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.
CREDFounded 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 InsuranceDigit 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.
MamaEarthMamaEarth 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.
UpGradIn 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.
MeeshoMeesho, 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.
PharmEasyPharmEasy 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.
VedantuVedantu, 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.
BlackBuckIn 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.
CoinDCXCoinDCX, 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.
EruditusMumbai-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.
Jan 01, 2022
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 ServicesThe 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%.
ChemicalsThe 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.
HealthcareIn 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 GasAnother 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 GoodsThe 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.
Dec 31, 2021
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.
Jan 18, 2022
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.
Feb 04, 2022
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.
Feb 05, 2022
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.
Feb 02, 2022
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.
Mar 27, 2022
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.
Mar 28, 2022
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.
Mar 30, 2022
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.
Feb 23, 2022
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.
Apr 16, 2022
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.
Apr 24, 2022
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.
Apr 25, 2022
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.
Apr 30, 2022
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.
May 05, 2022
Bonus shares are extra shares that a company gives to its existing shareholders as a "BONUS" when it can't pay a dividend to those shareholders even though it made a good profit for that quarter. Bonus shares can only be given to shareholders by a company that has made a lot of money or has a lot of cash on hand that can't be used for anything specific and can be given out as dividends. But these bonus shares are given to shareholders based on how much of the company they already own. For instance: If a company gives out 2:1 bonus shares, it means that a shareholder who already owns one share will get two more shares for that one share. Let's say that a person owns 1,000 shares of the company. When the company gives out bonus shares, he will get 500 of them, which is the same as (1000 * 1/2 = 1,000). When the company gives out bonus shares, he will get 500 of them, which is the same as (1000 * 1/2 = 1,000). When the bonus shares are given out, the shareholder will have more shares, but the value of the investment as a whole will stay the same. What is the record date? The record date is the date by which a company decides who can get bonus shares. The company will give bonus shares to all shareholders who have shares in their Demat account on the record date. What is an Ex-Date? It is the day before the record date. To get the bonus shares, an investor must buy the shares at least one day before the ex-date. Who can receive bonus shares? The company will give bonus shares to people who owned shares of the company before the ex-date and record date. For the delivery of shares in India, the T+2 settlement system is used. This means that the record date is two days after the ex-date. Shareholders have to buy shares before the ex-date. If they buy shares on the ex-date, the company won't give them ownership of the shares, so they won't be able to get bonus shares. Once the bonus shares are given a new ISIN (International Securities Identification Number), they can be sold. In 15 days, the bonus shares will be added to the account of the shareholder. From an investor's point of view, bonus shares have a lot of pros. 1) Investors who get bonus shares from the company do not have to pay any taxes. 2) Bonus shares are good for long-term shareholders of a company who want to create wealth with the company. 3) Bonus shares are given to shareholders for free by the company that owns them. This increases the number of shares an investor owns and makes the stock more liquid. 4) Bonus shares help an investor trust the business and operations of a company because the investor has already put money into the company. From the point of view of the company 1) Giving out bonus shares raises the value of the company and improves its standing and reputation on the market. This earns the trust of current shareholders and brings in a lot of small investors. 2) When companies give out bonus shares on the market, they have more shares that are free to trade. 3) When companies give out bonus shares, it helps them get out of situations where they can't or don't want to pay cash dividends to their shareholders. 4) The cost of bonus shares keeps going up over time when a company keeps giving them out instead of paying dividends.
May 07, 2022
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.
May 03, 2022
If you are a new investor, you can give yourself a pat on the back for getting started. Rest assured that if you invest wisely, you can provide your family with the ideal lifestyle. At first, getting started on this path might seem hard, but millions of people have made money from the markets by following a few simple but important tips. Along with the 5 golden rules of investing, another important aspect of investing is the technology we use. Hence, Zebu, one of the biggest share broker company offer the lowest brokerage for intraday trading and the best trading accounts for our customer. These five golden rules will be your guide when it comes to investing: Compound your returns Learn about the power of compounding. The key to your future wealth lies in the power that you haven't used yet: the power of your investment growing over time. The earlier you start investing, the longer your money will make money for you. At the end of the day, it can be better to invest a small amount regularly over a long period of time than to invest a large amount for a short time. To get the most out of your equity investment, you need to stay invested through the market's boom and bust cycles. Financial goals Know what you want to achieve with your investments. Always keep in mind that your portfolio must help you reach your life goals. If you make a plan with your financial advisor, your investments can help you reach your life goals, like saving for your kids' college, buying a house or car, or saving for retirement. Many people make the mistake of investing on their own, which they later regret when their investments don't meet their goals. Know your risk limits Accept the risk you're willing to take. The risk of investing in the markets varies from one instrument to the next. For example, investing in fixed deposits is less risky than investing in mutual funds. Over time, though, many mutual funds do give better returns than fixed deposits. Before you buy a market instrument, you should think about what you want, what you need, and how much risk you can handle. Consider investing in a mutual fund or the shares of a company only if a trustworthy stock market expert tells you to do so. Keep your emotions in check Learn not to let your emotions get in the way. People often get too emotionally attached to their portfolios and give up on good sense and objectivity. Most likely, your portfolio will go up and down in the short term. During a bull market, it will make you happy when the price goes up, but it shouldn't make you lose your nerve when the price goes down. As an investor, you need to develop the discipline to stick with your investments over the long term and not sell them off when things get hard. When investing in the markets, it's always a good idea to be smart about your investments and listen to stock market experts you can trust. Appoint a Financial Advisor In the last few decades, the study of behavioural economics has shown that people often invest in a sloppy way. People they know often have an effect on what they decide to invest in. On the other hand, people fall for irrational cognitive biases. When it comes to the stock market, good advice from a reputable stock market advisor can be your best guide. You won't sell your investments out of fear if you have well-researched market reports and good investment advice. Conclusion Overall, a disciplined approach to investing and a calm, patient attitude during market lows can help you not only survive the worst of the market lows but also profit from them. In the same way that you take your car to a mechanic to get it fixed, you can go to a financial advisor to help you get your portfolio in order. Getting help from a good financial advisor can make a big difference in how much money you and your family have. Zebu, one of the biggest share broker company offer the lowest brokerage for intraday trading and the best trading accounts for our customer. Get in touch with us to know more.
May 24, 2022
A well-diversified equity fund, which is usually just called a "diversified equity fund," invests in companies of all sizes, no matter how big or small they are. Diversified Equity Mutual Fund: What is it? A diversified equity fund puts its money into companies of all sizes and in all industries. It spreads investments across the stock market so that investors can make the most money possible while minimising risk. Unit-linked insurance plans (ULIPs), mutual funds, and other investment firms all offer them. There are many different types and sizes of companies on the stock exchange. 1)large caps 2)mid caps, 3)small caps. How does a fund with a wide range of stocks work? A diversified equity fund also invests in companies from different sectors and industries. So, it can take part in the growth of the whole economy and isn't tied to any one sector or industry. They can choose to put their money into businesses from - Pharmaceuticals Technology Engineering Automobiles Power/Services Services for banking and finance Gas and oil Simply put, a diversified equity fund invests in companies from different sectors, industries, and sizes of the market. Diversified equity funds, which include both ULIPs and mutual funds, are created so that investors can profit from the financial growth of companies of all sizes and in all industries and sectors. The rules for investing in ULIPs and mutual funds are different, and investors are told this in product literature and on company websites. Who does it work best for? Diversified equity funds can be helpful for investors who like stocks and have long-term goals like planning for retirement or saving for a child's education or wedding. They can be used on their own or as part of a portfolio with other investments.
Jun 06, 2022
When we are in our early or middle 20s and get our first job, the pay is not very high. From there, we have to figure out how to pay for things like rent, food, transportation, etc. every month. At this point in our lives, saving money and making investments are the last things we think about. But there are many reasons to start investing early. And we'll talk about all of that in this blog. Here are 5 reasons why you should start investing as soon as you can. Number 1: When you start young, you can start small We all have things we want to do, like buy our favourite car or get married in an exotic place. For example, let's say you want to get married in 5.25 years and you need to save Rs 15 lakh for this. You decide to put your money into equity mutual funds. Even though mutual funds don't offer guaranteed returns, their long-term returns are around 12%. Now, you would have to put away Rs 11,250 every month to save Rs 15 lakh in 5.25 years. Alternatively, if you start saving for the goal 2 years later, you would have to save Rs 18,750 per month to reach the goal on time. You would also have to save more. In the same way, if you start early on any goal, whether it's to buy a house or save for retirement, your monthly investments and total investments will be much less than if you wait. Number 2: It brings discipline to your life If you start saving and investing early on, it will improve your spending habits on its own. We'll tell you how. If you want to save a fixed amount of money from your fixed salary, you will have to limit your spending by making a monthly budget. And making a budget is the best way to change how you spend money because it helps you keep track of how much you spend each month on things like food, utilities, rent, entertainment, etc. And after doing this simple task for a long time, it becomes a habit. Now, to get into the habit of saving put away the amount you want to save each month. Then, use the money you have left to make a monthly budget. If you make Rs 25,000 a month and want to save Rs 5,000, for example. Then, as soon as you get paid, put away the Rs 5,000 first. Use the rest of the money to keep up with your expenses. Number 3: Compounding makes you wealthy The longer you keep your money invested, the more the benefits of compounding will help you. Let's look at two examples of this to see what we mean. Let's say you want to save Rs 8 crore for your retirement. In the first scenario, you start investing in a mutual fund when you are 25 years old. And to do this, you would need to save Rs 12,000 every month until you were 60. And over the next 35 years, you would put away a total of Rs 50.4 lakh. In the second scenario, you put the goal off for 15 years and start saving for retirement when you are 40. The goal amount, which is Rs 8 crore, hasn't changed. Now, because of this delay, the amount you invest each month will be Rs 80,000, and the total amount you invest will be Rs 1.92 crores. So, if you put off investing for 15 years, the amount you put away each month goes up by more than 6 times, and the total amount you put away goes up by 4 times. Over time, this is how compounding works. Number 4: If you stay invested for longer, you can build up a bigger nest egg If you keep your money invested for a long time, you can get the benefit of compounding for a longer time. This means that the amount you have saved over the years will be much higher. To explain this, we can look at the point we talked about before. When we talked about the benefits of compounding, we said that even if you only invest Rs 12,000 per month, you can build up Rs 8 crore if you start investing at age 25 and keep it up until age 35. But if you start investing 15 years later and your savings decrease but deployed capital increases. So, it's best to start early and keep investing for a long time if you want to build up a big nest egg without feeling the pinch in your pocket or lowering your standard of living. Number 5: You are more willing to take risks. When you are young, you have more opportunities to take risks than when you are older. At this age, you don't have as many financial responsibilities, so you don't have to think too hard before putting your money into something risky. Even if you make mistakes with your investments, you'll have plenty of time to fix them and get back on your feet. For instance, a good rule of thumb for investing in stocks is (100 - your age). That is, if you are 30 years old, you can put 70% of your money in stocks and the rest in bonds. The rule of thumb says that if you are 22 years old, you can put up to 80% of your money in stocks. But if you start investing when you're 45, you might not want to take that much of a risk. As a rule of thumb, you should only put 55 per cent of your money in stocks. Even though stocks are riskier than fixed-income investments, they may give you higher returns over time, allowing you to build a bigger nest egg with a smaller investment. Bottom Line So, if you haven't started investing yet, you should do so today. Start small, keep things simple, and continue to learn as you go. Remember that getting rich is a long-term process that can't be rushed. And as a young worker, the best thing you have going for you is time.
Jun 13, 2022
Even if you don't invest in the stock market often, you are likely to get calls and texts from unknown brokers trying to sell you penny stocks. What are penny stocks, anyway? On the US stock market, stocks that are trading for less than $1 are called "penny stocks." Penny stocks are usually stocks that are trading for less than Rs.20 in the Indian market. Another definition is stocks that are trading for less than their par value or face value. The main point of the story is that these penny stocks are shares of companies that most people have never heard of and whose business models aren't very good. Here's why you shouldn't fall for the allure of penny stocks, even if they look very appealing. As experienced share brokers we want to offers the best online trading platforms, and the best trading accounts for our users. 1. Penny stocks are cheap because they might not be worth much. Penny stocks are usually quoted at very low prices because that is what they are worth. Some penny stocks are sold as good investments because their P/E ratio is low. That can be hard to understand. The P/E ratio shows how much people trust and care about a stock, and a low P/E usually means that people don't trust the stock. Most of the time, these companies also use creative accounting to make their profits look bigger than they really are. Don't get tricked by a low P/E. 2. It's easy to trade in circles with them, and you could get caught. What does it mean to trade in a circle? Here, a group of brokers make a deal with the promoters to drive up the price of the stock by making fake demand for it. Most of the time, if A, B, and C are all trading in the stock, one of them will be either the buyer or the seller. But when the markets see that the stock is consistently being bought and its price is going up, a lot of small investors tend to become interested. As soon as there is enough interest from retail investors, these "circle traders" get out of the stock, leaving retail investors with worthless paper. 3. Penny stocks tend to move in areas that are doing well. This is where the game of penny stocks gets pretty easy. During the height of the technology boom, a lot of "fly-by-night" companies changed their names to sound like IT companies. Not only did these companies manage to get people interested in the market, but they also sold shares in their IPOs and private placements at prices that were too high. You don't realise you've been taken for a ride until the dust settles. 4. Volumes can be created and taken away quickly. This is something that happens a lot with these cheap stocks. You may buy a stock because it has a lot of trades, but as soon as you do, buy orders are pulled. What is going on? Let's get back to our question about penny stocks and how they are traded. Most of the people who buy and sell at the counter are the same people who do business in circles. When they see that retail buyers are pushing prices up, they will just cancel their buy orders at lower prices. This makes the selling/buying order book look off, which makes people want to sell more. This is bound to happen when only a few traders control most of the volume. 5. Illiquidity is a major risk This again has to do with the last point. What does the term "basis risk" mean? It is the difference between the buy price and the sell price, also called the spread. This is important because it makes your costs go up when you buy and makes your advantage go down when you sell. You'll also notice that these stocks are always in the lower circuit or in the upper circuit. Since the volume and float are completely controlled by the circular traders, it may become very hard to buy and sell the stock. Most of the time, they will continue to be interested in these stocks only after they have sold all of their stock to other investors. 6. A lot of them could be "shell" companies Most of the time, these companies whose stocks are worth only a penny are just "shell" companies. That means that the company is no longer doing business or that all of its assets have been taken away. At the end of the 1990s, there were a lot of software companies that were really just fronts for laundering money through exports. Such businesses have a negative enterprise value, so it doesn't make sense to buy them at any price. Worse, if SEBI starts an investigation into one of these companies, you may have to answer embarrassing questions as well. Last but not least, you don't have to do that with your hard-earned money. Lastly, buying penny stocks is probably not the best use of your hard-earned money. These stocks are high risk and have a low chance of making money. Most of the time, they are just tricks to get people to buy. Instead of buying these penny stocks, you would be better off buying shares in good companies that have been well researched. Remember that the market is full of stories about how your neighbour became a millionaire by investing in penny stocks. But there are also stories of people who put everything they had on penny stocks and lost everything. Penny stocks are not worth taking a chance on. You can do a lot more with your money. Better to be safe than sorry! As experienced share brokers we want to offers the best online trading platforms, and the best trading accounts for our users at all times.
