Investment

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Here Are The Top Indian Startups That Entered The Unicorn Club In 2021

Thanks to a record-breaking round of funding for Indian entrepreneurs across all industries, India was able to witness a huge influx of unicorn companies. The unicorn club has already accepted 42 Indian startups. Over $38.4 billion has been raised as of December 4th, with many rounds expected to produce more Indian unicorns in 2022.

CRED

Founded by Kunal Shah, CRED entered the unicorn club with a stunning valuation of $2.2 billion despite having only INR 57 lakh ($76K, at current conversion rate) in operating income in the financial year 2020. DST Global, RTP Global, Tiger Global, Greenoaks Capital, Dragoneer Investment Group, and Sofina have all invested in CRED. The company focuses on premium credit card customers and offers them advantages in exchange for paying their credit card bills. CRED claims to have added over 5.9 million credit card users with a median credit score of 830 in the last two years.

Digit Insurance

Digit Insurance, valued at $1.9 billion, was founded by Kamesh Goyal. The Bengaluru-based startup Digit Insurance was the first Indian firm to join the coveted unicorn club in 2021. With options like smartphone-enabled self-inspection and audio claims, the platform streamlines general insurance processes with the help of technology. Although the total sum raised was not announced, media reports claim that the money was raised in two installments of $84 million and $18.5 million. This round of fundraising was led by Faering Capital, A91 Partners, and TVS Capital Funds.

MamaEarth

MamaEarth is also one of the few unicorn companies led by a woman. The five-year-old business has grown into one of India's most popular direct-to-consumer (D2C) companies. It claims to have made total sales of roughly Rs 500 crore in the previous fiscal year, and it forecasts a two-fold growth in FY22. Mamaearth had closed a $50 Mn funding round at a valuation of $730 Mn.

UpGrad

In 2015, ex-media tycoon Ronnie Screwvala, Phalgun Kompalli, Mayank Kumar, and Ravijot Chugh co-founded Upgrad with funding of just over Rs 170 crore. UpGrad, which has been around for six years, offers over 100 courses in data science, machine learning, AI, blockchain, finance, programming, and more.

Meesho

Meesho, founded in 2015 by IIT-Delhi graduates, Aatrey and Sanjeev Barnwal is an online reseller network for individuals and small and medium businesses (SMBs) that sell products within their network on social media channels such as WhatsApp, Facebook, and Instagram. The platform has around 13 million individual entrepreneurs, delivering the benefits of ecommerce to 45 million clients all over India. With a final round of investment raised to about $1 billion, the company’s valuation is currently at $8 billion.

PharmEasy

PharmEasy is a chronic care company founded in 2015 by Dharmil Sheth and Dr. Dhaval Shah. The company’s services include teleconsultation, medicine deliveries, and sample collection for diagnostic tests. It connects approximately 60K brick-and-mortar pharmacies and 4K doctors across India's 16K postal codes. The platform also includes a SaaS procurement solution for pharmacies, delivery and logistics support, as well as credit solutions. Since its founding, it claims to have serviced over 20 million patients. After acquiring Thyrocare, the company is valued at $4 billion.

Vedantu

Vedantu, an interactive online tutoring platform founded in 2014 by Krishna, Anand Prakash, and Pulkit Jain, claims to have over 35 million students attending live classes every month and teachers delivering about 8 million hours of LIVE classes, with a growth of 220 percent during the early months of the lockdown. After collecting $100 million in funding, the Bengaluru-based online tutoring business became the fifth largest Indian edtech unicorn. ABC World Asia, a Temasek-backed private equity firm based in Singapore, led the deal, with existing investors Coatue Management, Tiger Global, GGV Capital, and WestBridge joining in.

BlackBuck

In July, the Bengaluru-based logistics firm BlackBuck raised $67 million in a Series E round valued at over $1 billion. The company, founded by Rajesh Yabaji, is said to be India's largest online transportation platform, with a market share of over 90%. It helps truckers digitise their fleet operations and runs a marketplace to match trucks with suitable delivery cargoes. According to the company, it has over 700,000 truckers and 1.2 million trucks on its platform, with over $15 million in monthly transactions. After Delhivery, which is eyeing an IPO this year, and Rivigo, BlackBuck is the third logistics firm to become a unicorn.

CoinDCX

CoinDCX, with a $90 million (INR 670 crore) Series C funding round led by Facebook co-founder Eduardo Saverin's B Capital Group, Coinbase Ventures, Polychain Capital, Block.one, Jump Capital, and other unnamed investors, crypto exchange CoinDCX become India's first crypto unicorn. Founded in 2018 by Sumit Gupta and Neeraj Khandelwal, CoinDCX in December 2020, raised $13.5 million in its Series B fundraising round. It claims to have 3.5 million users. It runs CoinDCX Go, a cryptocurrency investment app, CoinEXPro, a professional trading platform, and DCX Learn, a crypto-focused investor education platform.

Eruditus

Mumbai-based edtech startup Eruditus, founded in 2010 by Chaitanya Kalipatnapu and Ashwin Damera became the fourth edtech unicorn in India. After it raised $650 Mn funding led by Accel US and Masayoshi Son-led SoftBank Vision Fund II, the fresh capital infusion has quadrupled the valuation of Eruditus to $3.2 Bn from $800 Mn last year. The startup will be receiving $430 Mn in primary capital and $220 Mn of secondary sale proceeds will go to existing investors who are offloading part of their shares. Cofounder Ashwin Dhamera and other top management personnel announced that they would be liquidating shares worth around $100 Mn in the round. With so many companies moving to unicorn status in 2021, we can only imagine what the entrepreneurs of 2022 have in store for us.

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Stock Market 2021 - Here Are All The Sectors That Worked Well For Investors In 2021

After one of the biggest falls in the Indian share market in 2020, the market has picked up after itself and has reached its all-time high in 2021. It was the year of extremely high profits for those who were bullish on the Indian markets and there were multiple sectors that helped move it. Here are the top 5 sectors in NSE with the highest market cap that moved the market this year.

Software and IT Services

The software and IT sector pushed the markets to its ATH - the sector alone moved 198.97% this year, making it the best performing sector in NSE. Be it large or small companies, every company in the sector has performed well with the one of the best performance coming in from Brightcomm group which gave investors 3591.99% returns on its price at the start of 2021. The highest returns are from 3i Infotech and Affle India, both of which had a percentage change of 1055%. Among the large-cap IT stocks, Wipro saw a whopping 82.23% increase in price in 2021, while TCS saw a 28% increase and Infosys’ price rose by 50%.

Chemicals

The chemicals industry comes behind the software and IT services with a rise of 100.99%. The major shares that contributed to this rise are Alkyl Amines, AMI Organics, and Anupam Rasayan, all of which moved by 1141%. An integral apart of the Nifty50 index, Asian Paints moved by a significant 190.67%. Dynemic Product, belonging to the Dyes and Pigments category, moved 220% to power the rapid move of the chemical sector.

