Creating a trading strategy that outperforms the market can seem like a difficult task, but with the right approach, it’s definitely achievable. Here’s a simple guide to help you develop a strategy that could give you an edge.
1. Understand Your Goals
Before you start, think about what you want to achieve. Are you looking for short-term gains or long-term growth? Knowing your goals will help you shape your strategy to match.
2. Know Your Risk Tolerance
Figure out how much risk you’re willing to take. Are you comfortable with high-risk, high-reward trades, or do you prefer a safer approach with steadier returns? Your risk tolerance will guide your investment choices and strategy.
3. Do Your Research
Research is key. Study different markets and assets to understand how they behave. Look into historical data and trends to see what has worked in the past. This knowledge will help you make more informed decisions.
4. Choose Your Trading Style
There are various trading styles to choose from:
5. Create a Plan
Develop a detailed trading plan that includes:
6. Use Technical Analysis
Technical analysis involves studying price charts and patterns to predict future movements. Learn how to read charts, identify trends, and use indicators to make better trading decisions.
7. Keep an Eye on the Fundamentals
While technical analysis is important, don’t ignore the fundamentals. Pay attention to news and events that might impact the market, such as economic reports or company earnings.
8. Test Your Strategy
Before you commit real money, test your strategy with a paper trading account or a small investment. This helps you see how your strategy performs without risking too much.
9. Monitor and Adjust
Once you start trading, keep track of your performance. Analyse what’s working and what isn’t. Be ready to adjust your strategy based on your results and changing market conditions.
10. Stay Disciplined
Stick to your plan and avoid making impulsive decisions based on emotions. Discipline is crucial for long-term success.
Conclusion
Developing a trading strategy that beats the market takes time, effort, and patience. By setting clear goals, understanding your risk tolerance, doing thorough research, and staying disciplined, you can create a strategy that helps you achieve your financial objectives. Keep learning and adapting, and you’ll be on your way to becoming a successful trader.
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Different Types of Orders
What Is an Order?
An order is an instruction given to a broker or brokerage firm to buy or sell a security for an investor. It's the basic way to trade in the stock market. Orders can be placed by phone, online, or through automated systems and algorithms. Once an order is placed, it goes through a process to be completed.
There are different types of orders, allowing investors to set conditions like the price at which they want the trade to happen or how long the order should stay active. These conditions can also determine whether an order is triggered or cancelled based on another order.
Types of Orders
Market Order
A market order is an instruction to buy or sell a stock at the current price available in the market. With a market order, the investor doesn't control the exact price they pay or receive—the market decides the price. In a fast-moving market, the price can change quickly, so you might end up paying more or receiving less than expected.
For example, if an investor wants to buy 100 shares of a stock, they will get those 100 shares at whatever the current asking price is at that moment. If the price is ₹500 per share, they’ll buy 100 shares for ₹500 each. However, if the price changes before the order is executed, they might pay a different amount.
Limit Order
A limit order is an instruction to buy or sell a stock at a specific price or better. This allows investors to avoid buying or selling at a price they don't want. If the market price doesn't match the price set in the limit order, the trade won't happen. There are two types of limit orders: a buy limit order and a sell limit order.
Buy Limit Order:
A buy limit order is placed by a buyer, specifying the maximum price they are willing to pay. For example, if a stock is currently priced at ₹900, and an investor sets a buy limit order for ₹850, the order will only go through if the stock price drops to ₹850 or lower.
Sell Limit Order:
A sell limit order is placed by a seller, specifying the minimum price they are willing to accept. For example, if a stock is currently priced at ₹900, and an investor sets a sell limit order for ₹950, the order will only go through if the stock price rises to ₹950 or higher.
Stop Order
A stop order, also known as a stop-loss order, is a trade order that helps protect an investor from losing too much money on a stock. It automatically sells the stock when its price drops to a certain level. While stop orders are commonly used to protect a long position (where the investor owns the stock), they can also be used with a short position (where the investor has sold a stock they don't own yet). In that case, the stock would be bought if its price rises above a certain level.
Example for a Long Position:
Imagine an investor owns a stock currently priced at ₹1,000. They're worried the price might drop, so they place a stop order at ₹800. If the stock price falls to ₹800, the stop order will trigger, and the stock will be sold. However, the stock might not sell exactly at ₹800—it could be sold for less if the price is dropping quickly.
Example for a Short Position:
If an investor has shorted a stock at ₹1,000 and doesn't want to lose too much if the price rises, they might set a stop order at ₹1,200. If the price goes up to ₹1,200, the stop order will trigger, and the investor will buy the stock at that price (or higher if the price is rising quickly) to cover their short position.
To avoid selling at a much lower price than expected, investors can use a stop-limit order, which sets both a stop price and a minimum price at which the order can be executed.
Stop-limit order
A stop-limit order is a trade order that combines features of both a stop order and a limit order. It involves setting two prices: the stop price and the limit price. When the stock reaches the stop price, the order becomes a limit order. This means the stock will only be sold if it can meet or exceed the limit price, giving the investor more control over the selling price.
Example:
Let's say an investor owns a stock currently priced at ₹2,500. They want to sell the stock if the price drops below ₹2,000, but they don't want to sell it for less than ₹1,900. To do this, the investor sets a stop-limit order with a stop price of ₹2,000 and a limit price of ₹1,900.
If the stock price falls to ₹2,000, the stop order triggers, but the stock will only be sold if it can get at least ₹1,900 per share. If the price drops too quickly and falls below ₹1,900 before the order can be executed, the stock won’t be sold until it reaches ₹1,900 or higher.
In contrast, a regular stop order would sell the stock as soon as it hits ₹2,000, even if the price continues to fall rapidly and ends up selling for less. The stop-limit order gives the investor more control over the price, but there’s a chance the stock won’t sell if the limit price isn’t met.
Trailing stop order
A trailing stop order is a type of stop order that adjusts automatically based on the stock's price movement. Instead of setting a specific price, the trailing stop is based on a percentage change from the stock's highest price. This helps protect profits while allowing the stock to rise in value. If the stock's price falls by the set percentage, the order is triggered and the stock is sold.
Example for a Long Position:
Imagine an investor buys a stock at ₹1,000 and sets a trailing stop order with a 20% trail. If the stock price goes up to ₹1,200, the trailing stop will automatically move up to ₹960 (20% below ₹1,200). If the stock price then drops to ₹960 or lower, the trailing stop order will trigger, and the stock will be sold.
Example for a Short Position:
If an investor has shorted a stock at ₹1,000 and sets a trailing stop of 10%, the stop price would move down as the stock price falls. If the stock price rises by 10% from its lowest point, the trailing stop order will trigger, and the stock will be bought to cover the short position.
The trailing stop order allows the investor to lock in gains as the stock price moves favorably, while still providing protection if the market turns.