Jun 21, 2022
The economy is always changing, and it can be hard to make investments when things are always changing. Investors are having a hard time right now because the economy is showing all the signs of inflation. So, how do investors invest now, especially if they want to put their money in the stock market? Are you planning to invest in the stock market? If yes, then you should definitely try Zebu’s online trading platform which will help you manage your trading seamlessly. At Zebu, a share market brokerage firm we also understand that online brokerage is a major problem, hence offer lowest brokerage options to our customers With higher rates of inflation, the IPOs of startups going public are becoming an ever more appealing way to get people to invest. But it's worth going back in time to get a better idea of how the economy worked in the past. The last 10 years, from 2011 to 2020, had low inflation and moderate growth. During the first decade, especially from 2002 to 2007, growth was higher, but inflation went up. We are at a time when growth is slow and prices are going up fast. There is a lot of uncertainty in the world today, and rising geopolitical tension is making it worse. But even though the markets have recently gone down, starting prices are still high. If you want to trade stocks when inflation is high, you can, but you should be careful. How the Indian economy is doing The Indian economy is in a macro situation right now, which can hurt most emerging markets. Many countries with "emerging markets" (some of which are closer to India than others) are in economic trouble. Because of this, FIIs are pulling their money out of these markets. Since October 2021, this has been the case with India. Still, India is better off than other countries in the same situation when it comes to inflation. This is one of the most optimistic signs for investors. Using Investor Awareness to Trade on the Stock Market Why is India a good market for investments, even if they are in the stock market? For one thing, India's economy is back on track after all the problems of the past few years. The services sector, which has been slowing down for the past few years, is also showing signs of getting back on its feet. Also, the amount of debt owed to countries outside of Canada is low, and the country has enough foreign exchange reserves to cover CAD projections and debt payments to countries outside of Canada. In this situation, investors who buy stocks need to be careful, because investing in the markets is risky. Investors who want to open a Demat account and invest in stocks that will do well during times of inflation should keep in mind the following: Investors should be ready for more volatility for the next 6 to 9 months. Investors shouldn't expect big returns and shouldn't think that the returns of the last two years will happen again. If an investor wants to invest a large sum all at once, they can choose funds that have a balanced mix of debt and stocks. Hybrid funds are a good choice for investors who like to play it safe. Using an STP or SIP, you should spread out your investments in small and mid-cap stocks over the next 6 to 9 months. A Time to Invest Carefully You might be interested in investing in the stock market because there are a lot of IPOs coming up. It's easy to open a Demat account and start investing with Zebu, but if you do so now, you must do your research on stocks and invest carefully. If you planning to invest in the stock market then you should definitely try Zebu’s online trading platform which will help you manage your trading seamlessly. At Zebu, a share broker firm we also understand that online brokerage is a major problem, hence offer the lowest brokerage options to our customers
Jun 27, 2022
A few rules about investing could help us figure out how quickly our money grows or loses value. Then, some rules help us decide what to do with our money. For instance, how should we divide up the money in our mutual funds? How much should we save for retirement and emergencies? We've made a list of general tips to keep in mind when making decisions about money or investing. Are you looking for the best trading platforms? Then your search ends here. At Zebu, a share broker company we offer our users the right online trading platform and the best trading accounts. 7 RULES OF INVESTING To quickly understand how much money is worth, you need to know the first three thumb rules. RULE OF 72 Everyone wants their money to double in value and is looking for ways to make that happen as quickly as possible. The rule of 72 gives you an estimate of how many years it will take for your money to double. If you divide 72 by the expected rate of return, you may get a very accurate estimate of how long it will take for your money to double using this method. Let's look at an example to see how this rule works. Let's say you put Rs 1 lakh into something that gives you a 6% return. If you take 72 and divide it by 6, you get 12. That means that in 12 years, your Rs. 1 lakh will be worth Rs. 2,00,000 It's important to remember that this rule only applies to assets that pay compound interest. You can also use the Rule of 72 to figure out how much interest you'll need in a certain amount of time to double your money. For example, if you want your money to double in 5 years, you can find the interest rate by dividing 72 by the amount of time it takes to double. I.e., 72/5= 14.4%p.a. So, for you to get twice as much, you should get 14.4% p.a. RULE OF 114 Using the same reasoning and math formula, the investing rules of 114 can give you a pretty good idea of how many years it will take for your investment to triple. Rule 114 says that if you invest 1 lakh at 6% p.a. for 19 years, it will grow to 3 lakhs. Similarly, if you want your money to triple over the next five years divide 114 by 5, which gives you a rate of interest of 22.8% per year for your money to triple in 5 years. RULE OF 144 Rule 144 is the next rule of thumb to keep in mind when investing in a mutual fund. Rule 72 times 2 is 144. The "rule of 144" tells you how much time it will take to quadruple your investment. Rule 144 says that if you put Rs 1 lakh into a product with a 6% interest rate, it will be worth Rs 4 lakh 24 years later. So, to find out how many years it will take for the money to grow four times, just divide 144 by the interest rate of the product. 100 MINUS AGE RULE The 100-minus-age rule is a great way to figure out how to spend your money. That is, how much of your money should go into equity funds and how much should go toward paying off debt. This investment rule says that you should take your age away from 100. The number you get is the right amount of equity exposure for you. The rest of the money can be used to buy debt. Say, for example, you are 25 years old and want to invest Rs 10,000 each month. If you follow the 100 minus age rules for investing, 75 percent of your money will be in stocks (100 – 25). Then you should put Rs 7,500 into stocks and Rs 2,500 into debt. Using the same rule, if you are 35 years old and want to invest Rs 10,000, you should put 100 – 35 = 65% of your money in stocks. So, you should put Rs 6,500 into stocks and Rs 3,500 into debt. RULE FOR A MINIMUM INVESTMENT OF 10% This rule of thumb says that investors should start by putting away at least 10% of their current salary and then increase that amount by 10% each year as their salary increases. To make the most of the power of compounding, you should start investing as soon as possible. Investing early will help you make the most out of it. EMERGENCY FUND RULE Like the rule about investing at least 10% of your income, you must put some of your salary into the emergency fund. You need to have money saved up because you never know what life will throw at you. So, you should save money for emergencies before you start investing. According to this rule, you should save enough money to cover your monthly costs for at least three to six months. In case of an emergency, you need to be able to get to your emergency fund, and it's best to keep it liquid so you don't run out of money. RULE OF 4% WITHDRAWAL Stick to the 4% rule if you want your retirement fund to last long. If you follow this rule as a retiree, you will have a steady income. But at the same time, you have enough money in the bank to make enough money. For example, if you have a retirement fund of Rs. 1 crore, you should take Rs. 4 lakh every year, or Rs. 33,000 every month, to keep up with inflation. SUMMING UP The rules of thumb listed above are general rules and guidelines that every investor should follow. A good investor is careful, so before you start, you should do your research and talk to someone who knows about investing. That's why it's important to stress that these rules shouldn't be followed without question. Keep in mind that a good investment portfolio helps you reach your financial goals while taking your risk tolerance and time horizon into account. At Zebu, a share broker company we offer our users the right online trading platform and the best trading accounts.
Jul 06, 2022
What do we mean when we say that a stock is defensive? As the name suggests, these are the stocks you can count on when the market is moving around a lot. These are the stocks that don't lose as much value when the market goes down as most high beta stocks. So, what do defensive stocks look like, and what are the benefits of having defensive stocks in your portfolio? Let's look at some of the things that defensive stocks have in common and some examples of defensive stocks in India. 1. Things that never go out of style When you talk about traditional industries that never go out of style, food, FMCG products, etc. come to mind. Food and cleaning products are used in different ways, but what they are used for doesn't change much. In fact, the only time that these products become more popular is when the economy gets richer. Because of how stable their demand is, they tend to be less volatile and can keep their price and returns even when times are bad. Hindustan Unilever, ITC, Marico, Britannia, and Havells are all great examples of Indian defensive stocks. Of course, they might not give you the same kind of return that most high beta stocks do, but that's not the point. The main idea is to put your attention on stocks that can protect the value of your portfolio when times are bad. 2. Businesses that are always in demand This can be a continuation of the last point, but there are many people who can benefit from this trend. Aside from food and FMCG, this group also includes stocks in pharmaceuticals and cement. For instance, the need for cement can be put off, but it can't be eliminated. Because of this, cement stocks tend to keep their value even when the market is bad. It's an example of prices changing to reflect more realistic growth expectations. But there hasn't been much of a drop in demand for these goods. 3. Dividend yields that are appealing Stocks with a high dividend yield are a good example of defensive stocks. Most of the time, defensive stocks are those with dividend yields of 6–7% or more. Because they generate annuity income, the attractive dividend yield makes them very attractive at lower levels. In India, this category includes stocks like NTPC, Coal India, NMDC, REC, Chennai Petroleum, IOCL, and BPCL. They come from many different industries, but what they all have in common is a good dividend yield. In many cases, the yield on the dividend is better than the yield on the bond itself. 4. Big businesses with strong business plans We've seen this happen with companies that have been around for a while and have grown to the point where repeat business doesn't take much work. In this group are companies like TCS, Infosys, Reliance, Maruti, etc. Even when these companies' stocks go down on the stock market, investors know that they will eventually go back up. And over the years, these stocks haven't let their investors down very often. When the market is bad, these stocks can be good places to put your money. They might not give you the kind of returns that many midcaps do, but like most defensive stocks, they do a great job of protecting you from the risk of going down. 5. Priced conservatively in terms of P/E and P/BV One of the most common characteristics of defensive stocks is that their P/E and P/BV ratios are still relatively low. If you look at companies like Reliance, IOCL, BPCL, and NTPC, you'll see that most of them are priced in a way that makes them seem like good deals. Of course, most of the time there isn't much room for growth or the size works against them. But you can be sure that these stocks will do pretty well even if they go down. Also, when the market goes down, they make a case for buying, and you can be sure that these stocks will go up again in the long run. Since valuations change quickly in their favour, having a low P/E and P/BV is an added benefit. 6. The business doesn't really follow a cycle Commodity businesses like steel, aluminium, and zinc can be pretty cyclical because the prices of metals are largely based on the international prices on the raw materials. When the economic cycle goes against them, there is a big chance that prices will go down. Second, when these stocks go down, it takes a long time for them to get back to where they were before. This is because commodity cycles tend to last longer. Because of this, most metals and commodities stocks are not good choices for a defensive bet. Even if they have good price-to-earnings ratios, they do not become basket cases. More often, defensiveness comes from stocks that have a moat that sets them apart. 7. Low beta stocks are good defensive bets Most of the time, stocks with low betas are those that are good for protecting your money. Think about the Indian Nifty. Stocks with Betas that are much lower than 1 include Cipla, ACC, Bajaj Auto, Hindustan Unilever, IOCL, and Infosys. Even though these stocks may not do well in bull markets, they tend to hold their value better when markets are down or too volatile. On the other hand, stocks with high betas like Bosch, Eicher Motors, ICICI Bank, and Adani SEZ are not good defensive bets. They are more likely to be played in markets with a lot of action. When the market is bad, defensive stocks are a good way to protect your money. That is the whole point of defensives!
Jul 11, 2022
Each mutual fund is based on an asset that brings in money. Large-cap funds' underlying assets are the stocks of some of India's biggest companies based on market capitalization. In a similar way, thematic funds are made up of stocks of companies that all have something in common with a certain theme. For example, a fund with an ESG theme will invest in companies from different industries that have done well in terms of the environment, society, and the way the company is run (from technology to financial services to FMCG to Consumer Durables). Because of this, thematic funds are different from traditional investment strategies like market capitalization (large-cap, mid-cap, small-cap), style (value & growth), and sectoral investing (pharma, technology, infrastructure). As long as it has something to do with the topic, it invests in many different industries and market values. SEBI also says that 80% of a company's total assets must be invested in stocks and securities related to stocks of a certain theme. 1. What are the pros of investing in thematic funds? More options for diversification than sectoral funds. When you invest in a sector fund, your portfolio is limited to that sector, so you don't have any other options for diversification. Your portfolio will suffer if the sector is doing badly for any reason. Thematic funds, on the other hand, invest based on a theme and may include stocks from companies in different industries. This gives you a bit of diversity. For example, think about a fund whose main focus is on manufacturing. This fund puts its money into a wide range of engineering, chemical, and construction businesses. So, even if businesses in one area aren't doing well at a certain time, businesses in other areas will keep your portfolio from falling apart in a big way. 2.Returns that beat the market If the investor chooses the right theme to invest in, thematic funds may produce amazing returns. Still, we need to realise that getting the theme right is harder than it seems. It requires that you keep an eye on the things you're interested in and pay attention to the news and headlines all the time. If, after all your hard work, you really nail the topic, thematic funds could pay off in a big way for you. 3. Who is a good fit for thematic funds? Investors with a high risk tolerance: Thematic funds are one of the high-riskmutual funds. When a portfolio is put together with a theme in mind, it limits the kinds of investments that can be made. It would only be able to put money into companies with shares in that area. So your portfolio has a little bit of everything. If for some reason this theme doesn't come true, there is a big chance of losses. So, these ETFs should only be bought by investors who can handle high risk. Investors Who Want Long-Term Returns: It might take a while for a subject to reach its full potential. For example, we've known since the early 1990s that software and internet technologies had a lot of potential. But now, 20 years later, we can really see how these ideas work in the real world. So, it takes time and hard work to turn these topics into profitable investments. If you're an investor who wants to make money over the long term, thematic funds may be a good choice for you. People who are just starting out with investing are told not to put all of their money into themed funds right away.
