General Awareness

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Top 5 stocks in Nifty 100 That Gave The Highest Returns in 2021

As the pandemic spread increased and decreased throughout the year, the stock market had ups and downs in 2021. Despite concerns over the second wave of covid infections, Indian stock markets outpaced emerging markets in the first six months. Due to the rising rate of immunisation, the government's stimulus measures, and the Reserve Bank of India's liquidity support operations, investors were glued to Indian stocks from January to June. The IPOs in the second half of the year functioned as an antidote for the stock market. In 2021, the Indian stock market benefited from a surge of money unleashed by global central banks, which supported domestic policies, as well as the world's largest vaccination campaign, which sparked a world-beating increase on Dalal Street, despite concerns about inflated values. These are the five stocks from the Nifty 100 with the best one-year returns.

Adani Transmission

Adani Transmission Limited is a holding company specialising in the generation and distribution of electricity. The business is a power transmission company. The company was involved in the transmission of electric energy as well as the trade of castor oil. Adani Transmission owns, maintains and operates more than 50,050 circuit kilometres of transmission lines with a total transformation capacity of more than 12,000 megavolts ampere and voltages ranging from 400 to 765 kilovolts (MVA). Adani Transmission Limited was a high-growth firm from the Nifty 100 index, with a one-year return of 322 percent and a market capitalization of Rs 2000434.89. It is now trading at INR 1772.00 per share, with a 52-week high of INR 2,045 and a 52-week low of INR 397.15.

Adani Enterprise

Adani Enterprises Limited is a holding company with a diverse portfolio of businesses. The company's operations include coal mining, coal trading, oil and gas exploration, ports, multi-modal transportation, electricity production and transmission (CGD), renewable energy, and many more. It has a CGD business through Adani Gas Limited, which serves industrial, residential, as well as commercial clients with piped natural gas (PNG) as well as compressed natural gas (CNG) for vehicle use. With a market cap of Rs 184350.17 Cr, Adani Enterprise Limited was the second high-growth firm from the Nifty 100, with a 261.5 percent gain in a year. It is now trading at INR 1,711.50 per share, with a 52-week high of INR 1,788.9 and a 52-week low of INR 435.75.

Tata Motors

Tata Motors is one of India's largest automakers, owning divisions such as Jaguar and Land Rover. In India, the firm is also the market leader in the production of four-wheeled electric vehicles, followed by Mahindra and Mahindra. The company's total operational revenue was INR 47031.47 CR for the year ending March 31, 2021, and its equity capital was INR 765.81 Cr. Tata Motors Ltd. with headquarters in Maharashtra, is a public limited company and was founded on September 1, 1945. The company's stocks gave its third biggest returns of 179.1% in 2021. Tata Motors with a market capitalization of INR 1,66,759 crore is one of the most valuable stocks in India's automobile sector . It is currently trading at INR 468.35 per share, with a 52-week high of INR 536.70.

Vedanta

Vedanta Limited, which was founded in 1965, manufactures copper and copper goods, as well as aluminium products. Some segments of the company include copper, continuous cast rod and anode slime, aluminium, sulfuric acid, power, and pig iron and metallurgical coke. Custom smelting is the company’s copper business and Vedanta is one of the greatest diverse natural resource companies in the world. Vedanta Limited's operations are spread out over India, Ireland, Namibia, South Africa, and Australia. The corporation operates iron ore mines in the Indian states of Goa and Karnataka. In terms of ROI, the company fared remarkably well on the stock market in 2021. It yielded a whopping 128.6 percent profit. The company, which has a market capitalization of INR 1,28,130 Cr, has a bright year ahead of it.

Apollo Hospitals

Apollo Hospitals Enterprise Limited is an Indian healthcare company that operates throughout India and globally. Apollo Hospitals is in the business of providing healthcare and services such Pharmacy, Health, and other are among the company's segments. Its tertiary care hospitals offer services in gastroenterology, cardiac sciences, critical care, neuroscience, orthopaedics, radiology, cancer, and transplantation, among other disciplines. In addition, the organisation offers project consulting, health insurance, education and training programmes, and research services. Apollo has birthing centres, day surgical centres, and dental clinics under its umbrella. Apollo Hospitals stock delivered 96.2% return, 5th highest from Nifty 100 in one year. The company's shares are currently trading at INR 4826 per share, with a 52-week low of INR 2251 and a 52-week high of INR 4854.40. As of December 27, it is priced at INR 337.50 per share with 52 weeks highest at INR 1,788.9 and lowest INR 435.75. With these stocks having more juice than ever to give more returns in the next few years, it would be ideal to wait for a correction before jumping on the growth-wagon.

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The Best Books to Read On Personal Finance

Personal finance books can help you get started with money management more effectively. At the most fundamental level, you can learn personal finance fundamentals, such as why paying yourself first pays off or how to manage and pay off debt, to become smarter and more confident with your money. However, it does not end there. They can also teach you how to invest, manage a mortgage, build a nest egg, save for retirement, and ultimately assist you in avoiding common money pitfalls in order to foster a healthy relationship with your money. It's not easy reading, but your wallet and future self will thank you. Before we begin… When you take full responsibility for your financial future, it helps to be supported by one of the top brokers in share market. Zebu is one of the fastest-growing platforms in the country for trading and investing and we have a team that would love to help you out with your financial objectives. We have Zebull, the best online trading platform with a host of features, and one of the lowest brokerage fees for intraday trading. Here are our recommendations for the best personal finance books. Why Didn’t They Teach Me This in School? If you ask anyone what they wish they had learned more about in school, the answer is almost certainly money. More specifically, how to properly manage one's finances—hence the title of Cary Siegel's book, "Why Didn't They Teach Me This in School?" Siegel, a retired business executive, divides the book into 99 principles and eight financial lessons that you should have learned by high school or college but didn't. When he realised his five children weren't learning important personal finance principles before entering the real world, he wrote this book for them, but it grew into a well-reviewed read full of important financial lessons with Siegel’s first hand experiences as well. This simple book is ideal for recent graduates or anyone looking to begin their personal finance journey on the right foot. Rich Dad Poor Dad You've probably heard of Robert Kiyosaki's book "Rich Dad, Poor Dad," but there's a reason it's been around for over two decades. Kiyosaki shares what he learned growing up from his father and a friend's father, the latter of whom is referred to as the "rich dad" in the title, in one of the most popular personal finance books of all time. These lessons cover topics such as how you don't need a lot of money to get rich, assets and liabilities, and why schools won't teach your children what they need to know about personal finance. This 20th anniversary edition includes an author update on money, the economy, and investing. The Total Money Makeover Debt management is critical to the health of your personal finances. Do you require assistance in this area? Examine Dave Ramsey's "The Total Money Makeover." This New York Times bestseller explains, without equivocation, how to get out of debt and improve your financial situation by avoiding common pitfalls such as rent-to-own, cash advances, and credit. It also provides sound advice on how to start an emergency fund, save for college and retirement, and use Ramsey's famous "Snowball Method" to pay off debt. The Automatic Millionaire Who wouldn't like to be a millionaire? The New York Times, USA Today, Bloomberg Businessweek, and Wall Street Journal business bestseller "The Automatic Millionaire" by David Bach teaches you how to do just that. The book begins with the storey of a couple who earns a combined $55,000 per year and how they achieved their financial goals. Consider this: owning two homes, paying for their children's college, and retiring at 55 with a $1 million retirement nest egg. What is the secret? Creating a financial system that not only pays yourself first, but also does so automatically. Broke Millennial This is the personal finance book for you if you can decipher #GYFLT. (Hint: in social media speak, #GYFLT stands for "get your financial life together.") In her signature conversational style, Erin Lowry's "Broke Millennial" explains how 20-somethings can take control of their personal finances. This book covers the most pressing financial issues confronting millennials today, from understanding your relationship with money to managing student loans to sharing financial details with a partner. The One-Page Financial Plan Confused about your money, whether it's how to invest properly or how to deal with unexpected financial challenges? "The One-Page Financial Plan" by Carl Richards removes the mystery of effectively managing your finances. This book not only helps you figure out what your financial goals are but also shows you how to get there in a simple, one-page plan. The author is a Certified Financial Planner as well as a New York Times columnist. I Will Teach You to Be Rich Financial expert Ramit Sethi explains in "I Will Teach You to Be Rich," a New York Times and Wall Street Journal best-seller, that you can spend your money guilt-free as long as it is invested and allocated properly. This title discusses how to avoid common financial pitfalls, such as paying off student loans, saving money on a monthly basis, and even negotiating your way out of late fees. This tenth-anniversary edition includes new perspectives on technology, money, and psychology, as well as success stories from readers who have made a fortune after reading—you guessed it—book. Sethi's Clever Girl Finance According to the US Department of Labor, women still earn $0.82 for every dollar earned by men, while mothers earn $0.71 for every dollar earned by fathers. In short, when it comes to money, women still have to work harder. Bola Sokunbi's "Clever Girl Finance" aims to empower and educate a new generation of women on topics such as budgeting, creating and sticking to a budget, managing credit, saving for retirement, and taking responsibility for your own financial well-being. The Psychology of Money This book is an intriguing look at the psychology of money and how your ego, preconceived notions, and even your pride can influence your financial decisions. As you might expect, this isn't the best way to manage your investment portfolio, and Morgan Housel's "The Psychology of Money" provides readers with tips and tools for combating these biases in the form of 19 short stories that all focus on the same topic. Housel is a partner at The Collaborative Fund and a former Wall Street Journal columnist. Your Money or Your Life Vicki Robin's book has sold over a million copies details a nine-step plan to help readers change their relationship with money. This book will teach you how to get out of debt, start investing, build wealth, and even save money by using Robin's signature mindfulness technique. Accounting Books You Should Read The Final Word Whether you're new to finances or simply want more financial advice, "Why Didn't They Teach Me This In School?" by Cary Siegel is the best overall personal finance book (view at Amazon). It teaches eight important money lessons that you should have learned by high school, as well as a whopping 99 principles for saving, investing, and building wealth. While you take charge of your personal finances, we at Zebu, one of the top brokers in share market, are here to assist you with everything. From helping you understand different asset classes and how you can benefit from them, Zebu supports you with Zebull, a superb online trading platform and the lowest brokerage for intraday trading. Please get in touch with us to know more about our products and services.

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How To Backtest Your Strategy Manually

How To Backtest Your Strategy Manually There are numerous applications and trading platforms available now that allow you to backtest your strategy. However, you may not always have these tools available, or you may want to see the complexities of your strategy in action. The good thing is that you can independently backtest your strategy. All you need is your trading strategy and historical data to accomplish this. Even if you do it manually, backtesting a plan is not difficult. However, employing a programme or a platform makes things much easier. What exactly is backtesting? Backtesting is the foundation of developing trading techniques and edges. During a backtest, a new approach is tested against historical data to determine its effectiveness. This has a lot of advantages, such as being able to watch the plan in action and evaluating whether or not any of the parameters need to be changed in order for it to function. If a trader's backtesting provides positive outcomes, he or she may have faith in the approach. If a backtest does not produce acceptable results, adjustments will most likely be required. You might also find out that the strategy you devised isn't worth pursuing. While backtesting is a terrific idea, it must be done with extreme caution. As we'll see later, it's entirely feasible that a method that performed admirably in the backtest may fail miserably on real-time data. There are, however, solutions to this difficulty. How to Backtest Your Strategy Manually Backtesting is typically performed by those who are familiar with coding. Those who are unable to code must rely on a backtesting platform. If you decide to manually test your approach, you can simply choose any chart that provides access to the indicators required for your plan. TradingView and MT4/MT5 now offer the finest free options. Let's look at how to manually backtest your plan now. Or, you can use your trading platform's in-build charts as well. For example, Zebu comes with an impeccable trading platform that you can use to manually backtest your strategy. You can view charts in multiple time frames and use a host of indicators and screeners to backtest your strategy. 1. Develop the Strategy Before you can backtest a strategy, you need to develop one in the first place. It is critical that you do not test half-heartedly since this would be a waste of your time. Create a trading plan based on your understanding of the market. When you're done, take a good, long look at it and try to examine each individual parameter. If something does not appear to be correct, make the necessary changes before proceeding to backtest. Your entry/exit signals, conditions, timeframe, and risk per trade are all important considerations. After you've finished developing your plan, you may begin backtesting it. 2. Choose your charts Choose the market in which you want to backtest your data. Once you've found the market, open the chart you're using and choose a timeframe from the past. Traders typically backtest their method for at least a few years. While some traders believe that scrolling back to the beginning of the chart is necessary, this is not the case. You should be alright as long as you can backtest your technique over a prolonged period of time. A sample size of around ten years gives enough history to build a reasonable sample size. Then, using the tools on your chart, pull up all of the indicators you'll need for your trades. Ascertain that your chart is properly configured with all of the trading tools that will be required during the backtest. You are now ready to begin your backtest. When you choose a share broker for backtesting and trading, ensure that you choose the best online trading platform like Zebu. Our charts, along with the wide range of indicators we have can help you formulate the most complex as well as easy trading strategies and backtest them manually. In addition to this, we also support your trading with the lowest brokerage for intraday trading. 3. Perform Manual Backtesting on Your Strategy You might have already figured out what to do next! Backtest your method by moving the chart ahead bar by bar. This entails recording trades anytime your trading method suggests it. Recording your trades is actually pretty simple, and it can be done using either a physical journal or software like Microsoft Excel. It is not difficult to keep track of your trades, but it can be time-consuming. When a trade signal is generated, all you need to do is record the entry point, stop-loss, date and time, and any other information that may be relevant to the trade. Many traders like to mention other nuggets that their trading method is informing them, such as the risk to reward ratio, and so on. When you're ready to exit the trade, make a note of your return as well as the exit point. After that, you simply repeat the procedure. Backtesting, as you may have guessed, can be tedious and time-consuming. Remember that backtesting a decade of data will most likely take at least a few hours. As a result, when you sit down to backtest a technique, make sure you have the time. The Drawbacks of Manual Backtesting The issue with manual backtesting is that you can make mistakes when tracking the data. In addition, when backtesting your technique, there is a psychological component involved. Because you can see the data ahead of you, you may not wind up executing the trades that your method suggests. People usually try to excuse this by saying, "I wouldn't have made that trade in real life." Simply do not do this! If a trade fulfills your criteria, make a note of it! If you are able to authentically and honestly note down your trades while backtesting manually, then you do not have to sprint for expensive programs and data plans to backtest. Your journal or excel sheet would suffice. As we have mentioned before, when you choose to start with manual backtesting, you need an online trading platform that accommodates every complexity of your trading system. As a leading share broker, we at Zeu have created an online trading platform that comes with a host of indicators to help you formulate and backtest a strategy. In addition to this, we also support your trading efforts by giving the lowest brokerage for intraday trading.

