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Equity cash refers to the cash component of an investment portfolio that's allocated towards equity-based assets, such as stocks or equity mutual funds. It's a crucial element within a diversified investment strategy, offering potential for growth and returns through ownership in companies or funds focused on stocks.
Stock options are financial instruments that grant the holder the right, but not the obligation, to buy or sell a specific stock at a predetermined price within a certain timeframe. These options are contracts traded on exchanges and can be used for speculation, hedging, or earning income.
Index options are financial derivatives that give the holder the right, but not the obligation, to buy or sell an underlying stock index at a specified price (strike price) on or before a predetermined expiration date. Unlike stock options, which are based on individual stocks, index options are based on stock market indices.
Insurance is designed to provide financial protection and mitigate risks associated with unforeseen events or losses. Insurance plays a critical role in financial planning by providing a safety net against unexpected events, offering peace of mind, and helping individuals and businesses manage risks effectively. It acts as a means to protect against potential financial losses that could otherwise be financially devastating.
SIP stands for Systematic Investment Plan, which is an investment strategy offered by mutual funds. It allows investors to regularly invest a fixed amount in a mutual fund scheme at predetermined intervals, usually monthly or quarterly. SIPs are popular among investors looking for a disciplined and long-term investment approach.
A mutual fund is an investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities managed by a professional fund manager. Investors buy shares in the mutual fund, and the fund's value, known as Net Asset Value (NAV), fluctuates based on the performance of its underlying assets.
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