#MoneyArth

Arbitrage Funds ABOUT Arbitrage fund is a type of mutual fund that leverages the price differential in the cash and derivatives market to generate returns. The returns are dependent on the volatility of the asset. These funds are hybrid in nature as they have the provision of investing a sizeable portion of the portfolio in debt markets. For instance A company’s share might sell at 20 per share today, but perhaps the majority of investors feel the company is primed for a spike next month. In that case, a futures contract with a maturity date one month down the road may be valued much more highly. The difference between the cash and futures price for ABC stock is called the arbitrage profit. Arbitrage funds take advantage of these different prices. They buy stock in the cash market and simultaneously sell a contract for it on the futures market if the market is bullish on the stock. WHY TO INVEST? Arbitrage funds are apt for those investors who are looking to have equity exposure but ar...

Shariah-compliant funds  ABOUT  Shariah-compliant funds are investment funds governed by the requirements of Shariah law and the principles of the Islamic religion. Shariah-compliant funds are considered to be a type of socially responsible investing.  WHY TO INVEST?  Shariah-compliant funds are one of many categories found in socially responsible investing. Similar to other socially responsible funds within the environmental, social and governance (ESG) universe, the funds screen potential portfolio investments for specific requirements desired by followers of the Islamic religion. WHO TO INVEST ?  Even though the investments done by a Shariah-compliant mutual fund are as per the Shariah law, any individual, NRI, company or HUF is permitted to invest in these funds. PROS  Transparency: Investors in Islamic equity funds expect a high level of transparency. After all, if one of a fund’s key objectives is to comply with sharia, the fund managers must be quite...

International ETF About An international exchange traded fund (ETF) is any ETF that invests specifically in foreign-based securities. The focus may be global, regional, or on a specific country and may hold equities or fixed-income securities. ETFs that invest in a single foreign country may carry higher risks than international ETFs that spread their investments among many countries. Why to invest? Global investment provides an additional source of wealth creation in your portfolio and helps diversify the risk. Globally, different markets have performed better in different periods and the winner keeps on rotating across the geographies as the performers and laggards may change even on a year to year basis. In fact, if we compare the benchmark indices, US markets have created more wealth for the investor than Indian markets in the previous 3, 5, 10-year period in their local currency and even higher if we look at the returns in INR terms. Investors should note that depreciation of INR ...