Immediate or Cancel (IOC) order
An Immediate or Cancel (IOC) order is a type of stock order that must be executed immediately. If the full order cannot be filled right away, whatever portion can be filled will be completed, and the rest will be canceled. If no part of the order can be executed immediately, the entire order is canceled.
Example:
Suppose an investor places an IOC order to buy 500 shares of a stock at ₹1,000 per share. If only 300 shares are available at ₹1,000 right away, the IOC order will purchase those 300 shares, and the remaining 200 shares will be canceled. If no shares are available at ₹1,000 immediately, the entire order will be canceled.
Good Till Cancelled (GTC) order
A Good Till Cancelled (GTC) order is a type of stock order that stays active until you choose to cancel it. Unlike other orders that expire at the end of the trading day, a GTC order remains open until you either cancel it or it gets executed. However, most brokerages set a limit on how long you can keep a GTC order open, usually up to 90 days.
Example:
Let's say an investor wants to buy a stock at ₹500, but the current price is ₹600. They place a GTC order to buy 100 shares at ₹500. This order will stay active until the stock price drops to ₹500 and the order is filled, or until the investor cancels the order. If the price never drops to ₹500 and the investor doesn't cancel the order, it will automatically expire after 90 days (or whatever time limit the brokerage sets).
Good 'Till Triggered (GTT) order
A Good 'Till Triggered (GTT) order is similar to a Good 'Til Canceled (GTC) order but with a key difference: a GTT order only becomes active when a specified trigger condition is met. Once the trigger price is reached, the order is placed in the market. If the trigger price is not reached, the order stays inactive.
Example:
Imagine an investor wants to buy a stock currently priced at ₹600, but only if it drops to ₹550. They set a GTT order with a trigger price of ₹550. If the stock price falls to ₹550, the order is activated and placed in the market. If the price never drops to ₹550, the order remains inactive until it reaches the trigger price or the investor cancels it.
GTT orders can also have a time limit, so if the trigger price isn’t reached within a certain period, the order will expire.
Market Watchdog SEBI has brought a new policy to the initial public offering (IPO) process easier and faster in connection with the IPO. Another master move by SEBI is to simplify the entire procedures with a focus on reducing the listing time from 6 days to 4 days.
Also, SEBI considers IPO investor grievances for those who use a unified payment interface (UPI) for payment. The market regulator has further said that it has allowed the Payment UPI for investors who wish to invest in IPOs. According to SBI norms, only the UPI handles it has mandated can be used for issuing IPO mandates.
The SEBI has already minimized the listing time from seven days to six days post-closing of the bidding. This blocks the fund of an investor if he could not get the entire subscription.
Earlier, the regulator had ended the practice of allowing the issuer to block the entire subscription amount in the Demat account by allowing the money to be blocked in the investor’s account through the Absa facility. This helped investors not to block their money in a third party account till the IPO process is over.
SEBI chairman Ajay Tyagi further said SEBI is trying to simplify the process of IPO by reducing the time taken for listing a company on the stock exchange after the IPO to four days from six days.
This year, the IPO market or share market is giving satisfying results as the fund raising through the primary issues is more than six years combined. According to Ajay Tyagi, the formalization of the economy after the demonetization, softer interest rate regime, as well as increasing public awareness about mutual funds, has uplifted the demand side, while outstanding issues have helped the supply side.
In order to maintain the stable regulations, Tyagi said, he wants to continue with the stable regulations as any sort of overburden will lead to lower investment which is not good for the primary market.
Seeking the broader investor’s participation in the MF industry, Ajay Tyagi said the AUM of the industry is still working well over at Rs 21 trillion which is one-fifth of the banking sector.
In order to grow the MF industry in a transparent manner, he said the SEBI has created a separate division that primarily focuses on mutual funds so that there is no miss-selling.
For the smooth process of IPO, SEBI will address the delays of the mandate by investors for blocking of funds because of the problems that occurred at the stock brokers’ end.
The share trading policy will also work on the issues regarding the unblocking of funds in partial allotment cases after the finalization of BOA (the basis of allotment).
The basis of allotment is a document that contains the basics on which the equity shares are allotted to the successful bidders. BOA is a document that is published by the registrar of IPO after the share finalization based on SEBI guidelines.
SEBI also set a new framework in which sponsor banks are required to send any pending application for unblocking of funds to the registrar along with the allotment file not later than 12.30 pm on BOA+1.
Next, the registrar would submit bank-wise pending UPI applications to SCSBs with the allotment file for unblocking before 2 pm on BOA+1. This will be followed by the confirmation submitted by SCSBs to lead managers on BOA+1. If SCB fails to provide any details on the time, then SEBI will take strict action for this.
These changes will come into effect from May 1, 2021. SEBI’s new framework comprises a lot of things that include that the self-certified syndicate banks SCSBs will be required to find out the nodal offer for SME IPO applications that are processed through UPI payment gateway. Also, SCSBs need to submit all the processing details to SEBI within seven working days.
According to the new framework, SEBI gives clear instructions that brokers and investment bankers need to compensate any IPO applicants by paying Rs 100 or 15 per cent interest per annum on the application amount depending on which one of the two is higher.
In addition to this, the sponsor banks will host a portal for intermediaries or stock brokers where the IPO date is listed. The portal comprises all the details of the blocking or unblocking of funds, apps, any downtime or delays, the performance of UPI handles and more. Overall, any process that is involved in the bidding process of the IPO will be documented.
The intermediaries, aka online stock broker that include in IPO are merchant bankers, underwriters, registrars are registered by SEBI. These intermediaries perform all the IPO related activities including preparation of draft offer documents, the basis of allotment, and crediting of shares to the successful applicants of IPOs.
In 2018, SEBI had introduced the use of UPI as a payment gateway for retail individual investors. This acronym ASBA refers to an investor’s application to SCSBs. The application contains an authorization to block bank account debit till it is selected for allotment after finalization on the basis of allotment. The ASBA facility was made mandatory for all investors who were applying for an IPO in 2016.
Needless to say, the use of the UPI payment method will not only uplift the process for IPOs by investors but also increase their confidence while entering the market. According to NITI aayog, the popularity of UPI has suddenly increased over time with nearly 2.3 billion transactions amounting to Rs 4.2 trillion.
Market regulator SEBI’s primary objective is to ensure that the upcoming IPO process should be smooth, efficient and fast so that the maximum investors can get the maximum benefit from the seamless process. It also assists investors to object to grievances. Also, through UPI payment method, investors can successfully carry out the IPO application process, which is a quite popular payment gateway and easily used on any electronic device like a laptop, smartphone, tablets. By doing so, SEBI makes a great effort in making the process seamless, fast and effective for all investors involved.
In today’s world, it is extremely important for a woman to achieve financial liberty and independence. For those with an impactful career and becoming an essential part of the workplace, financial empowerment is just as much an essential factor for a secured future; something that is applicable to the homemakers as well.