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

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

Software and IT Services

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

Chemicals

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

Healthcare

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

Oil And Gas

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

Fast Moving Consumer Goods

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

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A Beginner’s Guide To Hedging

Hedging is a beneficial investment strategy that every investor should know about. Hedging in the stock market provides portfolio safety, which is often as important as portfolio growth. Hedging is commonly discussed but not explained. But it's not a mystical term. Even a novice investor can benefit from learning about hedging. Before hedging When it comes to trading and investment, you need to choose the right one from a plethora of brokerage firms . One of the important factors you need to look for while executing hedging strategies is the lowest brokerage and someone with a fast-growing online brokerage background. Hedging Consider hedging as a type of insurance. By hedging, people protect themselves from the financial consequences of an unfavourable event. This does not stop all bad things from happening. However, if a negative event occurs, properly hedged, the damage is lessened. Hedging happens very universally. For example, buying a homeowner's insurance protects you against fires, burglaries, and other unanticipated events. Portfolio managers, investors, and organisations employ hedging to decrease risk. In the financial markets, hedging is not as straightforward as paying an annual insurance premium. Hedging investment risk involves strategically using financial instruments or market tactics to offset price risk. Traders hedge one investment by trading in another. To hedge, you must conduct counter-trades in securities having negative correlations. Of course, you must still pay for this type of insurance. For example, if you own XYZ stock, you can buy a put option to protect your investment from large declines. However, to buy an option, you must pay a premium. Less risk means less possible profit. So, hedging is a practice used to decrease prospective losses (and not maximise potential gain). If the investment you're hedging against is profitable, you've usually lowered your prospective profit. If the investment fails, your hedging will have decreased your loss. Hedging Explained Derivatives are commonly used in hedging strategies. One of the most common derivatives is options. In trading techniques involving derivatives, a loss in one investment is compensated by a gain in another. Assume you hold Tata motors stock. You believe in the company's long-term success, but you are concerned about recent losses. Put options let you protect yourself against a decline in CTC by selling it at a predetermined strike price. This is called a married put. If your stock price falls below the strike price, the gains from the put option reduce your losses. Hedging Drawbacks Every hedging approach has a cost. So, before you utilise hedging, consider whether the possible benefits outweigh the costs. Hedging is used to safeguard against losses, not to create money. The cost of hedging, whether it's an option or lost earnings from a futures contract, is unavoidable. While hedging is similar to insurance, insurance is more precise. With insurance, you are fully paid. Portfolio hedging isn't exact. Things can get unpredictable. The perfect hedge is a goal that risk managers strive for but rarely accomplish. Hedging and You Most investors will never trade a derivative. In fact, most long-term investors overlook short-term volatility. Hedging has little value for these investors because they let their investments expand with the market. So why hedge? In order to understand how it works, you should hedge your own portfolio. Many large corporations and financial funds will hedge their protfolio. Examples of hedges include oil companies. For example, an international mutual fund may protect against currency swings. Understand and assess these investments with a rudimentary understanding of hedging. Forward Hedge Example A wheat farmer and the wheat futures market are two examples of hedging. The farmer sows in the spring and harvests in the fall. In the interim, the farmer faces the danger of decreased wheat prices in the fall. While the farmer wants to maximise his harvest's profit, he does not want to bet on wheat's price. At the present price of $40 per bushel, he can sell a three-month futures contract. It's called a forward hedge. After three months, the farmer is ready to harvest and sell his wheat at market price. It is now only $32 per bushel. They buy wheat for that price. Simultaneously, he buys back his short futures contract for $32, netting $8. His wheat sells for $32 + $8 hedging profit = $40. When he planted his crop, he locked in the $40 price. Assume now that wheat is $44 a bushel. Sells his wheat at market price and buys back his short futures for $4. His net profit is $40 ($44 - $4). Both his losses and gains are reduced. The Verdict Investing involves a certain amount of risk. A fundamental understanding of hedging methods can help any investor understand how corporations and investors protect themselves. Whether or not you decide to start using complex derivatives, learning about hedging will improve your market knowledge and make you a better investor. At Zebu, we are one of the best brokerage firms in the country. We provide one of the lowest brokerages and are becoming one of the most sought-after online brokerages in India. Please get in touch with us to know more about our services and products.

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Everything That Zebu Was Upto In 2021

Being one of the fastest-growing brokerage firms in India, we feel that it is our responsibility to educate investors and traders and empower them with the right technological tools they need to make informed financial decisions. In that aspect, we have been our end-user tools like Zebull and Smart Trader. constantly updating

Here are the products and services that were updated to become more feature-packed for our customers.

1. Zebull Web Zebull is the web application from Zebu that allows traders and investors to make use of a plethora of indicators and screeners to form their biases for intraday trading, swing trading or long-term investments. With our latest upgrade to the mobile version, users can now view and make use of the average MTM to exit a trade properly. 2. Smart Trader Web This is a standalone trading application that can be downloaded and installed on a PC. This year, we launched the mobile version of the same to help traders access their trades very quickly. These web and mobile versions come with additional functionalities like advanced charting and screening, as opposed to the ones you can find in the regular apps from Zebu. 3. New eKYC system Opening an account with Zebu has never been easier with our new eKYC system that enables paperless and real-time customer onboarding. With frictionless digital onboarding in place, any customer can quickly open an account online in a few hours. 4. Online ReKYC With our new paperless systems, you can do a reKYC at specific intervals to stay compliant with SEBI’s regulations. You can even effortlessly change or update your personal information in a few clicks. 5. Online SGB Sovereign Gold Bonds are Government securities denominated in multiples of gram(s) of gold. They are substitutes for investment in physical gold. On redemption, cash is deposited into the investor's registered bank account. These Bonds are issued by the Reserve Bank of India on behalf of the Government of India and are traded on a stock exchange. Zebu makes it easy for you to make an investment in SGB. 6. Upgraded Website With an extremely easy-to-use UI and improved usability, we have launched a new and responsive website for Zebu. You can access more information about the products and stay up-to-date on any updates from us. 7. Single sign-on An SSO component adds an additional layer of security to your trading account with us. API users can also use this to log in to their accounts without their credentials. 8. UPI fund transfer Users can now use their default UPI gateways to add funds to their accounts. The money will be added to the customers’ ledger without any latency. 9. Online pledge Our customers can use our highly secure online platform to pledge their securities without providing any physical documents. 10. Span calculator Clients can now easily calculate margin requirements for their trades and investments through a real-time calculator.

Outreach through financial education

Our Founder & CEO Mr. Vijaykumar has written information-rich articles for Vikatan, a regional magazine in Tamil Nadu. These articles contain insights and information that will allow readers to connect the dots between news events and their impact on the share market. Here are a few titles of the articles he has authored. 1. The Reserve Bank ordered the dissolution of the board of directors of SREI and recommended a three-member panel to run the company. This article follows the measures taken by the RBI to restructure SREI and bring it back on track to become more accountable to its employees, customers and shareholders. 2. What’s the problem with China’s Evergrand real estate company? This one outlines the problems of the company Evergrand in China. The debt-ridden company suddenly seemed to put on a clown show for the public by constantly shifting its business focus. 3. T1 settlement from SEBI This is his take on SEBI’s new rule to change settlement duration from T+2 to T+1. He shares his insights on what this means for traders and investors. 4. Can start-up companies invest when it comes to IPOs? Lessons from Zomato In this article, Mr. Vijaykumar analyses the IPO of Zomato and drives a few lessons that can empower retail investors going in for the next few IPOs of the year. 5. Can I buy a stock just by looking at the PE ratio? Attention investors PE ratio forms an integral part of fundamental analysis and in this article, he explains its relevance in today’s investment decisions. 6. Recession… But why is the stock market rising? Answer to the question of investors In this article, he helps new traders and investors understand the relationship between inflation and market movements. At Zebu, we work constantly to improve our products and services. We always appreciate any feedback that we can incorporate to improve your experience with us. We would love to hear from you at grievance@zebuetrade.com

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Financial Independence, Retire Early (FIRE): What Is It?

Financial Independence, Retire Early (FIRE) is a movement of individuals committed to extreme savings and investing strategy that enables them to retire significantly sooner than typical budgets and retirement plans allow. FIRE was born out of Vicki Robin and Joe Dominguez's 1992 best-selling book Your Money or Your Life. It came to reflect the book's central premise: People should analyse every expense in terms of the number of work hours required to pay for it. The FIRE retirement movement is a direct challenge to the traditional retirement age of 65 and the business that has developed to encourage people to plan for it. By allocating the majority of their income to savings, members of the FIRE movement aspire to be able to retire decades before they reach 65 and live entirely off tiny withdrawals from their holdings. The concept of FIRE is extremely popular with millennials and there is no reason that Gen Z Indians will not follow suit. Followers of FIRE work for several years and save up to 70% of their annual salary. When their savings accumulate to approximately 30 times their annual expenses, or approximately $1 million, they may decide to quit their jobs or retire entirely. At Zebu, we understand that traders and investors with very high aspirations need nothing short of the best Indian trading platform with its plethora of features and scanners. As one of the top brokers in share market in India, we have the privilege of providing our users with their best trading accounts. To fund their living expenses after early retirement, FIRE enthusiasts make small annual withdrawals from their investments, often between 3% and 4% of the sum. Depending on the size of their funds and desired lifestyle, this may require extraordinary care in monitoring costs as well as a commitment to investment upkeep and reallocation. Types of FIRE Fat FIRE—This option is for the conventional worker who wishes to save significantly more than the average worker but does not wish to sacrifice their existing way of living. It is often not feasible without a high salary and active savings and investing plans. Lean FIRE—This involves a strong dedication to minimalism and extreme savings, necessitating a significantly more restricted lifestyle. Numerous Lean FIRE devotees live on less than $25,000 per year. Barista FIRE—This is for those who choose to reside in the grey area between the two options above. They abandoned their typical 9-to-5 occupations but maintain a less-than-minimalist existence through a combination of part-time work and savings. The former enables individuals to receive health insurance, while the latter stops them from withdrawing assets from their retirement accounts. Who Is FIRE Really For? The majority of people believe that FIRE is only for people who have a big salary, typically in the six figures. Indeed, if your goal is to retire in your 30s or 40s, this is almost certainly true. However, there is much for everyone to learn from the movement's ideals, which can help individuals save for retirement and even attain an early retirement, albeit not quite as early as 40. And keep in mind that the first part of FIRE stands for financial independence, which, if attained, enables you to work at something you enjoy rather than something you have to do. According to author Robin, FIRE is about more than early retirement; it teaches you how to consume less while living better. Meticulous planning The FIRE movement emphasises the necessity of developing a clear strategy and sticking to it, which are principles that will assist anyone in saving for retirement and building a sizable emergency fund. Economic self-control To attain a FIRE retirement, you must maximise your income while keeping your spending to a minimum. While retiring by 40 requires extreme measures, everyone can benefit from creating and adhering to a budget while working as hard as possible to earn as much money as possible, whether through a better job, adding a second one, or creating additional revenue streams through side hustles or rental property ownership. A prudent investment Nobody can retire comfortably if they do not invest in their retirement funds. FIRE devotees invest a greater percentage of their income than the ordinary person would. However, the notion of setting aside a fixed proportion of your salary each month for investment — and beginning as soon as possible — will enable you to grow your retirement savings to a level that will ensure your financial stability in your later years. According to Robin's comments, the book's purpose is not to impart a master plan for early retirement; rather, it is to demonstrate how to live better while spending less in order to live a more fulfilling life while consuming less of the world's resources. If you are a FIRE enthusiast, we would love to support your goals with the best trading accounts from Zebu. As one of the top brokers in share market, we have created the best Indian trading platform for waiting for you to take charge of your financial future. To know more about our products and services, please get in touch with us now.