Jul 26, 2022
A thematic fund's portfolio is made up of stocks from companies in different industries that have something to do with the theme of the fund. Some investors might not know how each of these industries is growing. You can decide if certain sectors can help you make a lot of money if you know enough about them and how they relate to the subject of the fund. So, thematic funds are a good choice for investors who like to keep up with the news and are good at researching a wide range of industries. Investors can decide if they want to put their money into a certain topic by keeping an eye on a lot of places and getting useful information. 4. Things to think about before putting money into theme-based funds Investment Goals: Before buying these funds, you should be sure of what you want to do with them. If you want the best return on your theme fund investment, you should invest for more than five years. It's not hard to see why. Any business needs enough time to reach its full potential. So, when you put money into these funds, you should have long-term goals in mind, like retiring early, paying for your child's college, etc. Investment Risks: The benefits of investing in theme funds may seem appealing, but it's important to know the risks that come with it. It is a very dangerous way to go. Because of this, people who have never invested before are told not to buy themed funds. Let's look at the main risks that come with these funds: Semi-Diverse Portfolio: Compared to sectoral funds, which don't offer any variety, a theme fund's portfolio is a bit more diverse. It does, however, offer fewer ways to spread out your investments than other equity funds, like multi-cap funds, whose portfolios include securities from many different industries. Since these equity funds don't have a theme, it's less likely that all the stocks will fall at the same time than it is with thematic funds. Some themes could take longer to develop than expected. Even if some of us can see that a theme has a lot of potential in the near future, say in the next four or five years, our predictions are likely to be wrong. It might take longer than we thought. There were a lot of brand-new funds with themes, and many investors hoped to make money from them. Even though infrastructure has been a topic for more than ten years, there hasn't been much progress. When investing in themed funds, an investor may have to wait up to 20 years to see a profit. There is a risk of time with theme funds. Expense Ratio: You need to be honest about the costs that cut into your profits. For managing the thematic funds you want to invest in, Asset Management Companies (AMC) will charge you a fee called an expense ratio. This fee is mostly used to pay for the fund's overhead costs, such as the salary of the fund manager and marketing costs. The fee is charged once a year. 5. Taxation of Thematic Funds What matters are the profits after taxes. You should know how taxes work with that kind of money. The capital gains you made when you sold your theme fund are taxed based on how long you held on to it. If you sell your investments within a year, the profits are considered short-term capital gains (STCG), and you have to pay 15% tax on them. Long-Term Capital Gain Tax (LTCG): Gains from any investment held for more than a year are considered Long-Term Capital Gains and are taxed (LTCG). Gains of up to Rs. 1 lakh are not taxed in a fiscal year. Gains of more than Rs. 1 lakh are taxed at 10%. These are the important things to know about Thematic mutual funds. To start investing in them, open your demat account with Zebu today.
Jul 27, 2022
When most people think of investments, they think of putting money into the stock market. It's true that the stock market is exciting, and it's not uncommon to hear stories about people getting rich overnight. Even though many people think bonds are a good way to invest money, they are not as appealing as stocks. Even when there are exciting bull markets, many people don't find things interesting because the language is hard to understand. But because bonds have a reputation for being stable and safe, many people choose to invest in them. What are bonds, how do you invest in them, and what are the risks of doing so? Let's find out what the answers are to the above questions. What is a bond you buy to invest in? Businesses need money to grow, the government needs money for projects like building roads and providing social services. Most of the time, the amount needed is more than what banks are willing to lend. Because of this, these groups sell bonds on the open market. So, a number of investors help raise the money by lending some of the money that is needed. To put it simply, bonds are loans where the investor is the lender. The company or other group that sells the bonds is called the "issuer." Bonds can be thought of as promissory notes that the issuer gives to the lender, in this case the investor, for the amount of the bond. No one would lend money for free, so the bond issuer pays an extra fee in the form of interest for using the money. The interest on the bonds is paid on a set schedule and at a set rate. When talking about bonds, people often say that the interest rate is a "coupon." The loan's face value is the amount being borrowed, and the maturity date is when the money is due. Bonds are called "fixed income assets" because the investor knows exactly how much money they will get when the bond matures. Bonds are less risky than stocks, but they also give you less money back. Why is it important to buy bonds? As you try to figure out what an investment bond is, you might also want to learn why bond investments are such an important part of your overall financial portfolio. Diversify your holdings. This is the first rule of every smart investment plan. Investors must be careful not to lose their money because, for the vast majority of investors, their hard-earned money is often spread out among many different instruments. Not only is it important to make more money, but it's also important to keep what you have. Bonds offer stability, and if you've never invested before, they may be a good place to start. Bonds offer a steady stream of income that is easy to plan for, and in many cases, they pay interest twice a year. Since the investor gets the full amount of the principal if the bond is held until maturity, it is thought that this is the best way to protect one's capital. Bonds can also reduce a person's risk of owning stocks that go up and down a lot. Even before the bonds mature, they can give you a steady stream of income in the form of interest. In simple terms, bonds are usually backed by the government and give you peace of mind about your investments. Bonds can be used to lower risk if you have a portfolio of direct stocks and want to do so.
Sep 09, 2022
Bonds are debt market products that, as their name suggests, pay a fixed interest rate annually or at regular intervals and can be redeemed at the end of a certain time period. Bonds are fixed-income securities that act as a private company's assurance to raise money for operating costs. Most of these bonds are traded on the secondary market and are also available to investors as "dematerialized" bonds. Before you buy private sector bonds, here are some things to think about. 1. Is it backed by a reputable business group? These corporate bonds from the private sector are at risk of default, but government bonds are not. As an investor, default risk may have two effects on you. First, the company can have bad financial results and be forced to stop making principal repayments and periodic interest payments. Second, even if the bond is traded on the stock market, it could be downgraded by the rating agencies. This would cause the price of the bond to drop. 2. Don't try to find more ways to make money Going down the grading curve to find higher yields on private bonds is very common, even among fund managers. For instance, a corporate bond with a AAA rating will have the lowest interest rate. But if you choose bonds with an AA or A rating, the yield will be higher because these companies are more likely to pay higher rates than AAA companies. Even though not every AA or A-rated company will go bankrupt, it is a risk, so you should be careful. If you can't sell the bond on the secondary market or don't have time to keep an eye on how the company is doing, the risk is higher. 3. Keep in mind that private-sector bonds make you pay more in taxes Your actual returns depend on how the tax treatment works out in the end. When you buy private bonds, the interest you earn is taxed at your highest rate, say 30%. So, if the bond pays you an interest rate of 11%, your real yield after taxes is only 8.7%. (11-3.3). Even though the lock-in term may be longer, it may be better to invest in an infrastructure bond that saves taxes. For example, if the interest rate on a tax-free bond for infrastructure is 6.5%, the effective after-tax yield will be 9.3% (6.5/0.7). In reality, an infrastructure bond has a higher effective yield and a much lower risk of default. 4. You might find that investing in debt funds is a better idea If you want stability, debt funds may be a much better option for you. Debt funds let you benefit from both the interest on bonds and the growth of your capital when interest rates go down. The second benefit of debt funds is that they build a portfolio of different types of debt instruments with different levels of risk. This makes your overall exposure risk much lower. It's hard to come up with this much variety on your own. Third, unlike bonds, which are usually hard to sell quickly, debt funds are easy to buy back. Price anomalies can also make it so that the prices don't reflect the bond's true value. Last but not least, debt funds are much better than private sector bonds when it comes to taxes. If you choose a debt fund's dividend plan, you can take out the profits without having to pay taxes because dividends from debt funds are tax-free in the hands of the investor. The yield on private sector bonds is a little bit higher than that on bank FDs, but the risks are also a little bit higher. Before putting money into private sector debt, you should know this.
Sep 12, 2022
There are two main reasons why some stocks are called "preferred stocks." The regular dividends paid to people who own preferred shares are more than those paid to people who own common shares. Common stocks pay dividends based on how profitable the company is. Preferred stocks, on the other hand, pay dividends that have already been decided. Preferred stocks are different from common stocks in that they don't have the right to vote. In some ways, preferred stock is like a bond. They all have a face value that is used to figure out the dividend. Let's say that a preferred stock is worth Rs 1,000 and gives a 5% dividend. If the stock is still being traded, it must pay an annual dividend of Rs 50. Preferred stock is riskier than a bond but less risky than regular stock. Even when a company does well, the value of preferred stocks is not likely to go up by much. So, it is less likely that a person who owns preferred stock will make big money. Preferred stocks come in many different forms. If you have convertible preferred shares, you can change a preferred stock into a common stock. Also, preferred stock can add up over time. This means that when business is slow, the company might put off paying dividends. But when things get better, they have to pay the dividends that they owe. This must be done before any payments can be made to common stockholders. Another type is redeemable preferred stock. In this case, the business has the option to buy the stock back at a later date. Know these things about dividends 1. Most companies pay dividends based on their yearly, quarterly, or even one-time profits. 2. The Income Tax Act of 1961 says that income from dividends is taxed. 3. Companies can choose to pay either common dividends, which are payments that change based on how much money they make or preferred dividends, which are payments that always stay the same. Investor Benefits from Dividends: Dividends are a predictable, low-risk way for investors to get a return on their investments. Also, as the companies grow, the dividends go up, which makes the stock worth more to investors. You can also use the dividends to buy more shares. Investors should keep in mind that dividend yields that are higher are not always better. This is because some companies that pay high dividend yields find it hard to keep up these rates over time. Dividend stocks are a type of stock that is traded on the stock market. These stocks belong to a group of companies that have a history of giving dividends to shareholders. Since these stocks are well-known, have already reached their peak, and are mature, their future growth potential is often much lower than that of growth stocks.
Sep 23, 2022
Stock prices on the market are affected by how much demand there is and how much supply there is. The market capitalization of a company affects part of its share price. This is the sum of the stock price times the number of outstanding shares. The most recent sale price is used to set the current asking price on the market. Let's say that the last closing price of 100 shares of company XYZ was Rs 50, and you want to buy them. The fair market value of the share is (50 x 100), or Rs. 5,000. The discounted cash flow method is another way to figure out what the fair price is. The fair price, according to the hypothesis, is equal to the sum of all future dividend payments discounted to the present value. The stock market is a network of exchanges, brokerage firms, and brokers that connects businesses and investors. IPOs, which stand for "Initial Public Offerings," is how companies get listed on the market before investors can buy their shares. An initial public offering (IPO) can tell what a company's market capitalization is, and investors can choose shares from separate lists of large-cap, middle-cap, and small-cap companies on the stock markets. Indexes are also used by stock exchanges. The Indian exchanges NSE and BSE use two different indices: Nifty and Sensex. These indices are made up of the best large-cap firms based on their market size and how popular their shares are. Most investors use these indicators to figure out where the market is going. The bid-ask spread is another important term to know when you want to talk about how the stock market works. "Bid" is the amount that buyers are willing to pay for an underlying, which is often less than the "ask" price set by the seller. This difference in prices is called the bid-ask spread. For a deal to happen, the seller must lower the price they want and the buyer must raise the price they are willing to pay. How to invest on the Indian Stock Exchange Companies send SEBI a draught offer document that has information about the company. After getting approval, the company does an initial public offering (IPO) on the primary market to sell investors' shares. The Company offers and gives shares to some or all of the investors who bid during the IPO. The shares are then listed on the secondary market, or the stock market, so that they can be bought and sold. After getting orders from their clients, brokers put those orders on the market. When a buyer and a seller are found, the trade goes well.
Sep 26, 2022
As an investor in the Indian stock market, it is important to understand the various factors that can impact the performance of your investments. Economic and political factors can have a significant impact on the stock market and it is essential to be aware of these influences in order to make informed investment decisions. One of the most significant economic factors that can affect the Indian stock market is the state of the country's economy. The stock market is closely tied to the overall health of the economy, as companies' profits and stock prices are largely dependent on economic conditions. Factors such as GDP growth, unemployment rates, and inflation can all impact the stock market. For example, a strong economy with low unemployment and steady GDP growth may lead to an increase in stock prices, while a struggling economy may lead to a decline in stock prices. Political factors can also have a significant impact on the Indian stock market. Changes in government policies and regulations can affect the performance of specific industries and individual companies, which in turn can impact the overall market. For example, if the government enacts policies that are favorable to a particular industry, it may lead to an increase in stock prices for companies in that industry. On the other hand, if the government enacts policies that are unfavorable to a particular industry, it may lead to a decline in stock prices for companies in that industry. In addition to economic and political factors, other external influences such as global market trends and geopolitical events can also impact the Indian stock market. It is important for investors to be aware of these factors and to stay up-to-date on current events in order to make informed investment decisions. So, what can investors do to navigate these complex and constantly changing economic and political factors in the Indian stock market? Here are a few tips: Stay informed: As an investor, it is important to stay informed about current economic and political developments in India and their potential impact on the stock market. This can involve reading financial news, following economic indicators, and keeping track of government policies and regulations. Diversify your portfolio: By investing in a diverse range of assets, you can help mitigate the impact of economic and political events on your portfolio. This can include investing in different industries and sectors, as well as investing in both domestic and international markets. Have a long-term perspective: While it can be tempting to make impulsive investment decisions based on short-term market movements, it is important to maintain a long-term perspective. This can involve setting clear investment goals and sticking to a long-term investment plan, rather than reacting to every market fluctuation. Seek professional advice: If you are new to investing or unsure about how to navigate the Indian stock market, seeking the advice of a financial professional can be helpful. A financial advisor or investment professional can provide guidance on how to build a diversified portfolio that is aligned with your investment goals and risk tolerance. In conclusion, economic and political factors play a significant role in the performance of the Indian stock market. By staying informed, diversifying your portfolio, maintaining a long-term perspective, and seeking professional advice, you can make informed investment decisions and navigate these complex and constantly changing factors with confidence.