We believe that each and every woman must give thought to grow financially and secure their positions for the long term. This can be achieved by making the right investment decisions.
In fact, making investments related to market-linked instruments can serve as a constant income source like a simple job for ladies.
In India, there are plenty of investment options available that offer long-term benefits to long-term investors. However, everyone should understand how and where to invest their hard-earned money.
Investment options such as mutual funds and stocks help women in creating and incrementing and compounding liquid cash reserves. Financial instruments such as Fixed Deposit, PPF, and EPF can help in saving your money while saving one’s money.
Also, several investment options can be used to generate constant monthly income, by earning interest on the principal amount. Apart from this, investing in fixed assets can generate financial security over the years.
Here are the top 10 investment vehicles that can secure and empower Indian Women financially:
PPF is still considered one of the most popular investment plans in India. This scheme is available in post offices and banks.
This low investment scheme has a tenure of 15 years with an interest rate of 7.1% Also, the PPF scheme helps one to save a lot of tax. This is because an investment amount in PPF can be claimed for a tax deduction under Section 80c of the Income Tax Act.
The annual investment amount of the PPF scheme ranges from ₹500 to ₹1.5 Lakh.
The biggest benefit of investing in a PPF account is its flexibility. i.e once can withdraw 50% of the amount after completing 5 years in investing in the PPF scheme.
Furthermore, the accumulated interest amount and principal are also exempted from tax at the time of withdrawal.
NPS or National Pension Scheme is a long-term retired pension scheme that is movable across locations and jobs. That means you don’t require to change your fund while locating to another city or state.
The investment product is fully managed by the Pension Fund Regulatory and Development Authority (PFRDA). One of the prime benefits of having NPS is that you can generate returns from equity and debt.
While in PPF, you can only invest solely in interest-earning instruments.
The minimum annual contribution for an NPS tier I to remain active has been reduced to ₹1000 from ₹6000.
NPS is a mix of fixed deposits, corporate bonds, equities, corporate bonds, liquid funds, government funds and more.
Investing in stocks might not be everyone’s cup of tea but it is considered one of the most attractive options due to huge returns. In fact, a stock’s investment carries higher risk as it can generate higher returns.
Also, you can generate a yearly return of 15% - 18% from the stocks you invest in. For better investment, it is suggested to invest in the right stocks at the right time.
Employees’ provident fund is one of the best investment options for working women as with the help of schemes they can easily avail of tax benefits and gather tax-free savings.
According to the Government of India, new women employees are required to contribute only 8% instead of 10% for the first three years. This will certainly increase their take-home pay.
Under Section 80C of the Income Tax Act, the annual contribution up to ₹1.5 Lakh which you make towards the EPF account is free from tax.
Equity-linked savings schemes allow you to generate a higher rate of return about 15% to 18%. If we talk about the lock-in period, ELSS allows you to store away for just 3 years.
Any earnings that exceed ₹1 lakh are taxable. For better returns, one should keep in mind that ELSS can provide you with long term capital gains and taxed at 10%.
Bank Fixed deposits are another good investment for women that is available with both public and private sector banks. The investment amount and tenure are decided by the investor.
However, the interest rate of these deposits varies from bank to bank. As the investments have no maximum limits, fixed deposits can be broken and the amount can be withdrawn before the maturity date.
However, if one breaks the deposit before the completion of its tenure then it will affect the interest rate which is earned on the principal amount.
Mutual funds are also considered a good investment option, especially for women. Here, the investment amount is managed by the fund experts.
With SIP investment, you can earn subsequent wealth over a period of time, which reduces losses and maximizes ROI.
In mutual funds, investors can select the top funds offered by banks and numerous financial institutions. Also, it gives investors an opportunity to make choices from the products according to their requirements.
Mutual funds work on a strategy called a systematic investment plan or SIP wherein a specific amount is invested every month.
The key benefit of using SIP is to avoid huge losses.
Unit Linked Insurance Plan is the best way to create wealth with an addition to a life cover. The premiums that one pays for ULIP are eligible for deductions under section 80C.
Also, the return on maturity is exempted under section 10 10 (D). The returns generated from ULIP vary from the types of funds selected whether one opts for hybrid, debt or debt funds. Returns generated through ULIP are tax-free and could be quite impressive if the stock market performs well.
Buying gold is often considered a good investment option for Indian women. Although Gold prices are dynamic in nature, they can be considered as the safest instruments to invest in the long run.
Investment in gold requires no fixed quantity, which means as little as 5-gram gold coin in a year. Investing in gold gives you liquidity as when the price increases in the future, these coins can be exchanged either for cash or jewellery depends on the requirement.
Post office monthly income scheme aka Post office fixed deposit scheme is backed by the Government of India. This scheme holds a tenure of 5 years and the interest rate that is earned on this scheme is 6.9% per annum.
The minimum amount that can be deposited in the scheme is ₹1000 and the maximum amount that can be deposited is ₹1, 50, 000 per year.
Women spend 90 percent of their income on their families, and economically empowered women boost demand, have healthier and better-educated children, and raise human development levels.
On this women’s day, we firmly believe it is our moral obligation to empower women, to empower our Nation.
BSE - BSE Exchange (Bombay Stock Exchange), India’s largest stock exchange by a number of companies listed. The Bombay Stock Exchange was established in the year 1875 as the first stock exchange in Asia. Today BSE has over 5000 companies listed on it, the highest in any exchange around the world.
Worlds two leading global exchanges, Deutsche Bourse and Singapore Exchange are strategic partners of BSE. BSE offers to trade in Equity, Debt Instruments, Derivatives, Mutual Funds, SME Equity, SME IPO. The S&P BSE SENSEX is India’s most widely tracked stock market benchmark index.
BSE also offer services including risk management, clearing, settlement, stock trading data services, IT services and solutions, licensing index products such as the S&P, BSE SENSEX and financial & capital markets training.
BSE Limited has the following strengths 1. Strong brand recognition with a track record of innovation 2. Diversified and integrated business model and active relationship with market participants 3. State-of-the-art infrastructure and technology.
CAMS - Computer Age Management Services Ltd (CAMS) is a mutual fund (MFs) transfer agency with a focus on technology-based solutions. It offers services to alternative investment funds (AIFs) and insurance companies, through service centres, white label call centres, online mobile applications and chatbot services.
Mutual Fund distribution is big business in India and the transaction processing environment is complex. There are many sub-agents of distributors in the country leading with a retail investor base and they will need information regarding Mutual Fund transactions. So, CAMS offer Distributor Services packages to all distributors who operate using retail sub-agents.
