Finance Numericals

General Insurance: The insurance is taken for non-living things like property, warehouse, automobile etc. The general insurance follows the indemnity principle. In which only losses are recovered from insurance company. If there is no loss then the insured are not able to get anything from insurance company. Fire Insurance: This insurance is taken to recovered damages or loss due to fire. It also includes damages by explosion, earthquake, flood etc. Marine Insurance: This insurance is taken to protect the property against sea perils like theft, fire etc. It includes three areas cargo, hull and freight. Health Insurance: The general insurance is related to non-living things. But it also includes health insurance of an insured because the general insurance is based on indemnity principle and the health insurance also follows the same principle. It means if insured suffered from any health problems only at that point of time the insurer is liable to pay the money up to th

Insurance: It is a contract between two persons, the person who takes insurance is known as insured and another is insurer who offer the insurance contract. It is a contract in which the insurer is liable to pay a fixed sum of money on happening a certain or uncertain events to insured as agreed in a contract. And in exchange of it the insured person pay fixed premium to insurer. The subject of a contract is a life, property or health of a insured person or the things that related or something that affects the insured person. Life Insurance: The insurance is taken by insured to protect his life for uncertain events in a future. And the insurer is liable to pay certain sum of money on happening uncertain events like death to its nominee. Types of Life Insurance: Term Insurance: In this insurance the life is insured for fixed period and the premium is low. The insurer will pay lump sum amount only after death of an insured person during a fixed period. Nothing is paid on

Mutual fund terms are: Open ended schemes: Under this scheme the shares are purchased and sold on the basis of net present value securities. There is no limited transaction under open ended scheme. Close ended schemes:  Under this scheme the limited shares are purchased and sold. The transactions are traded in exchange and for only those securities which are registered in exchange. The transaction occurred between fixed periods. Entry load:  It is a fee charged by Mutual Fund Company from investors for entering into any investment scheme. Exit load:  It is a fee charged by Mutual Fund Company from investors for quitting the Company.  Net present value:  It is a value of per unit shares investor buy from mutual funds Company or sells it back to the company. It is calculated by adding all the current price of all stocks, bonds in a portfolio and subtract the expenses related to the investment stocks like operating expenses etc and the result of it is divided by the t

Mutual Fund: It is a pool of different investors money to invest in a investment portfolio and it is managed by professional investment manager. The managers invested the investors fund in a different securities or investment portfolio which helps to maximise the return and minimise the risk after analysing the securities performance in different market conditions. They manage the portfolio or securities on behalf of investors. The types of funds available in mutual funds are: Fixed income funds: These funds include debenture, corporate or government bonds which provide regular income to its investors in the form of interest. It is less risky funds and provides low return. Equity funds: The funds are invested in stocks of a company for longer period. These funds are used when the investor wants to increase his wealth. The stocks are risky in investment but it provides high return. Balanced Funds: These funds include both fixed income funds like bonds, debenture and