The following points highlight the seven main types of risk on investment. The types are: 1. Interest Rate Risk / Market Risk 2. Credit Risk / Counter-Party Risk 3. Call Risk / Prepayment Risk 4. Put Risk 5. Yield Curve Risk 6. Inflation Risk 7. Sovereign Risk. 1. Interest Rate Risk / Market Risk: If we talk of fixed income [...]
List of Top 5 Government Bonds to Invest in India! 1. Central Government Bonds: If you spend more than you earn, how do you sustain? You will borrow. This is precisely the purpose of Bonds issued by the Central Government. Before the beginning of every financial year, the Central Government announces its Financial Budget- Its anticipated expenditures and sources of [...]
The following article will guide you about how to mitigate interest rate risk. Introduction: Of the two components of interest rate risk, price risk can have a sudden and dramatic impact on your fixed income portfolio. The reinvestment risk is slow and long drawn in its effects. In the long run, interest rate scenarios change and you will most certainly [...]