Different Types of Mutual Funds

Types of Finance Because individuals, businesses, and government entities all need funding to operate, the finance field includes three main subcategories: personal finance, corporate finance, and public (government) finance.

noun. noun. /ˈfaɪnæns/ , /fəˈnæns/ 1[uncountable] the activity of managing money, especially by a government or commercial organization the finance director/department/committee a specialization in banking and finance the world of high finance (= finance involving large companies or countries)

What is another word for finance?

intransitive verb. : to make an investment. invest. verb (2) invested; investing; invests.

• Equity or growth schemes. These are one of the most popular mutual fund schemes.
• Money market funds or liquid funds:
• Fixed income or debt mutual funds:
• Balanced funds:
• Hybrid / Monthly Income Plans (MIP):
• Gilt funds:

1. [S] [T] We exhausted our funds. ( CM)
2. [S] [T] They are short of funds. ( CK)
3. [S] [T] He’s good at fund raising. ( CK)
4. [S] [T] We lost all of our funding. ( CK)
5. [S] [T] The problem is how to raise the funds. ( CK)
6. [S] [T] He donated $10,000 to the refugee fund. (
7. [S] [T] I raise funds. (
8. [S] [T] They are out of funds. (

Prefunding is the requirement to pay in advance or immediately for all transactions processed by the bank regardless of the payment due or value date. If you would like to use the Prefunding Option, paying for transactions prior to the payment due dates, you need to fund your direct deposits in advance.

Prefunding is basically funding what you do. What does it mean to fund? Prefund pre means before. Well, before funding means in the money transfer world or in the payments world pre, the pre stands for before the funds are actually good funds and settled.

Prefunded credit cards are reloadable charge cards that are not linked to a bank account or a revolving line of credit. Because of this they require money to be loaded onto the card before use and after funds are depleted.

Prefunding Account means the account established by the Collateral Agent, for the benefit of the Secured Parties, pursuant to Section 2.11.

Pre-funding future re- tiree health benefits is essentially setting money aside for employees before they retire and even before they are hired or become eligible to retire. This is akin to paying a mortgage for a house that isn’t yours yet.

On the other hand, post-money refers to how much the company is worth after it receives the money and investments into it. Post-money valuation includes outside financing or the latest capital injection. This is due to the amount of value being placed on the company before investing. …

If your company is early stage and has a valuation under $1M, don’t ask for a $5M investment. The investor would be buying your company five times over, and he doesn’t want it. If your valuation is around $1M, you can validly ask for $200K–$300K, and offer 20–30% of your company in exchange.

The main benefit of equity financing is that funds need not be repaid. Since equity financing is a greater risk to the investor than debt financing is to the lender, the cost of equity is often higher than the cost of debt.

In practice a SAFE enables a startup company and an investor to accomplish the same general goal as a convertible note, though a SAFE is not a debt instrument. A SAFE is an agreement that can be used between a company and an investor. The investors invests money in the company using a SAFE.

For example, certificates of deposit (CDs), money market accounts, municipal bonds and Treasury Inflation-Protected Securities (TIPS) are among the safest types of investments. Money market accounts are similar to CDs in that both are types of deposits at banks, so investors are fully insured up to $250,000.

SAFEs are not common stock. SAFEs do not represent a current equity stake in the company in which you are investing. A SAFE is an agreement to provide you a future equity stake based on the amount you invested if—and only if—a triggering event occurs, such as an additional round of financing or the sale of the company.

While convertible note is a debt, a SAFE note is not debt: a convertible note includes an interest rate and maturity rate, a SAFE note doesn’t. Both SAFEs and convertible notes convert into equity in a future priced equity round; a convertible note may have more complexity to when/if/how it converts.

Distribution of dividends: Because of a loophole, dividends do not have to be paid to SAFE note holders the way they are paid to common shareholders. However, since the real purpose of a SAFE note is not to be repaid but to gain equity, investors may be comfortable with this arrangement.

Dilution and Overcrowding One of the most painful consequences of misusing or overusing SAFE notes is equity dilution. The more shares early investors agree to purchase, the less of your company you eventually own when the notes convert. That means less control over your organization’s future.

TERM SHEET FOR SIMPLE AGREEMENT FOR FUTURE EQUITY (SAFE) This term sheet is an expression of intent only and, except as set forth under “Confidentiality,” is not meant to be binding on the parties.

A term sheet is a written document the parties exchange containing the important terms and conditions of the deal. The document summarizes the main points of the deal agreements and sorts out the differences before actually executing the legal agreements and starting off with the time-consuming due diligence.

Although term sheets are not generally legally binding, other than in respect of confidentiality, exclusivity (if applicable), costs and jurisdiction, they evidence the intent of the parties to them. Therefore, once something is agreed in a term sheet, it may be difficult for either side to renegotiate.

There’s also an uncapped SAFE, which basically just says, “I’m going to put money in now as an investor and when you do a priced round, I’ll get the same price as the priced round investors are going to get.” That’s pretty uncommon because the investors who are putting in money early want some kind of bonus for putting …