Oct 08, 2022
Fundamental analysis is a key tool for investors who are looking to build a diversified investment portfolio. It involves evaluating the underlying financial and economic factors that can impact a company's stock price, with the goal of identifying stocks that are likely to perform well in the long term. One of the main benefits of fundamental analysis is that it helps investors to make informed investment decisions based on objective data, rather than relying on market speculation or short-term trends. By analyzing a company's financial statements, management team, market conditions, and other relevant factors, investors can gain a deeper understanding of a company's strengths and weaknesses, and make informed decisions about whether or not to include it in their portfolio. In addition to helping investors to identify potential investments, fundamental analysis can also play a key role in portfolio diversification. By analyzing a wide range of companies in different industries and sectors, investors can build a portfolio that is less vulnerable to market fluctuations and is better positioned to weather economic downturns. There are several key steps that investors can take when using fundamental analysis to build a diversified portfolio: Identify your investment goals: Before you start analyzing individual stocks, it is important to have a clear understanding of your investment goals. Are you looking to generate long-term growth, generate income, or a combination of both? Knowing your goals will help you to choose the right mix of stocks and other assets to include in your portfolio. Evaluate the company's financial health: One of the key factors to consider when conducting fundamental analysis is a company's financial health. This involves analyzing its financial statements, including its balance sheet, income statement, and cash flow statement, to assess its profitability, debt levels, and other key indicators of financial stability. Analyze the company's management team and business model: In addition to its financials, it is also important to assess a company's management team and business model. This can involve evaluating the experience and track record of the management team, as well as the company's competitive advantage and growth potential. Consider the industry and market conditions: It is also important to consider the industry and market conditions in which a company operates. This can involve evaluating the overall health of the industry, as well as any potential risks or opportunities that may impact the company's future performance. Diversify your portfolio: Once you have identified a list of potential investments, it is important to diversify your portfolio by including a mix of stocks from different industries and sectors. This can help to reduce the overall risk of your portfolio and increase the chances of long-term success. In conclusion, fundamental analysis is a powerful tool for investors who are looking to build a diversified investment portfolio. By evaluating the underlying financial and economic factors that can impact a company's stock price, investors can make informed decisions about which stocks to include in their portfolio and how to diversify their holdings to reduce risk. By following these steps, investors can increase their chances of long-term success and achieve their investment goals.
Oct 10, 2022
Fundamental analysis is a key tool for investors who are looking to evaluate the potential of a company's stock. It involves analyzing the underlying financial and economic factors that can impact a company's stock price, with the goal of identifying stocks that are likely to perform well in the long term. There are several key steps that investors can take when using fundamental analysis to evaluate a company's stock potential: Review the company's financial statements: One of the first things to do when conducting fundamental analysis is to review the company's financial statements. This means analysing information such as balance sheets, income statements, and cash flow statements. By analyzing these documents, you can gain insight into the company's profitability, debt levels, and other key indicators of financial stability. Evaluate the company's management team and business model: In addition to its financials, it is also important to assess a company's management team and business model. This can involve evaluating the experience and track record of the management team, as well as the company's competitive advantage and growth potential. Consider the industry and market conditions: It is also important to consider the industry and market conditions in which a company operates. This can involve evaluating the overall health of the industry, as well as any potential risks or opportunities that may impact the company's future performance. Look for red flags: While conducting your analysis, be on the lookout for red flags that may indicate potential problems with the company. This can include things like declining revenue, increasing debt levels, or a management team that has a history of making poor decisions. Compare the company to its peers: In order to get a more complete picture of a company's stock potential, it is helpful to compare it to its peers in the industry. This can give you a sense of how the company is performing relative to its competitors, and help you to identify any potential strengths or weaknesses. Assess the company's valuation: Once you have completed your analysis, it is important to assess the company's valuation. This involves comparing the company's stock price to its fundamental metrics, such as earnings per share and price-to-earnings ratio, in order to determine whether the stock is overvalued, undervalued, or fairly valued. In conclusion, fundamental analysis is a powerful tool for investors who are looking to evaluate the potential of a company's stock. By analyzing the underlying financial and economic factors that can impact a company's stock price, investors can make informed decisions about which stocks to include in their portfolio and how to diversify their holdings to reduce risk. By following these steps, investors can increase their chances of long-term success and achieve their investment goals.
Oct 11, 2022
An initial public offering (IPO) is the process by which a privately held company becomes publicly traded on a stock exchange in India. Companies that go public through an IPO in India are known as "going public" companies. There are several different types of companies that list for IPOs in India, each with its own unique characteristics and considerations. Small and midsize enterprises: Small and midsize companies in India are typically defined as those with revenues of less than INR 35 billion. These companies often go public as a way to raise capital to fund expansion or to pay off debt. Because these companies are typically smaller and less established than larger companies, they may carry a higher level of risk for investors in India. High-growth companies: High-growth companies in India are those that are experiencing rapid expansion and have the potential for significant future growth. These companies may go public as a way to raise capital to fund their expansion plans in India. Because of their high growth potential, high-growth companies can be attractive to investors in India, but they also carry a higher level of risk. Established companies: Established companies in India are those that have been in business for a number of years and have a track record of steady growth and profitability. These companies may go public as a way to raise capital to fund expansion or to pay off the debt in India. Because they are established and have a proven track record, established companies may be seen as less risky investments than smaller or high-growth companies in India. Spin-off companies: A spin-off company is a company that is created when a larger company divides off a portion of its business into a separate, independent entity in India. Spin-off companies may go public through an IPO in India as a way to raise capital and become independently traded on a stock exchange in India. In conclusion, there are several different types of companies that list for IPOs in India, including small and midsize companies, high-growth companies, established companies, special purpose acquisition companies (SPACs), and spin-off companies. Each type of company has its own unique characteristics and considerations in India, and it is important for investors to carefully evaluate the risks and potential rewards of investing in an IPO in India.
Oct 12, 2022
Elin Electronics Limited Elin Electronics Limited is a well-established provider of electronics manufacturing services (EMS). Since its inception in 1969, the company has built a reputation as a leading producer of lighting, fans, and small/kitchen appliances for some of the most well-known brands in India. Additionally, Elin Electronics is one of the largest fractional horsepower motor manufacturers in the country. Elin Electronics offers a wide range of products and provides complete solutions for them using both "original equipment manufacturer" (OEM) and "original design manufacturer" (ODM) business models. The company's diverse EMS product line includes: I) lighting products, ceiling, fresh air, and TPW fans, and modular switches and sockets; (ii) small appliances such as dry and steam irons, toasters, hand blenders, mixer grinders, hair dryers, and hair straighteners; and (iii) fractional horsepower motors used in mixer grinders, hand blenders, wet grinders, chimneys, and air conditioning systems. The company operates factories in Ghaziabad (Uttar Pradesh), Baddi (Himachal Pradesh), and Verna (Madhya Pradesh). It also has a central R&D center in Ghaziabad, Uttar Pradesh, where research and development for all OEM and ODM models is conducted, including sketching ideas, refining designs, developing optional features, and testing. In recent years, Elin Electronics has served a significant number of customers, including 327 in Fiscal 2020, 387 in Fiscal 2021, 342 in Fiscal 2022, and 297 in the seven months ending October 31, 2022. The company has also generated significant revenue from its operations, including Rs 7,855.84 million in Fiscal 2020, Rs 8,623.78 million in Fiscal 2021, Rs 10,937.54 million in Fiscal 2022, and Rs 6,044.57 million in the six months ending September 30, 2022. The main goal of the Elin Electronics IPO is to raise funds that will be used to repay or make early payment on some of the company's loans, fund capital expenses to improve and expand its facilities in Ghaziabad and Verna, and for general corporate purposes. The IPO for Elin Electronics is tentatively scheduled to take place from December 20-22, 2022. The bid date will run from December 20 at 10 a.m. to December 22 at 5 p.m., with the last opportunity to confirm a UPI Mandate at 5 p.m. on the final day of the issue. Radiant Cast Management Services Radiant Cash Management Services Limited is a leading provider of retail cash management services in India, serving banks, financial institutions, and organized retail and e-commerce companies. Incorporated in 2005, the company has a team of qualified and motivated employees and a strong network of locations and touchpoints, serving more than 13,044 pin codes across India. Radiant Cash Management Services offers a range of services including collection and delivery of cash, cash processing, overnight vaulting services for bulk cash and ATM cards, ATM services, and handling of PIN mailers, drafts, and cheque books. The company is also involved in the management of electronic online and mobile financial and cash transactions, as well as the development of intellectual property in the area of cash management. Some of Radiant Cash Management Services' key clients include Axis Bank, Citibank, Deutsche Bank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Standard Chartered Bank, State Bank of India, The Hongkong and Shanghai Banking Corporation, and Yes Bank. The company is planning to go public with an initial public offering (IPO) to raise funds for working capital requirements, capital expenditure for the purchase of specially fabricated armored vans, and general corporate purposes. The IPO is tentatively scheduled to take place from December 23-27, 2022, with the bid date running from December 23 at 10 a.m. to December 27 at 5 p.m. The lot size for the IPO is 150 shares, and retail individual investors can apply for up to 13 lots, or a total of 1950 shares.
Oct 13, 2022
When investing in the stock market, it is important to conduct thorough research and analysis in order to make informed decisions about which stocks to include in your portfolio. One important aspect of this analysis is comparing a company to its peers in the industry. By comparing a company to its peers, investors can gain a better understanding of how it is performing relative to its competitors and identify any potential strengths or weaknesses. Here are a few steps that investors can take when comparing a company to its peers: Identify the company's peers: The first step in comparing a company to its peers is to identify which companies are its peers. This typically involves looking at companies that operate in the same industry or sector as the company in question. For example, if you are considering investing in a pharmaceutical company, you would want to compare it to other pharmaceutical companies. Gather financial data: The next step is to gather financial data on the company and its peers. This can include data on revenue, profitability, debt levels, and other key financial metrics. By comparing these metrics, you can get a sense of how the company is performing relative to its peers. Analyze the data: Once you have gathered the financial data, it is important to analyze it in order to identify any trends or patterns. This can involve looking at how the company's performance compares to its peers over time, as well as how it compares in terms of key metrics such as revenue growth, profitability, and debt levels. Consider other factors: In addition to financial data, there are a number of other factors that you may want to consider when comparing a company to its peers. This can include things like the company's management team, business model, and market position. By taking these factors into account, you can get a more complete picture of the company's strengths and weaknesses. Use comparison tools: There are a number of tools and resources available to help investors compare companies to their peers. For example, many financial websites and software programs offer comparison tools that allow you to view financial data and other information on multiple companies side by side. These tools can be particularly helpful for investors who are looking to quickly and easily compare companies in different industries or sectors. In conclusion, comparing a company to its peers is an important step in the investment process. By gathering and analyzing financial data and other key factors, investors can get a better understanding of how a company is performing relative to its peers and identify any potential strengths or weaknesses. By taking the time to compare a company to its peers, investors can make more informed decisions about which stocks to include in their portfolio and increase their chances of long-term success.
Oct 15, 2022
Recent years have seen strong performance from the Indian stock market, and 2023 is forecast to be no different. However, investors need also to be aware of a number of hurdles and risks as they plan to invest the next year. The world economy's current condition is one consideration. The recent release of vaccinations against the COVID-19 pandemic has not prevented the pandemic from having a serious impact on the global economy, and this is unlikely to change in the near future. As a result of investors' responses to these shifting economic situations, market volatility may rise. In addition, there is the problem of monetary and fiscal policy uncertainty. The Reserve Bank of India (RBI) has changed interest rates and introduced new measures to encourage credit growth to help the country's economy weather the epidemic. The stock market might be affected by any adjustments in monetary policy that the RBI makes in the next year, although it is currently unclear what that position will be. The market may also react to the government's fiscal policy, which includes budget choices and expenditures. Despite these difficulties, the Indian stock market in 2023 offers a lot of promising openings. It will be interesting to see how the technology industry, which has been a growth engine in recent years, fares in the next year. Numerous expansion prospects for tech firms have arisen thanks to rising demand for digital products and services, and this pattern is anticipated to persist until 2023. The government's emphasis on infrastructure development is something to keep an eye on since it might lead to growth in the infrastructure industry. The National Infrastructure Pipeline is only one of the government's plans to increase infrastructure expenditure and fuel industry expansion. Healthcare, consumer goods, and financial services are a few more areas that are anticipated to do well in 2023. To improve returns, investors may choose to spread their money around and invest in a variety of industries. In 2023, investors in the Indian stock market may expect to face both possibilities and problems. Before making any financial commitments, investors should think long and hard about their investment strategy and, if necessary, consult a financial counsellor or other qualified experts. Remember that your financial condition and investing goals should always come first when making any investment decisions and that no investment is risk-free.