CDSL - CDSL is the leading securities depository in India in terms of incremental beneficial owner (BO) accounts. CDSL earns revenue by charging annual issuer fee to corporates and account maintenance charges, user facility charges and transaction fees to depository participants (DPs). The asset-light model, duopoly play on the secular increase in stockholder accounts coupled with potential market share gains is an added positive.
While this itself is a successful recipe for growth, the icing on the cake could be the massive unexploited revenue opportunities in CDSL’s core activities, and leveraging its customer base and data for new businesses, a feat adroitly accomplished by similar sectors such as credit rating agencies (not to mention internet companies).
IEX – INDIAN ENERGY EXCHANGE LIMITED (IEX) is the first and largest energy exchange in India providing a nationwide, automated stock market trading platform for physical delivery of electricity, Renewable Energy Certificates and Energy Saving Certificates. The exchange platform enables efficient price discovery and increases the accessibility and transparency of the power market in India while also enhancing the speed and efficiency of trade execution.
IEX’s subsidiary Indian Gas Exchange Ltd. (IGX) is India’s first automated national level Gas Exchange to promote and sustain an efficient and robust Gas market and to foster gas trading in the country. The exchange features multiple buyers and sellers to trade in spot and forward contracts at designated physical hubs.
INDIAMART– Indiamart Intermesh Limited is an online trading platform (www.indiamart.com.) for business buyers to connect with suppliers of products and services. Buyers can place a business enquiry by visiting suppliers (small and medium) online and explore their products and services.
It has organized its listings across 54 industries. It provides a platform for SMEs, large enterprises, and even individual buyers. Nearly 2.6 crore buyers can reach out to over 22 lakh suppliers coming from 52 different categories of industries and choose from the list of 3.3 crore products.
It is now rated as one of the largest e-commerce platforms for businesses of different kinds with a market share of more than 60%. It deals with 97000 product categories that cover a wide range of industries. IndiaMART is also one of the very few companies with zero debt and a sizeable cash balance.
IRCTC - IRCTC is a ‘mini-Ratna’ company that derives revenues from four broad business segments — catering (selling food on rail journeys), travel & tourism (tour and destination-specific packages), e-ticketing and packaged drinking water (known for its brand Rail Neer).
Catering contributes 55 per cent to the company’s total revenues, followed by travel & tourism that provides 23.3 per cent, e-ticketing that contributes 12.3 per cent and packaged drinking water, which contributes 9.2 per cent.
INFO EDGE(NAUKRI) - Info Edge generates revenue through the provision of various services through its online recruitment, property, matrimonial, and education classifieds portals. The company derives its revenue in the form of fees associated with its various services and advertising solutions.
It also derives revenue through commission income on property bookings placed with builders and developers. Today InfoEdge group directly operates 8 ventures and controls other 6 through investments Jeevansaathi.com, the famous matrimonial site, was launched in 1998. In later years they came up with Shiksha.com, NaukriGulf, and Quadrangle.
In 2012, they also launched their mobile app for Naukri.com In 2010, InfoEdge made an investment that realized much late but shows the vision of this investment was now food delivery and restaurant catalogue giant, Zomato. This is what lies in the InfoEdge group. Zomato was not their only key investment. They also own now much known ‘Policybazaar’. Other ownerships are ‘Meritnation’ and ‘MyDala’. However, the one doing buzz lately is ‘99Acres’.
Zomato is one of the most awaited IPO of 2021.
Info Edge’s Startup Investment
Zomato, policy bazaar, happily unmarried, Unnati PVT ltd, Zippserv, Wishbook, Nopaperforms, Univariety, gramophone, Bijnis, Medcords, printo, Shopkirana, GreytHR , adda247, terra economics & analytics lab , legitquest, Shipsy, Coding ninjas, Ayuki
MATRIMONY- Matrimony.com (till recently known as Consim Info Pvt Ltd) claims it has 60 per cent of the estimated Rs 300-crore online matchmaking market. The company runs 15 matrimonial websites under Bharat Matrimony and around 300 websites under Community Matrimony. From a one-man venture almost 15 years ago, the company now has 4,000 employees. Matchmaking is only a small pie of the huge business opportunity in a conventional Indian marriage.
"Around Rs, 8 lakh is spent on an average for a marriage and we were getting only one per cent of it as our revenue. We can get more and there is a huge opportunity lying there," says Janakiraman. Almost 90 per cent of its revenue comes from user subscription fee, which ranges from Rs 3,290 to Rs 50,000 (elite) for three months. It has 2.5 million active members.
MCX- The Multi Commodity Exchange of India Limited (MCX), India's first listed exchange, is a state-of-the-art, commodity derivatives exchange that facilitates commodity trading online of commodity derivatives transactions, thereby providing a platform for price discovery and risk management.
If you are one of them who doesn't follow the stock market or stock trading much, GameStop is the name that could be heard in the past week. If you are keeping an eye on the news, you may have heard about Gamestop and how its stock price rose?
This is because the gaming and game device company, which was valued at 3.25$ per stock a year ago, saw its stock market rise by 8000 percent within 6 months. On January 26, 2021, the stock closed at $145.60, then increased to $345 the next day, peaking at $469.42 on 28 January 2021. But where did it all start?
Read the Full Story Here:
GameStop is a gaming company that specializes in the trading of game and game devices. So how did a struggling company with an old-fashioned business model suddenly become a hot topic about stocks?
The primary reason behind the sudden shine of GameStop is r/wallstreetbets, a subreddit on an internet forum called Reddit who was responsible to raise the stock price by 1700 per cent.
Swastika explains how GameStop is grabbing all the attention of all the investors.
GameStop is a brick and mortar company, specializing in trading of games and game devices. Before making a high buzz on everyone’s Tweet feeds, over the last few days, GameStop has had a poor record since 2017.
Furthermore, the retailer company also has hit the news for all the wrong reasons. In 2017, it came into limelight because of its Circle of Life policy. Circle of Life is a rating system that GameStop uses to convince customers to buy games, trade old ones and ensure that the money that customers get back goes towards buying more pre-owned games.
Employees were given scores to represent how they fared and anyone with low scores would likely find their job on the line.
Before we take dig deep into GameStop’s stock, there is some lingo which would probably help to familiarize the GameStop controversy.
Day trading refers to the buying and selling of stocks multiple times during the day. The primary goal is here, to make small incremental profits that add up as they trade. As you might have guessed, day trading is quite risky and is used by a lot of scam artists.
Short selling is the process of selling stock and buys back the stock to return it to the lender. Short sellers are betting that the stock they sell will drop in price. For example - Company A’s stock is trading at Rs 250 and you know that after some time, the shares of a particular stock will fall. For instance, it will fall to Rs 150.
Suppose you sell a share worth Rs 250 at the market price and after a while, you may notice that the price drops to Rs 150. Now you can buy that stock at the lowered stock. Now, you return the share to the broker at the lowered price. As you sold the first share at Rs 250 and bought the same share at Rs 150 before returning to the broker, you are left with Rs 100 as a profit.
