2. My words.....
My purpose here is to give basic terms used in business and commerce. Let us spread knowledge as widely as possible. I welcome your suggestions. I also request you to help me in spreading social entrepreneurship across the globe – for which I need support of you people – not of any VIP. With your help, I can spread the ideas – for which we stand....3. What is ULIP?
Unit Linked Investment Plan= here the investments are attached to share markets. They may rise and fall with share market. Generally ULIPs have option of different combination of equity and debt. A 60:40 scheme means 60% investment goes in equity and 40% in debt (less risky). Higher the equity, higher the risks and rewards (both). It is similar to mutual funds.4. What is a mutual fund or collective investment scheme?
Mutual fund is a combined investment by small investors – where there is an independent trust which manages these investments – in stock market / debt instruments and distributes profit / returns to the investors collective investment schemes are similar to mutual fund, but not the same.5. What is the difference between equity and debt? Equity = ownership in a company – so it carries dividend – share in profit - if there is no profit – no dividend – more profit = more dividend debt = fixed interest bearing time bound instruments like debenture, bond, etc. (it is similar to FD – fixed deposits
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