Oct 19, 2022
The initial public offering (IPO) market in India has been doing well in recent years, and this trend is projected to continue in 2023 despite global uncertainties. According to The National News, the IPO pipeline in India remains solid, with multiple firms intending to go public in the coming year. One factor for the high success of the IPO market in India is the significant demand from individual investors. Many private investors in India have been looking for chances to join the stock market, and IPOs give a method for them to do so. In addition to individual investors, the IPO market has also been underpinned by high demand from institutional investors, including mutual funds and pension funds. Another element contributing to the great success of the IPO market in India is favourable market conditions. The Indian stock market has been performing strongly in recent years, with excellent returns for investors. This has produced a good atmosphere for firms wishing to go public and has helped to fuel demand for IPOs. Despite the continued global uncertainties, the IPO market in India is likely to remain strong in 2023. This is due in part to the fact that many firms in India have been able to withstand the economic hurdles brought on by the epidemic and are now eager to capitalise on their good financial situations by going public. In addition to robust demand from investors and excellent market circumstances, the IPO market in India is also being helped by regulatory improvements. The Indian government has taken moves to streamline the IPO process, making it easier for firms to go public. This includes steps such as the establishment of the computerised bidding procedure and the development of the institutional trading platform. These changes have helped to boost the number of IPOs in India and are likely to continue supporting the market in the future year. Overall, the IPO market in India is anticipated to maintain its robust performance in 2023, notwithstanding global uncertainties. This is due to a mix of robust demand from investors, attractive market circumstances, and supporting regulatory measures. If you are considering in investing in the IPO market in India, it is crucial to properly investigate any investment before committing cash and to speak with a financial adviser or expert to identify the best investment plan for your unique requirements and goals. It is also vital to bear in mind that no investment is without risk, and it is always necessary to thoroughly analyse your unique financial status and investment objectives before making any investment decisions.
Oct 22, 2022
Open interest and volume are two key indicators that traders use to analyze the health and direction of a market. Open interest represents the total number of open contracts or positions that exist in a market, while volume represents the number of trades that have occurred in a given period of time. Together these two indicators can provide traders with valuable insight into how strong a trend is and determine future price movements. Positional trading is a long-term trading strategy that involves holding positions for an extended period of time, typically several weeks or months. Most serious traders often use open interest and volume analysis to identify the markets with the greatest potential for profit. Open interest analysis can help traders identify markets that are experiencing strong buying or selling pressure. For example, if the open interest in a market increases, this may indicate that new buyers are entering the market and pushing prices higher. Conversely, if open interest is falling, this may indicate that existing positions are being closed and prices are likely to decline. But you need to look at this in terms of the put or call option that you are about to trade. Volume analysis, on the other hand, can help traders identify markets that are experiencing high levels of trading activity. This is important because markets with high volume are typically more liquid and less prone to sudden price movements. Additionally, high volume can indicate that a market is experiencing a strong trend, as more traders are participating in the market and driving prices in a particular direction. When used together, open interest and volume analysis can provide traders with a more complete picture of market conditions. For example, if a market has high open interest and high volume, this may indicate that a strong trend is in place and that prices are likely to continue moving in the same direction. Conversely, if a market has low open interest and low volume, this may indicate that the market is range-bound and that prices are likely to remain stable. Traders who employ positional trading strategies can use open interest and volume analysis to identify markets that are likely to experience strong trends and capitalize on these trends by holding positions for an extended period of time. Additionally, by using open interest and volume analysis in conjunction with other technical indicators and fundamental analysis, traders can gain a more comprehensive understanding of market conditions and make more informed trading decisions. In summary, open interest and volume are two key indicators that traders can use to analyze the health and direction of a market. Combining these two indicators can provide traders with valuable insight into the strength of a trend and the likelihood of future price movements. Traders who employ positional trading strategies can use open interest and volume analysis to identify markets that are likely to experience strong trends and capitalize on these trends by holding positions for an extended period of time.
Oct 26, 2022
Renko and Heikin-Ashi are both charting techniques that originated in Japan and are used to analyze financial markets. These techniques are used by traders and investors to identify trends, support and resistance levels, and to make more informed trading decisions. In this post, we will take a closer look at Renko and Heikin-Ashi charts, how they are created, and how they can be used in trading. Renko charts are a type of chart that is created by placing a brick in the next column once a fixed price change has occurred. The bricks are always the same size and the chart does not take into account the time element. This makes Renko charts particularly useful for identifying trends and support and resistance levels. Renko charts are known for their simplicity and are easy to read, making them a popular choice among traders. The construction of Renko charts is quite simple. The first step is to determine the brick size, which is the price change that will trigger the creation of a new brick. Once the brick size is determined, the chart will be created by placing a new brick in the next column once the price has moved by the specified brick size. The bricks can be either red or green, depending on whether the price has risen or fallen. One of the benefits of Renko charts is that they do not take into account the time element. This means that the chart will not be affected by the volatility of the market, which can be useful in identifying trends and support and resistance levels. In addition, Renko charts are known for their ability to filter out noise and provide a clearer picture of the market. Heikin-Ashi is a type of chart that is similar to a cand chart, but the method of calculation is different. Heikin-Ashi charts are calculated by taking the average of the open, high, low, and close of the previous period and plotting the result. This creates a chart that is smoother than a traditional cand chart and is useful for identifying trends and support and resistance levels. Heikin-Ashi charts are created by taking the average of the open, high, low, and close of the previous period. The open is the average of the open and close of the previous period, the high is the maximum of the high, low and close of the previous period, the low is the minimum of the high, low and close of the previous period, and the close is the average of the open, high, low and close of the current period. The main advantage of Heikin-Ashi charts is that they provide a smoother representation of the market, making it easier to identify trends and support and resistance levels. Heikin-Ashi charts are also known for their ability to filter out noise and provide a clearer picture of the market. Heikin-Ashi charts are also useful for identifying trends, as they provide a clearer representation of the market than traditional cand charts. In addition, Heikin-Ashi charts are useful for identifying support and resistance levels, as they provide a clearer representation of the market than traditional cand charts. Both Renko and Heikin-Ashi charts are popular in Japan and are used by traders and investors to analyze financial markets. They are particularly useful for identifying trends and support and resistance levels. However, it's important to keep in mind that these charts should be used in conjunction with other forms of analysis, such as technical indicators and fundamental analysis. Renko and Heikin-Ashi charts have their own unique features, and it's up to each trader to decide which one they prefer to use. It's also worth to note that both of these charting techniques are not commonly used in the Western world, and may not be supported by all charting software. Therefore, traders who are interested in using these charting techniques may need to find specialized software that supports them. It's also important to note that Renko and Heikin-Ashi charts should not be the only tool used in a trader's arsenal. These charts are best used in combination with other forms of analysis, such as technical indicators and fundamental analysis. This can help to provide a more complete picture of the market and can improve the accuracy of trading decisions. In conclusion, Renko and Heikin-Ashi charts are both charting techniques that originated in Japan and are used to analyze financial markets. They are particularly useful for identifying trends and support and resistance levels, and can help traders make more informed trading decisions. However, it's important to keep in mind that these charts should be used in conjunction with other forms of analysis, such as technical indicators and fundamental analysis. And also it is worth noting that these charts are not commonly used in the Western world, and may not be supported by all charting software.
NOv 01, 2022
As investors in the Indian stock market, it is important to be aware of the latest regulations and guidelines set by the National Stock Exchange of India (NSE). In a recent advisory, the NSE has advised all investors to link their Permanent Address Number (PAN) with their Aadhaar number by March 31, 2023. This is to ensure that transactions in the stock market are seamless and uninterrupted. In 2017, the Indian government announced that it would be mandatory to link PAN with Aadhaar for all transactions in the stock market. The deadline for linking PAN with Aadhaar has been extended several times in the past, but the expectation of an extension this time around is low. PAN is the primary identification number for transactions in the stock market, making it crucial for investors to ensure that their PAN card is linked with their Aadhaar number. Failure to link the two before the deadline of March 31, 2023, may result in the suspension of your trading account. The NSE has warned that if an investor has not linked their PAN card with Aadhaar by the end of March, they will not be able to make new deals or even close open positions. To link your Aadhaar card with PAN, follow these simple steps:
Feb 04, 2023
Particularly when it comes to long-term savings and retirement planning, investing in mutual funds may be a great instrument for reaching financial objectives. A form of investment instrument known as a mutual fund pools the funds of several participants to buy a diverse portfolio of stocks, bonds, and other assets. The expert management given by mutual fund managers may assist guarantee that the portfolio of the fund is well-diversified and managed in a way that is in line with the fund's investment objectives. This diversity can help reduce risk. The potential for long-term development is one of the biggest advantages of investing in mutual funds, though. The importance of long-term mutual fund investing can be seen in the following ways: Compounding Interest: By making long-term investments, you may benefit from the strength of compound interest. The interest earned on the initial investment as well as the interest earned on prior interest is known as compound interest. The more time compounding has to work, the longer the investment is kept, leading to bigger returns over time. Volatility: Short-term trading can be dangerous and the stock market can be unpredictable. Long-term investors may withstand market swings and resist the urge to sell when the market is down by sticking with their investments. By doing this, the investor can benefit from market recoveries and prevent investments from being sold at a loss. Diversification: As was already noted, mutual funds offer asset diversification, which reduces risk. Mutual funds can lessen the effect of any one investment on the whole portfolio by investing in a number of other securities. By diversifying, an investor may guarantee that their portfolio is well-balanced and isn't unduly exposed to any one industry or market. Professional Management: Professional fund managers who have the knowledge and skills to make investment choices on behalf of the fund's investors oversee the management of mutual funds. This might make sure that the portfolio is well-diversified and managed in a way that is consistent with the investment goals of the fund. Tax Benefits: Some mutual funds offer tax benefits that may aid investors with their tax obligations. For instance, some mutual fund categories, such those that invest in municipal bonds, can be qualified for tax-free dividends. Mutual funds can entail some risk, like with any form of investment, so it's vital to do your homework and fully understand the fund before you invest. When selecting a mutual fund, it's also crucial to take into account your individual risk tolerance and investing objectives. Finally, investing in long-term mutual funds can be a useful strategy for reaching financial objectives, especially when it comes to long-term savings and retirement planning. Compound interest's potency, the capacity to withstand market volatility, diversification, expert management, and tax advantages may all help an investment expand over time. When selecting mutual funds, it is crucial to conduct research, take into account your personal risk tolerance, and have clear investing objectives in mind so that you can make an educated choice that is consistent with your investment plan.
NOv 11, 2022
Although they are not the same, saving and investing are both significant components of personal finance. Savings accounts and other low-risk accounts are considered to be savings, but investing is the process of placing money into stocks, bonds, mutual funds, real estate, or other assets with the intention of making a profit. Here are some significant distinctions between saving and investing, as well as situations in which picking one over the other would be wise: Saving often entails less risk than investing does. Savings accounts and other low-risk accounts are covered by FDIC insurance, which guarantees that depositors will receive their money back even if the bank goes out of business. Contrarily, investing may involve greater risk. For instance, it is possible to lose money in the stock market, and real estate can also be a risky investment. Return vs. Preservation: In general, investing has a better potential return than saving. For instance, investing in the stock market might yield returns that are far more than the interest you would receive on a savings account. The objective of saving, however, is often to maintain the value of your money rather than to generate a high rate of return. Savings are often better suited for short-term objectives like emergency funds or down payments for homes, while investing is better suited for long-term objectives like retirement. It's vital to be ready for the volatility that comes with investing since it may be a terrific way to expand your money over time. Savings accounts have greater liquidity than investments do. A savings account allows you to access your money far more quickly and conveniently than an investment does. This implies that investing the remaining funds while keeping a portion in a savings account for unforeseen costs is a smart option. Taxation: While certain investment forms, such as equities and mutual funds, may provide tax advantages, interest collected on a savings account is taxed as income. Short-term profits are taxed more heavily than long-term gains, for instance. In conclusion, both investing and saving are crucial facets of personal finance, but they accomplish distinct goals. While investing is a wonderful method to grow your money over time and get ready for long-term objectives, saving is a smart way to maintain the value of your money and be ready for short-term goals. It's critical to comprehend how the two vary and to employ the tactic that is best for your particular circumstance. When deciding whether to save or invest, it's crucial to constantly take your personal risk tolerance and financial goals into account.
NOv 14, 2022
A savings account designated expressly for unforeseen costs or crises is known as a contingency fund. It is a crucial component of personal finance that may offer stability and comfort in the face of unforeseen catastrophes. Typically, it's advised to save 3-6 months' worth of income in a contingency fund. This is because it takes time to change jobs or for a company to recover from a loss. In the case of a job loss, unanticipated medical costs, or other emergency, having 3-6 months of income set up will help you stay afloat financially. Having a contingency fund can assist avoid the need to incur debt to pay for unforeseen expenditures, which is one of its main advantages. For instance, if you lose your job and don't have a backup plan, you could have to charge unforeseen costs to your credit card, which might result in high-interest debt. The money in your contingency reserve, on the other hand, may be used to pay for unforeseen costs without putting you in debt. The peace of mind it may bring is another advantage of having a contingency fund. The anxiety that comes with unforeseen catastrophes might be lessened by knowing that you have a financial safety net. There are several approaches to creating a contingency fund. One strategy is to save a specific sum of money each pay period by depositing it into a savings account. Setting up automatic transfers from your checking account to your savings account is an additional option. Making ensuring the money is simple to get to in case of an emergency is crucial. Keeping a contingency fund distinct from other savings or investment accounts is also crucial to remember. This will make it more likely that the funds will be accessible when needed and won't be spent for non-emergency costs. In conclusion, having a contingency fund is crucial for maintaining financial security and peace of mind in the event of unforeseen circumstances. A contingency reserve of three to six months' worth of income is often advised to cover unforeseen costs or crises. Creating a contingency fund might provide you peace of mind and help you avoid going into debt. It's crucial to set aside some cash from each paycheck and put it into a savings account, or set Make sure the money is available in case of an emergency and set up automatic transfers from your checking account to your savings account. To ensure that the money is not spent for non-emergency costs and is available when required, it is also crucial to maintain the contingency fund distinct from other savings or investment accounts. Making a contingency fund a priority in your overall financial plan is essential because it can be the difference between a slight inconvenience and a serious financial problem.