Hedge Funds are a group of investors usually controlled by a money manager. These hedge funds are designed to make profits by short selling stocks on falling stocks. A big hedge fund has a pool of investment money which allows investors to invest aggressively and make complex investments for a bigger payout.
Till 2019, the stocks of the GameStop had been continuously falling. Reddit users heavily noticed about the heavily short hedge funds selling the stock, particularly the $13 billion hedge fund Melvin Capital.
In mid-2019, a Reddit user named (Roaring Kitty) posted that it had made an investment of $53,000 in the GameStop. Though the post didn't receive any intentions then, however, the users frequently tweeted about the GameStop investment and retail store.
Last week, the news came into the limelight and the retail store caught the attention of many young online traders. This in result, the share price rose to unwarranted levels.
According to the source, short-sellers lost an estimated $23.6 billion on GameStop. Melvin Capital lost 30 per cent of the $ 12.5 billion it invested in managing shorted stocks.
Concerning the whole situation, Wall Street demanded that short selling be made illegal, even though it is majorly used by the traders. To stop further stock crashes, many popular trading apps such as Robinhood stopped the purchase of Gamestop stock on their stocks.
Govt. will combine SEBI Act, 1992, Depositories Act, 1996 and SCRA into a solitary Securities Market Code which should upgrade administration and lessen consistence.
Govt expanded FDI rate in the Insurance area from 49% to 74% however with controls and defends. This opens up the insurance area for Mergers and Acquisition.
For gold trade, SEBI will go about as a controller, seems as though somebody will begin staying at work past 40 hours
Govt proposes to strip two PSU banks and one General Insurance Co., Divestment Target for FY22 set at Rs. 1.75 lakh crore. Govt resemble - Paisa he paisa hoga!
Help to senior residents Age 75 or more getting just pension and interest pay are not needed to document ITR. Presently they can live sukkon ki zindagi!
No adjustments in Tax section by any stretch of the imagination - Budget ka principle kaam toh bhul hi Gaye!
Threshold exclusion limit for an assessment review, with advanced exchanges, expanded from 5 cr to 10 cr. CA's resemble ab hamari audit income bhi kha jao!
Monetary Deficit ascends to 9.5% of GDP. Arey! Isko kam krna hota hai.
Petroleum aur Diesel cost hi increment krna tha toh financial plan kyun rakh liya.
Regional economic cooperation is considered to be an approach of moving towards a world economy. in the up to date situation, regional economic cooperation is taken into account because it is the means for enhancing economic development and providing economic security at intervals within a particular region.
Regionalism is being channeled in addressing problems like trade, food and energy security, global climate change, connectivity and also the happening of health epidemics. The regional commissions are instrumental in building strategic partnerships with regional and sub-regional organizations. This joint work has helped bring universal values and norms to the regions.
Of course, the international organization regional commissions are central to the work. Every day, they promote regional cooperation and integration and extend their experience for socioeconomic development. They’re stimulating innovative ideas, together with on finance for development and different means of implementation.
They’re spearheading international organization regional efforts to support their member countries within the implementation of the 2030 Agenda together, by promoting integration, policy coherence, reinforced knowledge and peer learning.
There are certain guidelines for promoting Regional Economic Cooperation
The drawbacks concerned in making regional agreements embody the following:
History shows that Economic recovery and favorable regional dynamics in Central Asia add any momentum to the current era of regional economic cooperation. They tend to seize the chance provided by these fortuitous developments and deliver lasting peace, progress, and prosperity for countries and other people within the region and on the far side.
Regional integration will expand markets and input sources, higher allocating resources across the region, therefore a fast economic process. It can even improve risk-sharing. However, there also are drawback risks, starting from potential contagion to growing financial gain difference and polarization.
Indigo Paints is the fastest growing amongst the top five paint companies in India. We are the fifth-largest company in the Indian decorative paint industry in terms of its revenue from operations for Fiscal 2020. Indigo has achieved this position in a highly competitive Indian decorative paint industry on the back of our multi-pronged approach.
This includes introducing differentiated products to create a distinct market in the paint industry, building brand equity for our primary consumer brand, creating an extensive distribution network, and installing tinting machines across our dealer network.
Indigo Paints has a strong market network with dealers in Tier 1, Tier 2, and Metros as well. It has 3 manufacturing facilities situated in Jodhpur (Rajasthan), Kochi (Kerala), and Pudukkottai (Tamil Nadu). It is further looking to expand its manufacturing capacities at Pudukkottai to manufacture water-based paints.
As of September 30, 2020, Indigo Paints owns and operates three manufacturing facilities in Rajasthan, Kerala and Tamil Nadu with an aggregate estimated installed production capacity of 101,903 KLPA for liquid paints and 93,118 MTPA for putties and powder paints.
As of September 30, 2020, Indigo Paints distributed their products to a network of 10,988 Active Dealers. In the six months ended September 30, 2020, their overall capacity utilization for liquid paint production was 20.77% and for powder, paint production was 57.98%.
Unique Products in the Existing categories:
Unique Products disrupting the market to create a New Category (the first company to launch these products)
IPO DateJanuary 20, 2021, to January 22, 2021Issue TypeBook Built Issue IPOIssue SizeEquity Shares of Rs.10 totalling up to Rs.1169.12 CroreFresh IssueEquity Shares of Rs.10 totalling up to Rs.300 CroreOffer for Sale5,840,000 Equity Shares of Rs.10Face ValueRs.10 per equity shareIPO PriceRs.1480 to Rs.1490 per equity shareMin Order Quantity10Listing AtBSE, NSE
Offer For Sale: OFS money will not be received by the company.
Fresh Issue:
Financial Performance (in INR crore)FY2018FY2019FY2020H1 FY2021Revenue403.1537.3626.4260.2Expenses389.2503.2559225Net income13.22747.727.2Net margin (%)3.357.610.5
Tentative Time Table:
14 Jan 2021: Price Band announced
18 Jan 2021: Anchor List
20 Jan 2021: Offer Opens
22 Jan 2021: Offer Closes
27 Jan 2021: Finalization of Basis of Allotment
28 Jan 2021: Unblocking of ASBA
29 Jan 2021: Credit to Demat Accounts
02 Feb 2021: Listing on NSE & BSE
Among the top 5 in the Decorative Paint Industry in India, Indigo Paints is growing over 40% CAGR in terms of sales since inception. Revenue from operations has grown by 16.65% between FY19 to FY20, against the range of (8.8)% to 4.9% compared to peers. The quality of the paints is good, especially the exterior ones. The net margin of the company has been improving. We assign a "Subscribe" rating for listing gain and long-term eyeing the growth of their innovative products and their penetration in 3-tier and 4-tier cities.
