Essential Banking Terminology You Need To Rely On While Adulating!

Long short fund - These are a kind of mutual funds that hold on to investments for a while, during which they sell the security they do not own - making them the ‘short’ of the long-short fund. The purpose of this is to find investments with the potential to increase in value while keeping in mind the investments decreasing in value so as to invest in both and expect an increased return from both investments.

Venture capital - This is the capital, fund or investment an individual or a company puts or invests in a startup. They see potential in this business and in exchange for a certain equity or part of their profit, they invest in the business. They do thorough research before putting their investments in a startup and consider the growth potential, management, administration and operations.

Asset management - Assets are certain valuable items whose value tends to increase over time. The acquisition of these items in hopes of receiving the highest value for it over time is known as asset management. Various top asset management companies in India help people manage their assets better and to the item's fullest potential in the market.

Financial advisory services - A team of certified professionals come together to help a client regarding various financial concepts ranging from the long-short fund, investments, and wealth management to asset management. They charge a certain fee in return for their expertise which can, in the long-term, prove to be very beneficial for the individual or company seeking financial advice.

Credit rating - The score or credit the bank keeps track of when it comes to lending loans. If the score is higher, then the customer is more likely to receive a loan. If the score is low then the bank may deny the client loan.