NOv 15, 2022
Many investors are lured to mutual funds that provide significant returns when it comes to mutual fund investment. It's crucial to keep in mind, though, that large rewards frequently come with great risk. Instead, stability ought to be taken into account heavily while selecting mutual funds. Stability is preferred over large returns in mutual funds for a number of reasons, including its capacity to reduce risk. Compared to funds that aim for high returns, those with a history of stable, moderate returns are less likely to suffer substantial losses. This can make it easier for investors to sleep at night because they are less likely to suffer substantial losses on their investments. Stability is preferred above big returns for another reason: it can aid investors in achieving their long-term financial objectives. Investors may be tempted to make rash, short-term financial decisions when they are concentrated on large returns. This may result in a lack of discipline in the investment process, which might eventually result in shorter-term results. Contrarily, funds that place a premium on stability can assist investors in staying the course even when the market is choppy, which can provide superior long-term outcomes. Additionally, stability may bring about mental tranquilly, which is crucial for investors who are getting close to retirement. Investors may be less inclined to assume the risk involved with high-return investments as they go closer to retirement. They would want to make a more secure investment that would generate a steady revenue stream in the future. In mutual funds, consistency is also preferred to strong returns since it helps increase portfolio diversity. The total risk of a portfolio can be reduced by diversifying assets across several sectors, industries, and funds with varied objectives. This can lessen the effect of any one specific market or industry on the portfolio as a whole. It's essential to remember that not all stable funds are the same. Before investing, it's crucial to conduct your homework and comprehend the track record and investment philosophy of the fund. When selecting a mutual fund, it's also crucial to take into account your individual risk tolerance and investing objectives. In conclusion, stability must to be a top priority when selecting mutual funds, even when big returns could be alluring. Risk can be reduced by investing in funds with a history of steady, modest returns since they are less likely to suffer major losses. Additionally, stability may provide investors peace of mind, diversify their portfolio, and aid in achieving their long-term financial objectives. Before making an investment, it's crucial to conduct your homework, comprehend the fund's performance history and investment philosophy, and take into account your own risk appetite and investment objectives.
NOv 16, 2022
Retirement is a crucial stage in our lives and requires proper planning and preparation. Investing a portion of your salary consistently can help secure your financial future and ensure that you have the means to live a comfortable life in retirement. Investing 30% of your salary consistently for 25-30 years has numerous benefits. One of the key benefits is compounding, which can lead to significant growth over the long term. Compounding refers to the interest you earn on your investments and the reinvestment of that interest. The longer your investments remain in the market, the greater the potential for compounding to work its magic. Consistent investing also helps to mitigate the impact of market volatility. By investing a portion of your salary each month, you are buying into the market at different price points. This means that you will purchase more shares when prices are low and fewer shares when prices are high, thereby averaging out your purchase price over time. This can help reduce the impact of market volatility on your investments and increase your chances of achieving your retirement goals. Another benefit of consistent investing is that it helps to overcome the temptation to time the market. Trying to predict the market's movements is a risky strategy, and attempting to time the market can result in missed opportunities for growth. By investing a portion of your salary each month, you are able to focus on your long-term goals and let the market work for you. Compound Interest: One of the greatest benefits of consistent investing is the power of compounding. This refers to the interest earned on your investments and the reinvestment of that interest. Over time, the compounding effect can lead to significant growth in your investments. Mitigation of Market Volatility: By investing a portion of your salary each month, you are buying into the market at different price points. This strategy, known as dollar-cost averaging, helps reduce the impact of market volatility and increase your chances of achieving your retirement goals. Overcoming Market Timing: Trying to predict the market's movements and timing your investments can be a risky strategy. Consistent investing helps to overcome the temptation to time the market and allows you to focus on your long-term goals. Reduced Investment Costs: Consistent investing can help reduce investment costs, as you will be buying fewer shares when prices are high and more shares when prices are low. Better Financial Discipline: By committing to investing 30% of your salary consistently, you are making a long-term commitment to your financial future. This discipline can help you avoid impulsive spending and make better financial decisions. Achieving Your Retirement Goals: By consistently investing 30% of your salary for 25-30 years, you are taking the necessary steps to achieve your retirement goals and ensure a comfortable and secure retirement. In conclusion, investing 30% of your salary consistently for 25-30 years can help secure your financial future and ensure a comfortable retirement. The benefits of compounding, mitigation of market volatility, and overcoming the temptation to time the market make consistent investing a powerful tool for securing your financial future. So, if you're looking to secure your financial future, consider investing a portion of your salary consistently each month. Whether you are just starting out or well into your career, the power of consistent investing cannot be overlook
NOv 19, 2022
One of the most important steps in safeguarding your financial future is creating a long-term portfolio. You may reach your investing objectives, such as retirement savings, house ownership, or funding a child's education, with the aid of a well-constructed portfolio. But creating a prosperous long-term portfolio necessitates carefully taking into account a number of essential criteria. Investment Objectives: Choosing your investment objectives is the first stage in creating a long-term portfolio. What do you hope to accomplish with your investments? Do you wish to make money, accumulate riches, or protect your money? You'll be better able to choose the assets for your portfolio if you have defined financial goals. Before constructing a long-term portfolio, it's critical to be aware of your risk tolerance. How much danger are you prepared to accept in order to meet your financial objectives? A portfolio with a larger percentage of bonds may be preferred by a risk-averse investor, whilst a portfolio with a higher percentage of stocks may be preferred by an aggressive investor. Time Horizon: When creating a long-term portfolio, it's crucial to take into account how long you want to retain your investments. While a shorter time horizon could need a more cautious investment approach, a longer time horizon allows you to take on more risk and achieve larger returns. Asset Allocation: The practise of distributing your portfolio among several asset classes, such as equities, bonds, real estate, and commodities, is known as asset allocation. Your investing objectives, level of risk tolerance, and time horizon will all affect the optimal asset allocation. Your asset allocation should be routinely reviewed and modified as your objectives and risk tolerance evolve. Diversification: Spreading your investments over several asset classes, industries, and geographical areas is the practise of diversification. You may lower your chance of suffering big losses from market volatility by diversifying your portfolio. Even in the face of market volatility, a well-diversified portfolio will assist to guarantee that you reach your investing goals. Cost Control: Over the long run, charges related to investing, such as brokerage fees, management fees, and taxes, can chip away at your profits. It is crucial to take into account investment costs and look for ways to reduce them, such as purchasing inexpensive index funds or negotiating cheaper brokerage fees. Tax Planning: When creating a long-term portfolio, tax planning should be taken into account. You may reduce your tax liability and increase profits by being aware of the tax ramifications of your investments. Choosing tax-advantaged assets, such as Roth IRAs or individual retirement accounts (IRAs), or making investments in tax-efficient funds may be necessary to achieve this. Investing goals, risk tolerance, time horizon, asset allocation, diversification, cost management, and tax planning are just a few of the important elements that need to be carefully taken into account when creating a long-term portfolio. You may create a solid and effective long-term portfolio that will assist you in reaching your financial objectives by taking the time to comprehend these elements and making educated judgements.
NOv 23, 2022
Determining the risk and reward of your transactions is one of the most crucial components of any trading strategy. You may decide how much risk you're prepared to take on in order to get the returns you want by looking at your risk to reward ratio. Here are a few important elements that traders should take into account when determining the risk and return of their approach. Market Circumstances: Your risk and return will be significantly influenced by the current market conditions. For instance, in times of extreme volatility, you might wish to trade smaller positions or use stop-loss orders to cap your losses in order to lower your risk. On the other side, when volatility is low, you might be able to take on more risk in the hope of reaping greater benefits. Trading Approach: The degree of risk and return you may seek will also depend on your trading approach. Swing traders, for instance, can be able to take on greater risk as they hold positions for several days or even weeks, but day traders would need to keep their risk to a minimum since they close out positions at the end of every trading day. Investment Horizon: How long you intend to maintain a position or your investment horizon may affect how much risk and profit you are exposed to. For instance, long-term investors could be able to take on more risk in the hopes of reaping greater benefits, but short-term traders might need to keep their risk to a minimum. Capital Management: When determining the risk and return of your plan, effective capital management is essential. You may guarantee that you have the resources available to weather times of market volatility and still accomplish your financial goals by managing your cash effectively. This can entail calculating the right size for your transactions using position sizing strategies like the Kelly criterion. Risk Management Techniques: Stop-loss orders and other risk management strategies will be crucial in defining the risk and return of your strategy. Even in the face of market volatility, you can preserve your wealth and reduce your losses by employing these strategies. Investment Objectives: The amount of risk and profit you may take on will depend on your investment objectives. For instance, if your primary goal is to generate income, you might need to keep your risk low and look for trades that offer lower returns but more consistency, but if your primary goal is to build your business, you might be able to take on more risk in the chase of higher returns. Trading Plan: When determining the risk and return of your approach, a clear trading plan is crucial. Your trading strategy should include an explanation of your approach to market analysis and trade execution, as well as your investing objectives, risk tolerance, and risk management strategies. You may stay focused and disciplined even during times of market turbulence by having a clear and well-defined trading plan. To sum up, one of the most important steps in making sure you succeed as a trader is identifying the risk and reward of your approach. Building a well-rounded strategy that balances risk and reward and aids in the achievement of your investment objectives can be done by taking into account variables like market conditions, trading style, investment horizon, capital management, risk management strategies, investment goals, and trading plan.
NOv 24, 2022
Trading on the Indian stock market may be challenging and daunting, particularly for novice investors. It's critical to comprehend market realities and distinguish reality from fiction because there are several myths and misconceptions that might mislead inexperienced traders. The following are some prevalent misconceptions and facts that novice traders need to be aware of: Myth 1: The stock market is open around-the-clock Reality: The Indian stock market is open Monday through Friday from 9:15 AM to 3:30 PM. While futures and options trading may be available after market hours, most stock trading occurs during regular market hours. Myth 2: Trading requires a large initial investment. Reality: Trading on the Indian stock market doesn't require a significant investment. In reality, there are brokers that enable traders to purchase fractional shares and have minimal minimum deposit requirements, making it easy to start trading with even a tiny amount of money. Myth 3: Luck has no part in trading. Reality: Although luck can undoubtedly be a part in trading, it surely isn't the sole one. To make educated selections and accomplish their investing goals, successful traders combine market analysis, a solid investment plan, and discipline. Myth 4: The only way to make money is through short-term trading. Reality: Short-term trading has a high level of risk even though it can be profitable. Long-term investment may also be a successful tactic for people who are risk-averse or want a more secure approach. Finding a strategy that fits with your risk tolerance and investing goals is crucial. Myth 5: The only method to trade is through technical analysis Reality: Technical analysis is a useful tool for traders, but it's not the only strategy available. In addition to using a mix of technical and fundamental analysis, many traders also utilise fundamental analysis, which entails examining economic and financial data in order to make investment decisions. Myth 6: The stock market offers instant wealth. Reality: The stock market is not a get-rich-quick scheme, while it is feasible to earn large gains. Trading successfully takes perseverance, self-control, and a long-term viewpoint. Overnight riches are uncommon, therefore it's critical to have reasonable expectations and stay away from the hype. In conclusion, it's critical for novice stock market traders in India to distinguish reality from fiction and comprehend the realities of trading. You may boost your chances of success and make better investing decisions by being aware of these prevalent myths and misunderstandings.
NOv 25, 2022
Time management is crucial to your success as a trader or investor. It's simple to become overwhelmed and lose sight of your investing objectives when there are so many demands on your time and attention. Here are some pointers to help you manage your time more effectively and earn more money: Define your investment goals and set priority for your projects based on their urgency and necessity. This will enable you to avoid becoming bogged down by less significant chores and let you concentrate your time and attention on what is genuinely vital. Automate regular chores using technology: Routine operations like managing your portfolio, updating market data, and executing orders may all be automated using automation technologies, which can save you time. This gives you more time to devote to higher-level duties like market research and strategy creation. Maintain a comprehensive record of all your trades and investments, and keep track of deadlines and critical dates. Staying on top of your portfolio can help you miss fewer chances and make less expensive blunders. Reduce distractions: In the hectic world of trading, distractions may be a huge time waster. By shutting off alerts, eliminating useless tabs, and avoiding multitasking wherever feasible, you may reduce distractions. Make time for self-care: Managing your time well requires that you take good care of both your physical and mental well-being. You can perform at your best by leading a healthy lifestyle that includes regular exercise, a balanced diet, and enough sleep. Learn to delegate: Giving responsibilities to others might give you more time to concentrate on more important activities. Think about assigning administrative duties, like data entry, to a reliable coworker or virtual assistant. Keep educated, but don't do too much research: Being knowledgeable is a crucial component of being a good trader or investor, but it's also crucial to guard against information overload. Follow market news and analysis, but try to refrain from reading endless amounts of unrelated or meaningless material. In conclusion, effective time management is a key competency for traders and investors. By putting these suggestions into practise, you may make the most of your time and effort, remain committed to your objectives, and succeed in the stock market.
