Linda reveals truth about your thinking…

In your own mind, answer this question about Linda

Linda is 31 years old, single, outspoken, and very bright. She majored in philosophy. As a student, she was deeply concerned with issues of discrimination and social justice, and also participated in anti-nuclear demonstrations.

Which of these two options is more probable:

Linda is a bank teller, or Linda is a bank teller and active in the feminist movement?

Psychology theory tells us that 80%-90% of most people will have answered (b).

Why (b) when there is no clear evidence that Linda is going to be active in the feminist movement?

Why make such a significant personal judgment about a person we know practically nothing about after reading a single paragraph?

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The present global economic scenario reflects a trend where the richest has it all. This has led to the proliferation of many brokers and banks, which guide you on how you can make your money work you and earn rich dividends. The free market economy promotes a “winners take it all” environment. As a result, it has become utterly crucial for all of us to invest some portion of our income in bonds and earn some more bucks. A host of financial services are also on offer by different investment gurus who help you decide the right move at the right time when investing in bonds.

A recent media report also revealed how tax-free bonds have emerged as a boon for retail investors. This has increased global cash flow as more and more people are getting initiated in the process of investing in tax-free bonds. The new policy measures have created a favorable climate for investors who are eager to save money by investing in bonds. Usually floated by big corporate houses, bonds are essentially flexible kinds of financial instrument, which can be purchased by any one provided company that they will repay the money borrowed by selling the bonds with interest on a specified date.

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Managed funds

Investments are in a mixture of the life company’s funds. Because of this, performance is less volatile than other types of funds.

You are in effect using the expertise of the life Company’s managers to choose a mixture which achieves good returns at lower risk.

Some funds set off charges against annual bonuses, others do not, so it is necessary to take this into account when comparing. Some providers also charge by investing less than 100% of the amount put in; this is called the allocation rate.

Advisers get a commission - try for a rebate.

Market value adjustment

Most managed funds with an equity involvement carry a provision for a market value adjustment (MVA) in case the underlying assets of the fund are severely depressed at the time of an individual withdrawal due to a considerable fall in the stock market. This is in order to protect the interests of the remaining investors.

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