The financial lens

Sometimes people invest their money in quite risky securities as they are influenced by the greed of high returns. But, in most of the cases they end up losing instead of gaining. Probably something similar is happening with investors who park their money with debt funds. Franklin Templeton India has wound up 6 of its debt funds and the amount at stake is close to 26000 crores! Uggh what is all these funds,bonds,debt mutual funds etc So much complex to understand right? Let's break everything up!!! The Mutual Fund industry operates on a simple premise. They will tell you regular investors have little know-how about the complexities inherent in stock markets. They’ll convince you that you’ll always be at a disadvantage since you don’t have access to information that could help you optimise your choices. A better approach is to simply let them manage it for you. They’ll take your money, divert it to a common pool — with funds mobilized from other investors like you and they’l...

2020 is full of surprises... I mean Wtf is wrong with the crude oil prices now it costs lower than a water bottle 🤣. And what the hell does negative future contract of crude mean does it mean that by taking their crude oil they gonna give us the money back (LMAO😂🤣). Crude oil Price from WTI and Mars USA fall to negative which leads to lots of twitter jokes like We can get paid for buying Petrol and Diesel . Why are Crude Oil Prices falling ? Well no chocolates of guessing it. One word INELASTICITY .Yes due to Corona virus lock down half of world is under strict lock down, consumption of petrol and diesel has fallen sharply with fewer vehicles on the roads, fewer tractors on farmlands , fewer diesel locomotives chugging along and diesel generators sets operating in different Industries .Taking the example of India the oil Consumption decreases 32% in March due to Corona virus Lock down . The basics of pricing in economics dictate that prices reach equilibrium where demand equ...

What started the Sub-Prime Crisis?Banks lent money to those who could hardly afford to service the loan. What a JOKE 😂 It's the early 2000's and investors are looking for new safe sources of return stocks and bonds are still pretty popular but the tech bubble at the turn of the century showed them that getting your money back from bankrupt firms can be a bit difficult but and also the interest rates during early 2000's were as low as 1%. So the question for an investor is where to invest? In 2001 US government was motivating the home buyers to buy houses at the same time real estate prices were on the rise. In the early-to-mid 2000s, interest rates on house payments were actually quite low so it created a room for homebuyers and investors for putting their money. The Subprime mortgage crisis occurred when the real estate market collapsed and homeowners defaulted on their loans. What does Subprime mortgage mean then? Subprime mortgages are named for the borrowers that...