Healthcare

In a year that got all of us to depend more on healthcare services thanks to the second wave, the sector moved by almost 70%. One of the biggest movers for the sector is Abbott India which moved 250%. Other pharma companies like Aarti drugs also moved up by more than 200% and Apollo Hospital moved up by 315% this year. Large cap stocks like Sun Pharma gave a decent 40.75% returns and Dr Reddy made a better move of 67.5%.

Oil And Gas

Another important mover of the market is the Oil and Gas sector which moved almost 60% this year. While the refineries section comprising stocks like BPCL and Chennai Petro went down by 37.88%, the main sector was single handedly improved by stocks in the oil exploration and production sub sector. This includes stocks like Deepa Industry which rose by 80% and Asian Energy which rose by 77%. This year saw multiple lockdowns, consumers moving towards electric vehicles and other industry-altering trends. It should be interesting to see how the sector adapts to more changes in 2022.

Fast Moving Consumer Goods

The FMCG sector has been extremely kind to investors by giving them 44% in returns. Stocks like Varun Beverage moved by over 200% to add some weight behind the FMCG sector. Companies in the cigarettes and tobacco sub-sector closed the year in the red. Britannia seems to be the favorite of investors with its safe business plans - the stock rose by more than 210% this year followed by ADF Foods which rose by almost 150%. While these are the market moving sectors of the very bullish 2021, a few notable mentions include the finance and metal sectors. These moved more than 40% with some notable contributions from stocks like HDFC, Bajaj Financial Services and APL Apollo. With our sights on the new year, here’s hoping that your portfolio is diversified with stocks from all of these sectors for lower risk and good returns.

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Signs That You Need To Change Your Mutual Funds Scheme

You conduct research, select a mutual fund plan that meets your aims, budget, perform all kinds of analysis, and then invest in a mutual fund scheme. Then, when the investment period comes to a close, you can reap the rewards of capital growth. It is as simple as that, right? Not always. Investing in a mutual fund entails more than just putting money into it and waiting for it to pay off at the end of the investment term. To truly enjoy its full benefits, more effort is required from your end to constantly monitor and analyse various parameters of your portfolio. To achieve optimal capital growth, you must keep a careful eye on it and manage it well during the investing period. Sometimes, switching between funds is necessary to avoid market risks, avoid fund underperformance, and avoid fund performance stagnation. Signs that you need to change your mutual find scheme Change in investment goals Before you begin investing in mutual funds, you must first devise a strategy that is tailored to your specific objectives, risk appetite, investment horizon, budget, and other objectives. The type of mutual fund schemes you should invest in is determined by these criteria. Mutual fund investments can be divided into three categories based on their investment horizon: short, long, and intermediate. Risk appetites are divided into three categories: aggressive, moderate, and conservative. It is important to keep your expectations in check in terms of the kind of profits do you hope to get from your mutual fund investment. In this instance, mutual fund schemes might be classified as income-oriented, balanced, or growth-oriented. When investing in a mutual fund scheme, you may have had a certain goal in mind. But what happens if your goal shifts in the middle of the project? You can switch between funds in this situation to suit your new investing goal, horizon, and risk tolerance. On a side note, one of the first things to keep in mind when it comes to investing in mutual funds is to identify the top brokers in share market . Zebu is a leading online share broker that offers one of the lowest brokerage fees when it comes to investing in mutual funds. Read on to know more about when to change your mutual fund plans. Your scheme is underperforming There's no guarantee that the mutual fund scheme in which you invested will perform well over time. You may have analysed prior fund performance and tried every permutation and combination to find the right mutual fund investment for you. Despite your best efforts, you never know when your scheme will underperform or become vulnerable to hazards, even in favourable market conditions. To ensure that your portfolio does not become stagnant, you must switch to a different fund. To keep the portfolio balanced, over-weight mutual funds should be rotated. You simply feel like you made the wrong choice When it comes to even the safest investment options, mistakes are bound to occur (especially if you are doing the research by yourself). Fortunately, investing in mutual funds is not one of them. Worry not if you bought in a mutual fund without doing your homework or understanding key technical features, only to discover later that it isn't a good fit for your goals or risk tolerance. Your current assets can easily be reallocated into a portfolio that matches your needs. In the world of mutual fund investing, erroneous predictions are more common than you would think. Sometimes, even seasoned fund managers can get their analysis proved wrong. For these reasons and more, it is crucial that you keep a close eye on your mutual funds and keep your options open and diverse. Apart from this, to maintain balance and enhance fund performance, an investor should rotate the assets in his or her portfolio on a regular basis. With Zebu’s seamless investment platform, which is one of the top brokers in share market, you can get started with direct mutual funds and make more than 1% of the returns you would otherwise make with managed mutual funds. And with our lowest brokerage fees, you can confidently make changes to your scheme as per your requirements. We are, in fact, one of India’s leading online sharebrokers. To know more, please get in touch with us now.

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A Post Retirement Income Plan

Until a few years ago, almost no one was interested in annuities as a source of post-retirement income. In the last three or four years, members of the NPS have been interested in the concept of annuities and how they may be used to create income. Unfortunately, annuities, at least those offered in India, are prohibitively expensive, inefficient, and incapable of mitigating inflation, which is, after all, the greatest long-term threat to anyone's retirement income. As a result, retirees should consider alternative sources of income (whether fixed income or equity-based). Indeed, even the Pension Fund Regulatory and Development Authority (PFRDA), which now requires that 40% of a retiree's money accumulated in the National Pension System (NPS) be used to purchase an annuity, is considering adding a non-annuity withdrawal plan in its place. PFRDA recognises that annuity should not be the only option and may not even be the most appropriate one. Before you get started on your post-retirement plan, you need the best stock trading platform with the lowest brokerages to realise maximum profits from your investments. As one of the fastest growing and best brokerage firms in the country, we have created a suite of products to help you analyse stocks and make an informed decision. Developing a post-retirement income plan begins with an evaluation of your monthly income requirement and available money to determine if there is a meeting ground. Clearly, in the early years, there is little that can be done to alter this equation. As a general guideline, an initial withdrawal rate of no more than 6% is optimal. Anything more tends to increase the risk of capital depletion. Indeed, the lesser the withdrawal, the better. Keeping a close eye on spending, in the beginning, will pay dividends afterwards. If you can make do with less, that would be ideal. Increasing the withdrawal ratio exposes you to significant risk down the road because when you are attempting to develop a long-term withdrawal strategy from your investment, you must be prudent enough not to deplete your cash. Of course, there are times when a retiree may experience market misfortune. Interest rates may also tend to drop over extended periods of time in fixed income. You must choose an asset allocation strategy based on all of these considerations. Almost certainly, you will realise that an all-fixed-income strategy is insufficient. To sustain a rising inflation-beating income, a fixed income plan must accept a withdrawal rate that cannot exceed 4% and should preferably be lower. To put the concept into perspective, a withdrawal plan permits you to withdraw a significant portion of your income while leaving a tiny portion of your growth. Assume you have Rs 1000 and it increases by 8%. By deducting 6%, you retain a small portion of the appreciation to support a bigger income the next year. However, if you consume it all, your capital will remain constant, which is undesirable given that you will almost certainly require a higher income during the next 25 years. Given the reality of inflation and increased medical costs in old life, there is very little chance you will require less money in ten years. As a result, you must leave a portion of your growth and not consume it entirely. Not only that, the less money you borrow today, the more secure you will be later. As a result, you'll need to consider a conservative allocation, perhaps 15% to 35% in equity, depending on the size of your investment. If your capital is restricted, you might have to undertake more risk in equity. If you have more than sufficient capital, you can afford to have a lower equity allocation. The optimal strategy is to take away at most (ideally less than) 80% of the appreciation in the current year and then leave 20% there. This way, you'll have some room for capital growth, which is how you'll need to adjust it. This way, your income will rise faster in good times, but you will not deplete your capital in poor times, and it will remain fair. This level of discipline will provide a financially secure retirement. Whether you are starting your investment journey at retirement or are looking for a reliable trading and investment platform to grow your capital, then Zebu is the answer for you. As one of the best brokerage firms in the country, we have created Zebull, our best stock trading platform. We charge the lowest brokerage for derivative trading and will help you realise your financial goals. To know more about our products and services, please get in touch with us now.