NOv 26, 2022
The Securities and Exchange Board of India (SEBI) is in charge of overseeing the operation of the Indian stock market and ensuring that all players engage in ethical and transparent behaviour. The stock market offers investors the chance to take part in the expansion of the economy while serving as a crucial tool for buying and selling assets. The upper and lower circuits are a crucial idea in Indian stock market. In order to prevent excessive stock price volatility and to maintain a fair and open market, SEBI has established these circuits. The upper circuit is the highest price over which a stock cannot advance on a particular day. On the other hand, the lower circuit is the lowest price below which a stock cannot fall on a certain day. These restrictions are meant to stabilise the market by reducing volatility and preventing manipulation of stock prices. For instance, if a stock is selling at Rs. 100 and its upper circuit limit is set at Rs. 120, the stock price is not permitted to increase over Rs. 120 on that day, regardless of market demand. The stock price cannot decrease below the lower circuit limit, which in this case is Rs. 80. These ceilings are set in accordance with the trading history of the stock, the state of the market, and the company's financial standing, among other things. To keep them relevant and useful in reducing market volatility, the upper and lower circuits are periodically modified. Finally, it should be noted that the upper and lower circuits are crucial to preserving the stability and fairness of the Indian stock market. They provide a way to stop excessive stock price volatility and guarantee that everyone has an equal chance of success. When making investing selections, it's critical for investors to be aware of the upper and lower circuits to make sure they are well-informed judgements. For penny stocks—stocks with a small market capitalization and low price—the upper and lower circuit limitations are especially crucial. The upper and lower circuits offer a means of regulating penny stock volatility and preventing manipulative tactics since penny stocks are recognised for their extreme volatility. A stock's trading is suspended for the remainder of the day when it reaches the upper or lower circuit limit. This allows the market to process the news and stop future price fluctuations. The stock is once again traded the next day at a price set by supply and demand in the market. In reaction to the state of the market and other variables, SEBI may alter the upper and lower circuits. To avoid extreme price fluctuations, SEBI may alter the upper or lower circuit limit if, for instance, a business discloses a substantial development that is expected to have a large influence on its stock price. Along with limiting market volatility, the upper and lower circuits give SEBI a way to keep an eye on market activity and stop insider trading and other manipulative tactics. The SEBI utilises the circuit limitations to spot any anomalous trading activity and take the necessary steps to maintain a fair and open market. In conclusion, the upper and lower circuits play a significant role in the Indian stock market's stability, fairness, and transparency. They give a way for SEBI to monitor and manage the market while also playing a crucial part in reducing market volatility, especially for penny stocks. The upper and lower circuits and how they affect your investing selections should be understood by investors.
NOv 28, 2022
The development of technology and the rising demand for digital services have made the Indian IT sector one of the fastest-growing sectors in the nation. The Indian economy is significantly impacted by the IT industry, which also presents a wide range of investment options for those wishing to purchase IT stocks. Determining the ideal moment to acquire IT stocks, however, can be difficult given the wide variety of equities available. When choosing when to purchase IT stocks, investors should take into account the following factors: Economic outlook: The Indian economy significantly affects the IT industry, thus it is important to take into account both the present environment and economic forecasts when making investment decisions. IT services are often in more demand, and stock values rise when the economy is doing well. Company performance: Before purchasing a company's stock, investors should take into account the company's financial standing and performance. This entails assessing the business's earnings, profit margins, and future growth potential. Companies with strong financial standing and an optimistic growth forecast typically make ideal investment choices. Industry trends: Because the IT industry is developing quickly, it's important to keep up with current developments in the field. The finest investment choices are frequently those businesses who are at the forefront of innovation and have a distinct future vision. Valuation: A company's stock price ought to reflect both its current financial success and potential for future development. Investors are sometimes less drawn to companies with high values since they may be expensive and have little room for expansion. Portfolio diversification is usually a smart idea, and the IT sector presents a special chance to include stocks that are connected to technology to your portfolio. Adding IT stocks to your portfolio can assist to spread out your holdings and provide you exposure to a sector that is expanding quickly. Political stability: The Indian IT industry depends on a stable political climate, and any serious economic or political unrest might have a big influence on it. When making investment selections, investors should take the present political environment into account as well as any possible hazards. Competition: There is fierce competition among many enterprises for market share in the IT sector. Investors should think about the market's degree of competition and how effectively the business is positioned to compete with its rivals. Investors are typically more interested in companies with a competitive advantage, such as a powerful brand, cutting-edge goods, and a devoted client base. Global economic conditions: Because a significant percentage of the Indian IT industry's revenue is derived from exports, the world economy has a significant impact on it. When deciding which investments to make, investors should take into account the existing and projected state of the world economy, since this might have a detrimental effect on a particular industry. In conclusion, several factors, such as the outlook for the economy, business performance, market trends, and valuation, affect the best time to acquire Indian IT stocks. Before making any investment decisions, careful study should be done and a financial counsellor should be consulted. Investors may improve their chances of success and choose wisely when investing in the Indian IT sector by taking these things into account.
NOv 29, 2022
Retirement is a significant time in a person's life, and financial preparation is essential for guaranteeing a safe and enjoyable retirement. In order to secure a decent living after retirement, it is crucial to start planning for retirement early given the rising average life expectancy in India. Before retiring, the following important financial planning procedures should be completed. Consider your financial condition: The first stage in financial planning is to consider your financial situation as it stands today. This entails looking through your earnings, outgoings, possessions, and liabilities. You may use this information to calculate how much you can invest and how much you need to save for retirement. Create a retirement budget: Following a financial assessment, you should put together a retirement budget that accounts for your anticipated outgoings in retirement. All of your necessary costs, such as those for housing, food, transportation, healthcare, and insurance, should be included in your budget. Start early with your savings: The earlier you begin planning for retirement, the more time your investments will have to grow. Saving at least 15% of your salary annually and investing it in a diverse portfolio of mutual funds, stocks, bonds, and other financial instruments is a decent rule of thumb. A pension plan is an investment instrument that offers a consistent income after retirement. Take this into consideration while investing. As early as possible, you should think about contributing to a pension plan since the longer you contribute, the more you will get from the power of compounding. India has a number of pension programmes, including the Employees' Provident Fund (EPF), the Public Provident Fund, and the National Pension System (NPS) (PPF). Think about getting insurance: Insurance is a crucial component of retirement planning because it offers financial stability in the case of an unforeseen circumstance, such as a catastrophic sickness or death. To benefit from reduced rates and longer coverage periods, it is a good idea to get insurance products like health insurance, life insurance, and term insurance as soon as you can. Plan ahead for medical expenses: Medical expenses can significantly deplete your retirement resources, making them a substantial burden. It is crucial to budget for these expenses because they will probably rise as you become older. It is advisable to invest in a health savings account that may be used to meet medical costs as well as a health insurance policy that covers pre-existing diseases and has a high coverage limit. Plan for taxes: Since taxes can decrease the amount of money you have available for spending, they can also have a big influence on your retirement savings. It's critical to comprehend the tax ramifications of your retirement funds and to make appropriate plans. This might entail contributing to a tax-deferred retirement account, like an NPS, or investing in tax-efficient goods, such tax-free bonds. Plan for estate planning: The process of being ready for the transfer of your assets after your death is known as estate planning. This include drafting a will, designating beneficiaries, and choosing the executor of your inheritance. The distribution of your assets in accordance with your intentions and the care of your family after your passing are two essential goals of estate planning, which is a crucial component of retirement planning. Finally, it should be noted that retirement planning is a crucial component of financial planning, and that it is never too early to begin. By taking these actions, you may contribute to a happy and secure retirement and take advantage of your golden years free from financial stress. It is crucial to speak with a financial advisor who can assist you in developing a unique retirement strategy that takes into account your unique requirements and objectives.
NOv 30, 2022
The United States dollar (USD), which accounts for more than 60% of all international transactions, is often regarded as the world's reserve currency. The USD is the world's reserve currency, but why? US economy size and stability: The US economy is the biggest and one of the most stable in the world. The USD has gained confidence due to its size and stability, making it the currency of choice for international trade and investment. As the standard for all other currencies, the US dollar: The US dollar is frequently used as a reference price in international trade, including the cost of commodities like gold and oil. This increases the demand for the currency because the value of numerous items is now stated in USD. The US's status as a worldwide powerhouse: The US, one of the most powerful nations on earth, is sometimes referred to as a global superpower. The nation is a dominant force in the world, and this supremacy is reflected in the value of the country's currency. The US Federal Reserve is present and is regarded as one of the most powerful central banks in the world. The US Federal Reserve is the nation's central bank. The Fed has a huge influence over the world's financial markets, and its decisions may have a substantial impact on the US dollar's value. International trade: Many nations utilise the USD as a means of exchange for trading with one another, making it a common currency in this sector. Because of this rising demand, the USD is a favoured currency for many companies and investors. A number of variables might affect the link between the value of the Indian rupee (INR) and the value of the US dollar (USD). Balance of Payments: The exchange rate between the INR and the USD can be significantly influenced by the US-India bilateral trade balance. If India has a trade surplus with the US, it signifies that its exports are outpacing its imports, which will cause the value of the INR to rise in relation to the USD. On the other side, if India experiences a trade deficit, the INR would weaken. Interest rates: Differences in interest rates between India and the US may have an effect on how much one currency is worth in the other. The INR may appreciate if interest rates in India are greater than those in the US because higher interest rates may draw in foreign capital. The INR, on the other hand, may depreciate if interest rates in the US are higher. Political stability: The exchange rate between the INR and the USD is significantly influenced by political stability. Political stability may boost investor confidence and cause the INR to appreciate, whilst political instability might cause the currency to depreciate. Inflation: Both US and Indian inflation can affect how much the two currencies are worth. The INR may depreciate if India's inflation is higher than the US's, while it may appreciate if India's inflation is lower. Economic growth: The pace of economic growth in the US and India may have an effect on the USD/INR exchange rate. The INR may appreciate if India's growth rate is higher than the US's, while it may depreciate if India's growth rate is lower. As a result of a number of factors, including the size and stability of the US economy, its status as the global standard for currencies, the US's status as a superpower, the existence of the US Federal Reserve, and its widespread use in international trade, the USD has emerged as the world's reserve currency. The dominance of the USD as a reserve currency has wide-ranging effects on the international monetary system and the world economy.
Dec 02, 2022
As a trader, we understand that you need the right features where features continuously simplify the process of executing your strategy. It's also important to have access to advanced features on your trading platform that can help you make better investment decisions and improve your overall trading experience. Let’s discuss the advanced features that the trader and investor of today deserve. And we’ll also make the case for why you should choose our latest creation Mynt - a highly advanced and feature-packed trading and investing platform that lets you do those things more confidently and easily. Firstly, biometric authentication is a feature that has become increasingly popular in recent years. We have enabled biometric authentication in MYNT's web and mobile applications, allowing clients to login without needing to use a username or password from the second time they access the platform. Additionally, MYNT web and MYNT mobile have OTP, TOTP, and authenticator features that comply with exchange norms. Secondly, having access to different types of market watches can be incredibly helpful as it helps reduce the time it takes to load a huge number of scripts into a market watch. MYNT offers three types of market watch: normal, predefined, and index. The normal market watch is customizable, while the predefined market watch automatically fetches information from the client's holdings. The index market watch allows clients to view all the index data for NSE, BSE, and MCX with a separator. Thirdly, it's important to have different types of orders available to you to help you reduce the time it takes to execute a default type of trade. MYNT offers GTT orders and multi-leg orders from the market watch. Additionally, MYNT provides clients with depth information, including 52-week highs and lows, and FO data, as well as pivot levels for each script. Also, you can add your favourite template for trading like the number of lots or capital so that they are pre-loaded in the order window when you trade. Fourthly, MYNT offers an option chain feature with 5, 10, and 15 sticks of data for FNO scripts on upcoming expires. Additionally, MYNT offers advanced Tradingview chart features, such as multiple charts on the same window, and the ability for clients to place trades directly from the chart. This means that you can access indicators and charts available in the largest library for traders. Fifthly, MYNT offers a cash SIP feature that allows clients to invest systematically on particular stocks based on their investment amount and number of stocks on desired dates every year, month, week, or day. You can simply enter the details like the name of the stock and the number of shares or the amount of money you want to spend and Mynt will take care of the rest. Finally, MYNT provides clients with market movers information, such as top gainers, top losers, most volumed, and most active by value for all segments. Clients can trade these market movers directly without having to add them to their watchlists. In conclusion, these are just some of the advanced features that every trader deserves in a trading platform. MYNT offers all of these features and more, making it a top choice for traders. MYNT is launching on 6th March, and we encourage traders to give it a try and see how these features can improve their trading experience.
Dec 03, 2022
As a trader or investor, choosing the right brokerage firm can be critical to your success. While large brokerage firms often have name recognition and extensive resources, mid-level brokerages can offer unique advantages and benefits that can’t be overlooked. In this blog post, we'll discuss some of the advantages and benefits traders and investors can get from going for mid-level brokerages. Personalized Service One of the primary advantages of working with a mid-level brokerage is the personalized service you'll receive. Unlike larger brokerage firms, where you may be treated like just another client, mid-level brokerages often have a smaller client base, allowing for more individualized attention. You'll likely have a dedicated account manager who will be able to provide tailored advice and support based on your unique needs and goals. This level of personalization can help you make better investment decisions and ultimately achieve greater success. More Accessible Another advantage of mid-level brokerages is that they are often more accessible than larger firms. They may have multiple locations and be more willing to meet with clients in person. Additionally, they may be more willing to work with clients who have smaller account sizes, allowing you to get started with investing even if you don't have a large amount of capital, to begin with. Eagerness to create better products Mid-size brokerages will mostly be newer to the market and will take a special focus on addressing feedback. This means incorporating specific features that clients want into their products and services and ensuring that everyone has a positive experience with them. Other Services In addition to personalized service, accessibility, and lower fees, mid-level brokerages often offer a range of other services that can benefit traders and investors. These may include educational resources, research and analysis tools, and other value-added services that can help you make informed investment decisions. Additionally, mid-level brokerages may offer a wider range of investment products and services than smaller, independent brokerages, allowing you to diversify your portfolio and take advantage of a broader range of opportunities. In conclusion, mid-level brokerages offer a range of advantages and benefits that shouldn't be overlooked. From personalized service and accessibility to lower fees and other valuable services, mid-level brokerages can help traders and investors achieve their investment goals and ultimately achieve greater success.