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Here’s How Bond Yields Affect The Market

On Wednesday, India's benchmark 10-year government bond yields soared to a high of 6.66 per cent before falling to 6.60 per cent. What has caused this increase? Rising crude oil prices, inflationary threats, and earlier-than-expected interest rate hikes indicated by the US Federal Reserve have all contributed to bond yields hardening. Rising bond yields, logically, have sparked anticipation that the Reserve Bank of India (RBI) may eventually abandon its accommodative policy and begin increasing interest rates. What is the difference between a bond and a bond yield? Bonds are simply loans made to a firm or the government. Throughout the loan's term, the interest payments are virtually unchanged. Furthermore, if the borrower does not default, the principle is returned after the loan term. Bond yield is the rate of return that an investor receives on a certain bond or government instrument. Bond yields and prices are linked. Bond prices rise and fall in response to changes in interest rates in an economy. Bond yields, on the other hand, fall/rise in response to this. Bond yields and inflation expectations As money moves from relatively safer investment bets to riskier equities, a stock market boom tends to raise yields. When inflationary pressures rise, however, investors tend to return to bond markets and sell shares. What impact do bonds have on stock markets? Before we get into how the share market is impacted by bonds and bond yields, you need one of the best trading accounts from a leading online stock broker like Zebu to capitalise on market changes. With a leading online trading platform, you can anticipate market moves and maximise your profits. More on how bond yields affect the stock markets: To calculate the expected rate of return, investors add the equity risk premium they seek to a risk-free rate when pricing equities. Defaulting to the long government bond yield is usually the simplest way to estimate the risk-free rate. Long bond yields are important to equities because of this. Given that the risk-free rate is the long bond yield, a higher bond yield is unfavourable for equities, and vice versa. However, it's important to recognise why bond rates are changing, not just the direction in which they're changing. Long bond yields reflect the economy's growth and inflation mix. Bond yields normally rise when growth is robust. They also rise in response to rising inflation. However, the impact of these is different for stocks. When growth is strong, the positive impact of larger cash flows or, more accurately, dividends more than outweighs the negative impact of higher yields, resulting in higher equity share values. The difference between actual GDP growth and the 10-year bond yield corresponds well with stock prices. Indeed, share prices should be fine if GDP increases faster than bond yields in the next month. If growth accelerates from here equities are likely to break this range on the upside, in line with the fundamental relationship. How Should Investors Play It? In the scenario that growth accelerates, investors can opt for rate-sensitive instruments like mid- and small-cap stocks and funds. However, if inflation makes a rapid return, you can go with reliable companies in solid sectors like technology, healthcare and FMCG. Whatever your take is on bond yields and their correlation to the Indian markets, you need the best online trading platform to change your game plan. At Zebu, we have taken our expertise as one of the leading online stock brokers in India and created the best trading accounts and investment platform to seamlessly capitalise on any economic macro and invest in the best stocks and funds that you find reliable. To know more about our products and services, please get in touch with us.

How Do Economic Sanctions Work?

It was on Thursday that President Biden announced more sanctions against Russia, this time aimed at its financial sector. Russia's biggest banks will be cut off from the U.S. financial system, and some of its biggest businesses, such as Gazprom, will not be able to get money from American banks. Economic sanctions are penalties that are imposed on a country, its officials, or private citizens, either as punishment or as a way to make people think twice about certain policies and actions. Trade embargoes and asset seizures are examples of economic sanctions. They can be used to stop people from going to the country or to stop them from exporting goods. By definition, sanctions are for people who aren't easily subject to law enforcement by the country that is sanctioning them. For example, as a Russian citizen, President Putin cannot be tried by the law enforcement of the USA. But in order to still hold him accountable for certain actions, sanctions are imposed on his country's economy. Economic sanctions are a policy tool that doesn't use military force to punish or stop bad behaviour. They can be used all over the world, even if the sanctioning country doesn't have a border. They can be costly for their targets because they will be cut off from global trade and economies. Economic sanctions can also be a weak and ineffective policy tool. They can have little effect on the governments they target and a lot on their most vulnerable citizens. It is because the U.S. and the European Union are the world's biggest economies and trade blocs that they have a lot of power to use sanctions. In many ways, sanctions can be put on people, but they can also come in many different forms. Economic sanctions can be put in place by a single country or by a group of countries or an international organisation. Sanctions can be used in multiple ways When a country doesn't want to trade with you, it puts a "trade embargo" on them. This means that you can't do business with them, but sometimes there are exceptions for humanitarian reasons. It has been a long time since the United States has banned trade with Cuba, Iran, and North Korea. Export controls: Export restrictions stop the sale of certain products, services, and intellectual property to certain countries. They often limit the sale of weapons, technology that can be used in the military, or, as for Russia, oil drilling technologies and equipment. Capital controls: these can limit investment in certain countries or industries, or they can make it difficult for a country's issuers to get money from other countries. There are many types of trade sanctions, and they can include import restrictions for certain countries, regions, or industries. Asset freezes or seizures: Assets in sanctioning countries can be frozen or seized, which stops them from being sold or taken out of the country. Travel restrictions: Officials and private citizens, as well as their immediate families, may not be able to travel to countries that have been punished. Examples of sanctions Economic sanctions against China include restrictions on U.S. imports from China's Xinjiang region because of human rights violations against Uighurs. In 2014, Russia took Crimea from Ukraine, and the U.S. and the European Union also put sanctions on Russian officials, businesses, and companies because of the move. Economic sanctions against apartheid-era South Africa are often said to have played a role in the peaceful transition to majority rule there. Sanctions against Saddam Hussein's Iraq, on the other hand, did not stop him from running the country and were called by some a "humanitarian disaster." In conclusion: The success of sanctions can be measured by how well they achieve the policy goals they were set out to achieve, or how much they cost the countries and people they target, if punishment is the goal. They can also make the people of the country they want to punish pay for it, as well as the businesses of the country that is being punished. If the goal is to change the behaviour of the countries and people who are being sanctioned, their incentives and options will play at least as big a role as the sanctions' power. For example, in Russia's case during this war, these sanctions will hurt Russian citizens economically. The Russian index fell more than 45% since the start of the war and sanctions are an indirect way of putting pressure on Russian citizens to oppose the rule of the President.

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Key Takeaways From Budget 2022

From Rs 5.54 lakh crore to Rs 7.50 lakh crore, the target for capital expenditure (capex) grew by 35.4%. The FM said that India's GDP growth in FY23 is the highest of all major economies, and we are now in a strong position to deal with any challenges that come our way. According to her, the goal is to complement macro-growth with micro-all-inclusive welfare, digital economy and fintech, tech-enabled development, energy transition, and climate action. She also mentioned that ECLGS cover has grown by Rs 50,000 to Rs 5 lakh crore. In this year's budget, the top priorities are: PM Gati Shakti; inclusive development; productivity enhancement; sunrise opportunities; energy transition; climate action; She added that productivity-linked incentive schemes in 14 sectors have been very well-received. Investment intentions worth Rs 30 lakh crore have been made. Economic growth is getting a boost from public investment and capital spending. Taxes Income from digital assets is to be taxed at 30% and except for the cost of buying a digital asset, no other deductions will be made. The loss from transactions of digital assets cannot be set off from any other income. Digital asset gifts like cryptocurrency gifts will be taxed at the receiver's end. If taxpayers have made an error while filing their returns, they can not file an updated return within two years from the year of assessment. The alternate minimum tax for cooperative societies has been cut down to 15% with surcharges being reduced to 7% for those with incomes between INR 1 crore to INR 10 crores. Tax deduction on employers contribution to NPS has been increased to 14%. Jobs ECLGS has been extended till March 2023 and the Government hopes to add 60 lakh jobs in the next 5 years. A digital ecosystem for skilling and making money will be launched soon. This will help people learn new skills, re-skill, and up-skill through online training. API-based skill credentials, payment layers, and other tools will help people find jobs and opportunities. Infrastructure National highways will be expanded by 25,000 kms in the upcoming financial year. The Desh stack e-portal will be launched to promote digital infrastructure. Air India's strategic ownership transfer has been completed. Four multi-modal national parks will be built in the next two years. One product, one railway station will be promoted with 400 new Vande Bharat trains being introduced. There will be a PM Gatishakti master plan for expressways next year. There will be 100 PM Gati Shakti terminals built in the next three years. Over the medium term, the government will invest in infrastructure and use the Gati Shakti tech platform to modernise it. This will help the economy move forward, and it will lead to more jobs and opportunities for the youth. Housing And Urban Planning In 2022-23, 80 million houses will be finished for PM Awas Yojana beneficiaries; 60,000 homes in rural and urban areas will be chosen as beneficiaries of the PM Awas Yojana. 60,000 crore has been set aside to make sure that 3.8 million households had access to tap water. A high-level committee of urban planners and economists will be set up to make recommendations on urban city building. Five of the existing academic institutions for urban planning are to be declared as Centre for Excellence with an endowment fund of INR 250 crores. New modern building by-laws are to be introduced. The government is also going to push for public transport usage in urban areas. MSMEs and Startups A five-year, Rs 6,000-crore scheme to rate MSMEs will be implemented. The reach of MSMEs such as Udyam, e-shram, NCS, and Aseem portals would be widened and they'll now act as portals with live organic databases, offering G-C, B-C, and B-B services including credit facilitation and expanding entrepreneurial opportunities. A fund with blended capital has been raised under NABARD's co-investment approach to finance agriculture and rural enterprise startups for the farm product value chain An expert group will be formed to recommend steps to help attract investment after PE/VC invested Rs 5.5 lakh crore in a startup. Agriculture The government would spend Rs 2.37 lakh crore on wheat and paddy procurement under the MSP programme The International Year of Millets has been declared for 2022-23 Small farmers and MSMEs will benefit from new rail products. To reduce imports, a more rationalised plan to boost domestic oilseed production will be implemented. Kisan Drones will be used for crop assessment, land records, and insecticide spraying and are expected to drive a wave of technology in the agricultural sector. INR 44,605 crores have been allocated for the linking of Ken Betwa river. Five river linkages have had their draught DPRs has also been finalised. Along the Ganga river corridor, natural farming will be promoted. Ministries for procurement will create an entirely paperless, e-billing system and farmers will be given financial assistance to start agroforestry operations. Electric Vehicles A battery swapping policy will be developed to allow EV charging stations for automobiles. The private sector will be encouraged to develop sustainable and innovative business models for battery and energy as a service, thereby improving EV ecosystem efficiency. Education States will be encouraged to revise agricultural university curricula to meet the needs of natural, zero-budget, and organic farming, as well as modern-day agriculture. The PM eVIDYA's 'one class, one TV channel' programme will be expanded from 12 to 200 TV channels, allowing all states to provide supplementary education in regional languages for classes 1 to 12. A digital university will be established to provide education; it will be built on a hub-and-spoke model. A 1-Class-1-TV Channel will be implemented to provide supplementary education to children in order to compensate for the loss of formal education due to Covid. Finance and inclusion Rs 1 lakh crore in financial assistance will be provided to states to catalyse investments in 2022-23. RBI proposes to introduce Digital Rupee using blockchain technology in 2022-23. The core banking system will be implemented in all 1.5 lakh post offices, enabling financial inclusion and account access via net banking, mobile banking, and ATMs, as well as providing online transfer of funds between post office accounts and bank accounts. This will be especially beneficial to farmers and senior citizens in rural areas, allowing for interoperability and financial inclusion. Amendments to the IBC to improve the efficiency of the resolution process. The government will also facilitate the resolution of cross-border insolvencies and expedite the voluntary closure of businesses. To encourage digital payments, scheduled commercial banks will establish 75 digital banks in 75 districts. An international arbitration centre will be established to facilitate faster dispute resolution. According to FM, a world-class university will be permitted in the GIFT IFSC, free of domestic regulation. Healthcare An open platform for the national digital health ecosystem will be launched, which will include digital registries of health providers and facilities, a unique health identity, and universal access to health facilities. A National Tele Mental Health Program will be launched to provide mental health counselling. Telecom A spectrum auction will be held in 2022 to prepare for the 5G rollout. A design-led manufacturing scheme will be launched as part of the PLI scheme to enable affordable broadband and mobile communication in rural and remote areas. A portion of the USO Fund will be used for R&D and technology advancement and contracts for laying optical fibre in villages will be awarded under the BharatNet PPP project in 2022-23. A data centre and an energy storage system will also be designated as infrastructure, allowing for easy financing. Women and Children Recognizing the significance of 'Nari Shakti,' three schemes will be launched to provide integrated development for women and children, including the upgrade of 2 lakh Anganwadis to improve child health. Ease of Businesses 75,000 compliances have been eliminated, and 1,486 union laws have been repealed to make doing business easier. Corporate voluntary exit will be reduced from two years to six months. Defence The government has committed to reducing imports and promoting self-reliance in the defence sector; 68% of capital for the defence sector will be earmarked for local industry and 25% of the defence R&D budget will be made available to industry, startups, and academia. Through the SPV model, private companies will be encouraged to design and develop military platforms and equipment in collaboration with DRDO and other organisations. In 2022-23, the domestic industry will receive 68 per cent of the defence capital procurement budget (up from the 58 per cent last fiscal). Railways 400 new-generation Vande Bharat trains will be manufactured over the next three years, and a 2,000-kilometer rail network will be brought under KAWACH for safety and capacity augmentation. Climate Change and Net Zero Energy Sovereign green bonds will be included in the government's borrowing programme in this fiscal year and the proceeds will be used for public-sector projects Four coal gasification pilot projects will be established and PLI will receive an additional allocation of Rs 19,500 crore for the production of high-efficiency solar modules. Travel E-Passports with embedded chips will be issued in 2022-23 for ease of overseas travel.