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Fundamental Analysis 101 - 5 Things To Get You Started

Fundamental analysis is about getting to know a company, its business, and its future plans better. It includes reading and analysing annual reports and financial statements to get a sense of the company's strengths and weaknesses, as well as its competitors. Before you get started on your journey of investments, we believe that you deserve one of the best trading accounts from one of the top brokers in share market. With Zebu, you get access to a state-of-the-art online trading platform with which you can perform comprehensive fundamental and technical analysis. A few of the important parameters while doing fundamental analysis are: 1. Net Profit Net profit can mean different things to different people. Net means "after all the deductions." It's common to think of net profit as profit after all the operating costs have been taken out, especially the fixed costs or overheads. Gross profit gives investors the difference between sales and direct costs of goods sold before operating costs or overheads are taken into account. This is not the case here. It is also called Profit After Tax (PAT), which is the profit figure that is left after taxes are taken out of the profit. 2. Profit Margins The earnings of a company don't tell the entire story. Earning more money is good, but if the cost goes up more than the revenue, the profit margin doesn't get better. The profit margin shows how much money the company makes from each rupee of sales. This measure is very useful when you want to compare businesses in the same industry. On the basis of a simple formula: Net income / Revenue = Profit margin In this case, a higher profit margin means that the company is better able to control its costs than its competitors are. The profit margin is shown in percentages. If a company makes 10 paise for every rupee they make, then the profit margin is 10%. This means that the company makes 10 paise for every rupee they make. 3. Return on Equity Ratio Return on Equity (ROE) shows how well a company does at making money. It is a ratio of revenue and profits to the value of the company's stock. Find out how much profit a company can make with the money its shareholders have put into it. A simple way to do this is to look at the return on equity ratio, The Return on Equity Ratio is calculated as shown. Return on equity = Net Income / Shareholder’s Equity It is calculated in rupees. This factor is important because it tells you about a lot of other things, like leverage (debt of the company), revenue, profits and margins, returns to shareholders. For example, a company called XYZ Ltd. made a net profit (before dividends) of Rs. 1,00,000. During the year, it paid out dividends of Rs. 10,000. XYZ Ltd. also had 500, Rs.50 par common shares on the market during the year, as well. That's how the ROE would be calculated then. ROE = 1,00,000–10,000/500*50 = Rs. 3.6. Simply put, those who own shares in the company will get back Rs. 3.6 for every rupee they invest in the company. 4. Price to Earnings (P/E) Ratio People often use the Price-to-Earnings (P/E) ratio to figure out how much a share of a company is worth. It tells us how much money the company makes per share in the market today. We can figure out the Price of earnings, or PE ratio, as shown below. In simple terms, PE = Price per Share / Earnings per Share This also helps when you want to compare businesses. Then companies should figure out their EPS and then figure out how much their PE ratio value is. A high P/E means that the stock is priced high compared to its earnings. Companies with higher P/E seem to be more expensive. However, this measure, as well as other financial ratios, must be compared to other companies in the same industry or to the company's own P/E history to be useful. If company XYZ has a share that costs 50 rupees, and its earnings per share for the year are 10 rupees per share. The P/E Ratio is 50/10, which is 5. 5. Price-to-Book (P/B) Ratio A Price-to-Book (P/B) ratio is used to compare a stock's value on the market to its value on the books. Calculating the P/B ratio is the way to figure out if you're paying too much for the stock because it shows how much money the company would have leftover if it were to close down today. P/BV Ratio = Current Market Price per Share / Book Value per Share Book Value per Share = Book Value / Total number of shares Having a higher P/B ratio than 1 means that the share price is higher than what the company's assets would be sold for, which means that the share price is higher. The difference shows what investors think about the future growth of the company. XYZ company, for example, has 10,000 shares trading at Rs.10 each. This year, the company recorded a net value of Rs. 50,000 on its balance sheet. The price-to-book ratio of the corporation would be as follows: 50,000 / 10,000 = Book Value per Share P/BV Ratio = 10 / 5 P/BV Ratio = 2 The company's market price is two times its book value. This signifies that the company's stock is worth twice as much as the balance sheet's net worth. Also, because investors are ready to pay more for the business's shares than they are worth, this company would be called overvalued. Zebu is the house of the best online trading platform in the country - as one of the top brokers in share market, we have provided the best trading accounts for our users. Think of the most complex analysis that you need to do and Zebull Smart Trader from Zebu will make it possible for you. If you would like to know more, please get in touch with us now.

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Questions To Ask Before You Invest In A Stock

