An insurance policy gives you the right to reimbursement or payment from an insurance company for losses agreed up on in a defined contract. A life insurance policy for example, needs the insurance company to evaluate a claim on the loss of life of the insured and if found accurate to pay the beneficiaries the ...
Asset allocation is essentially an official term for what you intuitively know is a healthy investment practice. For starters most households are likely to own some property and gold. That is diversification in asset allocation. You allocate the money you have across more than one asset like property, equity gold in different amounts. Sometimes the ...
Growth assets as against fixed return assets are those which grow your capital or principle investment. The most common forms of growth assets are equity stocks and property. Investing in equity stocks means you buy a portion of the underlying company. As profits of the company grow, the value of your stock grows and this ...
An investment is made to give you a return. You make an investment if you use your money to buy either physical assets like property or financial assets like bonds and equity with an aim to receive income or gains in the future. Investments help you create wealth to be used at some future date.
Compounding is the concept of earning return on both your principle investment and your profit. It is a way of calculating return that assumes you pull back your return till yesterday and remain invested so that any change in value today will reflect not only in your original investment but also in your return so ...
Inflation is a common term thrown around in economics lessons and by politicians around election time. What it means in simple language is that prices of things you buy, stuff, keeps increasing every year. It happens because the economy in general is growing, hence, the demand to consume stuff is growing faster than the supply ...