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The Basic Rules Of Position Sizing

The Basic Rules Of Position Sizing Most successful traders, whether they trade the forex, index, equity, or commodities markets, vouch for the relevance of position sizing in their performance. And why shouldn't they? Without proper position sizing strategies, you could be putting a large portion of your trading capital in danger. Finally, the higher the risk you incur in each trade, the more likely it is that your trading account will be closed. While it is true that the trade might sometimes provide the much-desired large win, most skilled traders will tell you that it is advisable to limit your position size rather than raise your risk needlessly. Before you secure your trades with position sizing rules, ensure that you use the best broker for trading with the lowest brokerage on offer. Zebu empowers your online stock trading journey with a state-of-the-art trading platform as well. Let's take a look at what position sizing is and why it's so important, as well as the best position sizing tactics you'll need to learn in order to enhance your trading. What exactly is position sizing? Setting the correct transaction size to buy or sell a certain instrument, or determining the Rupees amount that a trader will use to start a new trade, is the most basic definition of position sizing. It may appear easy, but it can be rather complex. Before you enter a trade, you should understand how much risk you are incurring and how it will affect your trading account. Furthermore, traders must regularly review their positions to ensure that everything is under control. Keep in mind that markets move swiftly! Furthermore, traders must keep margin requirements and margin stop out levels in mind. What is the significance of position sizing? As you can expect, opening positions with arbitrary position sizes or based on gut instinct will result in disaster. Position sizing is concerned with avoiding excessive losses. If you have a good risk management strategy and stick to it, you are unlikely to lose a large amount of your cash on a single trade. It will also provide you with an opportunity to retain your focus on your account as a whole and all your open positions. It is especially common for short-term traders who must react rapidly to new developments to lose oversight and forget how much risk they already have running before opening fresh positions. This is why it is so important: a successful trader is also a good risk manager. However, position sizing is about more than just avoiding excessive losses. It also provides you with the opportunity to improve your performance. A risk-averse trader who is only ready to risk a small fraction of his capital must realise that he will never generate significant returns. As you can see, position sizing is all about striking the appropriate balance - allowing yourself to maximise profits while avoiding excessive losses. Proper position sizing along with profit-taking tactics can assist traders in developing the optimal strategy for entering and leaving all trades. How do you calculate the size of your position? Let's have a look at a handful of popular position sizing approaches you can use to improve your trading and make better use of position size. Position sizing strategies that work well 1. Fixed rupee value The simplest method to include position sizing into your trading strategy is to use a fixed Rupees amount. This may be especially useful for those who are new to trading or have a little quantity of capital. All you have to do is set aside a certain amount of money for each trade you make. For example, if you have Rs 10,000 in trading capital, you could want to set aside Rs 1,000 for each trade. That is, instead of investing the entire cash into one deal, you can divide it into ten. This instantly reduces the amount of risk you take with each trade. It will also aid in the preservation of your capital if the first few deals you make turn out to be losses. 2. Fixed percentage The most often utilised position sizing approach by traders is a fixed percentage risk each trade. On each trade, you put a small portion of your total cash at risk. Depending on the financial asset you're trading — for example, equity, metals, oil, or indices – most successful traders would agree that a 1 – 2 percent per trade risk is a decent starting point. If you employ the set % risk per trade strategy with a Rs 10,000 trading capital, you should only risk Rs 100 – Rs 200 per trade. The beautiful thing about this method is that it forces you to focus on the percentage risk rather than the monetary value. Then, as your capital rises from Rs 10,000 to Rs 20,000, your 1% risk every trade rises from Rs 100 to Rs 200. Similarly, if your capital falls, you still risk 1%, but it will be a smaller Rupees amount. If you don't, you'll quickly discover that the large risks you incur in each trade will quickly deplete your trading cash. 3. Use of leverage While leverage is one of the primary draws for traders to the equity, index, and commodities markets, we all know that leverage can be a double-edged sword. It has the ability to amplify both successes and defeats. Many trading platforms give leverage ranging from 3:1, 5:1, 10:1, or even 20:1. However, when it comes to leverage, keep in mind that you do not have to employ the utmost level of leverage. Just because it's on sale doesn't mean you have to take advantage of it. It is preferable to utilise less leverage to ensure that you are limiting your risk exposure. If you use too much leverage, you increase your chances of experiencing a capital loss or a margin call if a trade goes against you. 4. Kelly's Criterion Let's have a look at the Kelly Criterion formula: W − [(1-W)/R] = Kelly % It computes the percentage of your account you should put at risk (K per cent). It is equal to your trading strategy's historical win % minus the inverse of the strategy win ratio divided by your profit/loss ratio. The proportion you receive from that equation represents the stance you should take. For example, if you get 0.05, you should risk 5% of your capital per trade. These are 4 of the very basic position sizing rules and points to keep in mind while trading. In a world where trading is one of the riskiest businesses to be in, following the rules of position sizing can drastically improve your risk management. As we mentioned before, we at Zebu offer the lowest brokeragefor trading and, as a result, have emerged at as one of the best brokers for trading. Take your online stock trading to the next level with us - please get in touch with us to know more.

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

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

CRED

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

Digit Insurance

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

MamaEarth

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

UpGrad

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

Meesho

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

PharmEasy

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

Vedantu

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

BlackBuck

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

CoinDCX

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

Eruditus

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

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Let’s Make Sense Of Option Greeks - Part 1

A lot of factors influence an option's pricing, which can benefit or hurt traders depending on their positions. The "Greeks" are a set of risk metrics named after the Greek letters that identify them, which reflect how sensitive an option is to time-value decay, changes in implied volatility, and movements in the price of its underlying security. Theta, vega, delta, and gamma are the four basic Greek risk measurements. Here's a closer look at each. Before we begin… Options trading can be extremely profitable if done with the right trading system and with discipline. However, you need to back up your strategy with the best Indian trading platform like Zebull from Zebu. We provide one of the lowest brokerages for intraday trading and are one of the top brokers in the share market right now. And we would love to help you with your options strategy execution. Why option Greeks For the uninitiated, options can be exercised, or converted into shares of the underlying asset, at a set price. Every option has an expiration date and a premium connected with it. One of the most popular option pricing models is Black-Scholes, which leads to price fluctuations. Greeks are frequently viewed alongside an option price model to properly assess risk. Volatility Volatility refers to how much an option's premium (or market value) changes before expiration. Financial, economic, and geopolitical risks can all create price changes. Implied volatility measures the market's expectation of price movement. Investors use implied volatility (or implied vol) to forecast future price movements in a securities or company. If implied volatility is predicted to rise, the premium on an option will likely rise as well. Profitability Several words describe a profitable or unprofitable option. The intrinsic value is the difference between the strike price and the price of the underlying stock or asset. At-the-money options have the same strike price as the underlying asset. An in-the-money option has a profit because the strike price is higher than the underlying price. In contrast, an out-of-the-money option has no profit when compared to the underlying's price. In the case of a call option, the underlying price is less than the strike price. A put option is OTM when the underlying price exceeds the strike price. Influences on an Option's Price Assuming other variables stay constant, an increase in implied volatility increases an option's price. Traders that are long or short will have different returns. If a trader is long a call option, increased implied volatility is beneficial since it increases the option premium. For traders holding short call options, an increase in implied volatility has the opposite (or negative) effect. A surge in volatility would not assist a naked option writer because they want the option's price to fall. Writers are option sellers. If a writer sells a call option, the buyer will exercise the option if the stock price rises above the strike. That is, if the stock price rose enough, the seller would have to sell shares to the option holder at the strike price. Sellers of options are compensated for the risk of their options being exercised against them. This is called shorting. A decrease in implied volatility, shorter expiration time, and a decline in the underlying security's price favour the short call holder. Increasing volatility, time left on the option, and underlying will benefit long call holders. Indicated volatility decreases, time till expiration increases, and the price of the underlying security rises for short put holders, whereas long puts profit from an increase in implied volatility, time until expiration increases, and the underlying security price decreases. During the life of most option deals, interest rates play a little influence. Its impact on an option's price is measured by rho, a lesser-known Greek. Generally, higher interest rates make call options more expensive and put options cheaper. All of this sets the stage for examining the risk categories used to assess these variables' relative impact. Remember that the Greeks help traders forecast price fluctuations. In this article, we have laid a foundation on what moves an option price. In the next article, let’s take a closer look at the different Greeks in an option. At Zebu, we strive to provide our customers with the lowest brokerage for intraday trading. Zebull is our proprietary trading platform that lets you analyse option greeks to perfection and is growing fast to become the best Indian trading platform. As one of the top brokers in share market, we believe that we have the right products and features to help you make the best trades. Please get in touch with us to know more.

The Difference Between Large-Cap Stocks And Blue Chip Stocks

The market capitalisation of a company helps in determining its worth. It's computed by multiplying the number of existing shares by each share unit. The market capitalization of large-cap firms exceeds Rs.20,000 crores. The NIFTY 50 index contains the top 50 large-cap firms in India. This index includes the most actively traded companies on the stock market. Large-cap firms' stock prices cannot appreciate as much as mid-cap and small-cap companies' stock prices. This is due to the fact that large-cap company valuations have attained financial maturity. Dividend payouts account for the majority of such equities' returns. Because there is always someone willing to purchase such well-known and popular stocks, large-cap businesses provide significant liquidity to their investors. On the stock exchange, blue-chip stocks are highly valued. They have a strong market reputation and a solid financial track record. Blue-chip stocks are frequently referred to as the stocks of the largest corporations in the economy. However, before you start investing, it is important that you do so with one of the best share brokers in the country. At Zebu, we have the lowest brokerage for investments and also support you with a highly advanced online trading platform to help you analyse stocks and execute your trades. The primary distinction between large-cap and blue-chip firms is that the latter is the market leader. Blue-chip stocks are well-known in addition to having a significant market capitalization. Large-cap corporations can be well-known or not, whereas blue-chip companies must be well-known. Blue-chip enterprises are well-known in the marketplace and hence have a high brand value. A blue-chip company's stock has reached its maximum growth potential. As a result, blue-chip investors see a slow but consistent increase in their invested capital over time. Because the firms that issue these stocks have many sources of income and have spread their operations to multiple industries, blue-chip stocks can help you diversify your portfolio rather well. As a result, they are less vulnerable to market volatility, making them a low-risk investment alternative. By diversifying your investments even more, you can further lower your risk exposure. During peak business cycles, large-cap corporations are often blue-chip companies because they generate consistent revenue. When compared to blue-chip corporations, large-cap companies are a riskier investment alternative. Despite having a huge market capitalization and good revenue, large-cap corporations have yet to stabilise on such business peaks and maintain them in the long run. Two of the most important checklists for first-time traders and investors are the right online trading platform and the lowest brokerage for investments. As one of the best share brokers in the country, we at Zebu will give you all of this and more. To know more about our services and products, please get in touch with us now.

