Qay’s Business Guidelines

As online shopping becomes ever more popular, the ways of saving money evolve with it.

In the early years on the internet, just having an online only shop was enough to guarantee low prices due to lower costs. However, as more large corporations caught onto the online world, economies of scale allowed these big guys to undercut the smaller online only shops. If you look at HMV, there won’t be much price difference compared to 101CD despite HMW having much higher costs due to nationwide stores and better marketing. (more…)

When you invest in mutual funds, you are reminded time and again that “mutual fund returns are subject to market risks”. Naturally, you may feel that if your scheme is subject to market risks, it should be delivering market linked returns, since risk and return are two sides of the same coin. But how can you gauge whether a scheme is in fact delivering returns that are in line with the market or not? Here’s where benchmarking comes in.

What is benchmarking? The performance of a mutual fund scheme can be gauged in comparison to a benchmark index or indices. For such purposes, a benchmark index is one which contains broadly similar instruments to those that a scheme sets out to invest in. (more…)