Term Of The Week

Free Cash Flows

Feb 18, 2019

Free cash-flow is a commonly used term in stock analysis. It is the cash left for investors (both debt and equity investors) after cash-outflows for all expenses (excluding interest) and investments (in capital assets like plant, machinery etc). Some investors confuse free cash-flows with another accounting term, Earnings... Read More

Dividend Yield

Feb 11, 2019

Dividend yield is the dividend per share divided by the share price. Dividend yield is an important ratio in selecting stocks. High dividend yield stocks are more attractive, valuation wise, compared to low dividend yield stocks. Dividend yield, as such, is an important ratio for value investors. High dividend yield... Read More

Earnings per share

Feb 4, 2019

Earnings per share or EPS is the profit after tax of a company divided by the total number of shares outstanding. EPS is the measure of profitability of a company; higher the EPS better is the profitability. EPS is reported on a quarterly basis, when companies release their financial statements. Fund managers and analysts... Read More

What is risk diversification in equity mutual funds

Jan 28, 2019

Every equity investment is subject to three types of risk – company risk, sector risk and market risk. Company risk and sector risk are unsystematic risk, while market risk is known as systematic risk. Systematic risk is not diversifiable or in other words, uncontrollable. Irrespective of the nature of your equity investment... Read More

What are equity mutual funds

Jan 21, 2019

Equity mutual funds are mutual fund schemes which invest primarily in equity and equity related securities. These funds are among the riskiest investments across all mutual fund product categories, but historical data shows us that equity is the best performing asset class in the long term. The risk profile of equity... Read More

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