7 Things To Do At The Start Of Every Financial Year

While it is natural for us to feel less bothered at the start of the financial year, reviewing your finances is an exercise you can conduct in April to ensure the remainder of the year is similarly stress-free. This analysis will help you in determining how well you handle your finances in the previous year and where you stand now. It will also assist you in taking the necessary actions to manage your finances properly in the short and long run. In this article, we'll go over seven crucial things that should be included in your yearly start-of-financial-year assessment, as well as how to go about doing it. But before we get into that you need to understand that investment is also about choosing the right technologies. As one of the top brokers in share market, we at Zebu offer trading accounts with lowest brokerage, and an online trading platform to help you focus only on executing your strategies efficiently. 1. Review your asset allocation and, if necessary, rebalance The first step toward improved money management is to analyse your portfolio across multiple asset classes and rebalance if your asset allocation has changed significantly. Assume you started the year with a 70% allocation to equities, a 25% allocation to debt, and a 5% allocation to gold. Equities are up roughly 21% in FY22, debt is up 5.5%, and gold is up 15.4%. As a result, your portfolio is slightly more biased towards equity, with shares accounting for approximately 72.5% of your portfolio, 22.6% for debt, and 4.9% for gold. To get back to your original asset allocation, you'll need to rebalance your portfolio. Because your equity allocation has increased, you will need to register profits in equities and reinvest the proceeds in Debt and Gold in this case. Alternately, you might restructure your monthly SIPs to include more Debt and Gold. This activity guarantees that your portfolio's risk is balanced, allowing you to better manage drawdowns. 2. Examine Your Objectives The beginning of the fiscal year is an excellent opportunity to assess your progress toward your objectives. It's likely that the amount you'll need has risen more than you expected when calculating the amount you'll need. If you were planning to buy a car, for example, excessive input costs may have caused prices to rise above average. In this case, you'll need to recalculate how much you'll need to invest each month in order to have the money you'll need when the time comes. 3. Evaluate Your Portfolio While long-term investing is essential for wealth accumulation, this does not mean you should invest and forget. A portfolio review should be done on a regular basis, and the beginning of the financial year is an ideal time to do so. A review will show you which funds have outperformed, which have performed as expected, and which have underperformed. While it's tempting to get rid of laggards, you should be cautious about how you go about doing so. You should ideally only evaluate funds that have been underperforming for a long period (say at least 1.5 years). If the entire segment has fallen, a fund with negative returns may not be underperforming. As a result, you must compare the fund's performance to that of the category as a whole. For example, if the fund has declined but not as much as the category average, you may choose to continue with it due to its stronger downside protection qualities. When your goals change, it's also a good idea to review your portfolio. For example, when you were 10 to 15 years away from retirement, you began investing in an Equity Fund. However, you've nearly reached your goal amount and are only two years away from retiring. In this case, you'll need to devote a larger portion of your collected wealth to fixed-income investments. 4. Examine Your Life Insurance Requirements Your obligations expand dramatically after major life events such as marriage, becoming a parent, purchasing a home, and so on. You must ensure that your life insurance policy is adequate to meet all of these new duties. So go back to the calculations you used to determine the correct coverage for yourself, add the amount you'll need to cover the additional duties and get any additional coverage you require. Remember that your coverage should be sufficient to give a monthly income to your dependents, pay off any debts, and leave money aside for future one-time large needs such as your children's education. 5. Look over your health insurance policy Major life events such as marriage and becoming a parent requires a review of your health insurance coverage. If you purchased a policy before getting married, you most likely purchased an individual policy with an adequate quantity of coverage. With more family members, you'll need not simply a larger policy, but you'll also want to be sure they're protected. Converting your health insurance policy to a family floater and boosting the coverage is the simplest way to accomplish this. This ensures that the coverage remains in effect and that you do not miss out on any advantages. 6. Begin Your Tax Preparation It's ideal to begin tax preparation early in the fiscal year. That's because you'll have enough time to figure out how much you'll need to invest to save the most money on taxes and weigh all of your possibilities. Furthermore, because you have the entire year to invest the funds, you can spread them out. If you plan to invest in market-linked products like ELSS and NPS, tax planning at the start of the year is even more important. Having a SIP that helps you save tax throughout the course of the year ensures that you benefit from market ups and downs. If you wait until the last minute, though, you will be forced to invest even if the markets are at an all-time high and there is a chance that they will fall. Furthermore, the money you will invest will be substantial. 7. Increase the amount of money you put aside each month With an increase in your salary, you should increase your SIP investment by 10% per year. This will assist you in achieving your financial objectives more quickly. Other investment options include the National Pension System (NPS), which provides an extra Rs. 50,000 deductions in addition to the Rs. 1.5 lakh deduction provided under Section 80C. You can register a Sukanya Samriddhi Yojana account for your daughter if she is under the age of 11. This plan will give you a better return than the PPF or other small savings plans. These methods will assist you in improving your financial situation and ensuring a smooth financial journey in the future.

5 Podcasts That Traders And Investors Can Enjoy

Day trading podcasts can provide you with the best benefit of all: the interviewees can often provide a wealth of knowledge in a certain sector that would otherwise go unnoticed. In a nutshell, they're a terrific source of fresh information and can help you make better decisions while you're in the midst of a trade. Here are a few of the best ones you should follow. 1. FREAKONOMICS Steven Dubner, the author of the bestselling book Freakonomics, hosts a podcast by the same name. Many people throughout the world have praised the book for its ability to explain economics in a way that is understandable to the general public. The Freakonomics podcast is listened to by thousands of people around the world every Thursday morning. The podcast itself has nothing to do with investing or trading. This is not the case, however, as he covers a wide range of issues and provides an economic perspective. The World Bank President Jim Yong Kim, TV celebrity Charlie Rose, and Vanguard founder Jack Bogle have all been on Dubner's show. If you're a trader, Freakonomics won't tell you how to make the best investments. To the contrary, it will open your eyes to the small things that can improve your financial situation. 2. FINANCIAL TIMES MONEY SHOW PODCAST It's a weekly show, and it's packed with useful information about personal finance. You and your wallet are in good hands with Claer Barrett and her team of FT Journalists (obviously) and prominent industry pundits. The Financial Times has a number of podcasts you can listen to in order to improve your day trading skills. 'News in Focus' and 'Banking Weekly podcast' are two other options for keeping up to date on the latest developments in the financial industry. 3. TWO BLOKES This is a great podcast for beginner traders who are interested in the forex market, and it's also a lot of fun to listen to. With a conversational tone in which they discuss their trading, Tom and Brandon prefer to talk about their own experiences rather than theory. Tom and Brandon conduct interviews from time to time, learning by doing so with the help of industry professionals they've invited on as guests. The Two Blokes trading podcast also includes evaluations of various trading tools and software, book reviews, and other topics. 4. CHAT WITH TRADERS The host, Aaron Fifield, interviews day traders from around the world on a weekly basis in this podcast. Because this podcast shows you to parts of trading that you won't find anyplace else, it is extremely significant. Sheelah Kolhatkar, the author of the previously stated book on Steve Cohen, was one of Aaron's interview subjects. Morgan Slade, Nell Sloane, and Darren Reed are among the other merchants he has interviewed. 5. RICH DAD RADIO SHOW This podcast, hosted by Robert Kiyosaki, is released every week. He meets with experts from a wide range of economic (financial, investment, and commercial) and personal development fields. Unlike many other shows, his thoughts on money, investment, and the economy are unapologetic, offering listeners a variety of perspectives on how to best position themselves for financial success. It's a great method to motivate individuals to take charge of their own destinies and to provide guidance on how to reach their financial objectives. Which of these is your favourite?

P/E Ratio and How To Use It

When determining a company's value, the price-to-earnings (P/E) ratio compares its current share price to its earnings per share (EPS). Along with P/E, the term "price multiple" or "profit multiple" can be used to describe the P/E ratio. When comparing apples to apples, investors and analysts use P/E ratios to determine the worth of a company's stock. Comparisons between companies and aggregate markets can be made against each other or over time using this metric. To calculate P/E, you can use either a trailing or forward-looking approach. For any form of trading or investing you need to have the right technologies. That is why you need the best online trading company that provides you with the best stock trading platform. We at Zebu find that it is our obligation to provide our traders with the best trading accounts so that they can invest with ease. Formula and Calculation for the P/E Ratio The following is the formula and calculation utilised in this process. Divide the current share price by the earnings per share to get the P/E ratio (EPS). If you type in a stock's ticker symbol into any financial website, you'll get the current stock price. However, this is a more concrete value that shows what investors currently have to pay for the shares. In general, there are two kinds of EPS. "TTM" stands for "trailing 12 months" and helps investors understand the company's valuation over the last year. It's common for a company's results report to provide EPS forecasts. It is a This is the company's best educated forecast as to how much money it will make in the future. The trailing and projected P/E ratios are based on different versions of EPS. Understanding the Price-to-Earnings (P/E) Ratio An investor's and an analyst's favourite way to estimate a stock's value is through its price-to-earnings ratio (P/E). The P/E essentially tells an investor if a stock is overvalued or undervalued. Additionally, the P/E ratio of one company can also be compared to that of other companies in its industry or the Nifty 50 Index. Analysts that are interested in long-term valuation patterns may use the P/E 10 or P/E 30 measures, which average earnings over the previous 10 or 30 years, respectively. Because these longer-term measurements can correct for changes in the business cycle, they are frequently used when trying to judge the overall worth of a stock index. When determining if a company's share price appropriately represents projected earnings per share, analysts and investors look at its P/E ratio. Forward Price-to-Earnings Ratios These two forms of EPS measures are used to calculate the two most prevalent P/E ratios: forward and trailing P/E. The sum of the last two actual quarters and the estimates for the future two quarters is a third, less typical form. Instead of using trailing figures, the forward (or leading) P/E employs future earnings guidance. This forward-looking measure, also known as "estimated price to earnings," is useful for comparing current earnings to future earnings and for providing a clearer image of what earnings will look like—without modifications or other accounting adjustments. However, the forward P/E metric has flaws, such as firms underestimating earnings in order to surpass the predicted P/E when the next quarter's results are released. Other corporations may overestimate their forecast and then adjust it in their next earnings report. Furthermore, outsider analysts may make forecasts that differ from those provided by the corporation, causing confusion. Trailing Price-to-Earnings Ratio (P/E) By dividing the current share price by total EPS earnings over the last 12 months, the trailing P/E is calculated. It's the most often used P/E ratio since it's the most objective—assuming the company honestly reported earnings. Because they don't trust other people's profits projections, some investors prefer to look at the trailing P/E. However, the trailing P/E has some flaws, one of which is that past performance does not always predict future behavior. As a result, investors should make investments based on future earnings potential rather than historical performance. It's also a concern that the EPS number remains constant while stock values change. The trailing P/E will be less representative of those changes if a major company event sends the stock price much higher or lower. Because earnings are only reported once a quarter, while stocks trade every day, the trailing P/E ratio will alter when the price of a company's shares fluctuates. As a reason, the forward P/E is preferred by some investors. Analysts expect earnings to rise if the forward P/E ratio is lower than the trailing P/E ratio; if the ahead P/E is greater than the current P/E ratio, analysts expect earnings to fall. As we mentioned earlier you need to have the right technologies to trade profitably. That is why you need the best online trading company that provides you with the best stock trading platform. We at Zebu are obligated to provide our traders with the best trading accounts so that they can invest with ease.

What Exactly Is Insider Trading?

The purpose of investing in stocks and other securities is to accumulate wealth. For some investors, the sooner this aim is met, the better. Traders develop techniques to trade that maximize their profit in the field of trading, particularly when trading equities and shares. Of course, when trading is taking place, the stock markets and exchanges have their fair share of malpractice, and some traders will go to considerable measures to make a profit. Insider trading, as the term implies, is trading by people who have insider knowledge of a company's stock and its trends. Before we get into more about insider trading, 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. 1. How insider trading works Insider trading is defined as trading in stocks, such as bonds and equities, by specified corporate 'insiders' who have unique access to information. Simply put, these insiders are aware of a unique security before any information about it reaches the general public. Insider trading occurs when insiders invest in equities while the general public is unaware of the stock. If such trade is discovered by regulatory authorities, the 'insider' will face severe consequences. 2. When is it Illegal to Trade Insider Information? According to SEBI laws, the Securities and Exchange Board of India, or SEBI, is strongly opposed to insider trading. The fact that insider trading offers some investors an unfair edge in the stock market is the explanation behind the practice being labeled as "illegal." Insider trading is usually done by people who, as a result of their job, have exclusive access to specific types of strategic information about a company's shares. Knowing a company's private information can have a big impact on whether you invest and make money or not. Insiders, for example, may know if a company's quarterly results will reveal a large profit, causing stock prices to rise. They can take advantage of this by investing a large sum of money in the stock in question, nearly ensuring a large profit. Insider trading is regarded criminal from this perspective. Insider trading, on the other hand, is not unlawful when investors buy stocks and all concerned investors are aware of certain information that has an impact on their trading profit or loss. 3. Which Information is insider information? Material information regarding a stock or a firm in the trading world refers to any information that could have a major impact on a trader's or investor's decision to trade (buy or sell) specific securities. Non-public information is information that is not formally available to the public. Insiders use substantial information that is not available to the general public to gain an unfair advantage in trading. Insider trading is prohibited regardless of how the information was obtained or whether the 'insider' is employed by the company. As an example, suppose a friend tells you about insider information (non-public information). This information is then passed on to a family member. On the said stock, the family member trades using this knowledge. In such a circumstance, all three parties implicated might face criminal charges or severe penalties. 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.