Investing by yourself for the first few times can become very intimidating, very quick. But considering that taking charge of your finances is the way for independence, it is importantto invest wisely and take risks as per your comfort level. Before you invest in a company, you need to understand the fundamentals of a business. If you invest without doing your homework, you are simply gambling. We would also suggest that you ignore WhatsApp recommendations, YouTube recommendations or any other opinion you do not trust. Another important factor to consider is the platform you use to analyse stocks and start investing. We suggest that you trust one of the best brokerage firms in the country like Zebu. As a top broker in the share market , we have created one of the best stock trading platforms, for you to use and invest. So, before you acquire a share in which you want to invest, here are a few questions to ask. Remember, this isn't research - it's pre-research. These questions are vital and fundamental - far from complete, but a good place to start! What is the company's line of business? What does the company do? You should have a circle of competency if Warren Buffett does. Indigo Airlines is a carrier, Asian Paints is a paint manufacturer, and HDFC Bank is a bank. Well, none of the stuff is really simple to comprehend, but it is simple to express. Do not purchase if you do not understand what a BPCL or a Bajaj Finance is. If you have to buy something, you should know what it does. Before you buy a stock, the first step is to understand what the company does. Is the company paying a dividend or, at the very least, paying income tax? A retail investor should avoid investing in companies that are yet to generate a profit. Allow venture capitalists to invest in turnaround companies; it is a distinct kind of skill that you, as a beginner, might not have. The company will pay dividends shortly if it is profitable and paying income taxes, so you may relax. To be even safer, only invest in firms that offer dividends. At the very least, you know that the cash flows you witness are real. What has been the company's track record? Take a look at the last two years. Examine the quarterly reports, as well as the balance sheet and director's reports over the previous three years. Check to see if the company could glimpse into the future and foresee what will happen. Take a look at what they said and did. See if you can determine whether the company's success was due to luck or strategy. It won't be easy but you can start with the basics of fundamental analysis to understand a few of the company’s numbers. What is the Price Earnings that it is quoting? A PE of 24 or above is considered excessive. Of course, some companies with a lower PE are accessible, and they may also be growing slowly. So, instead of 24, search for a pe that is about 17. Remember that the market might stay at a new high PE for a long time, leading you to believe that "this is the new normal" — using PE is a double-edged sword, but it's a good place to start. What are the rivals' names and prices? If you're looking for Asian Paints, you'll also come across Berger Paints. Coming away thinking "these are two fantastic companies" will be challenging, if not impossible. So, if you notice that the entire industry has a high PE, you might want to reconsider your position on the industry and its valuation. Is this company the market leader in its industry? Is it a niche player in a crowded market? Is it a monopolistic sector dominated by a single corporation, or is it a fragmented industry where even the largest player controls less than 10% of the market, like D'Mart and other supermarkets do? Also, keep an eye on the competitors from other countries. Who is in charge of the business? You could favour family-owned businesses with competent management and strong family values, such as Cholamandalam and Asian Paints. That isn't to suggest that ITC isn't a successful company. Or that Equitas will be poorly administered by a group of pals who have known each other for many years! What is the dividend policy? If you acquire a PSU share, the government could go after the company for a large payout. As a result, you benefit as well. However, some businesses may elect to preserve a large part for future usage, so be cautious. Have you noticed any red signs recently? Is a director being charged for failing to pay taxes? any other criminal or social blunders/frauds? In these cases, keep your distance. There are 9000 businesses on the stock exchange. Approximately 5000 of them are occasionally spotted. Around 200 have reliable financial statements. Your investment needs could be more than met with these 200 companies. We would also suggest choosing from the top 100 stocks on the NSE or the top 200 stocks on the BSE. With these questions as the basis for your investment decisions, the next step is to understand the basics of fundamental analysis. At Zebu, we are working on a short and cript fundamental analysis guide that can help you understand a company. As a top broker in the share market, we have created the best stock trading platform for you to invest wisely. Our tool is designed to help investors and traders analyse a company with a wide range of indicators and screeners as per your strategy. As one of the best brokerage firms in the country, we invite you to open a trading and investment account with us.

What Is a Follow-On Public Offer and How Does It Work?

A follow-on public offer (FPO) is when a publicly-traded firm that has already been listed on a stock market issues shares to the general public. Companies might use a follow-on public offer to obtain extra capital for a variety of reasons, including expanding their business operations, reducing debt, and so on. However, the company must have already gone public through an initial public offering (IPO), in which it sells shares to the general public for the first time. Also, the shares issued through the FPO must be open to the whole public, not only current stockholders. The company's performance determines the share price during the initial public offering (IPO), and the company hopes to attain the desired price per share during the IPO listing. The share price for FPO, on the other hand, is market-driven because the stock is already traded on the stock exchange. As a result, the investor can better grasp the company's value before making a purchase. In addition, the price of follow-on public shares is often lower than the current trading price. The corporation may seek an FPO for a variety of reasons, including the need for finances to pay down debt or make an acquisition. Existing shareholders may be interested in cashing out their existing interests in some situations. Companies in other cases wish to raise funds in order to refinance their debt at cheap interest rates. As a result, before applying for an FPO, investors must be careful and assess the reasons behind the company's offering. Before you start investing or trading, we recommended going with one of the best brokerage firms in the country like Zebu. As a top broker in share market we have created one of the best stock trading platforms for you to use and invest. Types of Follow On Public Offers Depending on how ownership is transferred to new shareholders, there are two sorts of follow-on public offers. FPO diluted The first type of FPO is a diluted FPO, in which the corporation issues more new shares. As a result, the number of outstanding shares of the corporation rises, lowering earnings per share. The money raised in this way is usually used to pay down debt or restructure the capital structure of a company. FPO non-diluted When existing shareholders of a corporation sell their shares to the public, it is known as a non-diluted FPO. Rather than going to the corporation, the revenues of the sale go to the shareholders. As a result, the shareholder incurs no financial loss. Founders, promoters, board of directors, and pre-IPO investors are typically among these shareholders. The earnings per share stay steady because no new shares are issued and existing shares are offered for sale. Secondary market offerings are another name for non-diluted FPO. Furthermore, this sort of FPO has no benefits for the company and is just utilised to change the ownership structure of shares. What Motivates Businesses to Make a Follow-On Public Offer? In most cases, firms issue extra shares in order to inject more capital into the company. The following are some of the reasons why a corporation might need to raise money: If the company's debts are too significant, the revenues from the sale may be used to pay down the debt. This allows them to escape debt covenants that may limit their ability to operate their business. To grow its existing equity shares and rebalance its capital structure while maintaining the ideal debt to equity ratio, a corporation may issue more shares. When an initial public offering (IPO) fails to attract the funds required for the company's expansion ambitions, a follow-on public offering is used to issue more shares. Finally, rather than accumulating debt, a firm decides to raise cash by issuing shares, which can be useful for financing new initiatives, acquisitions, or commercial operations. The Benefits of Investing in a Follow-On Public Offer Investing in an FPO can be more beneficial to investors than investing in an IPO since investors have a better understanding of the firm, its management, and business practises. Investors can also consult historical stock market performance, earnings reports, and a wealth of other information. The share prices are slightly lower than those traded on the stock market when corporations issue shares through FPO. This allows investors to make a risk-free return by purchasing and reselling shares on the secondary market. Many investors engage in arbitrage trading, which involves purchasing shares in an FPO at a cheap price and selling them at a higher price on the market to profit. An FPO has a significantly lesser risk than an IPO. As a result, just like any other investment, FPO needs investors to do their homework on the firm and its past success. It is, however, considerably easier to investigate and is better suited to investors who have a thorough grasp of risk. Also, investors will be able to purchase company shares at a reduced price as a result of this arrangement. As one of the top brokers in share market we have created the best stock trading platform for you to invest in wisely. Our tool is designed to help investors and traders alike to analyse a company with a wide range of indicators and screeners as per your strategy. As one of the best brokerage firms in the country, we invite you to open a trading and investment account with us.

