Business, Economy and Finance

What is the meaning of Contra Fund?

Contra Fund is a type of fund which is different from other such funds by the style of investing. It takes a contrarian view of the asset. It is the poor performance of the asset which usually allows distortions in valuations. The contra funds usually capitalise on these distortions. It is assumed that the asset

What is the meaning of Contingent Deferred Sales Charge?

Contingent Deferred Sales Charge is basically a back-end load or a sales charge which is paid by the mutual fund investors when they sell Class-B fund shares in a particular number of years on the same date on which they were initially bought. Thus in mutual funds which have share classes to determine the time

What is meaning of Contagion?

The Contagion effect refers to the spread of shocks in the economy or an economic crisis across the countries and boundaries. It usually spreads by price movements. Contagion may happen at the national or international levels. The effects have become more pronounced during the increased interdependence seen in this global era. Thus, any sharp price

What is the meaning of Concealment?

Concealment is the act of keeping critical information from the insurance company. This is usually done intentionally to maximise claim or other personal benefits. It affects the issuance date and also rates of the insurance contract. Insurance contracts are backed by faith between the insured and the insurance firm. All facts present a strong case

What are Commodity Funds?

Funds which are usually invested in commodities like gold, oil and livestock are known as commodity funds. They are also invested in commodity futures, options, stocks of companies, gold funds etc. Many products are covered by the commodity markets like oil, agro products etc. Also, prices of the commodities are affected by the forces of

What is a Combined Ratio?

The ratio of addition of the incurred losses and operating expenses as part of the percentage of earned premium is known as the Combined Ratio. It measures the profitability of the insurance company to find out its performance in day to day operations.  It basically gauges the outflow of money from the insurance company as

What is the meaning of Cyclical Unemployment?

Cyclical unemployment refers to that part of overall unemployment which is caused by the cyclical trends of the business cycle. It is thus an offshoot of the fall in demand recorded in the business cycle which leads to a fall in demand for labour. This also means that consumption has fallen. Latter triggers a fall

What is the meaning of credit rating?

Credit rating is a rating in form of a full report which rates a particular business as per the credentials and the soundness of the financial statements like various terms of borrowing and lending etc. Thus it is linked to the financial instrument. The report represents financial credibility of the business entity as determined by