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.
Apr 23, 2022
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.
Apr 22, 2022
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.
Apr 21, 2022
Market emotion can be gauged using a derivative indicator known as the Put-Call Ratio (PCR). Both a "call option" and a "put option" provide buyers the right to buy or sell a specific asset at a specific price, respectively. On any given day, the open interest in both a put contract and a call contract is combined to calculate the PCR. PCR = Put Open Interest/ Call Open Interest With lowest brokerage for intraday trading and at Zebu, we are constantly trying to provide customers with the best stock trading platform to make your online stock trading journey easy. Interpretation: A rising Put-Call Ratio, also known as a PCR, indicates that put contracts have a bigger open interest than call contracts. Traders are either negative on the market or using put options to protect their holdings from potential losses. There is greater open interest in call contracts than put contracts if the Put-Call Ratio or PCR falls below 0.5. This is a sign that investors are bullish on the market as a whole. A Put-Call Ratio of 1 shows that there are as many people interested in purchasing put options as there are in purchasing call options. Considerations that should be taken into account Investors can use the put-call ratio to get a sense of market sentiment before a market shifts. Aside from this consideration, it's vital to examine demand for both numerator and denominator (puts and calls). The denominator of the ratio contains the number of call options. In other words, a decrease in the number of calls exchanged will raise the ratio's value. Reduced call purchases without an increase in puts can raise the ratio. This is significant. To put it another way, the ratio doesn't have to climb dramatically in order for it to do so. As more bullish traders remain on the sidelines, the market becomes more negative as a result. However, this does not necessarily mean that the market is bearish, but rather that the market's bullish traders are waiting for a future event, such as the impending elections or RBI meetings. A Sign of Unpredictability: In India, the Put-Call Ratio is a common Contrarian Indicator. The market is due for a trend reversal if the readings are excessively high or low. Market players are overly pessimistic, and the market trend is likely to turn around soon. Similarly, exceptionally low levels signal that market participants are overconfident, and the market could turn red shortly if this trend continues. Like we mentioned earlier with lowest brokerage for intraday trading and at Zebu, we are constantly trying to provide customers with the best stock trading platform to make your online stock trading journey easy.
Apr 20, 2022
In finance, words like Face Value, Book Value, and Market Value are used very often to determine the valulowest brokerage e of a company. There is a lot of confusion about these terms, and some people think they're all the same. Is it possible for them to be used interchangeably, and if not, what is the difference between their book values and face values? When it comes to stock selection, do these terms really make a difference? If you are someone who trades or invests regularly then you understand the importance of using the right technology. We at Zebu, as one of the best share broker in the country, offer an online stock trading platform with lowest brokerage for intraday trading best suitable for full-time traders and investors. Face Value Face Value During the earliest phases of the offering, the value of a company's common stock is calculated and recorded on the balance sheet. Original cost might be referred to here. However, it is not an accurate representation of the market value. For example, the stock's FV does not fluctuate and changes when a corporation goes through a stock split. In splitting the stock, the face value is taken into consideration rather than the market value. There are many different ways to split a stock, such as a 1:2 split, which will result in a change in the stock's face value. As a result, the stock market's value is likewise altered. Dividends are calculated per share or per percentage of the face value of the share. As an example, if the dividend is declared to be 80 percent and the stock has a face value of Rs 10, each share will receive Rs 8. As a result, investors should always focus on dividend amount rather than dividend % when evaluating a company. Face Value is based on the following two factors: Equity share capital and outstanding shares Equity share capital divided by the number of shares in issue equals the "face value." As a result, the face value of each share is nothing more than the amount of equity stockholders have invested. It's a theoretical number that doesn't change. Book Value The term "book value" refers to the value of a company's books (accounts) that is reflected in its financial statements or net worth. If all the firm's assets are sold and all of its liabilities are repaid, this is what the company is worth. The Free equity of a company, to put it another way, is reflected in this metric. The fluctuation in Book Value is extremely rare and occurs just once a year as a result of the company's overall performance. Using BV, you can see if the stock of a company is overvalued, undervalued, or just right. A company's book value must be adjusted if it has a component of minority stake that is profit in the books due to a sister business under it. (i) Book Value = Total Assets – (Total Liabilities – Current Liabilities) (ii) Book Value per share = Face Value + Reserve per share Book Value and Face Value are linked in the second formula. There are few drawbacks to book value, such as the fact that it is disclosed on an annual basis. An investor won't know the company's book value has changed over time until after the reporting. There may be revisions to this accounting item that are difficult to understand and estimate. It is not effective for businesses that rely largely on human capital because only tangible assets are considered in the computation of book value. Market Value It is possible that the stock's market value does not correspond to its fair value, which is determined by the stock's current price on the exchange. It's a measure of how much a business is worth. When the stock market fluctuates, so does MV. In the short term, it is influenced by the mood of the market, but in the long run, it is determined by the results of the company's operations. It is the price at which we buy or sell the shares on the open market. Consequently, this is the most critical information for stock trading. This formula is used to determine a company's market value. Market Value = Current Stock Price * Number of shares outstanding Market capitalization (MV) is another name for MV. Both tangible and non-tangible assets are taken into account when determining market value. Market value, on the other hand, is based on a shaky foundation. The market value of a firm can be affected by a variety of factors, including profitability, performance, liquidity, and even simple news. As a result, one might conclude that a company's market value represents its current trend. Market vaue Vs Book Value If the stock is overvalued, undervalued, or just right, investors analyse the Book Value and Market Value. If the market value of a firm is lower than its book value, this implies that the market has doubts about the company's future. Or, to put it another way, investors believe that the company isn't worth what it's worth on paper, or that future earnings will be insufficient. Value Investors, on the other hand, are on the lookout for such businesses because they believe the market is overvaluing them. If the market value of a firm is more than its book value, this shows that it is being valued more highly by the market. Therefore, investors expect that the company's book value will rise in the future due to its good potential for growth, expansion, and increased earnings. Such businesses are considered attractive by investors. Stocks that are already trading at a high price may also be considered overvalued or overbought. As mentioned earlier If you are someone who trades or invests regularly then you understand the importance of using the right technology. We at Zebu, as one of the best share broker in the country, offer an online stock trading platform with lowest brokerage on intraday trading best suitable for full-time traders and investors.