8 Reasons Why You Should Invest In ETFs

For most people, earning is mainly for accumulating wealth. Building wealth is a long process that varies from person to person. You should plan your investments based on what financial goal you want to reach and how much risk you are ready to take. Mutual fund investing can be a good option for someone who wishes to invest for a long time. They can demonstrate that they are an investment instrument that can assist average investors in outperforming inflation. ETFs have grown in popularity among both seasoned and new-age investors in India since their launch. They are the type of mutual fund that you invest in to add liquidity to your portfolio. Before we get into the reasons why you should invest in EFTs, it is important to know that you need to analyse them for maximum profits. At Zebu, one of the fastest-growing brokerage firms in the country, we have created the best Indian trading platform with the lowest brokerage for intraday trading. If you would like to simplify your option trading game, we are here to help you out. What are exchange-traded funds (ETFs)? An ETF is an open-ended scheme that replicates/tracks the specified index according to SEBI's categorization. This fund must invest at least 95% of its total assets in securities from a certain index (which is being copied or monitored). To put it another way, an exchange-traded fund (ETF) is similar to an index mutual fund in that it tracks a certain index, such as the NIFTY 100, and it is not actively managed. ETFs, unlike index funds, are marketable securities that may be bought, sold, and traded at an exchange throughout the day, just like any other corporate stock. Why Invest in ETFs? ETFs are distinctive in a number of aspects, making them a rewarding investment alternative. 1. Exchange-traded funds (ETFs) provide liquidity. ETF owners benefit from liquidity as well as broad diversification in their mutual fund portfolio. There is no lock-in because they are open-ended funds. This allows ETF holders the option of withdrawing their assets as needed. 2. ETFs are inexpensive. The expense ratio for owning an ETF is lower than that of most mutual funds because they aren't actively managed like most mutual funds. When there are no management fees or commissions, the incremental value of the total fund may increase. When kept for the long term, an exchange-traded fund with a low expense ratio can add to your dividends. 3. ETFs provide a great deal of freedom. ETFs, unlike mutual funds, can be bought and sold on stock exchanges. These funds, like intraday trading, can be exchanged on a daily basis. These can be shorted and sold for a profit, and all of this can be done in a single day within market hours. 4. ETFs help you diversify your investment portfolio. ETFs can expose investors to a wide range of market areas. One can, for example, invest in Gold ETFs, which normally track the price of actual gold as their benchmark. This allows investors to purchase commodities such as gold through exchange-traded funds (ETFs). 5. Exchange-traded funds (ETFs) are one-time transactions. When you buy a mutual fund, you're buying a basket of equities made up of small shares spread across a variety of assets. However, you can buy an ETF in a single transaction, which is the same as owning a tiny portfolio. This aids investors in tracking performance. For example, if you invest in a gold ETF, you must track the performance of gold as a commodity on a daily basis, and this makes things a lot easier for you. 6. There is no lock-in period for ETFs. ETFs have no maturity term because they can be exchanged on a daily basis. This not only provides liquidity, but also gives the investor the freedom to sell their holdings whenever they want. Since there is no lock-in period, ETFs are extremely attractive investment options. 7. Efficient taxation ETFs are taxed the same as other equity-oriented investment plans since they are treated as such. 8. Passively Managed This implies that investors don't have to keep track of each and every investment their ETF has. The fund manager makes certain that the portfolio closely mimics the benchmark index with the least amount of tracking error possible. As we mentioned before, investing or trading you need the right tools. We at Zebu offer the best Indian trading platform and the lowest brokerage for intraday trading. As one of the best brokerage firms in the country, we have created a powerful trading platform that makes investing easy for you. To know more about its features, please get in touch with us now.

Monthly vs Yearly SIP Investing: Which is Better?

Now that you've learned everything there is to know about SIP investing, the big issue is: what is the ideal investment tenure? Should you make a monthly or annual SIP investment? Though many individuals are familiar with monthly SIPs, they are less familiar with annual SIPs. Assume Mr. A sets aside a portion of his monthly salary for the SIP investment before paying any other costs. He doesn't have to worry about the investment frequency as long as his cash flow and investment frequency are both the same. It gets tough when he does not have a consistent cash flow because his investments will suffer. In such cases, he may want to explore a yearly SIP investment. People who are unable to make decisions based on what suits them and what does not can use basic calculations before making a decision. There are a number of SIP calculators online that can help you compare returns based on whether you invest monthly or annually. The calculations are based on the mutual fund's NAV history, and the results can be derived for any investment period if the NAV data for that period is available. Are you also interested in other investment opportunities that can give you high returns? Then consider Zebu to get started, as a reputed share broker company we offer lowest brokerage options and a seamless online trading platform to help you with your investment journey. Which SIP Investment yields the highest returns? It is widely assumed that more disciplined SIP investment yields higher returns. Regular investing will help you stay on top of market volatility because you will be investing at both high and low points. The average outcome will be perfect. If the market rises on the date of the investment for a SIP investment with a large gap between investment times, you will lose out on the rewards. On the other hand, if you are investing on a daily basis, you do not need to be concerned with market movement or keep a close eye on it. This is because you invest on a regular basis and the market is available to you at all times. When it comes to returns, the longer the investment time, the less variation there will be in the return value, regardless of the tenure you choose. According to research, the difference between daily, monthly, and quarterly SIP investments is only 1 to 2 percentage points. Even while daily SIP investments have always yielded higher returns, they have always been marginal. Cash Flow and SIP Investment SIP investments should always be assigned to your cash flow and income, as we've said many times before. A monthly SIP should be the most convenient option for salaried folks because they receive their pay on a monthly basis and can invest on a regular basis. They can easily provide their banks an ECS command to ensure that money is deducted from their accounts on a specific date. It's best to keep the debit for the first week of each month so that you can prepare for the rest of your expenses. They must ensure that they have sufficient finances to make the SIP investment on a daily basis and that the investment is not stopped. The key benefit of having a daily SIP investment is that it allows you to average your investment costs. However, daily SIP investments are generally not suggested for a variety of reasons. The most typical reason is that your bank may refuse to transfer funds from your account on a daily basis. Second, there is a danger that you will miss a payment, which will jeopardise your investment. The last and most essential one is that calculating the tax due to capital gains will be a major headache. Because quarterly SIPs are not adept at capturing market changes, it is best to stick to monthly SIPs. Having a daily SIP investment can also result in 25-30 bank transfer entries, which might be difficult to keep track of. As a result, the best time to invest in SIPs is on a monthly basis. Risk Factor When selecting a SIP investment option, it's important to consider the risk factor as well as the cash flow factor. The lower the SIP investment frequency, the greater the danger, because the market will vary and you will be unable to keep track of it. The frequency with which you invest should be determined by your willingness to incur risks. In such cases, monthly SIP investment is usually recommended because it gives you an advantage over other tenures, as well as the benefit of averaging rupee cost and assisting with cash flow management. Even if you receive a large sum, stay organised and invest wisely. At the end of the day, the decision is yours to make, and you have a greater understanding of your wealth objectives. As a reputed share broker company we offer lowest brokerage options and a seamless online trading platform to help you with your investment journey. Contact Zebu to know more on how to get started on your share market investment journey.

Do You Have What It Takes To Invest In Small-Cap Funds?

