When it comes to investing in equity funds, growth and value funds represent two distinct strategies that cater to different types of investors. Both approaches have unique characteristics and risk profiles, making it essential to understand their differences to select the right product for the specific investment goals of an investor.   What Are Growth Funds? Growth funds focus on investing in companies expected to grow at an above-average rate compared to the broader market. These companies typically reinvest their earnings into their businesses to fuel expansion rather than distributing their profits as dividends to investors. Growth funds often target

Bond or fixed income investors talk a lot about yield curves, but what is a yield curve and how can it be used in portfolio management? Generally speaking, a yield curve is a graphical representation (as shown in graph 1) of the relationship between interest rates (or yields) and the maturity dates of debt securities, such as government bonds. It shows how much investors can expect to earn from bonds of varying durations, typically ranging from short-term (e.g., one month) to long-term (e.g., 30 years). The curve is usually plotted with time to maturity on the x-axis and yield on

In the fixed income world investors often talk about “the spread” as one possible driver of returns. But what is “the spread” and why does it exist? Generally speaking, the spread in interest rates which is also called “credit spread” refers to the difference between two interest rates, often between a benchmark rate (normally the interest rate of government bonds) and a specific interest rate on another type of bond (such as corporate bonds). For example, if a 10-year government bond has a 3% interest rate and a corporate bond of similar duration has a 5% interest rate, the spread

Within the current macroeconomic environment where central banks around globe have started to lower interest rates, bond funds and ETFs have become popular investment choices for all kinds of investors. However, their performance is influenced by a variety of risk and return factors that investors need to understand. The first to mention is obviously the interest rate risk. Every investor should bear in mind that bond prices and interest rates move inversely, meaning rising rates can lead to losses, while falling rates increase bond values. A measure to determine the degree of a bond fund’s sensitivity to interest rate changes

In short, cryptocurrencies such as Bitcoin or Ethereum are digital or virtual currencies that use cryptography for security and operate on decentralized networks. These networks are normally based on a digital ledger technology, the so-called blockchain. Unlike traditional currencies (fiat money) which are issued by governments, cryptocurrencies have so far been launched by corporations or people. They are typically decentralized and rely on peer-to-peer networks for transactions and their validation. This mechanism helps make them resistant to fraud, central control, or interference. Despite these protection mechanisms, investors have witnessed that not all cryptocurrencies were resistant against fraud in the past.