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Benjamin Graham, one of the early followers of fundamental analysis based investing and also Warren Buffett’s professor, had propounded the concept of Mr. Market way back in the nineteen forties to describe the contradictory and irrational traits of investors. Graham described Mr. Market as an investor prone to erratic swings of pessimism and optimism and since majority of the stock market is comprised of such investors, he felt that the market as a whole takes on these characteristics. His advice was that while Mr.

All mutual funds houses undertake KYC (Know Your Customer) compliance in pursuance of the Prevention of Money Laundering Act, 2002, and SEBI (Securities & Exchange Board of India) guidelines. This process is made mandatory by the market regulator so that the transactions are seamlessly linked to the investor. Since PAN is the compulsory document towards Proof of Identity, it serves as a unique link for the stakeholders concerning all the transactions in the financial markets, be it with stockbrokers, depository participants or mutual funds, etc. 

A Corporate Bond Fund is an open-ended debt scheme predominantly investing in AA+ and above rated corporate bonds. These funds are mandated by SEBI to invest a minimum of 80% of total assets in AA+ and above rated corporate bonds. To further clarify, corporate Bonds are one of the predominant sources of funds for the companies willing to borrow from the market, apart from the borrowings from banks and financial institutions.

In mutual fund transactions, the time of receipt of the transaction and money affects the applicable Net Asset Value (NAV). To bring uniformity in the operational processes, SEBI (Securities & Exchange Board of India) has prescribed the cut-off timings for mutual fund transactions across all the mutual fund houses. Therefore, mutual fund transactions are processed based on the prevailing NAV of the respective scheme, if the fund house receives the transaction/ funds before the cut-off time.

Investors may choose to invest in equity markets through two primary investment strategies: active and passive. Active investing refers to the active selection of stocks in the portfolio depending on company fundamentals and other parameters. In contrast, passive investing refers to tracking a benchmark index and replicating its composition in the portfolio. When a scheme is actively managed, the fund manager decides which stock to invest and in what proportion to invest.

It is a known fact that the purchasing power of money reduces over time. An Rs. 2000 note today will fetch lower value a year later and further lower a decade later. Similarly, a Rs. 100 item will most likely not be available at the same rate a year later and available at much higher rates 10 years later. This happens due to the increase in prices of raw materials, input services etc. In normal parlance, this is referred to as inflation, which reflects the increase in prices of commodities and services across different periods.

Gold is regarded as a natural hedge against inflation and currency depreciation. Moreover, the recent volatility in the global financial markets has brought the focus back to the yellow metal as an investment option. As such, gold is generally considered to add stability to an investment portfolio, which is useful during times of market volatility.

New Fund Offer(NFO) refers to the new mutual fund schemes being offered to the investors. This is akin to Initial Public Offering (IPO) made by the unlisted companies for their equity shares, wherein the companies offer shares to the public for the first time. NFOs aim to attract household savings by offering new mutual fund schemes to the investors.

Debt funds provide an excellent alternate investment option for investors for traditional investment products. The debt funds may be categorised based on their investment strategies and/or the issuer companies wherein such funds are invested.

Some investors' first acquaintance with the equity markets may be through benchmark indices, such as NSE Nifty50 and BSE Sensex. Such indices are an indicator of the broader markets. The common myth, that equity investing is investing directly into such indices, needs to be demystified.