Apr 19, 2022
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.
Apr 18, 2022
With immediate effect on April 28th, 2022, the National Stock Exchange of India (NSE) will reinstate the "Do Not Exercise" option in stock option contracts, providing much-needed respite to stock traders. There will be a mandatory physical settlement of stock derivatives in October 2019, according to SEBI. To put it another way, if you have an open position in a stock option contract on the expiration day, you will have to deliver/take stock when the option is exercised. Only if the contract is ITM (In-The-Money) at the time of expiration can it be executed. Are you a regular trader? Then choose Zebu’s online trading platform for analysis and make your trading journey seamless. As an online trading company we ensure our customers are benefited from our lowest brokerage for intraday trading options. Some traders have the option to make a 'Do Not Exercise' request (DNE) in order to avoid exercising their entitlement to give or receive delivery. However, this option will no longer be available after October 2021. On October 14, the final remaining 'Do Not Exercise' facility was shut down. Some options traders who were unable to close their open positions on the expiry date as a result of NSE's action burned their fingertips when they had to settle their shares physically on the expiry date. Depending on the form of option, option holders were virtually required to either take or give physical delivery of the underlying share. The option buyers, who pay a specified sum known as a premium, have the 'right' to buy or sell a stock at a specific price on a specific date or by a specific date, were the most impacted by this change. With the notion that their liability is limited, these traders found themselves caught off guard when their "right" to buy or sell had turned into their "obligation" to take or give delivery of the shares. In order to protect traders who are unable to close down their holdings before the expiry date, the 'Do Not Exercise' option has been reinstated. Choose Zebu’s online trading platform for analysis and make your trading journey seamless. As an online trading company we ensure our customers are benefited from our lowest brokerage for intraday trading options.
Apr 17, 2022
Venture capital, private equity, hedge funds, and managed futures, are some of the investments that can be made in an alternative investment fund. To put it another way, an AIF is a type of investment that does not fall under the traditional categories of equities, debt securities, and so on. In contrast to Mutual Funds, which require a lower investment amount, Alternative Investment Funds tend to attract high-net-worth individuals and institutions. Before getting into understanding Investment Funds, if you are keen on investing or trading you should always have the right tools that can support your investment journey. At Zebu, as a reputed share broker we have the best lonline trading platform and offer lowest brokerage for intraday trading. Alternate Investment Funds Types According to the SEBI, AIFs fall into one of three basic categories. Category 1: Small and medium-sized firms (SMEs) and other startups with strong development potential that are also considered to be socially and economically viable fall under the purview of Category I investment funds. They have a multiplier effect in terms of growth and job generation and are encouraged by the government to invest. Those funds have been a lifeline for firms that were already flourishing but lacking in funding. The following funds are included in Category I: Venture Capital Funds Funding for start-ups with great growth potential but a lack of capital to start or develop their firm is provided through Venture Capital Funds (VCF). For new enterprises and entrepreneurs, Venture Capital Funds are the preferred method of raising financial because it is difficult to raise funds through the capital markets. Venture capital funds (VCFs) bring together money from investors who wish to invest in start-ups. According to their business profiles and assets, they invest in a variety of startups at various stages of development. A venture capital fund focuses on early-stage investments, unlike mutual funds or hedge funds. Depending on the amount of money spent, each investor receives a piece of the company. VCFs are favoured by HNIs looking for high-risk, high-return investment opportunities. Foreign HNIs can now invest in VCFs and help the economy flourish as a result of the AIF inclusion of VCFs. The Infrastructure Fund (IF) The fund makes investments to improve public infrastructure, including as roads, railways, airports, and other means of communication. The infrastructure industry has a high barrier to entry and relatively low competition, making it a good investment opportunity for those who believe in the sector's future growth. It is possible to earn both capital gains and dividends from an Infrastructure Fund investment. Government tax incentives could be available to Infrastructure Funds that invest in socially desirable/viable projects. Angel Fund Fund managers combine money from a number of "angel" investors and invest in young firms for their development in this form of Venture Capital fund. Investors receive dividends when the new enterprises start making money. As with Angel Funds, units are distributed to the investors. In the startup world, a "angel investor" is a person who wishes to invest in an angel fund and who also has company management experience to offer. These investors choose to invest