5 ESSENTIAL PERSONAL FINANCE TERMS YOU NEED TO KNOW
Published By MintGenie Team | 28 Feb, 2024
Mastering personal finance requires continuous learning and unlearning of various terms and concepts to effectively navigate income, expenses, profits, losses, and wealth generation in the market.
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Here are some key personal finance terms you should know:
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Asset Allocation
Asset allocation is the strategic distribution of investments across various asset classes, encompassing stocks, bonds, cash, and alternative investments like real estate and commodities.
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Bear Market
A bear market signifies a sustained period of declining investment prices, typically characterised by a decrease of at least 20% from recent peaks in a major market index.
Bull Market
A bull market is characterized by a prolonged period of ascending prices in financial markets, typically observed in the stock market and applicable to other asset classes like bonds or real estate.
Blue-Chip Stocks
Blue chip stocks signify ownership in large, financially sound businesses known as blue chip companies, considered dependable and secure investments due to their stability and reliability.
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Bottom-Up Investing
Bottom-up investing emphasizes analyzing individual companies over macroeconomic factors, starting from evaluating specific companies and moving upward to assess the portfolio's overall potential.