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August 2023

Finance

​Unravelling small-cap funds: Are the rewards worth the risks?

by Jack Grayson on

To simplify things for investors, mutual fund companies often group their funds based on company size. There are three major kinds – small-cap, mid-cap, and large-cap.

Being aware of these distinct fund types is essential for making prudent investment decisions. Covered here are the significance of small-cap funds along with their benefits and associated risks.

What exactly are small-cap mutual funds?

Small-cap companies are the ones that rank beyond the top 250. Small-cap mutual funds are like a group of investors pooling their money to invest in these smaller companies.

The upsides of putting money in small-cap mutual funds

Before delving into the risks of small-cap mutual funds, let’s first understand the benefits they bring to the table –

Potential for outstanding returns

Small-cap mutual funds can potentially provide significantly higher returns compared to larger funds. This is because smaller companies have room to grow rapidly.

Affordable investment entry

The expense of a small-cap fund unit (known as NAV or net asset value) is generally lower. This infers you can purchase more units with the same investment, potentially reaping higher rewards during favourable market conditions.

Spread your risk wisely

Investing in small-cap funds permits you to diversify your portfolio. This diversification shields you from thorough market downturns, allowing you to protect your investments even during tough times.

Recognising the hazards linked to small-cap mutual funds

Despite their perks, small-cap mutual funds do come with risks that investors need to be aware of. Let’s skim through a few of these risks –

Liquidity concerns

Large institutional investors do not usually invest in small-cap mutual funds. Even individual retail investors might not participate heavily. This can create liquidity problems, making it more challenging to buy or sell fund units.

To tackle liquidity challenges, it is advisable to invest with a long-term perspective. This lowers the requirement for constant purchasing and selling, making liquidity problems less impactful. Moreover, remaining updated with your mutual fund’s liquidity status as well as market trends can assist you time your transactions effectively.

Volatility

This is a notable risk for small-cap funds. Funds’ value swing wildly, making them come across as a risky investment. So, losses could be considerable if prices do not go as anticipated.

To counter this, consider opting for buy and hold strategy. Holding your investments through market movements can assist balance out the market’s ups and downs over the short term. Diversification is the next crucial strategy, which means disseminating your investment throughout distinct fund types and sectors that can cushion the effect of volatility on your investment portfolio.

Variable performance

Small-cap fund’s performance depends on specific factors such as the selection as well as the performance of the stocks selected and the decision of the fund manager. Owing to such factors, the funds may not perform as impressively as you may anticipate.

To counter this variability in fund performance, ensure to research and choose funds with skilled and experienced fund managers. Their expertise in the selection of stocks and decision-making can considerably increase the performance of the fund.

Conclusion

Investing in small-cap funds can be beneficial if you factor in the potential rewards they provide. However, ensure to understand the risks associated with small-cap mutual funds.

Make sure to invest with a long-term vision. This can play an essential part in lowering the risks tied to small-cap investments as the market’s fluctuation tends to smooth out over the long term. While the potential of generating high returns is appealing, balancing your investment portfolio with different fund types can even offer high stability. So, acknowledge the risks, and make investment choices that align with your life goals and risk appetite to earn substantial returns.

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Business

Exploring the Features of Options Strategy Builder

by Jack Grayson on

Our option strategies builder offers quite a number of features that units it apart from different equipment in the market. Let’s explore a number of its key functionalities:

  1. Pre-defined Trading Strategies

Our strategy builder affords you with a selection of pre-defined buying and selling techniques to choose from. Whether you are interested in included calls, protecting puts, or straddles, our builder has you covered. These pre-described techniques serve as a place to begin for customization, permitting you to evolve them in your specific trading style and market outlook.

  1. Customization Options

We apprehend that every trader is specific, and that is why our options strategy builder gives a huge range of customization alternatives. You can alter parameters together with strike prices, expirations, and position sizes to align with your hazard tolerance and buying and selling goals. This stage of flexibleness offers you the power to tailor strategies to your precise needs.