Many small-cap mutual fund investors saw 100% gains in the previous year. It's no surprise that we receive several inquiries each day from people who want to know if they can still make great returns by investing in small-cap funds. Some investors are also concerned about whether they should sell small-cap funds because the stocks have already appreciated significantly. So, what should your plan of action be? Is it possible to invest in small-cap mutual funds in a secure manner? What aspects should you consider before selecting mutual funds? Is it feasible to avoid losses in small-cap mutual funds by playing it safe? Investing in small-cap funds comes with its associated risk. However, if you do it with Zebu, one of India’s leading share market brokers, we will give you the best online trading platform and investment platform to perform a comprehensive analysis. With us, you will have access to the to trade and invest in small-cap stocks. Before you invest in small-cap mutual funds, keep the following tips in mind. Before you go any farther, you should clarify one point. If you invest in equities mutual funds, especially small-cap mutual funds, you simply cannot avoid risk and volatility. Small-cap funds, as you may know, invest in very small companies with a promising future. However, the majority of these businesses have governance flaws and fail to deliver on their promises. If these companies falter even slightly, the stock market will punish them harshly. In a short period of time, the share prices could be reduced to zero. When you invest in small-cap schemes, you are incurring this risk. What are your options for dealing with this threat? You can't completely prevent it, but you can soften the blow with a few safeguards. To begin with, you should only invest in small size funds if you have a very long investment horizon, meaning, you can hold the fund for several years. If you don't have at least seven to ten years, don't invest in small-cap plans. This will allow you to recuperate your losses over time. Two, small-cap funds should never be the mainstay of your portfolio. Small-cap schemes are notorious for going through extreme swings in prices. As a result, they will not provide you with consistent returns. So, it is better to limit your exposure to them to a fraction of your portfolio. Three, choose fund houses and managers who are well-known for their expertise in managing small-cap funds. Always keep in mind that investing in small-cap schemes is really difficult; it requires recognising potential firms, taking significant interests in them ahead of time, and patiently holding on to them in order to profit. Only a few fund managers have been able to consistently give superior performances over time. Four, make sure that the fund isn't too big. In the small-cap space, finding investment opportunities is quite challenging. It becomes exceedingly difficult when you have a vast corpus. This is why many fund houses are forced to stop their subscription programmes after a specific period of time. As a result, select a scheme with a limited corpus. Last but not least, do not begin investing in small-cap schemes when you see tremendous gains and then abandon them at the first hint of a downturn. This is a certain way to lose money. If you get concerned about your assets during a market downturn, it is apparent that you lack the essential risk appetite to participate in small-cap schemes. Invest in small-cap schemes frequently over a long period of time, regardless of market conditions, if you have the proper risk profile and a long-term investment plan. Finally, small-cap investments are only for the most daring investors. If every market slump gives you the jitters, it's best to stay away from them. As we have mentioned before, small-cap stocks come with an immense amount of risk. But for those brave hearts who back up their investments with authentic research, we at Zebu have the best trading account for you. As one of the fastest-growing share market brokers in the country, we are proud to offer the best online trading platform for our clients. To know more about them and how you can invest in small-cap funds with us, please get in touch with us now.

Alternate Investment Funds - A Haven For HNIs

Venture capital, private equity, hedge funds, and managed futures, are some of the investments that can be made in an alternative investment fund. To put it another way, an AIF is a type of investment that does not fall under the traditional categories of equities, debt securities, and so on. In contrast to Mutual Funds, which require a lower investment amount, Alternative Investment Funds tend to attract high-net-worth individuals and institutions. Before getting into understanding Investment Funds, if you are keen on investing or trading you should always have the right tools that can support your investment journey. At Zebu, as a reputed share broker we have the best lonline trading platform and offer lowest brokerage for intraday trading. Alternate Investment Funds Types According to the SEBI, AIFs fall into one of three basic categories. Category 1: Small and medium-sized firms (SMEs) and other startups with strong development potential that are also considered to be socially and economically viable fall under the purview of Category I investment funds. They have a multiplier effect in terms of growth and job generation and are encouraged by the government to invest. Those funds have been a lifeline for firms that were already flourishing but lacking in funding. The following funds are included in Category I: Venture Capital Funds Funding for start-ups with great growth potential but a lack of capital to start or develop their firm is provided through Venture Capital Funds (VCF). For new enterprises and entrepreneurs, Venture Capital Funds are the preferred method of raising financial because it is difficult to raise funds through the capital markets. Venture capital funds (VCFs) bring together money from investors who wish to invest in start-ups. According to their business profiles and assets, they invest in a variety of startups at various stages of development. A venture capital fund focuses on early-stage investments, unlike mutual funds or hedge funds. Depending on the amount of money spent, each investor receives a piece of the company. VCFs are favoured by HNIs looking for high-risk, high-return investment opportunities. Foreign HNIs can now invest in VCFs and help the economy flourish as a result of the AIF inclusion of VCFs. The Infrastructure Fund (IF) The fund makes investments to improve public infrastructure, including as roads, railways, airports, and other means of communication. The infrastructure industry has a high barrier to entry and relatively low competition, making it a good investment opportunity for those who believe in the sector's future growth. It is possible to earn both capital gains and dividends from an Infrastructure Fund investment. Government tax incentives could be available to Infrastructure Funds that invest in socially desirable/viable projects. Angel Fund Fund managers combine money from a number of "angel" investors and invest in young firms for their development in this form of Venture Capital fund. Investors receive dividends when the new enterprises start making money. As with Angel Funds, units are distributed to the investors. In the startup world, a "angel investor" is a person who wishes to invest in an angel fund and who also has company management experience to offer. These investors choose to invest in businesses that aren't often supported by mainstream venture capital funds because of their uncertain growth. The Social Venture Fund The rise of the Social Venture Fund (SVF) as a vehicle for investing in companies with a strong social conscience and a desire to effect genuine change in society can be attributed to socially responsible investing. These companies aim to make money while simultaneously addressing environmental and social challenges. A return on investment is still possible because the companies involved are still expected to make a profit. The Social Venture Fund prefers to invest in projects in developing nations because of their potential for both growth and social transformation. A win-win situation for all stakeholders is created when the finest techniques, technology and significant expertise are brought to the table by the investors, businesses and society. In the following blogs, we will cover the investments that come under Category 2 of the Alternate Investment Funds. As we mentioned before, with the right tools your investment journey can be very smooth. At Zebu, as a reputed share broker we have the best lonline trading platform and offer lowest brokerage for intraday trading.

For The Most Beginner Investors, Here Are 5 Aspects You Should Be Mindful Of

Investing is the most important way to build wealth and you don’t need to be an expert in the share market to be profitable. If you are unsure of how to choose the right stocks, you can always hand over the burden to the experts and simply invest in mutual funds. If you stay invested even for 20 years with an approximate return of 12% per annum, you can not only beat inflation but also create an immense amount of wealth. If you are just starting out on your first job, invest as much as you can spare and keep increasing the amount with every hike that you get. Here are 5 important aspects you should know before starting your investment journey. Risk and Return When it comes to investing, Risk and Return are closely linked. The larger the risk, the higher the possible return. You should never chase high-return investments on a whim. Consider your investing aim, time horizon, and risk tolerance. Always invest in something that is right for you. Diversification of risks Any investment entails some level of risk. You can't prevent it, but you can limit the odds of big losses by managing your risk exposure with the correct strategy. Diversifying your investments and spreading your risk is the simplest and most effective method. Diversifying your investments across asset types, such as equities, bonds, and savings, is a good way to go. Consistency By committing to a consistent schedule for investing, say monthly, you can limit the risks of loss due to sharp moves on either side. Identify quality stocks and invest in them every month for good, long-term returns. ,b>Compound Interest Because the interest generated grows your principal (the money you put in), you obtain a bigger return. It's a snowball effect: the longer you invest, the more compound interest benefits you. As a result, it is critical to begin saving and investing as soon as possible. Inflation> Inflation has been a constant in Hong Kong for the past few decades. Your investment must have a return rate that is equal to or greater than inflation. If you don't, your money will lose value.

