Trading! Finance, Economics

India's external debt, as at the end-March 2020 was  US$ 558.5  billion. Currently, the worlds' most indebted country is the United States (U.S.A.), followed by the United Kingdom. Is this the money India owes to external agencies like the World Bank and the International Monetary Fund (IMF)? So first define debt based on their maturities:- Long term - loan with a maturity period of more than one year. Short Term - debt has a maturity period of less than one year.                             But, Short term external debt also includes interest payment of long term debt. As its complex to understand why and how we take this burden of loan or its only bore by the government of India. Let's understand some of its components -   Multilateral Credit  - borrowed by GOI from global institutions like the Internation Monetary Fund                 ...

As % Gain is main purpose in the financial world with a common saying " High Risk, High Reward", Investors whose ' risk tolerance'   is low, dread the stock markets because of the inherent fear of losing their hard-earned money, so in order to reduce the risk of losing one's money mutual funds (also called an AMC) come into the picture. Type of Mutual Funds- Equity Fund -  An  equity fund  is a mutual  fund  that invests principally in stocks. Generally higher risk. Diversified Fund - Equity fund which invests across different industries and sectors. If one sector doesn't perform well, another sector would bail the fund out. Sector Fund -  A sector fund is an investment fund that invests solely in businesses that operate in a particular industry or sector of the economy. (example IT) Index Fund -  An Index Fund is a type of mutual fund with a portfolio constructed to match or track the components of an ...