Questions

Personal financial planning is the process of creating and achieving financial goals.

True statements regarding personal financial planning:

As we age, the number and complexity of the financial decisions that we make increases.

There are two means for achieving financial goals—you either need to increase your savings or reduce spending.

A family's resources are limited.

It refers to the possibility for an investor to experience  losses due to  factors that affect the overall performance of the financial markets. Market risk cannot be eliminated through diversification, though it can be hedged against. The sources of market risk include natural disasters, recessions, political turmoil, changes in interest rates and terrorist attacks.

Exchange Traded Funds (ETFs) are a relatively new phenomenon and are gaining popularity rapidly. This post outlines the key features of an ETF.

ETFs are like mutual funds because they hold an underlying asset like stocks, debt, commodities future contracts etc. If you are new to the concept of an ETF, think of it as a mutual fund, and build your understanding from thereon. An example of an ETF is the SBI Gold ETF, which holds physical gold as its underlying asset.

An eclipse happens when a planet or a moon gets in the way of the sun's light. Our planet Earth experiances two types of eclipses. They are Solar and Lunar eclipses.

Solar Eclipse : This occurs when The Sun, the Moon and the Earth are in a straight line. The moon being in middle blocks sun rays falling on the Earth.

Lunar Eclipse : The Sun, the Earth and the Moon are in a straight line. The Earth being in middle and moon in the shadow of Earth behind it.