7 Investment stories from India that will inspire you to start investing today

The majority of people invest their hard-earned money in the stock market. However, making money through stock market investing or trading is never easy. The stock market is extremely volatile, and your investments could be in danger. However, many people have become incredibly rich in the markets. What are some of India's greatest successful stock market investment tales? Who are the Indian stock market investors who have amassed fortunes through investing and trading? #1 Rakesh Jhunjhunwala Rakesh Jhunjhunwala, dubbed the "Warren Buffet of India," first entered the Indian stock market in 1985. He got his interest in stock trading from his father, who used to talk about it with his friends, and Rakesh would pay close attention. He enrolled in the Chartered Accountancy program and graduated in 1985 with a professional degree. He then joined the Stock Market and began trading. His first big hit was 5000 Tata Tea shares, which he bought for Rs 43 and sold for Rs 143 in less than three months. This provided him with Rs. 5 lakh, which was a significant sum at the time. Sesa Goa was his next big wager. He bought 4 lakh shares and made a fortune from them. There are a lot of stocks that earned big sums of money for him like Lupin, Crisil, etc. His portfolio is now valued at over Rs. 20,000 crores (3.2 billion dollars), with Titan, Lupin, and CRISIL as his top holdings. He is a well-known Indian stock market trader and investor known as the "Indian Warren Buffet." #2 Porinju Veliyath – A member of the middle class who became the CEO of Equity Intelligence Porinju Veliyath was born in a lower-middle-class Kochi family in 1962. His early years were filled with difficulties. To support his family, he took on various jobs while also studying. In 1990, he moved to Mumbai in search of work. At Kotak Securities, he was hired as a floor trader. He had never worked in the stock market before. He quickly studied the ins and outs of the stock market and developed into an adept trader. He spent four years there and learned a great deal. He began working as a Research Analyst and Fund Manager for Parag Parikh Securities in 1994. In 1999, he returned to Kochi and started to invest in the stock market on his own. In 'Geojit Financial Services,' he made his first significant investment. At the time, the stock was trading at a relatively low price. This investment paid off handsomely, proving everyone wrong. He founded his own portfolio management service (PMS) firm, 'Equity Intelligence,' in 2002. He is currently one of the most well-known investors and fund managers in modern history. Stock picks from Equity Intelligence such as Emkay Global Financial Services and BCL Industries have increased by 200 percent, while IZMO and Vista Pharma have increased by 100 percent. #3 Vijay Kedia - Vijay Kedia is a successful investor who comes from a family of stockbrokers. Vijay Kedia was born into a family of stockbrokers and began his career in the stock market in 1978 out of necessity after his father died. So, in order to provide for his family, he joined the family trading and stock-broking business. He wasn't performing well at first. He did not give up hope, though, and read about successful investors. He made the decision to invest. He started learning about business concepts. He had Rs 35,000 at the time, and according to his research, he invested it all in a stock called Punjab Tractor. The stock increased sixfold in three years, and his Rs 35,000 became Rs 2.1 lakhs. Following that, he made an Rs. 300 investment in ACC. After a year, the stock had grown tenfold and was worth Rs. 3,000. He proceeded to make profitable stock investments, amassing a fortune of 500 crores. His most important success mantra is "information to locate quality stocks, which can only be obtained by reading." He cannot be a competent investor if he does not read often.' #4 Nemish Shah – One of the top ten retail investors in the world. Mr. Nemish Shah is the co-founder of ENAM, one of the most well-known and respected investment firms. He is a very simple man who avoids the media and public attention. His investment strategies are smart and in high demand. In three years, he invested in Asahi India and saw his money grow by 3.4 times. He does not invest in a large number of stocks, preferring to focus on a small number of firms that are very sector-driven. With a net worth of Rs 1,300 crore, he is one of India's top ten retail investors. #5 Ramesh Damani — A well-known Indian investor Ramesh Dhamani is well-known for his investments in both publicly traded and privately held businesses. He is known for selecting high-quality equities and holding them for long periods of time. He invests in companies with solid management credentials and processes, following Warren Buffet's philosophy. In his career, he accomplished a lot of good things that earned him millions of rupees. #6 Motilal Oswal Group Founder Raamdeo Agrawal Raamdeo Agrawal is the MD and co-founder of Motilal Oswal Financial Services and a founding member of the Motilal Oswal Group. He began buying stocks in 1980 and amassed a portfolio of around Rs. 10 crores by 1994. Then he read Warren Buffet's advice and worked on his portfolio to select quality stocks rather than acquiring bad ones. His investment portfolio increased in a year. He has a net worth of more than Rs. 6,500 crores (1 billion USD). #7 Dolly Khanna, is an Indian value investor. Dolly Khanna, a value investor located in Chennai, has been trading in Indian stocks since 1996. Rajiv Khanna, her husband, manages her investments. She made her debut in the fertiliser industry, focusing on a high-quality small-cap business with a monopolistic position. She has an uncanny ability to recognise multi-bagger stocks and knows when to take profits. Her portfolio includes Emkay Global Financials, PPAP Automotives, IFB Industries, and Thirumalai Chemicals. Finally, we'd like to state that there is no academic degree in the world that can guarantee you success in the stock market. In the end, it is the experience that teaches you.

What Is Your Risk Profile?