Why You Should Invest In US-based Stocks

We Indians use apps like Google, Amazon, and Instagram on a daily basis in today's digital environment. A Dell or MacBook laptop is likely to be used by you or someone you know. Many of the world's largest corporations, including these, are headquartered in the United States but have a global presence. Have you thought about investing in such high-growth businesses but are hesitant due to their location? Let's have a look at some of the benefits of investing in US stocks as an Indian. For when you consider investing or trading in the share market, we at Zebu, a share trading company offer the lowest brokerage for intraday trading and are one of top brokers in share market. 1. Access to multinational corporations All of the major technology businesses, such as Google and Apple, as well as well-known brands like Nike and Starbucks, are based in the United States. Another thing that all of these US businesses have in common is that they are all global. These businesses are well-known all across the world. The US equities market has a market value of $47.32 trillion due to its global prominence, while the Indian equity market has a market capitalization of $3.21 trillion. As a result, investing in these businesses can help you broaden your horizons. 2. Fractional Shares The current price of an Apple stock is 173 dollars or nearly 12,500 Rupees. Similarly, an Amazon stock currently costs 3321 dollars or over 2.3 lakh rupees. One could argue that US stocks are overvalued and not a long-term investment. However, one fantastic feature of the US stock market is the ability to buy fractional shares. Let's say you only have Rs. 20,000. You can put Rs 5,000 into each of your four favorite American companies, and so on. This characteristic of fractional shares allows investors to spread their money across a number of companies. You need not own an entire share. 3. Expanding your horizons Political unrest, elections, budget cuts, and natural calamities can have a significant impact on a country's stock market. Diversifying your holdings is a fantastic way to protect your investments from a sudden drop. While gold and bonds can help you diversify your portfolio, investing in US equities can help you diversify your portfolio while also setting you up for potentially good profits. 4. The monetary value When you buy equities in the United States, you are doing so in dollars. Today's dollar-to-rupee exchange rate is 76.33. Half a decade ago, it was much less. When compared to the rupee, the US dollar has gained by more than 18% in the last five years. When you invest in US equities, you're not just betting on the stock's worth, but also on the value of the dollar. If the value of the dollar rises against the rupee, so does the value of your investment. 5. Global Reach We live in a world that needs technology to emerge every year. The United States is endowed with resources and draws talented minds from throughout the globe. Companies in the United States are always inventing to offer revolutionary solutions to the market. Companies like Tesla, Meta, and Amazon have been working on disruptive solutions in numerous fields in recent years. You can join this wave of innovation by investing in such US enterprises. Conclusion Portfolio diversification is critical for any investor. For an Indian investor looking to invest in global companies and innovative solutions, US stocks are a good choice. And with Zebu, you can do that with ease. We at Zebu, a share trading company make it easier for you to invest in the share market by offering the lowest brokerage for intraday trading and are one of top brokers in share market.

How To Improve Your Chances Of Getting an IPO Allotment

There will be a plethora of IPOs to invest in in 2022, and there will be no shortage of allotments. This will undoubtedly be a banner year for the Indian stock market, as IPOs abound and investors scramble for a piece of the action. Investors rushed to diversify their portfolios in 2021, when more than 60 initial public offerings (IPOs) were listed. The market is excited about IPO allotment this year, and investors are eager to get their hands on the greatest firm stocks. Trading or investing can be a difficult journey without the right tools. That’s why you need the best Indian trading platform with a wide range of features. With Zebu, one of the best stock brokers in the country, your online stock trading journey will be drastically enhanced. How an Initial Public Offering (IPO) Works An IPO, or Initial Public Offering, occurs when a private firm sells its stock to the general public. Companies begin as private companies with a small number of stockholders, such as the founders and their relatives and friends. Original stockholders of a private firm can include venture capitalists and a variety of financiers. When a company has achieved a significant point in its development and has established itself in its industry, it can apply to be listed and sell its shares to the general public. When this happens, anyone can become a shareholder in the firm and place a bid for a specific number of shares. Nonetheless, even if you desire a specific number of shares, you may not receive the IPO allocation for which you bid, receiving less than you expected, or receiving none at all. You might come upon an upcoming IPO among so many of the others expected in 2022, but how do you guarantee allotment? For a large number of eager investors, this is still an open subject. Looking back not too far in time, in 2021, practically every IPO that was offered was massively oversubscribed. However, there are certain specific things you can do to improve your chances of receiving the allotment you want. How to Increase Your Chances As an investor, the fact that an IPO is coming up may excite you, but it's not a good feeling when you don't get the allocation you expected, or worse, no allotment at all. As a result, you should understand how to improve your chances of receiving an IPO allotment by using the approaches listed below: Early Application - When an initial public offering (IPO) is announced, you have three days to apply. Instead of bidding for allocation at the last minute, it's a good idea to do so within the first couple of days. If at all possible, bid on an allotment the same day it is made available. This implies you should have done your study and analysis on the firm in issue well ahead of time to ensure you desire a piece of its stock. Avoid Confusion - Many investors become confused by the phrases used during the IPO application process. If you want to be certain of receiving an IPO allotment, you need think clearly and understand these terms ahead of time. The distinction between the 'cut price' and the 'bid price,' for example, is never clear. An investor's willingness to pay any price that companies decide on at the end of the book-building exercise is referred to as the 'cut price.' After the use of the 'cut price,' the investor is obligated to bid in the highest price range. Any additional amount is reimbursed if the price is lower than predicted, so investors should buy at the 'reduced price.' Avoid Making Mistakes - Filling out IPO application paperwork should not be rushed. Errors in filing forms are common, and these might lead to rejection or the need to refill paperwork. Parent-Company Stocks - If the IPO is for a company that has a parent-company, you should first buy some parent-company stock. This raises your chances of getting an IPO allotment in the company where the IPO is being offered. Open a Demat Account With Zebu, one of the fastest growing share broker companies in India, to invest in any future IPOs as well as a variety of other securities. Simply open a Demat account and you'll be on your way to a world of benefits and fantastic returns. Like we mentioned earlier, with the right tools your share market journey can be a lot simpler. That's why Zebu brings to you the best Indian trading platform with a wide range of features.As one of the best stock brokers in the country, your online stock trading journey will be drastically enhanced.

Things To Learn From PayTM IPO

Paytm is a startup that has gained a lot of attention for the way it has made it possible for Indians to recharge their phones and pay their bills online. Vijay Sharma, the founder, is the face of pure inspiration. He is a typical 'small-town lad' who had huge goals and worked late to build his firm. Many in the industry were looking forward to Paytm's first public offering (IPO), but it fell short of expectations and disappointed most investors. However, like with any failure, there are lessons to be gained from the Paytm IPO disaster, which should be remembered when investing in future IPOs. Are you planning to invest? Before you start investing, it is important that you do so with one of the best share brokers in the country. At Zebu, we have the lowest brokerage for investments and also support you with a highly advanced online trading platform to help you analyse stocks and execute your trades. The history Investing in an IPO should be a well-considered decision, and investors should do their homework before devoting cash to any IPO, whether it is a well-known firm or not. The prospect of an IPO was clearly attractive in the case of Paytm, and the company's exponential growth after demonetization is well documented. However, the corporation did make several mistakes, which analysts now recognize. Some of the corporate transitions, for example, were savvy and took advantage of opportunities, while others were risky. Learning Lesson Many experts consider Paytm to be a very new-age business strategy. As a result, the same experts think that when investors choose to join into any transactions with such firms in mind, such as making IPO investments, they must understand the company's dynamics, understand prospective valuations, and evaluate the company's future plans and growth strategy. As a result, investors who invest in an IPO cannot blame the IPO's failure on their own lack of understanding prior to investing. The most important thing to remember when investing in an initial public offering (IPO) is to be tremendously confident in the firm. Second, a small number of radical businesses/companies have specialty technology and market share. Although some companies do well, such as Zomato and Nykaa, some do not have such blockbuster lists. The Paytm IPO was expected to be a blockbuster, but values were pushed well past their limitations. Investors frequently make mistakes in how they evaluate a firm and base their assumptions on that, rather than conducting a thorough fundamental analysis. Educate yourself and make wise investments. Paytm's stock plummeted by 58 percent after the business was listed on the stock exchange. It went from a $20 billion valuation to a meager $7.8 billion valuation. Now, the company is frantically trying to persuade investors of its steady growth trajectory in the hopes of regaining some funds. However, when it comes to IPO investment, people aren't thinking about Paytm because the company's mounting expenses and a global sell-off of its stock have cast a pall over its future prospects. Going forward, the most important lesson is to understand the business and then the valuation. If it does not seem fair to you, do not put your hard-earned money into it. Two of the most important checklists for first-time traders and investors are the right online trading platform and the lowest brokerage for investments. As one of the best share brokers in the country, we at Zebu will give you all of this and more. To know more about our services and products, please get in touch with us now.

Five Market Theories You Should Know About

When it comes to investing, there are several theories on what makes markets tick and what a given market move indicates. The two major Wall Street factions are divided along theoretical lines: those who believe in the efficient market theory and those who believe the market can be defeated. Although this is a basic distinction, other theories attempt to explain and affect the market, as well as investment behaviour. If you are interested in investing or trading, 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. 1. Theorem of Efficient Markets The efficient markets hypothesis (EMH) continues to be a point of contention. According to the EMH, the market price of a stock integrates all available information about that stock. This signifies that the stock is priced appropriately until a future event alters the price. Given the uncertainty of the future, a devotee of EMH is significantly better suited to owning a diverse range of companies and gaining from the market's overall increase. You either believe in it and employ passive, wide market investment strategies, or you dislike it and concentrate on stocks with high growth potential, undervalued assets, and so on. Those who oppose EMH refer to Warren Buffett and other investors who have repeatedly outperformed the market by identifying irrational pricing inside the broader market. 2. The Fifty-Percent Rule The fifty-per cent principle predicts that an observed trend will experience a price correction equal to about half to two-thirds of the change in price before continuing. This suggests that if a stock has been rising and gained 20%, it will lose 10% before continuing to increase. This is an extreme example, as this rule is frequently used for the short-term trends on which the technical analysts and traders trade. This correction is considered to be a normal component of the trend, as it is typically triggered by fearful investors taking profits early in order to prevent being caught in a true trend reversal later on. If the correction is greater than 50% of the price change, it is interpreted as a sign that the trend has failed and the reverse has occurred early. 3. The Greater Fool Hypothesis According to the greater fool theory, investing is profitable as long as there is a greater fool than yourself willing to purchase the investment at a higher price. This means that you can profit from an overpriced stock as long as another party is prepared to pay a premium to acquire it from you. As the market for any investment overheats, you eventually run out of fools. Investing on the basis of the larger fool theory entails disregarding valuations, earnings reports, and all other data. Ignoring data is just as risky as paying too much attention to it, and hence those who believe in the greater fool hypothesis may find themselves on the losing end of a market correction. 4. The Theory of Odd Lot The odd lot hypothesis uses the sale of odd lots — small blocks of shares held by individual investors – to calculate the best time to invest in a firm. When small investors sell out, investors use the odd-lot theory buy-in. The underlying idea is that small investors are frequently incorrect. The odd lot theory is a contrarian technique based on a deceptively simple sort of technical analysis - odd-lot sales measurement. How successful an investor or trader is in applying the theory is highly dependent on whether he investigates the fundamentals of the firms the theory suggests or simply buys blindly. 5. Prospect Theory Prospect theory is often referred to as loss aversion theory. According to prospect theory, people's views of gain and loss are distorted. That is, people are more fearful of loss than of gain. When people are presented with two contrasting prospects, they will choose the one that they believe has a lower probability of ending in a loss over the one that promises the most gains. For instance, if you offer a person two investments, one that has returned 5% each year and another that has returned 12%, lost 2.5 per cent, and returned 6% in the same years, the person will choose the 5% investment because he places an irrational premium on the single loss while ignoring the larger gains. Both alternatives in the previous example generate a net total return after three years. 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.

