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Showing posts from November, 2018

How Mutual Fund Works

A vehicle for investing in stocks and bonds   A mutual fund is not an alternative investment option to stocks and bonds, rather it pools the money of several investors and invests this in stocks, bonds, money market instruments and other types of securities.   Buying a mutual fund is like buying a small slice of a big pizza. The owner of a mutual fund unit gets a proportional share of the fund’s gains, losses, income and expenses.   Each mutual fund has a specific stated objective   The fund’s objective is laid out in the fund's prospectus, which is the legal document that contains information about the fund, its history, its officers and its performance.   Some popular objectives of a mutual fund are -   Fund Objective                             What the fund will invest in Equity (Growth)                              Only in stocks Debt (Income)                                Only in fixed-income securities Money Market (including Gilt)        In shor

What is Blockchain?

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Blockchain is a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly.Control of the database remains with Wikipedia administrators allowing for access and permissions to be maintained by a central authority.Wikipedia’s digital backbone is similar to the highly protected and centralized databases that governments or banks or insurance companies keep today. Control of centralized databases rests with their owners, including the management of updates, access and protecting against cyber-threats.The distributed database created by blockchain technology has a fundamentally different digital backbone. This is also the most distinct and important feature of blockchain technology. Wikipedia’s ‘master copy’ is edited on a server and all users see the new version. In the case of a blockchain, every node in the network is coming to the same conclusion, each updating the record independently, with the most popular record beco