You must recall your first bike ride. That is the kind of encounter you will never forget. But, while you were enjoying the ride, there is always that one kid nearby who clearly wished he hadn't had to go through the horrible experience. So, while you were ready to accept the risk of riding a bike, your friend would have preferred to stand back and observe. Similarly, some people may be more willing to accept risks than others when it comes to investing. And your risk profile indicates how much risk you are willing to face when investing. Risk Profile Everyone has different financial objectives in life. That is, your risk tolerance is determined by your financial ambitions as well as your existing financial health. Let's have a look at the various risk profile groups. There are three major kinds - The careful investor - this means that you want to take a low risk. The average risk-taker - this indicates that you are willing to take a small level of loss in exchange for higher returns. The aggressive risk-taker - this indicates that you are willing to take on more risk in exchange for a higher potential return. However, you are not required to fit within any of the categories. Depending on your investment objectives, you can choose to participate in all of them. Consider the following example. When it comes to keeping an emergency fund, you want to invest in something that will provide you with security and liquidity rather than large profits. In that instance, you choose a low risk, low return profile, showing that you are cautious. However, if your financial goal is retirement, which could be 25 years away, you can be an aggressive investor. This is because you want to earn a good return over a long period of time. In this case, the high profits would be directly proportional to the risk. Furthermore, because your investment horizon is decades away, risks can be handled in the long run. Start by taking care of emergency funds and investments with low-risk investment options. Then, move on to the funds needed for your children’s education and retirement. Next, adjust your risk appetite to invest in stocks building your wealth. You can control investment risks in two ways: Invest for the long term. Regularly invest little sums. Some investors try to outperform the market in a relatively short period of time. However, history has shown that short-term investments do not generate the same level of return as long-term ones. Long-term investment works because bull and bear markets provide wonderful opportunities to ride through the highs and lows of cycles while investing in high-return, high-yielding assets. Investing in smaller quantities allows you to benefit from rupee cost averaging. This technique ensures that you purchase more shares (or units) when prices are low and less shares (or units) when prices are high. As a result, you can average out your investment costs and deal with market volatility. Furthermore, adopting a disciplined approach, such as investing little sums on a regular basis, helps create excellent financial habits that will undoubtedly come in helpful in the long term. Investing tiny amounts over time might help your investments develop. All owing to the compounding power. Earnings from stock investments are reinvested, allowing your investments to generate even greater income. So, even if you start with a tiny amount, the longer your money stays invested, the greater the chance for growth and compounding. But did you know that you may utilise both of these methods to reduce risk in high-risk investments? Here's how it works: If you have a substantial money to invest in a high-risk investment, consider putting it in a low-risk investment vehicle such as a debt fund. You can then gradually transfer tiny amounts of money from that fund to a high-risk investment vehicle. For example, if you wish to invest Rs. 10 lakhs in equities stocks or funds, you can put Rs. 1 lakh into equity stocks or funds in the first month and the remainder in a short-term debt fund. The remaining funds can then be transferred in small increments over the next few months. This way, you may manage market volatility while still earning high long-term profits.

Four Things To Consider Before Investing

Starting your investment journey can be intimidating but is a necessity considering inflation and economic uncertainty. That is why you need a sound investment strategy to help you meet your financial objectives. At Zebu, it is our mission to help every Indian become financially independent and that is why we have platforms that will help you invest wisely. Please get in touch with us to know more. At Zebu, an online share broker company it is our mission to help everyone in India become financially independent, we offer the best online stock market trading platform with the best trading accounts. Here are four things to think about before choosing an investment strategy. Financial Objectives Your long-term and short-term financial goals should be the main thing you think about before you choose an investing strategy. Keeping track of such financial goals will help you make smart choices. Some examples of such goals are getting married, going back to school, travelling abroad, and buying a new smartphone. For instance, if you want to save up for a trip to your favourite foreign country, a post office deposit or a recurring deposit could be some of the best ways for you to invest. You can put money in either of these accounts at a post office near you. Budgeted, near-term cost When looking for a way to invest in India, one of the most important things to do first is to figure out how much you expect to spend in the future. These can be things like your child's wedding, college, or buying a home. If you do this, you'll have a better idea of how much money you need to invest now in order to get enough money back in the future to pay for any upcoming bills. Present Expenses When looking for the best way to invest, it's important to start by looking at what you're already spending. For example, if you don't have any big expenses like rent, you will have more money to save or invest for the long term. But if you have financial obligations that make it hard for you to save much money, it would be better for you to invest in a financial plan that gives you a good return on your money. Financial Dependents Most people in India don't think about how their dependents' finances affect them when they buy an investment plan. Still, you have to do this because you need to have enough investments or savings to meet the financial needs of your dependents as well as your own. For example, if you only have two children who depend on you, you probably won't need to invest as much as someone who also has to take care of their parents, siblings, and children. Investment options for short-term goals Plan for investment for one year If you like to invest for the short term, even three years can seem like a long time. But there are many 12-month investment plans that can also help you avoid market risks. Here are some good short-term investments you might want to think about: • Recurring Deposits • Fixed Maturity Plan • Post Office Deposits • Arbitrage Funds • Debt Fund • Fixed Deposits Plan for an Investment for 3 Years 3-year investment plans are a common type of short-term investment plan. These plans are best for people who want to make a lot of money in a short amount of time. Here are some choices you might want to think about: • Liquid Funds • Fixed Maturity Plan • Recurring Deposits • Savings Account • Arbitrage Funds Plan for 5 Years of Investing Even though five years is a long time, in India a five-year investment plan is usually seen as a short-term investment with low market risk. But compared to other short-term investments, the returns on a 5-year investment plan are much higher. So, here are some choices for you to think about: • Savings Account • Liquid Funds • Post Office Time Deposit • Large Cap Mutual Fund As an online share broker company, it is our mission to help everyone in India become financially independent, we offer the best online stock market trading platform with the best trading accounts.

Are You In Your 20s or 30s? Consider These High-Risk Investments

As the name suggests, high-risk investment plans are best for people who want their money to grow over the long term. Most high-risk investment plans, on the other hand, tend to have big risks, but they also offer chances to make big returns in the long run. Plans like these are examples of high-risk investments: High-risk investment opportunities require a good online trading platform and at Zebu, that’s what we offer. As a highly experienced share broker company, we try to support our customers with the lowest brokerage on everyday transactions. 1. Direct equities Investors who are willing to take risks can use stocks to reach their financial goals. Even though every asset is important in its own way, stocks have a better track record than other assets over the long term. So, in an equity investment, you can buy a piece of a company's ownership, which gives you a say in the business's profits and losses. 2. Unit-linked insurance plans Most people in India think that ULIPs, or unit-linked insurance plans, are one of the best ways to invest because they offer both life insurance and investment returns. Not only that, but you can also move your money between high-risk, medium-risk, and low-risk investments. This is because it lets you put your money in a variety of different funds. Part of your money is put into different funds based on your investment goals and risk tolerance, and the rest is used to give you the much-needed insurance coverage. Overall, ULIPs are basically life insurance plans that let you invest your money in different money-market linked assets based on your goals. So, ULIPs are another way to invest in a portfolio of stocks or bonds that is managed by a professional. The benefit of investing in a bond fund through a ULIP is that, according to the current tax laws, you may be able to get a tax break under section 80C if you meet certain conditions. ULIPs make it easy to see where you stand in terms of risk, so you can choose a higher-risk fund for your long-term goals. As your investment nears its end, you can gradually switch to investments with less risk. 3. Mutual Funds A mutual fund is made up of money from different investors that is put into the stocks or bonds of a company. Most of the time, thousands of investors share a mutual fund, and a fund manager works to get the best returns possible. A professional fund manager is in charge of running the mutual fund. Mutual funds offer a way to invest in multiple asset classes with a smaller amount of money. For example, you can invest in a fund that only buys stocks, a fund that only buys bonds, or a fund that buys both stocks and bonds. Mutual funds might have different types of risky funds based on the stocks or bonds they invest in. Index funds are thought to be the safest type of equity fund, while Gilt funds are thought to be the safest type of debt fund. Medium-Risk Investment Medium or moderate risk investments are, as the name suggests, plans for investments that are diversified or well-balanced. Plans for investments with a moderate risk profile offer the chance for growth and the ability to deal with a certain amount of market volatility. Most medium-risk investment plans help you diversify your portfolio by including both equity and debt instruments. This way, you can get stable returns without taking huge risks. As mentioned earlier high-risk investment opportunities require a good online trading platform. And being a highly experienced share broker company, we try to support our customers with the lowest brokerage on everyday transactions.