Posted by: Labdhi Mehta on May 22, 2017, 06.30 AM IST
1. Duration is a measure of the interest rate sensitivity of a bond. 2. Bonds have two main risks associated with them: credit risk and interest rate risk. Duration addresses the interest rate risk of a bond. 3. Duration is a single measure of cash flow, tenor and yield of a bond. The periodic coupon payments shorten the average tenor of the bond. 4 . Duration is measured in years. A high duration indicates that investors would need to wait for a long period to receive the coupon payments and principal invested. 5 . Duration is also an alternate measure of the maturity of a bond. (The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.) This article appeared in Economic Times dated May 22, 2017, 06.30 AM IST
People in India are increasingly knowledgeable about the investment options available to them. Mutual Funds
Become a mutual fund investment advisor. This course will teach you the basics of mutual fund investment th
This NISM modules preparation training is designed to help students who want to take the NISM examinations
Acquire the ability to provide complete financial solutions to investors using mutual funds through underst
Learn to evaluate a portfolio thoroughly through our advanced level course on portfolio evaluation!
Learn about the different types of equity funds and their positioning through ourintermediate level course.
Learn about the types of debt funds and their positioning through our intermediate level online course.
Learn how to choose and understand mutual funds products with our online course on mutual fund positioning.
Learn to market debt funds and how to calculate their risks and returns through our advance level course.
Learn to choose the right category mutual funds based on your clients' risk profile and financial needs.
Learn how to invest in liquid funds for treasury management through our advanced online course. Enrol now!<