corporate finance

What Is Capital Rationing? Ultimate Meaning, Advantages

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Capital rationing is a situation, whereby, the funds available for completing a project are limited.
It is a situation where a constraint or budget ceiling is put in place on to the total size of capital expenditure under the assumption that the availability of financial resources is quite limited.
It is a financial strategy used by companies or financial institutions or investors to limit the number of projects to be taken up at a time. If there is a pool of available investments which are expected to be profitable, the strategy of capital rationing provides the investors with the most profitable one to choose from.

What Is A SIP? The Ultimate Guide To Mutual Funds

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The abbreviation SIP stands for Systematic Investment Plan, this is a type of investment which helps the investors save and grow the investors’ money over a period of time. SIP helps investors to invest small amounts of money on the regular basis instead of investing a large sum of money all at once. SIP primarily gives the benefit of the term Rupee Cost Averaging. SIP works on the foundation of this approach of Rupee Cost Averaging. Investing in SIP provides with the benefit of averaging out the costs of the investments without having to worry about the market conditions.

What Are Debt Mutual Funds? Meaning, Types, Benefits- The Ultimate Guide

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Debt mutual funds are those funds which primarily invest in debt instruments such as bonds, debentures, certificates of deposits, etc.

This is a category of mutual fund that primarily invest in fixed-income securities, such as corporate and government bonds, treasury bills, and money market instruments. They are also known as income funds or bond funds. Investment in debt mutual funds is ideal for investors who are not willing to take up major risks but want safety of capital along with a stable return on their investment.

What are Mutual Funds? Meaning, Benefits, Types, Mechanism- The Ultimate Guide

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Mutual fund refers to a large pool of money invested in proportions, in the stock exchange by sound professional expert known as the finance manager.

Mutual funds are ideal for investors who either lack large sums for investment, or for those who do not have the time to research the market, yet want to grow their wealth. The money collected in mutual funds is invested by professional fund managers according to the scheme’s stated objective.

Top Financial Terms You Must Know! Corporate Finance, Tax, Insurance (Series 2)

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By understanding various financial terms and the mechanism in which it functions, one can reach great heights. Finance is a vast subject which has several branches.