Dec 05, 2022
Stock market can be an excellent method to attain long-term financial objectives. However, it is crucial to select the appropriate equities for your portfolio. Consider the following factors when selecting securities for the long term: Company Fundamentals: Financial health is essential to a company's long-term success. Consider companies with stable revenue growth, high profit margins, and manageable debt levels. You can evaluate a company's financial health by reviewing its financial statements, earnings reports, and management's remarks during conference calls. Industry Trends: Understanding the trends in the industry in which a business operates is essential for making long-term investment decisions. Consider industries with high growth potential, emerging technologies, and changing consumer preferences. Assessing the competitive landscape can also aid in determining a company's likelihood of long-term success. Competitive Advantage: Long-term success is more likely for a business with a distinctive product or service, a strong brand, or other competitive advantages. Consider companies with a sustainable competitive advantage capable of protecting their market share and profits. Valuation: Paying a reasonable price for a company's stock is essential for long-term investment success. Use valuation metrics such as the price-to-earnings ratio, the price-to-sales ratio, and the price-to-book ratio to determine whether the price of a company's stock is reasonable. Objective: When investing for the long term, it is essential to have specific objectives in mind. Your objectives must be specific, measurable, attainable, pertinent, and time-bound (SMART). Typical long-term objectives include saving for retirement, paying for college, and accumulating wealth to pass on to future generations. Patience is one of the most important aspects of investing for the long term. In the short term, the stock market can be volatile, but over the long term, it tends to provide consistent returns. By focusing on the fundamentals of the companies in which you invest, it is possible to construct a portfolio with the potential for long-term growth. In conclusion, selecting securities for a portfolio of long-term investments requires thorough consideration of a company's fundamentals, industry trends, competitive advantages, and valuation. By focusing on these factors and having distinct long-term objectives, you can construct a portfolio that can assist you in achieving your financial goals.
Dec 07, 2022
Trading and investing in the stock market can be thrilling and difficult. In order to succeed in these undertakings, one needs to possess certain personal qualities in addition to the proper information and strategy. The perfect characteristics of a good dealer and investor will be covered in this essay. Patience: Patience is one of the qualities of a successful trader because it allows them to adhere to their strategy, execute their trading plan, and control their risk. They do not let their feelings influence their choices. Patience: Successful traders are aware of how uncertain and erratic the market can be. They have the discipline to wait for the right chances to present themselves and refrain from making rash trades. Ability to adapt: Flexibility and adaptability are traits of successful dealers. When the market environment changes, they can modify their plans and techniques. Concentration: Effective dealers are able to stay focused and concentrated under pressure. Noise or clamour does not divert them. Ability to analyse: This is an important prerequisite for successful trading. They have the ability to decipher financial records and market data and use this knowledge to make wise choices. Successful Trader Qualities: Focus on the long term: Effective businessmen have a long-term perspective. They are disciplined enough to wait for their assets to develop over time because they recognise that investing is a race, not a sprint. Risk management: Successful investors minimise their exposure to risk by spreading their holdings across a variety of asset types, eschewing high-risk investments that offer fast returns, and diversifying their portfolio. Financial literacies: Effective investors possess a thorough knowledge of money management and finance. They are familiar with financial measures, valuation, and other financial records. Approach with discipline: Successful investors adopt a focused trading style. Even when the market is volatile, they adhere to a well-thought-out financial strategy. Mental restraint: Effective investors refrain from letting their feelings influence their choices. Even when the market is experiencing a decline, they maintain their composure and reason. In conclusion, information, plan, and character characteristics all work together to make trading and investing effective. Whether you're a dealer or an investor, having the proper qualities and traits can help you thrive in the market and reach your objectives.
Dec 08, 2022
One of the best methods to gradually increase your money is through investing. However, did you know that one of the most effective and straightforward methods for increasing income is also one of the simplest? The idea of making interest on your interest is known as compound interest. The advantages of having your assets compound are listed below. Interest on interest creates speed Your money isn't just sitting in an inactive account when you spend it. You are employing it. Furthermore, when your assets generate interest, that interest is reinvested into your account where it begins to generate interest of its own. This can have a snowball impact over time that can really build up. Long-term planning involves using compound interest Over the long run, compounding's strength really manifests itself. Compounding may not be very helpful if you spend for a brief amount of time. Compounding, however, can help your money expand exponentially if you spend for many years. Using compound interest, you can achieve your money objectives Compound interest can assist you in achieving your objectives more quickly, whether you're saving for retirement, a down payment on a home, or your child's college schooling. You can hasten your funds and get where you want to be sooner by making interest on your interest. A inactive investment strategy is compound interest Compound interest is one of the best financial strategies because it takes little work from the investor. After making your original commitment, you can relax and watch the magic of compounding at work. You don't have to constantly handle your investments or make difficult choices when it comes to your money. You can handle market instability with the aid of compound interest Buying can be a roller-coaster experience with ups and downs. However, you can more easily withstand market volatility if you spend for the long run and let your money compound. You can benefit from market downturns and emerge better on the other side by reinvesting your profits. There you have it, then. The advantages of allowing your assets to compound are numerous, and they can build up significantly over time. Compound interest is a potent instrument that can help you achieve your financial objectives, regardless of your level of investing experience or where you are in the process.
Dec 09, 2022
The Easiest Methods To Create A Portfolio With A Wide Range of Assets Investment diversification is a crucial component that lowers risk and increases profits. Investments in a well-diversified portfolio are distributed across a variety of asset classes and industries, lowering exposure to any one specific field. We will discuss the best methods for creating a portfolio that is well-diversified in this blog article. First, consider asset allocation The process of separating your financial assets into various asset types, such as stocks, bonds, real estate, and cash, is known as asset allocation. Your risk tolerance, financial objectives, and time span will determine the best asset allocation for you. If you can take more risk and have a lengthier financial horizon, a decent rule of thumb is to devote a larger portion of your portfolio to stocks. Participate in a variety of industries Diversification requires investing in various industries. You should think about making investments in industries with diverse development possibilities and risks. If you bought in technology equities, for instance, you might want to balance your portfolio by adding securities from the healthcare, consumer products, or utilities sectors. Purchase a variety of stocks Another method to diversify your portfolio is by investing in various asset categories. For instance, you might want to make investments in mid-cap, small-cap, and large-cap equities. Having a variety of these companies in your portfolio can help lower your total risk because each of these stocks has a distinct set of risks and growth prospects. Think about investing in Stocks or mutual funds Investment platforms like mutual funds and ETFs (exchange-traded funds) combine the money of many participants to engage in a portfolio of stocks or other assets. An effective method to diversify your portfolio across various asset classifications, industries, and stock kinds is by investing in mutual funds or exchange-traded funds (ETFs). Frequently rebalance your portfolio For your stock to remain well-diversified, frequent rebalancing is essential. You may need to adjust your assets to keep a balanced portfolio because as your investments increase, their proportion in your portfolio may change. By rebalancing, you can make sure that your assets are well-diversified and in line with your financial objectives. In summation, a crucial element of effective investing is creating a well-diversified portfolio. By using the above-mentioned methods, you can build a portfolio that distributes your assets among various industries, asset classes, and stock kinds, minimising risks and maximising returns.
Dec 13, 2022
Hello there! Let's discuss mutual fund buying in India and the age-old argument between lump payment and monthly Systematic Investment Plans (SIPs). What are these two categories of assets, first? Lump-sum investing refers to investing a significant amount of cash in a mutual fund all at once. SIPs, on the other hand, entail making regular, typically monthly, investments of a set amount of money. Let's now examine the advantages and disadvantages of each strategy. For those who have a large amount of cash accessible to spend, lump sum investments can be profitable. If the market is favourable, the investor can profit from instant returns while also earning sizeable returns in a brief amount of time. However, because the investment is made all at once, there are also greater dangers involved. If the market does badly, the owner could sustain sizable losses. SIPs, on the other hand, provide a more methodical strategy to investing. Investors can benefit from the power of compounding and average out the cost of investment by consistently spending a set sum of money. Due to the fact that the funding is stretched out over time, SIPs also assist in minimising the effects of market volatility. The profits, however, might be lower than those from lump-sum investments, and buyers might lose out on the chance to make more money quickly. Which is preferable, then? Your risk tolerance and financial objectives are really what determine this. Lump sum investments might be a wise choice if you have a large sum of money accessible and are prepared to take on greater risks. SIPs, on the other hand, might be a better option if you're looking for a methodical approach to spending and are prepared to contribute over an extended period of time. Benefits of Lumpsum Purchases The possibility for greater profits quickly is one of the most important benefits of lump sum investments. Compared to a SIP, the individual can achieve substantial profits on their investment in a quicker amount of time if the market circumstances are advantageous. For those who have a large amount of cash on hand and want to make a sizable investment, lump sum purchases may also be advantageous. Cons: However, lump sum purchases also carry greater levels of risk. Since the investment is made all at once, the individual may sustain sizable losses if the market performs badly. Lumpsum investments are also not a good choice for investors who don't have a lot of cash on hand because they might not be able to benefit from the possible profits. SIPs: Pros: The methodical strategy to investing that SIPs offer is among their biggest advantages. Investors can form the practise of saving and investing by setting aside a set quantity of money at regular intervals. As the purchaser gets units at various rates over time, this strategy also aids in averaging out the cost of the investment. Due to the fact that the funding is stretched out over time, SIPs also assist in minimising the effects of market volatility. Cons: SIP profits, however, might be less than those from lump-sum purchases. The possibility of greater returns over a brief period of time is less likely because the expenditure is spread out over time. Additionally, the investor might receive lower returns than they would have if they had made a single amount investment if the market performs badly over the course of the investment. In summation, SIPs and lump sum purchases each have advantages and disadvantages. Before choosing a course of action, it's critical to think about your financial objectives and risk tolerance. Invest wisely!
Dec 14, 2022
Before you engage in the stock market as a novice, it's crucial to learn the fundamentals and develop a solid grasp of how the market operates. Here are some pointers to get you going: Learn the fundamentals: It's crucial to first comprehend the fundamentals in order to begin learning about the stock market. Reading books, papers, or internet tools that describe the ideas behind stocks, bonds, mutual funds, and index funds is a good place to start. These ideas are the foundation of the stock market, so it's crucial to have a solid grasp of them. Watch the news: It is essential to stay current with the most recent news and patterns in the stock market. To receive frequent market information, you can subscribe to financial newspapers, websites, and blogs. This will assist you in comprehending the market's reaction to recent political and economic developments and how your assets may be impacted. Become a member of a community: By becoming a member of a community of stock market participants, you can benefit from their knowledge and guidance. Such groups can be discovered online or at regional investment gatherings. You can also take part in online discussion boards and social media groups where you can speak with other participants and ask them questions. Attend seminars and workshops: Attending seminars and workshops can be a wonderful way to hear from subject-matter specialists and pick up useful information. Such events are routinely held by a large number of financial organisations and investment firms, and they cover a broad variety of subjects, from fundamental investing to sophisticated trading strategies. Use simulated trading platforms: Practicing trading without jeopardising any real money is possible by using virtual trading platforms. These platforms let you purchase and trade stocks just like you would on the real market by simulating actual market circumstances. Without actually losing any money, this can be a wonderful way to learn from your errors and acquire experience. Invest with a dependable adviser: If you lack confidence in your ability to make investments, you might want to consider employing a dependable advisor to assist you. Your risk tolerance can be better understood by a financial adviser, who can also help you create an investment plan and choose the right assets for your objectives. Keep in mind that buying in the stock market carries danger, so it's crucial to conduct research before making a decision. Be patient, start modest, and learn from your errors. You'll be able to make wise financial choices and increase your wealth with practise and time.
Dec 15, 2022
Sectoral analysis is an essential resource for stock market buyers seeking to make educated investment choices. This entails investigating the market in its various subsets for the sake of spotting business prospects and gaining a more complete picture of the market as a whole. Investing in good companies starts with understanding if the sector that the company belongs to has a good future. If you understand that a sector can do well but are unsure about which particular company in the sector will do well, you can always invest in sectoral index funds to help you diversify your investment in a basket of companies belonging to the same industry. Once you've narrowed your focus to specific industries, it's time to study the prevailing tendencies in each. Market scale, expansion prospects, and the presence of relevant regulations are all important considerations here. Following a thorough grasp of the various markets and their tendencies, it is time to dive deeper into the specific businesses operating in each market. This requires considering things like market dominance, competitive advantages, and managerial quality in addition to financial metrics like sales, profit margins, and profits per share. The next step, after studying the businesses operating within each industry, is to assess the risks that are present. Considerations like fiscal, business, and company-specific risks must be taken into account. The success of various stock market segments can be significantly influenced by macroeconomic variables such as interest rates, inflation, and GDP development. If interest rates are low, for instance, businesses in the financial industry may do well because financing is less expensive and more convenient. When interest rates are high, however, it can be difficult for the financial industry to thrive because financing is less affordable. World tendencies: this may affect various financial market segments. For instance, many traditional stores now find it difficult to contend with online behemoths like Amazon because of the proliferation of e-commerce. Similarly, the energy sector has been profoundly affected by the trend towards green power, with many established utilities having difficulty adjusting to the new market realities. Invest with confidence now that you have a better grasp of the various markets and the businesses that make up each one. To achieve this goal, investors may choose to spread their money among several industries, or they may zero in on promising upstarts in one or two fields. The significance of diversification in the financial market should be taken into account in addition to these other considerations. A diverse collection of businesses from various industries allows investors to share their risk and reduce their reliance on the performance of any single industry or company. As a whole, sectoral analysis is a useful method for buyers to learn about the stock market and spot promising chances. You can improve your odds of success in the market by adopting a methodical strategy of analysing various industries and businesses.
Dec 17, 2022