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  What is CAGR and what are its advantages? CAGR stands for the Compound Annual Growth Rate . It is simply a measure of an investment annual growth rate over time, with the effect of compounding taken into account. It is often used at the time to measure and compare the past performance of investments or to project their expected future returns. The CAGR formulae are equal to the (ending value/beginning value) ^ (1/# of periods) – 1. CAGR Formula The CAGR (Compound Annual Growth Rate) formula requires only the ending value of the investment, the beginning value, and the number of compounding years to calculate. It is achieved by dividing the ending value by the beginning value and raising that figure to the inverse number of years before subtracting it by one. The CAGR formula is as follows: Where: EV: Ending Value BV: Beginning Value N: Number of Compounding Periods Characteristics of the Compound Annual Growth Rate The main advantage of this indicator is that we

  What can you do when the stock market crashes? One minute, the marketplace’s hitting document highs. The subsequent — blame — we’re inside the throes of an inventory marketplace correction. While the coronavirus outbreak is the primary motive force at the back of the modern market turmoil, the stock marketplace doesn’t require a plague to enter into decline. Market downturns are normal and maybe because of several factors. Although history can tell us how lengthy crashes, corrections and undergo markets have lasted, no one receives a calendar be aware of announcing the time, nature and projected significance of destiny dips. You do know that the market is always changing When a marketplace decline hits, your effects may range — and perhaps for the higher — in case you’ve invested cash across distinct baskets of asset training. If you’ve long gone with a “set it and forget about it” method — like making an investment in a target-date retirement fund, as many 401(okay) plans can

What is an IPO and Why Do Companies Go Public? The announcement of the IPOs makes for really grand headlines in the finance industry. People heavily trading in stocks meticulously follow upcoming IPOs in India as they are constantly looking to strengthen their portfolio. And as a smart and brilliant investor, we need to be up to date with the upcoming IPOs in India as well.  What is IPO? Initial Public Offering or IPO is a process by which a private company can go public by sale of its stocks to the general public for the first time. It could either be a new, young company or an old company that decides to be listed on an exchange and hence, goes public. At the time of issuing their shares to the public, companies can raise equity capital with the IPO, or the existing shareholders can sell their shares to the public. Moreover, companies fall into two categories: Public and Private. A private company is run by a closed group of people with fewer shareholders who don’t give out muc

  What is Systematic Investment Plan or SIP and its features? A Systematic Investment Plan or SIP is not an asset class or an investment instrument. It is, in reality, one of the methods of investing in mutual funds. This is where the regular investment with a fixed sum of money is made in a disciplined manner. What is Systematic Investment Plan (SIP)? The other method of investing in the mutual fund is a one-time lump sum investment. SIP helps you to invest a fixed amount of money regularly in various mutual funds schemes depending on your financial goals. You have the potential to create long term wealth by investing a small sum of money via SIP. The SIP investment approach suite people with regular cash flow or a fixed salary. Let’s say, for example, you want to build a fund of INR 5.4 lakh in 3 years for a foreign travel trip. By starting a monthly SIP investment for INR 15000, you can achieve the goal conveniently. SIP is the best way to get into the habit of saving and in

 Looking for long term investments | Checkout these sectors Every trader wishes to diversify their portfolio and invest in sectors that will yield them good results in long term. The last thing you want is a particular sector to die because the availability and demand have gone low.   While investing, make sure the sector has the potential to run for at least 10-15 years, and the companies won’t run out of business. But how do we find a stable sector in this constantly changing world? The answer is, you don’t. You always look out for sectors that are growing and as the potential to churn out profits in the next few years. If you look out for sectors that have grown in the past, you’ll notice that those sectors won’t see the tremendous growth anymore. Thus, finding out and investing in sectors that have growth potential is a must.   Here are a few sectors that are on the verge of growing tremendously in the next few years.   ●      Healthcare It is a harsh reality that physica

  What is options trading and how Sensibull works? As a trader, you hold a view of the market as per your analysis, so does every other trader. However, having a fair view of the market is not enough, you also need strategies for trading and its timely and its appropriate execution. What is options trading and how Sensibull works? Enter, Sensibull. Sensibull is an options strategy platform by Zerodha. You can get suggestions on your strategies, based on your market view. It also gives you all the information like expiry, ROI, risk level, capital required, etc. Sensibull was started with the intention of making options trading easier and doable for new traders. It is India’s first options trading platform and provides simple, easy tools for new users, as well as some complex, powerful tools for experienced users. What is options trading? Before we actually understand options trading, it is important we understand what are ‘options’. So options can be understood as contracts, that allow

  Fundamental tips you need to know to become an investor Stock markets have always stuck the fancy of traders searching at inflation-beating returns and wealth technology. However, creating wealth inequities isn’t always that honest. It requires endurance (quite a few it), inherent expertise of the manner the market capabilities, and in-intensity research and evaluation, among other things. If we take a brief study in the manner the markets have replied to the pandemic within the previous few months, it has been a curler-coaster ride. With excessive marketplace volatility and an unsure outlook, most buyers discovered themselves greedy at straws to make the proper funding selection. How to become an awesome investor over time? Have some patience The main idea is to bear down with some patience when you are trading in the stock market. Every market has its ups and downs which you can share. On this way, you need to have a proper amount of patience which can help you to hav