the portfolio can ...

A general portfolio is a mix of equity, bonds, and cash, each with its own risk and reward trajectory. Equity or stocks are riskier and highly rewarding, while on the contrary, bonds are subject to a lesser threat but can also have lower returns. In a typical scenario, people like to believe that the higher ...

People in their mid-careers (above 40 and early 50s) can find themselves at an odd place. As far as their career is concerned, they have reached a significantly strong position of power, with consistent salaries, and stable work routines. But on the contrary, their personal position may be dwindling with piling mortgages, loans, credit card ...

Failed investment strategies can be very hard to deal with, especially at an age when it is time to reap the benefits of those investments. No matter the age, failure is always disheartening and can cause an enormous financial setback. But on the other hand, it is an undeniable truth and a condition which most ...

With the recent coronavirus outbreak, there has been a continuous downturn in financial markets. The stocks are falling every day as the epidemic is making a stronger mark on the world. Investors are worried about the extreme negative trends in their portfolios, yet nothing can be done to prevent this situation. Dealing with such unexpected ...

A risk tolerance questionnaire assists investors in understanding their outlook on investment opportunities. It also provides them with knowledge of financial markets and the economy. Financial planning is a complex task, which requires complete and correct details to arrive at suitable investment decisions for every individual. Apart from other information, one of the most important ...

A good investment can be defined as one that provides profits in the long run. However, with the various investment options offered in the market, it is essential to be extremely vigilant and careful while selecting an instrument. Investors must specifically be cautious of new and excessively attractive investment propositions. It is also necessary for ...