Management of Risk – An Art or a Science?

BUSINESS RISK is a term that explains the difference between the expectation of return on investment and actual realization. In CAPITAL BUDGETING, several alternatives of investments are examined before taking an investment decision and only then the Managing Director of the firm along with financial executives gear up for investing in a project that is … Read more

How Scenario Analysis Helps Measure Risk When Real Estate Investing

Scenario analysis is used by real estate investors and investment property specialists because it provides a good way to measure risk when evaluating real estate investments. What is scenario analysis? It involves estimating a range of variables that will have the greatest impact upon the likelihood of an investment performing according to an investor’s minimum … Read more

Mutual Funds Are Subject to Market Risk – Please Read the Offer Document Carefully Before Investing

The advertisements of mutual funds (MF) disclaims – “Mutual Funds are subject to market risk. Please read the offer document carefully before investing”. The very purpose of this disclaimer is to meet the statutory requirements. Only very few people would have heard it when it is mentioned in the radio or television as it flashes … Read more