Finally, we are in 2021, the new year where we are seeing hopes of new opportunities and fast growth. 2020 was the mysterious year wherein the March, the entire world was in extreme pessimism mode but we witnessed a strong comeback whether it is economy, health system, humanity and the most important our market which surprised everyone by its stellar move.
Nifty & Sensex rallied almost 90% from March lows and they ended 2020 with a decent gain of 15%. The market begins 2021 with new heights where Nifty hits high of 14050 while Sensex hits a high of 47980. At the end of the week, Nifty and Sensex ended with a gain of about 2%.
FIIs are continuing their buying trend however the momentum has slowed down due to the New Year holiday where they bought around 7493cr in the cash market last week while DIIs are still in the selling mood where they sold around 4171 Cr.
If we talk about F&O data then FIIs’ long exposure in index futures stands at 75% which is an overbought territory and it means if something negative comes then we may see sharp correction because the market is not perfectly hedged. PCR stands at 1.37 mark which is a comfortable level.
Nifty is trading above the psychological mark of 14000 where 14200 is an immediate hurdle while 14350 will be the next hurdle. On the downside, 13950 is an immediate support level while 13800-13750 will be a critical demand zone because below 13750, we can expect any serious profit booking.
Banknifty is also trading above its important hurdle of 31000 while it is facing some resistance in the 31500-31650 zone. If it manages to cross the 13650 mark then we can expect a rally towards 32500/33000 levels. On the downside, 31000-30800 is an immediate demand zone while 30000 will be the critical support level.
It was a truncated week but it was full of action where we saw a strong tussle between bulls and bears. Nifty and Sensex started Monday with new highs of 13777/47055 respectively but on the same day we have seen a sharp fall on the back of worries of a new strain of Covid19 from the UK where Nifty has fallen more than 600 points and Sensex has fallen more than 2000 points at one point of time but then as Stock Market observed that this issue is not so serious which made Bulls comeback aggressively where market rallied for three consecutive days.
At the end of the week, Nifty and Sensex ended on a flat note whereas Sensex continues its 8th-week winning streak while Nifty ends with a minor loss of 0.08%.
If we talk about cash market data then Foreign Institutional Investors are continuing their buying momentum where they bought around 2591 cr, though momentum has slowed down because generally FIIs’ flow remains muted around the Christmas and New Year holiday and we are expecting tepid flow in next week as well. DIIs are still in a selling mode where they sold around 3400Cr.
In the F&O market, FIIs’ long exposure in the cash market stands at 68% which is a comfortable level whereas PCR stands at 1.75 mark which is a little overbought level.
As we discussed last week that 13770-13820 is a critical supply area for the Nifty where we have seen a sharp fall from there but Nifty respected its 20-DMA and then witnessed smart pullback but it is still stock trading below the 13770-13820 zone where if it manages to cross 13820 levels then we can expect a strong rally and Nifty can easily cross 14000 marks. On the downside, 13550 is an immediate support level while 13415 is 20-DMA which remains critical support on a closing basis.
If we talk about Banknifty then 30800-31000 is a critical supply zone but if it manages to take out this zone then we can expect a strong rally towards the 31500/32000 level or even it can head towards its all-time high. On the downside, 30000 is an immediate and strong support level while 29000 is critical support on the downside.
F&O expiry: The market can remain volatile due to the December month F&O expiry.
The most important clue for the Next week will be that we are going to say bye-bye to the most uncertain year 2020 and we are going to welcome 2021 full of positive energy. So wishing you all on behalf of the Swastika family: “A very Happy, Healthy, Peaceful and a Prosperous New Year.”
IPOs are on the boom and many companies want to go public. In CY20 we saw many companies got listed and generated wealth for the investors. In 2017, we saw companies going public in bulk, and yet again in 2021 we expect the same trend will continue with many well-known companies trying to go public. In the few months, we may see few companies getting listed such as Kalyan Jewellers, Suryoday Small Finance Bank, ESAF Small Finance Bank, Nazara Technologies, RailTel Corporation, Sigachi Industries, Heranba Industries, Antony Waste Handling Cell, Mrs Bectors Food Specialities, Indigo Paints, Nureca and Stove Kraft. We recently saw Burger Kings subscribe 157 times which suggests that there will be demand for fundamentally sound companies. Along with the above-stated companies, there are few other companies on which we should keep an eye.
Life Insurance Corporation of India which is abbreviated as LIC is an Indian state-owned insurance group and investment corporation owned by the Government of India. LIC was founded on 1st September 1956 under the LIC act 1956. LIC started its operations with 5 crores which have now reached 31 lakh crore. LIC currently has 8 zonal offices, 113 divisional offices, 2,048 branch offices, and 12 lakhs+ agents which are present in 14 countries.
LIC IPO is a dream come true for many investors which might go public in 2021 which will be one of the biggest IPO in the Indian market. It is expected that it would hold the same limelight as Aramco IPO. Deloitte has been fixed as the pre-initial public offer (IPO) transaction advisors and it is expected that LIC will sell up to 10% of the stake in the IPO and IPO size is expected to be in between Rs. 80,000 crore to Rs. 1 lakh crore.
National Commodity & Derivatives Exchange Limited which is abbreviated as NCDEX is an online commodity exchange based in India. NCDEX is the leading agricultural commodity exchange in India which was incorporated on 23rd April 2003. NCDEX has offices in Mumbai, Delhi, Ahmedabad, Indore, Hyderabad, Jaipur, and Kolkata. NCDEX’s network comprised 380 members, 13,316 terminals, nine WSPs, 12 clearing banks, 41 financial institutions, and 246 FPOs representing 461,619 farmers, thereby encouraging a virtuous cycle, as of September 2019.
NCDEX would be the third exchange to get listed in the Indian Stock market after BSE and MCX. NCDEX is expected to launch its IPO in CY 21 and the IPO size is expected to be around Rs. 500 crore. ICICI Securities Limited and SBI Capital Markets Limited has been fixed as the lead manager to handle the IPO.
National Securities Depository Limited abbreviated as NSDL is an Indian central securities depository headquartered in Mumbai which was established in August 1996. NSDL has 276 depository participants in its network through which it provides depository services to the investors, custodians, issuer companies, stockbrokers and stock exchange.
NSDL would be the second depository to get listed on the exchange after CDSL. Currently, NSE and IDBI bank hold 24% and 30% stake in the company. It is expected that IPO size might be of Rs. 1000 and the promoters might sell up to 30% stake in the company.
Barbeque Nation is one of the fastest-growing casual dining restaurant chains in India. Barbeque Nation was originally incorporated as Sanchi Hotels Private Limited on October 13, 2006, at Indore, Madhya Pradesh by one of its promoters. Barbeque Nation has around 138 outlets across India and 7 outlets in the UAE, Oman, and Malaysia.