Everything You Should Know About Elliot Waves

In the 1930s, Ralph Nelson Elliott established the Elliott Wave Theory. Elliott argued that stock markets, which are widely assumed to function randomly and chaotically, traded in repeating patterns. In this article, we'll go over seven crucial things that you should know about Elliot Waves. But before we get into that you need to understand that investment is also about choosing the right technologies. As one of the top brokers in share market, we at Zebu offer trading accounts with lowest brokerage, and an online trading platform to help you focus only on executing your strategies efficiently. We'll look at the history of Elliott Wave Theory and how it's applied to trading in this post. Waves Elliott suggested that financial market patterns are determined by investors' dominating psychology. He discovered that swings in popular psychology usually manifested themselves in predictable fractal patterns, or "waves," in financial markets. Market Forecasts Using Wave Patterns Elliott made precise stock market predictions based on reliable wave pattern qualities he found. An impulse wave always exhibits a five-wave pattern because it travels in the same direction as the broader trend. On the other hand, a corrective wave net travels in the opposite direction of the main trend. On a smaller scale, five waves can be detected within each of the impulsive waves. Interpretation of the Elliott Wave Theory Five waves advance in the direction of the primary trend, followed by three waves in the direction of the corrective (totalling a 5-3 move). This 5-3 move is then subdivided into two subdivisions of the following upper wave move. While the underlying 5-3 pattern remains consistent, the duration of each wave varies. Consider the following chart, which contains eight waves (five net upward and three net downward) labelled 1, 2, 3, 4, 5, A, B, and C. The impulse is formed by waves 1, 2, 3, 4, and 5, whereas the correction is formed by waves A, B, and C. The five-wave impulse, in turn, generates wave 1 at the next-largest degree, while the three-wave correction generates wave 2. Normally, a corrective wave consists of three independent price movements - two in the direction of the primary correction (A and C) and one in the opposite direction (B). Correction waves 2 and 4 are depicted above. Typically, these waves have the following structure: Take note that waves A and C in this illustration move in the direction of the trend at a greater degree, indicating that they are impulsive and composed of five waves. By contrast, Wave B is anti-trend and thus corrective, consisting of three waves. When an impulse wave is followed by a corrective wave, an Elliott wave degree containing trends and countertrends is formed. As illustrated in the patterns above, five waves do not always go in a net upward direction, and three waves do not always travel in a net downward direction. When the larger-degree trend is downward, for example, the five-wave sequence is downward as well. To apply the idea in daily trading, a trader may spot an upward-trending impulse wave, take a long position, and then sell or short the position when the pattern reaches five waves indicating a reversal is likely. The Verdict Elliott Wave practitioners highlight that just because a market is fractal does not automatically make it predictable. While scientists recognise a tree as a fractal, this does not indicate that the route of each of its branches can be predicted. In terms of practical application, the Elliott Wave Principle, like all other analysis methodologies, has its supporters and critics. One of the critical flaws is that practitioners can always blame their chart reading rather than flaws in the theory. Alternatively, there is an open-ended understanding of the duration of a wave. As we mentioned before investment is also about choosing the right technologies. As one of the top brokers in share market, we at Zebu offer trading accounts with lowest brokerage, and an online trading platform to help you focus only on executing your strategies efficiently.

Six Of The Safest Investment Options For Risk-Averse Individuals

In India, there are several investment opportunities that give attractive returns. With so many alternatives, it's understandable that one would be confused about where to invest. To determine which investment channel is the 'best,' we must first assess an individual's requirement and risk tolerance. There are investment solutions that are tailored to an individual's objectives and needs. Indians prefer to invest in government-backed securities since they are viewed as safe investment vehicles. The following are a handful of India's most popular investment avenues: If you are considering investing then you need to make sure that you use the best broker for trading with the lowest brokerage on offer. Zebu empowers your online stock trading journey with a state-of-the-art trading platform as well. Bank Fixed Deposit (FD) Bank Fixed Deposit (FD) Bank FDs pay a substantially greater interest rate than standard savings bank accounts. 5-year tax-saving FDs are tax-deductible under Section 80C of the Income Tax Act, 1961, and investors can deduct up to Rs 1,50,000 per year. Senior citizens receive a little higher rate of interest on FDs. The rate of interest varies according to the duration of the investment, the amount invested, the resident status (NRI or not), and the bank. FDs are subject to a lock-in term. If you desire to withdraw within the lock-in period, the bank will charge you a penalty in the amount of interest deducted from the investment. The following are the primary features of bank deposits: You receive guaranteed returns over time. The most suitable investment for risk-averse investors. Partial withdrawals are permitted, as is borrowing against the balance. Public Provident Fund (PPF) PPF investments are subject to a 15-year lock-in term. PPF is regarded as one of the safest investments due to the scheme's governmental guarantee. As with bank FDs, PPFs pay a substantially greater interest rate than a standard savings bank account. PPF's key attributes include the following: Best suited for long-term financial goals due to the scheme's 15-year lock-in period. Because the investment is not market-linked, it provides guaranteed returns over time. You have the choice of redeeming the entire corpus or extending the account for a five-year period. National Pension Scheme (NPS) The NPS is another government-sponsored retirement programme. The Pension Fund Regulatory and Development Authority manages the scheme (PFRDA). The NPS is made up of a variety of investments, including liquid funds, term deposits, and corporate bonds. There are numerous NPS schemes from which you can choose according to your needs. Interest rates vary amongst funds. NPS's primary characteristics include the following: The scheme is offered to employees in all sectors. The scheme allows for annual tax deductions of up to Rs 2 lakh under the Income Tax Act, 1961. You can manage your portfolio passively or actively. Sovereign Gold Bonds Sovereign Gold Bonds Indians have a strong affinity toward the yellow metal. Gold investments are made through the purchase of gold jewellery, coins, and bars. Apart from real gold, investors can invest in gold through gold ETFs and sovereign gold bonds. SGB's primary characteristics include the following: Investing in gold enables you to protect yourself against inflation. Due to the inverse relationship between gold and stock markets, investing in gold functions as a hedge against stock market declines. Gold's price does not fluctuate dramatically over time, providing you with capital protection. SGBs give an interest of 2.5% per annum. The lock-in period is 8 years. SGBs are issued by the RBI. 7.75% GoI Savings Bond 7.75% G-Sec bonds replaced the previous 8% savings bond. These bonds were initially issued in 2018. As mentioned in the title, investors get annual interest at a rate of 7.75 percent. These bonds can be purchased for as little as Rs 1,000. The following are the primary characteristics of 7.75 percent GOI Savings Bonds: Your investments are guaranteed by governmental assurances, which safeguard your capital. You receive an assured annual rate of return of 7.75 percent. Recurring Deposit (RD) A recurring deposit is an alternative to a fixed-term deposit. Individuals invest a fixed sum on a regular basis using RDs. As with FDs, RDs pay a significantly greater rate of interest than a standard savings bank account. You can use your real estate development investment as collateral to obtain secured loans. RD's primary characteristics include the following: Investing in an RD over a longer-term enables you to gradually instil a feeling of financial discipline. You do not need a significant sum to begin your investment; a small sum is sufficient. You have guaranteed profits over time because the investment is not tied to the stock market. Now that you have understood more about low-risk investments, you also need to ensure that you use the best broker for trading with the lowest brokerage on offer. Zebu empowers your online stock trading journey with a state-of-the-art trading platform as well.

How To Rollover Futures Contracts

The term "rollover" refers to the process of transferring a near-expiring front-month contract to a futures contract in a further-out month. What this means is that you'll close out your current contract and open a new one in the same time frame. The expiration date of any futures contract or option you purchase will be clearly marked on the contract (last day until which you can trade that contract). So, for example, you can only trade the Nifty 28th August future until August 28th. If you are considering investing or trading then we recommend you try Zebu’s as top brokers in share market we offer one of the best Indian trading platform with the lowest brokerage for intraday trading. If you want to hold your position till September, you will need to sell your August Nifty futures and buy a new September futures contract, which will be valid until September 29. Rolling over refers to the act of transferring from one month's pay to the next. Before the market closes on August 28th, you can perform this rollover at any moment. So, for example, if you bought Nifty August futures at 17070 and imagine Nifty futures is 17000 on 20th August, you now opt to roll over your position to September since you want to continue your nifty futures purchase position. This means that the Nifty August future will be sold and you will instead purchase the Nifty March future, which you can now hold until March 29th. You must pay brokerage and costs when you sell the August futures and you must pay brokerage and charges again when you buy the September futures. As with a typical buy-and-sell, there are fees involved. This SEBI circular and comments from the exchanges state that rollover of contracts during the ban period is not permitted. In the event that you hold a contract job that is currently in a ban, you will only be able to exit that contract.

SEBI’s New 50% Margin Rule And What It Means For The Market

The Securities and Exchange Board of India (Sebi) announced in November that the framework for segregation and monitoring of collateral at the client level will be implemented on May 2, 2022. Following repeated appeals from parties to the market regulator, the deadline was extended to May 2nd. The rule was supposed to go into effect on December 1, 2021, but it was pushed back to February 28, 2022, and then to May 2nd, 2022. SEBI says that they are introducing this 50% margin rule for futures and options trading to limit risks in the system. This rule was proposed after a popular stockbroking company illegally used their clients’ shares as collateral against a loan. Market experts applauded the deadline extension, saying that more time would help all intermediaries prepare for the new margin rules. Since there will be a lot of changes in technology and operational processes, this extra time has assisted all intermediaries in properly gearing up. Even though the deadline is coming into effect today, several brokerage firms have implemented this 50% margin rule even before that for futures and options trader. The clauses outlined procedures for collateral deposit and allocation, collateral value, change of allocation, margin blocking, collateral withdrawal, and default management. In a recently released circular, the regulator highlighted investor interest, market regulation, and development as reasons for the postponement. Previously, investors could use their securities to completely cover their margins. However, from today, they will be required to hold 50% of the value in cash in their account as margins in order to trade in these categories. During times of strong market volatility, stress, and a bull run, this is primarily to protect investors from big swings, as well as the high risks and pitfalls of leverage. However, many people have raised concerns about the regulation's negative aspects. According to them, this can lead to a reduction in market liquidity and possibly upend the market's core price-discovery mechanism. Many brokers and traders believe that both results might have a big impact on market volumes.

Invest 10% Of Your Monthly EMI In Mutual Funds And Get Back The Interest On Your Home Loan

Getting a home loan has become a must, but have you considered how much you pay back to the bank? Taking out a home loan has become a need for working individuals in recent years. However, the amount of interest you pay on your house loan is sometimes greater than the loan amount. If you calculate how much you'll pay on a home loan of Rs 50 lakh, you'll see that the loan would cost you twice as much You can avoid this loss if you are a wise investor. This is where a mutual fund's Systematic Investment Plan (SIP) might help. You can recover the entire house loan cost by starting a SIP equivalent to 10% of the monthly installment amount as soon as the EMI begins. At Zebu, we understand that traders and investors with very high aspirations need nothing short of the. best Indian trading platform with its plethora of features and scanners. As one of the top brokers in share market in India, we have the privilege of providing our users with their best trading accounts. The following is a computation for a Rs 50 lakh home loan. Loan amount: 50,00,000 EMI Tenure: 20 years Interest rate: 9% p.a Total interest: 57,96,000 Total payment: 1,07,96,000 Monthly EMI: 45,000 You must repay around Rs 57 lakh in 20 years on a loan of Rs 50 lakh, which is more than the principal amount. As a smart investor, you can do one more step in getting back the interest amount of 57 lakh at the end of 20 years. Take 10% of the monthly EMI - that is, 4,500, and invest it in a good mutual fund scheme. For example, if you choose a flexicap fund that gives you a return of 15% per annum as interest, you can invest Rs 4,500 in that every month for the same 20 years as your home loan tenure. Monthly SIP: Rs 4,500 (10% of EMI) Tenure: 20 years (same as home loan tenure) Average returns: 15% per annum Amount invested: Rs 10,80,000 Total value of SIP after 20 years: Rs 68,21,797 On a 50 lakh loan, you give the bank around Rs 57 lakh over 20 years. During these 20 years, you can build a corpus of around Rs 68 lakhs by investing merely Rs 4,500 per month in SIP. That means you can minimise your loss to zero here and get your interest back. You can get one of the . best Indian trading platforms with its plethora of features and scanners to build your investment portfolio. As one of the top brokers in share market in India, we have the privilege of providing our users with their best trading accounts.

