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Mutual Fund Sahi Hai

Definition of Mutual Fund Sahi Hai

Mutual Fund Sahi Hai is a popular investor awareness slogan/website launched by the Association of Mutual Funds in India (AMFI). It aims to educate people about mutual funds and encourage informed, long-term investing by highlighting the benefits of diversification, professional management, and disciplined investment habits.

Related Terms

Gold Futures

Gold futures are commodity derivatives that derive their value from gold bullion. A trader who buys a gold futures contract acquires the right and obligation to buy gold at a later date and price that’s pre-agreed. Gold futures in India are eligible for physical delivery once the terms of the contract are successfully fulfilled.

Demat Account

A Dematerialized or Demat account is used to store shares and ETFs in the electronic format. It is linked to a bank account and is necessary for trading or investing that involves delivery, that is, where the asset is held overnight.

Beta Coefficient

Beta coefficient is used to measure the volatility of stocks in relation to changes in the market. Basically, Beta helps investors understand the risks associated with a stock compared to the market.

The formula to calculate the Beta coefficient is:

Beta (β) = Covariance (Ri, Rm) / Variance (Rm)

Where:

  • Ri = a stock's return
  • Rm = overall market's return
  • Covariance = ups & downs of stock returns versus ups & downs of market returns
  • Variance = the difference between market returns and its average

Generally, Beta values are of four types:

  • Beta < 1.0: stock less volatile than the market
  • Beta = 1.0: stock just as volatile as the market
  • Beta > 1.0: stock more volatile than the market
  • Negative Beta: stock shares inverse relation with the market

Cheapest To Deliver

Cheapest to deliver (CTD) refers to the cheapest or lowest priced security in a futures contract that a seller can deliver to a buyer who holds a long position. Here’s the formula to calculate the cheapest security that can be delivered:

  • Short position: Current price of security + accrued interest
  • Long position: Settlement price x conversion factor + accrued interest

Equity Delivery

In equity delivery, shares are delivered to an investor’s Demat account after the settlement period. That’s why it is called equity delivery. However, equity delivery is also known as delivery trading and long term investing.

For example, let’s say you place an order for 10 HDFC shares on Tuesday with a view of holding onto them for the long term. The trade will be settled on Thursday shortly after which the shares will be delivered to your Demat account.

Hammer Candlestick Pattern

  • The main body shows the difference between the financial security’s opening and closing price.
  • The wick (shadow) of the candlestick shows the high and low prices of the security for the day.



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