Is it really good or do we have any better alternatives ?
Let's check this out 🧵
A mutual fund is an investment fund, usually run by an asset management company ,don't worry it's not like Laxmi chit fund 😂.
Investors give their money to these fund managers and they allocate this money into different areas.
For example:- 1) Equity Mutual Funds- funds get invested in equity shares.
2) Debt Mutual Funds- funds get invested in fixed income instruments i.e bonds, debentures, etc.
3) Hybrid Mutual funds - funds get invested in both- equity shares and debt instruments
This is a simple but great way for small retail investors to invest their savings, even without having time and knowledge of the securities market.
But bro I want more transparency where my money is being invested , I want to invest in public companies , but I don't have time to do that.
Is there any solution for this ?
Yes, for this we have ETFs ( Exchange traded funds)
ETFs are also managed by portfolio managers but there are several benefits of choosing ETFs over mutual funds.
⭐ETFs can be purchased directly on a stock exchange just like your regular equity stock. So unlike mutual fund you can buy and sell this whole day.
⭐ETFs are more cost effective and give more liquidity as you can sell it any time of the day but in mutual funds there's a locking period , just like FDs.
⭐ ETFs can also be of different types. for example if
I buy a ETF of top NIFTY 50 companies.
It means I am investing in all those companies however the weightage of my investment will be controlled by the fund manager.
⭐There is no minimum investment requirement. for example there's an ETF NIFTYBEES the price of it's one share is 190. So you can start your investment journey from as low as possible.
⭐Expense ratio of ETFs are lesser than mutual funds. Usually people don't look into this before entering the mutual fund and it can eat up your profits without even you knowing.
That's all for today. we hope you got something valuable from this thread 🌟
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Companies practice price discrimination to maximise their profits. Let’s dive deep into Price Discrimination in a thread 🧵
Price discrimination is a practice of charging different prices from different consumers to maximise their profits and capture the entire consumer surplus.
Consumer Surplus is the entire difference between what a consumer is willing to pay and what he actually paid. It’s the total benefit to the consumer when the price that he’s paying is way lesser than the one he’s willing to pay.
So we all know what credit cards are , right? Those magic cards which you pick out from your pockets and buy whatever stuff you want but do you know how this whole payment process works when you swipe the card?
What’s the architecture behind it?
We will try to understand this process with a very simple example.
So let’s say you go to your favourite restaurant, although going out has really become a dream lately.
Okay so after the meal it’s time to pay.
Now, you take the help from your little card friend and simply swipe it in the POS machine