You Need An Imaginary “Third Child” To Prepare For Retirement

Knowing how much it costs to raise a child and how much joy it brings isn't always easy to compare, but it's smart to know and plan for these costs. In general, it costs a lot to raise a child, from the time it is born to when it goes off on its own. It costs between 1.5 and 2 crores. When you think about how much it costs to raise a child now, having two kids makes sense. At different points in a child's life, there are some costs that need to be paid. These are some of them. In light of the current trends, these costs are based on averages. Trading or investing can be a difficult journey without the right tools. That’s why you need the best Indian trading platform with a wide range of features. With Zebu, one of the best stock brokers in the country, your online stock trading journey will be drastically enhanced. Expenses at different stages of life There is a lot of money spent on medicines and vaccines in the first year after the birth of a child in urban and semi-urban areas. A playgroup or creche costs a lot of money when a child turns two. This could cost anywhere from 50,000 to 1 lakh, depending on how many amenities the creche has to offer. In the early years of a child's life, the cost of toys and clothes is big because they tend to grow out of them. School expenses: Based on recent trends, it looks like more than half the population of parents spend more than half their annual income to pay for their children's education and hobbies. There are times when parents have trouble making ends meet because the cost of school has gone up. A good school charges a fee of 50,000 to 2 lakh for the whole year. Expenses for the 12 years from classes I to XII would be between 11 lakh and 43 lakh if annual education costs rose by 10% each year. In addition to any tuition or extra-curricular activities that the child will be paying for, this fee will be added on as well. Higher studies: Suppose that the average cost of going to school for engineering is about 10 lakh today. In about 15 years, the same thing would cost 40 lakh to 50 lakh, too. The same thing goes for medical degrees. If they cost 25 lakh now, it's a safe bet that they will cost more than 1 crore in the next 15 years. Even though parents can take out loans to pay for their kids to go to school, the interest rate is still high, even after tax breaks. Besides paying for their kids' education, a family might have to spend money to make their home more private for their grown-up kids. Entertainment costs have also gone up a lot, especially in cities. There are birthday parties to plan, birthday gifts to buy, school cultural events, gadgets, hobbies to keep track of, and so much more to think about. In light of the above outflows, it is important for parents to plan their finances so that they don't spend more than they need to and aren't able to save for their own retirement. There are also safety nets that need to be put in place, like getting enough insurance and setting up an emergency fund. To make sure that you have a retirement fund, you can assume that you have a third child and every time you spend on your first two children, you can invest the same amount for the imaginary third child and invest it in a mutual fund. With a return of around 12-15% per annum, you will be left with a substantial corpus. You can use this as your retirement fund and can enjoy your golden years with enough funds.

Types Of Stocks In The Indian Share Market - Part 1

When it comes to investing in the stock market, you have so many options to choose from! You can choose from over 5000 companies based on your risk-taking abilities and market conditions. However, these stocks can be classified broadly into a few types that will make investing easy for you. Let's look at the many types of stocks and how to choose them. 1. Blue-chip stocks Blue-chip stocks are top-rated stocks that you might be very familiar with. For example, Reliance, TCS, Nestle, and Asian Paints are a few blue-chip companies. But do you know what these businesses all have in common? They've been in business for a long time. They are well-known with a long track record of performance. Show consistency in performance Are pioneers in their respective sectors Have strong financials These companies' stocks are good buys. Since these companies are the best in their respective industries, they can provide consistent returns. More importantly, because they are at the top of their game, you may not notice a significant decline. Are very liquid since there are always investors wanting to acquire these equities. Before we proceed, let’s discuss an important market term - beta. Who doesn't like the attractive combination of predictable returns and low volatility? But how does one evaluate both of these combinations in a single stock? There are numerous methods for evaluating a firm, but one efficient method is to examine its Beta. What exactly is a Beta? Beta is a measure of stock volatility in relation to stock indices such as the Nifty, which has a beta of one. A stock is regarded as more volatile than the index if its beta is greater than one. It is typically favoured by aggressive investors with a high-risk tolerance. A stock with a beta of less than one, on the other hand, is considered low volatile and is chosen by conservative investors with a low-risk appetite. Beta can also be referred to as market risk or systematic risk. 2. High-beta stocks Stocks with a beta greater than one are considered high beta. Because of their high beta, these companies are volatile and are preferred by aggressive investors. They also have the potential to outperform the benchmark index in terms of returns. Stocks in financial services, infrastructure, metals, and other industries are considered high beta. So, what are stocks with a low beta value called? That brings us to our next stock kind. 3. Defensive stocks In layman's terms, defensive stocks are equities issued by corporations that are not affected by economic cycles. Companies in this area include healthcare, utilities, and food & drinks, among others. Regardless of the state of the economy, you will require food, healthcare, and electricity. So, these are not affected by economic events. These stocks often have a beta of less than one and are considered low volatile. Despite a market slump, these equities are unlikely to decline significantly in comparison to other stocks. As a result, they are often favoured by investors who do not wish to take on a significant level of risk with their equity portfolios. But what kind of equities are genuinely affected by the economic cycle? 4. Cyclical securities Cyclical equities, on the other hand, are corporations whose performance is affected by economic cycles. When the economy is in a boom, there is a strong demand for these companies' products, which leads to better profitability and rising stock values. When the economy is in a slump, however, demand for these industries' products falls, resulting in fewer earnings and a drop in stock price. Steel, cement, infrastructure, vehicle manufacturers, and real estate firms are examples of companies that belong within this category. You may have guessed why by now. Because budget cuts make it less probable to buy a new automobile or a new house while the economy is struggling. In the next blog post, let’s discuss more types of stocks.

Types Of Stocks In The Indian Share Market - Part 2

In the previous blog, we discussed a few important types of stocks. Now, let’s look at the other major categories. 5. Value Stocks These are stocks that are trading below their worth or intrinsic value. What exactly is intrinsic value? It is the true worth of the company based on estimates rather than the market price of the company's stocks. Consider the following example: Assume you come across a firm called Sheetal Communications, which has a current share price of Rs. 500. However, based on your calculations, the company's intrinsic value is Rs. 600 per share. The stock market will eventually recognise the company's true worth, and the stock will grow correspondingly. Value stocks are inexpensive and have the potential to generate high returns over time. However, both value companies and terrible stocks are available at a low valuation. So how do you tell the difference between the two? Remember that value stocks are quality businesses that have been momentarily trading at lower prices and have the ability to resurge and prosper in the future. Some possible reasons for a temporary decline include results falling short of expectations for a quarter, a brief piece of bad news riding strong sentiment but with a smaller financial impact, or simply poor market mood. Weak stocks, on the other hand, have limited liquidity, inconsistent earnings history, or poor metrics on conventional financial parameters. 6. Growth Stocks You might have guessed how stocks in this category work. These are companies whose earnings are expanding faster than those of their peer group. However, because of their stronger growth rate, these stocks require a higher investment than their rivals. They require additional capital to expand due to their rapid growth. As a result, these stocks will pay no or very little dividends and will reinvest earnings largely in the firm. However, the difficulty with these stocks is that a company's rapid growth rate does not usually last long. This means that when the company's growth rate returns to normal, the stock price may decline with it. 7. GARP Stocks GARP, or Growth at Reasonable Price, is a hybrid of growth and value investment. GARP investing identifies growth stocks that are accessible at a reasonable valuation. The goal is to find growth firms that consistently exhibit above-average earnings growth while trading at a low value. These equities have an average P/E ratio and a greater rate of earnings growth, resulting in a PEG ratio of one or less than one. However, there is a distinction between GARP and value investing. Value investors seek out stocks that are inexpensive, but the chance of losing money with GARP is negligible. 8. Momentum Stocks Momentum stocks are based on the idea that if a stock is rising, it will continue to rise for some time. This means that investors would buy rising stocks and sell them when they appear to have peaked. It is usual for investors to buy up-trend momentum equities at greater prices with the hope of selling at even higher prices. Early riders on the momentum rally benefit the most. However, momentum can be a trap for new investors if they enter the stock too late, especially if the up-move is about to end. When a stock begins to rise in price, investors become concerned that they will miss the next major move and begin to buy. This causes the stock to rise even higher, and so on. Momentum investing is based on technical information rather than fundamentals. And, while momentum investing may not be a good option for inexperienced investors, when done correctly, it can result in remarkable profits. 9. Income stocks These investors want a steady income with the possibility of capital appreciation. Income stocks are less risky than other equities in the market. Companies in the income stock category receive extra income in the form of dividends that the company pays per share.

What Are Microeconomics and Macroeconomics?

Studying economics can help you understand the potential effects of economic policies on diverse industries. Economics is a tool that can help you predict macroeconomic conditions and understand the impact of those forecasts on businesses, equities, and financial markets. When you study the economy as a whole, it is called macroeconomics and when you inspect each aspect of the economy individually, it is called microeconomics. Let us now examine what they are. Microeconomics Microeconomics studies decisions made by individuals, firms, homes, workers, etc. Assume you and your family eat onion pakora every day. But you see that onion prices are increasing dramatically every day. So, you call for a family meeting and decide that you will eat onion pakoras only once in three days. While your family might not enjoy the decision, they agree since they contribute to the family finances equally. Microeconomics is the study of how specific changes in commodity prices can cause a person or corporation to change its behaviour. Macroeconomics Microeconomics, on the other hand, is concerned with parameters such as inflation, growth, inter-country trade, and unemployment. Microeconomics and macroeconomics are mutually beneficial. Microeconomics is a bottom-up method in which individuals and enterprises are examined first, then an industry, and finally the country. Macroeconomics is a top-down method in which the country is examined first, followed by the industry, and finally individuals or businesses. Macroeconomic considerations have a significant impact on stock market growth and success. What are the factors that macroeconomics looks at? It focuses more on elements such as GDP, unemployment rate, inflation, interest rate, government debt, economic cycles, and so on.

What is the Risk-Reward Matrix?

If you have seen the recent miniseries about one of India’s famous scammers, you would have come across this phrase: Risk hai to Ishq hai (Where there is a risk, there is love) Think about the times that you enjoy going on a long drive. When you started learning how to drive, it must have seemed risky and scary. But now that you are an experienced and good driver, you can enjoy the road to a great extent. All that risk you took seems to be worth it, right? The same is true for investment. Every investment has some level of risk. While you cannot prevent risk, you can reduce it by being financially savvy and recognising your risk tolerance. The same is true for investment. Every investment has some level of risk. While you cannot prevent risk, you can reduce it by being financially savvy and recognising your risk tolerance. So, if you want to achieve your goals, you must invest. But, if no investment is genuinely risk-free, how will you achieve your objectives? That's a problem! But there is a workaround. You can increase your return potential by diversifying into the correct investments to help limit market volatility and keep your financial goals on track. Investment risk-reward matrix Every investor seeks an investment opportunity that will provide them with the highest possible profits as quickly as possible. But remember that it's better to proceed slowly in the correct way than quickly in the wrong direction. And, as the saying goes, "all good things take time." Similarly, investments take time to mature. In terms of investments, the risk-to-reward ratio is an important issue to consider. Consider you and your friend deciding to participate in the 'dice throwing' Instagram trend. In this game, your friend suggests that each of you contribute Rs. 500, for a total contribution of Rs. 1000. You will win the complete money if the dice is tossed and lands on an even number. Your friend stands to win if it is an odd number. The risk to reward ratio, in this case, is 1:1, as both of you have a 50% chance of winning the money you put in. It doesn't sound like an attractive investment, does it? Assume you opted not to play. Your friend decides to up the stakes after hearing this. He modifies the game and recommends that if you contribute 500, he would place three times that amount, or 1500, for the same bargain. This sounds amazing, doesn't it? You still have a half-chance of winning. If you win, he will receive Rs. 1500, which is three times your initial investment. As a result, the risk to reward ratio is 1:3. In technical terms, the risk to reward ratio is a valuable measure that helps gauge an investment's profit (reward) relative to its potential loss (risk). We have already learned that each investment carries a certain level of risk. According to the industry, the greater the risk, the greater the reward. We'll look at common assets and their risk-reward ratios to see what you may expect if you invest in them. Equity Shares and equities are the most volatile of all investments, making them the riskiest. However, it has the greatest potential for long-term profitability. Debt/bonds Debt securities are issued with the promise of interest payment. Because the risk is lower, the rewards achieved over time may not be as great as in the case of equities. Property investment The real estate market is volatile by nature. Key risks are determined by a variety of factors such as geography, demand, structural challenges, and a lack of liquidity. Based on all of these criteria, the risks associated with real estate investing are likely to be comparable to those associated with equities and bonds. Gold When it comes to gold investment risks, the expense of keeping and insuring the precious metal may be included. However, you can now invest in gold through Sovereign Gold Bonds (SGB), digital gold, gold ETFs, and gold mutual funds. Investing in gold provides diversification and a distinct blend of reward benefits. However, the risks associated with commodities such as gold are determined by market demand and supply. Varied assets will provide you with different growth rates. After reading about the various degrees of risk associated with each investment, you may be wondering, what if you just keep the money at home? Wouldn't that imply no risk? Keeping cash at home, for example, may be dangerous. Alternatively, simply having money in a savings account exposes it to inflation. This means that the money will continue to lose value over time. And that's an extra risk you'd be incurring. So, it is always better to invest.