The IPO might comprise an OFS of 98,22,947 shares and a fresh issue of Rs. 275 crore as per the draft papers filed with the SEBI. It is expected that the IPO size will be approximately Rs. 1000 crore to Rs. 1200 crore and will be managed by IIFL Securities, Axis Capital, Ambit Capital and SBI Capital Markets.
In CY we saw there was a high demand for good IPO such as Happiest Minds, Mazagaon Dock and Burger Kings. It is expected the demand will boost further next year in the fundamentally sound IPO. We suggest the investors keep an eye on quality companies and bet for them in the IPO.
Nifty & Sensex are rejoicing at a new all-time for the sixth consecutive week on the back of global liquidity.
Wow! It was the seventh consecutive week when the Indian equity market ended with gain whereas it was a sixth consecutive week where Nifty and Sensex ended at new heights. Nifty hits high of 13772 whereas Sensex hit a high of 47026 and they both ended with a weekly gain of around 2%. If we talk about last week’s outperformer then Pharma and IT sector lead the rally where the Nifty Pharma index gained 3.21% and the Nifty IT index gained 2.61%.
The most important question is what is propelling such a stellar rally in the market. So the answer in one word is “liquidity”. Yes, it is the liquidity that is causing rally across all asset classes whether it is Equity, Gold, Silver, Crude Oil, Metal, and even Bitcoin which has crossed the $20000 mark for the first time in history.
There was a US fed meeting last week where they kept interest rates unchanged which is near to zero and raised US GDP forecast to 4.2% from 4% but the main outcome of the meeting was the speech of Fed chairman Jerome Powell where he says that interest rates will continue to remain low and Fed will continue its bond-buying program to infuse liquidity in the system which is the reason for bullish trend got further momentum.
If we analyze the data then FIIs who are the main drivers of this rally bought Rs. 11804Cr while DIIs are still in the selling mode who sold Rs. 11023cr last week.
If we talk about the F&O data then FIIs’ long exposure in Index future stands at 68% vs 77% last week while PCR is trading at 1.62 level which is a comfortable level but once it had reached to 1.89 marks last week that’s why we saw a profit booking in the first half of Friday’s trading session.
Nifty is in strong bullish momentum but 13770-13820 is an immediate resistance zone where it can see some supply pressure above this 13873/13985 will be the next resistance levels. On the downside 13650 will be an immediate and key support point because below 13650, there will risk of profit booking towards 20-DMA of 13300 where 13500 would be an intermediate support level.
Banknifty is facing resistance in supply zone of 30800-31000 where 30200-30000 is an immediate and critical demand zone; below this, there will be a risk of any serious profit booking where 29000 will be the next important support level while if it manages to take out 31000 levels then we can expect a rally towards 31500/32000 levels.
Important cues for the Next Week:
Mutual funds are often considered the safest instruments to invest in, you only need to know how to pick the funds that will provide you with greater returns. Beginners often ignore the riskiness or ratings of a fund. They only look for returns which makes them make wrong decisions.
There are many performance indicators that will assist you to make the right decisions regarding mutual fund analysis.
It is ideal to compare the performance of a fund against a benchmark. The benchmark would be appropriate and fair. However, the wrong benchmark will give misleading data. Hence, it is suggested to compare its performance with a large indicator such as Nifty 50.
Investors predict the real worth of a mutual fund during unpredictable market trends and stock market’s volatility. Also, it is suggested to check the history of a stock such as its past performance with a longer fund history of 5 to 10 years. For instance, a fund provides great returns consistently when the market is working well.
However, during the stock market crash, if your stock lost 8% returns while the benchmark lost 10% returns, then your fund’s performance is considered as good.
Management expense ratio is the annual maintenance fee charged by the fund for managing your investment. According to SEBI’s guidelines, the fund houses can charge only up to 2.5% of the fund’s average asset (AUM). Therefore, it is advisable to check the expense ratio of mutual funds before investing in any fund. Expense ratios are charged out of the fund returns. Hence, higher the returns, lower will be your home returns.
Always go for a fund that offers similar returns at a low expense ratio. The same mutual fund is available for the direct plan and regular plan. Direct mutual fund plans generally offer low expense ratios which in turn generate higher returns. Investing in direct plans can save your commission.
Instead of preferring annualized returns, go for risk-adjusted returns of the fund. According to a risk-return tradeoff, a high degree of risk should be compensated by higher returns. Sharpe ratio will help you to ascertain whether the fund is giving high returns or not. Higher the Sharpe ratio, higher will be the returns for the extra risk taken.
Let us assume two equity funds A and B having a standard deviation, i.e 12% and 15% respectively. For instance, the Sharpe ratio of fund A and fund B is 0.48% and 0.60%, then it is advisable to choose fund B because it's better to bet to risk taken.
Average maturity and duration are used to evaluate debt funds as the longer the maturity, higher its sensitivity to interest rate movements and higher are the chances of a fall in the fund of NAV.
Duration plays a crucial role in the debt fund to reach a break-even point; i.e no profit and no loss. The shorter the duration, higher will it return to the original investment.
The portfolio turnover ratio is a measure of how often the securities are bought and sold by a fund manager in a portfolio. The turnover rate is crucial for potential investors as it helps them to consider the expense rate.
Selection of the best mutual funds for investment seems to be quite difficult for beginners. However, for an active investor, it becomes easy to select a mutual fund according to the above parameters. We will assist you hereby handpicking the best performing investment portfolio for you based on your financial goals.
National Commodity and Derivatives Exchange of India (NCDEX) has again re-launched the future contract in GUR (Feed Grade) and will be available for trading from December 15, 2020, with a lot size of 10MT.
Jaggery (GUR) is produced all over the country, wherever sugarcane is produced. Similarly, it is consumed in all parts of the country. Further, the product is seasonal in nature i.e. its production takes place only from October to April in a year but its consumption takes place throughout the year. It is primarily produced from Sugarcane.
Globally India is the leading producer of jaggery contributing to 60% of total production, where Brazil is the major exporter of jaggery, and the USA, China, and Indonesia being the largest importer in the world. If we look into India, then Uttar Pradesh, Maharashtra, Karnataka and Tamil Nadu are the top jaggery producing states contributing to around 80% of the total production in India.
The major stakeholders in the GUR value chain include Farmers, Processors, and Traders who perform various activities from production, harvesting to processing, jaggery making, packaging and marketing.
As there has been continuous growth in the overall production of GUR and because of high volatility in its prices so to hedge the risk, NCDEX has launched the futures contract in GUR (Feed Grade). A considerable amount of the total production of Gur is used as feed. Therefore, the price has a considerable impact on the overall feed cost.
Muzaffarnagar (Uttar Pradesh) is the basis centre for the GUR Futures contract because of the availability of good infrastructure support and various processing units, Further, it is the only delivery centre for the same.
