Money Market Funds

Money market Funds basically invest in money market instruments like Treasury Bills, Certificates of Deposit, Commercial Papers, and Interbank call money market.

The tenor of money market instruments varies from 1 day to 1 year and hence they are highly liquid. These are also considered the least risky. Returns are nominal in money market investments. The risk involved in money market funds is inflation may outpace the actual fund returns there by the investor’s purchasing power would be reduced.

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Gilt Funds

Gilt funds invest in government issued medium and long term bonds. They can also invest in high rated (Aaa/AAA rating*) corporate bonds. Gilts/Government bonds are not rated. Gilts/Treasury bonds are considered extremely credit worthy because they are backed by the Governments. If a scenario arises where it has to default it will repay the principal by printing currency. So they are always considered extremely safe.

 Some Government Sponsored enterprises are also not rated. They are not explicitly backed by the governments but they have implied Government backing and implied Aaa/AAA rating. Read more

Muhurat Trading 2009

Diwali is celebrated on Ashwayuja Bahula Amaavaasya. Usually it comes in the month of October/November. This day is considered as a precious day for starting a new business and extending an existing business. Lakshmi (Goddess of wealth) Puja is carried out on this day to favor their businesses.

Muhurat trading is held on BSE and NSE on the day of Diwali (Laxmi Puja) for half an hour/an hour. This time it falls on Saturday but still Muhurat trading will be held on October 17th 2009 from 6:15 PM to 7:45 PM. On this day most of the traders/investors buy at least a few quantity of shares. Most of the people believe that they would get benefited from the trades done on that day. In 2008, in spite of all the negative news of recession Sensex went up sharply.

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