in businesses that aren't often supported by mainstream venture capital funds because of their uncertain growth. The Social Venture Fund The rise of the Social Venture Fund (SVF) as a vehicle for investing in companies with a strong social conscience and a desire to effect genuine change in society can be attributed to socially responsible investing. These companies aim to make money while simultaneously addressing environmental and social challenges. A return on investment is still possible because the companies involved are still expected to make a profit. The Social Venture Fund prefers to invest in projects in developing nations because of their potential for both growth and social transformation. A win-win situation for all stakeholders is created when the finest techniques, technology and significant expertise are brought to the table by the investors, businesses and society. In the following blogs, we will cover the investments that come under Category 2 of the Alternate Investment Funds. As we mentioned before, with the right tools your investment journey can be very smooth. At Zebu, as a reputed share broker we have the best lonline trading platform and offer lowest brokerage for intraday trading.
Apr 16, 2022
Are you aware that one of the most fundamental trading methods is to trade trend pullbacks? Yes! There are numerous strategies to earn from pullback trading. You may profit from trading pullbacks across all time frames. This is because a trend can occur on any time scale, from the 5-minute to the monthly. Before we get into commonly used pullback strategies we would like you to know that 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. In today's blog, we'll present six profitable pullback trading strategies, but first, let's define pullback trading: What does the term "Pullback Trading" mean? A pullback is a temporary halt or little decline in the price of a stock or commodity that occurs during an ongoing increase. A pullback is virtually synonymous with retracement or consolidation. The term "pullback" refers to brief price drops – say, a few consecutive sessions – before the uptrend resumes. Following a significant upward price movement, pullbacks are sometimes considered as buying opportunities. For instance, following a great earnings report, a stock may have a significant jump before reversing as traders liquidate existing positions. On the other side, positive earnings are a fundamental indicator that the stock will continue to climb. Most pullbacks see a security's price move to a technical support level, such as a moving average or pivot point, before resuming its uptrend. Traders should pay special attention to these important support levels, as a breach below them may indicate a reversal rather than a retreat. Now that we understand what pullback trading is, let us explore several tactics for trading pullbacks: 1. Pullback to a trendline Determining the trend's direction should be quite straightforward. The swing high and low structure is the most straightforward way to recognise a trend. An uptrend is defined by a series of higher highs followed by a series of higher lows. Whereas a downtrend is defined by a series of lower lows and lower highs. The disadvantage is that trendlines are frequently validated more slowly. Three contact points are required to validate a trendline. You can always link two random locations, but it is only when you reach the third that you have a true trendline. As a result, traders can only trade the trendline pullback at the third, fourth, or fifth contact point. While trendlines perform well in conjunction with other pullback tactics, as a stand-alone strategy, the trader may miss numerous opportunities if trendline validation takes an extended period of time. 2. Pullback to moving average Without a question, moving averages are one of the most often utilised tools in technical analysis, and they may be used in a variety of ways. Additionally, you can utilise them to trade pullbacks. A moving average of 20, 50, or even 100 periods could be used. It is irrelevant because it is entirely dependent on whether you are a short-term or long-term trader. Shorter-term traders utilise shorter moving averages to get hints more quickly. Naturally, shorter moving averages are more prone to noise and false signals. On the other side, longer-term moving averages move more slowly and are less subject to noise, but may miss short-term trading opportunities. Consider the advantages and downsides for your own trading. 3. Pullback after a breakout Breakout pullbacks are extremely prevalent, and probably the majority of traders trade this price action pattern. Pullbacks following breakouts are frequently seen at market turning points, following the price breakout of a consolidation pattern. The most often used consolidation patterns are wedges, triangles, and rectangles. Open range breakout is another common strategy. Once the day's 15 minutes low and high are marked, traders enter a long position once the upper limit is broken on a good volume. In this situation, it would be ideal to wait for a pullback to the vwap or the 15-minute high for a better risk:reward potential. As we mentioned before, trading and investments requires 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 analysis easy for you. To know more about its features, please get in touch with us now
Apr 15, 2022
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.
Apr 14, 2022
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.
Apr 13, 2022
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.
Apr 12, 2022