Nifty hits new all-time high of oddest number 13579 with positive closing for the sixth consecutive week.
As we said earlier that we are in a roaring bull market because of Nifty and Sensex both end with a weekly gain for the sixth consecutive week whereas they hit a new all-time high for the fifth consecutive week. Nifty hits a new high of 13579 which is the oddest number in the oddest year which has an even number 2020 while Sensex hits an all-time high of 46309. At the end of the week, they both ended with a gain of around 2%.
If we talk about last week hero then it was the FMCG sector which ends with a gain of more than 6% in the leadership of heavyweights ITC and HUL.
Foreign Institutional Investors remain on the driver’s seat where they bought around 16719cr in the cash market last week while DIIs are still in the mood of selling as they sold around 12434 Cr in the cash market.
If we talk about F&O data then FIIs long exposure in index future stands at 77% which was the same as last week but it is still a little elevated level. PCR ratio stands at 1.55 mark which is a comfortable level.
Technical charts say that Nifty is in strong bullish momentum but last week's high of 13579 is a critical number as per Gann's theory, therefore, we could see some resistance at this point while above the 13579 levels, 13689/13770 will be the next target levels for the Nifty. On the downside, 13400-13300 is an immediate demand zone while 13150-12950 is a critical demand zone because below the 12950 levels, we can expect any trend reversal.
If we talk about Bank nifty then it is also showing decent strength where 30800-31000 is an immediate supply zone; above this, 31500/32000 will be the next resistance levels. On the downside, 30200-29800 will be an immediate demand zone while 29000-28500 will be the critical demand zone.
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We are in a roaring bull market where the Indian market ended with gains for the fifth consecutive week while it was the fourth consecutive week when Nifty/Sensex hits fresh all-time highs. Nifty knocked the high of 13280 whereas Sensex touched the high of 45148 both ended with a gain of more than 2%.
There was gain across the board because all sectors or pockets end on a positive note where the metal index shines with a splendid gain of 8%.
FIIs are at the driver's seat of this bull run as they again bought around 10,205 cr in the cash market in the last week while DIIs are in the mood of selling where they sold around approximately 6090cr.
On the derivative front, FIIs long exposure in index future stands at 77% vs last week of 82%, but it is still a little elevated level while Put-Call ratio (PCR) is placed at 1.57 mark which is a comfortable mark.
Nifty is in strong bullish momentum where 13000-12950 is an immediate and strong demand zone. We can talk of any kind of profit booking only below this zone while 13450/13600 is the next target level in the upside.
If we talk about the Banknifty then it is trading near the supply zone of 30000-30200 where if it manages to trade above this level then we can expect another leg of the rally towards the 31000-31500 zone while on the downside, 29000 is an immediate and critical support level, below this, we can expect any serious profit booking.
Many of us have invested a good amount of money in the stock market. This is because investing in stock can give you positive returns in minimum time if done properly. However, there are other ways to make money from stocks and that is through dividends.
If a company generates profits quarterly, it can distribute a reward to its shareholders in the form of dividends. The company provides earnings in proportion of the number of shares you possess. The earnings are either shares or cash or cash equivalents.
For instance, let us suppose that a company gives a dividend of Rs 20 per share to its shareholders. If a shareholder holds 1000 shares of that company, he would receive an amount of Rs 20000 as dividends.
Investing in dividends provides investors with two types of potential profits: regular income from dividend payments, secondly capital appreciation over time.
Dividend-paying stocks are apt for those investors who want constant income or those who try to build their wealth by reinvesting dividend payments.
Bajaj Auto is a two-wheeler manufacturer that has proven records over the years. The company’s relentless focus on the Indian market makes it better than the other two-wheeler makers in India.
Dividend Yield%: 3.85%
Payout Ratio%: 66.63%
Earlier known as Gas Authority of India, GAIL is known as a natural gas transmission business with a market share of 70%. It serves the following verticals including Natural gas, LPG transmission, Liquid hydrogen, City gas distribution, and more.
Dividend Yield%: 6.56%
Payout Ratio%: 24.58%
Earlier known as Imperial Tobacco Company, ITC Ltd started its business as a cigarette manufacturing company with multiple brands such as Gold Flake, Flake, Classic under its banner and more. Later it has expanded its business into various sectors such as hospitality, education and stationery products, paperboards and packaging. After acquisition with Sunrise Foods Pvt Ltd, ITC expects to strengthen its position in spice segments.
Dividend Yield%: 5.19%
Payout Ratio%: 55.98%
Power Grid Corporation is a Gurugram based company that lies mainly in power transmission. The company was set up in 1990 and is now considered as a maharatna company. According to the sources, Powergrid transmits 50% of the total power generated in India.
Dividend Yield%: 3.28%
Payout Ratio%: 43.43%
Tech Mahindra is one of the top IT firms in India. The company initially started as a joint venture with British Telecom, which ended in 2012. The company provides numerous services such as Data Analytics, Cybersecurity, Digital Supply chain, Business Process Services, and more.
Dividend Yield%: 2.19%
Payout Ratio%: 32.42%
Failing to plan is planning to fail. The global pandemic has taught us all a valuable lesson of the ages, that there can be unforeseen circumstances that can’t just be a rainy day, but the rainy season of unfortunate events that can be capable of derailing or breaking your life. At such times, just having an annual financial plan just doesn’t work; you need to have an Ideal Financial Plan.
An Ideal Financial Planner is the immunity booster to your financial health. Not only does it help you manage your short-term and long-term financial situation, but also helps you make sound financial decisions on your goals, and determine the methods to achieve them.
Creating an ideal financial plan includes taking into consideration all your assets (how much you get paid, what's in your savings and checking accounts, how much is in your retirement fund), as well as your liabilities, including loans, credit cards, and other personal debts.
Now that your resolve to make a debt plan is strong, here are some key highlights that you need to include as part of your financial inventory:
It’s important for investors to take stock of where their investments are during the annual financial planning process. This is especially true when the economy undergoes a shift, as is happening now.
Proportionally increase your contribution towards your long-term investments so that the inflation rate doesn’t catch up with you and your money starts making money for you. For instance, if currently, you are contributing 20% of your income towards investments, consider making it 25% to 30% depending on your family's requirements. Let your increments become your investment in due course.
If you have any outstanding credit card debt, make it your first priority to pay that off. Interest rates charged by credit cards are exorbitant and can go up to 40-50% per annum (compared to 15% for a personal loan). It is even worth borrowing some amount from your friend or parents and pay off your credit card debt immediately and then slowly return them the money from your savings
Every year you can invest up to Rs 1.5 lakh in certain tax savings instruments like PPF, Tax Saver FDs, Tax Saver Mutual Funds, etc which are tax-exempt under section 80C. Make sure you are maxing out on these. Consult your financial advisor on which 80C investments to make as per your risk profile.
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