Face
Value:
- The
face value of a financial instrument, such as a bond or a share, represents the
nominal value assigned to it by the issuer.
- It
indicates the original value of the security as stated in the issuing documents
and does not necessarily reflect its current market price.
- Face
value remains constant throughout the life of the security and is used to
calculate specific financial metrics, such as interest payments or dividends.
Investment
Amount:
- The
investment amount refers to the actual sum of money an investor contributes to
purchase a financial instrument.
- Unlike
face value, the investment amount is determined by market factors such as
supply and demand, prevailing interest rates, and investor sentiment.
- It is the sum of the Market
price and Accrued interest.
- The investment amount can vary over
time as market prices fluctuate and investors buy or sell securities based on
their investment strategies and objectives.
Related Articles
Why is the Yield different from the coupon?
The yield and the coupon rate of a bond are two distinct concepts that serve different purposes: 1. Coupon Rate: The coupon rate of a bond is the fixed annual interest payment expressed as a percentage of the bond's face value. It is determined at ...
What is the amount I can invest through SIP?
The Systematic Investment Plan (SIP) amount for smallcases has a minimum threshold of Rs. 500. This amount is not fixed and can change based on the stocks included in the smallcase and their current market prices. As the prices of the stocks in the ...
How do you track the performance of your investment?
You can track the following essential metrics to effectively monitor your investment’s performance, particularly smallcase baskets: Money Put In: This represents the total capital you have invested since the beginning of your investments. It is the ...
Do you guide on investment strategies? Do you provide advice?
Yes, we offer guidance through our advisory portfolios, known as Vests. Vests are custom-curated portfolios consisting of stocks and/or ETFs designed with specific goals or themes in mind. They cater to different investment strategies, including: · ...
Why do I see a change in the settlement amount?
The settlement amount of a bond, displayed on the website, consists of both the market price and accrued interest, which can cause fluctuations. Here's how it works: 1. Market Price: The market price of a bond changes daily due to market dynamics, ...