A lot of investing words are created by market pundits or experts to sound more intelligent than the average person which in turn helps them paint a picture that they can do a better job than the everyday investor.
So in this video, we reconverted some of these complicated jargon used by market gurus into more reasonable and meaningful terms that a lay man can understand
Topics Covered:
00:00 Introduction
01:23 Bull Market
02:03 Bear Market
02:27 DOG
02:57 UNICORN
03:40 ACTIVE STRATEGY
04:20 PASSIVE STRATEGY
04:44 FACTOR-BASED INVESTING
05:21 MOMENTUM INVESTING
06:00 ALTERNATIVE INVESTING
06:45 BLUECHIP STOCKS
07:36 DEFENSIVE STOCKS
08:12 INCOME STOCKS
08:26 GROWTH STOCKS
09:07 VALUE STOCKS
10:19 ALPHA
11:30 DOVISH
11:46 HAWKISH
12:25 OVERWEIGHT
12:40 UNDERWEIGHT
12:59 NEUTRAL
13:30 TOP-DOWN INVESTING
14:05 BOTTOM-UP INVESTING
⦁ BULL MARKET - the stock market is in an upward spiral and is continuously rising.
⦁ BEAR MARKET - it represents a period of prolonged fall in the prices of stocks on a consistent basis and is reflective of investor pessimism and negative sentiments
⦁ DOG
I - A dog can represent a stock that is a chronic underperformer and therefore something that drags one’s portfolio return
II - “Dog stock” is one that offers consistently good dividend yields
⦁ UNICORN - A privately held startup company that is valued at over a billion dollars
⦁ ACTIVE STRATEGY - The fund, or rather the fund manager, is actively engaged in picking individual stocks
⦁ PASSIVE STRATEGY - A passive strategy is built on a pre-set methodology of investing which generally aims to purchase all stocks in a benchmark or index
⦁ FACTOR-BASED INVESTING - A combination of both the active strategy and the passive index strategy and allows investors to target specific risk and return factors
https://www.youtube.com/watch?v=2IzqgzJwego
⦁ MOMENTUM INVESTING - It means, one is buying the securities that are rising in price and selling stocks whose prices are falling.
https://www.youtube.com/watch?v=2IzqgzJwego
⦁ ALTERNATIVE INVESTING - The alternative investing strategy requires looking beyond traditional investment avenues and holding more exotic asset classes.
⦁ BLUECHIP STOCKS - A stock which is
- a well-established large cap company
- which has a high market share in key industries
- that offer good dividends
- has shown stable and reliable growth for many years
⦁ DEFENSIVE STOCKS - Stock that is less volatile than the overall stock market
⦁ INCOME STOCKS - Stock that pays regular dividends to its investors and is mostly issued by firms with stable cash flow and large market capitalisation
⦁ GROWTH STOCKS- Represents companies whose stock price is anticipated to grow at a rate significantly above the stock market growth rate
⦁ VALUE STOCKS - Stock which is perceived to be trading at a market price that is below its future estimated price.This future estimated price is also called the stock’s intrinsic value.
⦁ ALPHA - The relative returns of a stock or mutual fund when compared to the overall market or the benchmark against which it is being measured
⦁ DOVISH - It means that the RBI is keen on keeping the interest rates low in a bid to stimulate economic growth
⦁ HAWKISH - The central bank aims to keep the interest rates high which is mainly done to cool off economic activity and keep inflation in check.
⦁ OVERWEIGHT - Analyst means that this stock or sector deserves a higher weighting in a model portfolio as he expects the price to go up in the future
⦁ UNDERWEIGHT - It means the analyst is winding down that stock or sector’s allocation as the price is expected to go down from here
⦁ NEUTRAL - It means the weightage is not likely to change much from where it stands today and the stock or sector performance will be in line with the average returns of the index or the benchmark
⦁ TOP-DOWN INVESTING - Investment approach in which the big picture identified first i.e. the consumer demand, the GDP growth, inflation, consumption of goods and other macro-economic variables and on this basis they choose which stocks to invest in
⦁ BOTTOM-UP INVESTING - Investment approach that focuses on specific characteristics of an individual stock before moving to a sector analysis and then pairing it with some macro-economic variables
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