  1. Advanced Analysis Tools and Real-Time Data

A hit buying and selling approach is built on a strong basis of records and analysis. Our options approach builder integrates advanced evaluation equipment and provides actual-time facts, permitting you to make knowledgeable choices. With access to historical information and charting functions, you can analyze developments, discover capacity possibilities, and fine-tune your strategies consequently.

Step-by-Step Guide: Building Your First Strategy

Now that you’re familiar with the capabilities of our alternatives method builder, let’s walk through the process of making your first strategy:

  1. Selecting an Option Type

The first step is to pick out the type of alternative method you need to construct. Whether you are interested in bullish, bearish, or neutral techniques, our builder gives plenty of options to suit your trading preferences.

  1. Entering Trade Details

Next, enter the relevant alternate info inclusive of the underlying asset, strike fee, and expiration date. Our consumer-friendly interface makes it easy to go into the important facts accurately.

      3. Setting Risk Management Parameters

Risk management is a vital aspect of buying and selling fulfillment. With our options strategy builder, you may set parameters to manage risk, which include forestall-loss tiers and profit objectives. These settings make certain that you hold manipulate over your trades and protect your capital.

  1. Generating Strategy Reports

Once you’ve finalized the approach, our options method builder generates distinctive reports. These reviews provide a comprehensive review of the ability dangers, rewards, and key facts related to your method. This record gives you the confidence to execute your trades with readability and precision.

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Entertainment

5 Thrilling Web Series That You Can Find On ZEE5

by Jack Grayson on

The past few years have seen the proliferation of several original web series on various video streaming services all across the globe. One of the subsets of these web series includes the ones that are meant to send a chill down the spine of their viewers. ZEE5 Global is no exception to this trend, as several such web series already exist on the platform, while others are right on the horizon, such as The Kashmir Files Unreported. This article will take a look at 5 such web series that you can either start streaming on ZEE5 Global right away or are about to make their streaming debut in the near future. Read on to know more.

1)  The Kashmir Files Unreported

From the mind of National Award-Winning film director Vivek Agnihotri comes a goosebump inducing docuseries about the several events that contributed to turning Kashmir into the war-addled field that it is today. Complete with real-life testimonies, survivor stories, parables of historians, and archived footage, The Kashmir Files Unreported explores the rich history of Kashmir and tracks its journey from its genesis to its present-day situation. The series is going to make its streaming debut on ZEE5 Global very soon in a select number of countries.

2)  State Of Siege: 26/11

This particular web series is a retelling of all the unreported stories that transpired during the 26/11 Mumbai Terrorist attacks that shook the world. The show explores several aspects of the operation that was undertaken in response to the harrowing state of the two state-of-the-art Mumbai-based hotels that saw a lot of bloodshed, gunfire, and casualties over the span of two days. The series explores the planning process, the execution of the plan, the manner in which several hostages were rescued, and the bravado with which the defense forces dealt with the situation head-on.

3)  Rangbaaz

Just like in the case of State of Siege: 26/11, this series is based on real life events that took place in Bihar. It is a story about the kind of politics that is played in the state and the crimes that are committed by the various gangsters, who were quite revered in their respective cities. All three seasons of the show, each of which has a slightly different story to tell, are available on ZEE5 Global for streaming.

4)  Jeet Ki Zid

This Amit Sadh starrer web series tells the real-life inspirational tale of Major Deependra Singh Sengar (Played by Sadh), who was left paralyzed from the waist down as a result of the Kargil War. The show sees him exhibit exemplary levels of determination and grit, which prove to be instrumental in helping him bounce back in life. This series has an impressive 8.3/10 on IMDb.

5)  Abhay

One of the crown jewels of the platform, Abhay is a psychological thriller series that marks the streaming debut of renowned actor Kunal Khemu. This show, which also stars the likes of Elnaaz Norouzi and Sandeepa Dhar, sees its titular character solve complicated criminal cases in a bid to bring the perpetrators to justice. The show has a rating of 8/10 on IMDb.

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