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Sub Broker Franchise without Deposit
As a protocol, a stock broker requires an initial investment deposit from the sub broker to launch a sub broking business, per the sub broker agreement between the two. Every stock broker requests a deposit of some kind from the sub broker they are forming a relationship with.
In this blog, we will attempt to cover the fundamentals of the security deposit, its characteristics, the advantages of starting a sub broker franchise with a security deposit, and ultimately, instances of sub brokers without a deposit.

Initial Security Deposit

One of the essential items addressed in the sub broker contract is the initial investment or security deposit. Generally speaking, the stock broker clarifies what the security deposit is taken and for which specific business model.
While some stockbrokers mention a variety of security deposits, others only mention the minimum amount.
The typical security deposit ranges from 1,00,000 to 3,00, 000. It can be a bit low or high in this range, but this is a standard range. Any sum between these ranges may be deposited.
With this security deposit, a sub-broker is granted the authority to launch a joint venture under the stock broker’s name. Additionally, they are granted permission to access the broker’s technology, trading platform, and research reports.

Important Pointers About Security Deposit

The following are some crucial aspects of the security deposit and the associated procedures:
The stock brokers take the security deposit as insurance if future payments are not made as agreed.
Almost all stock brokers indicate in the agreement that the security deposit is refundable and will be returned to you at the termination or closure of the deal.
Cash or stock can be used as the security deposit, whichever is preferred.
The security deposit amount partially determines the sub-revenue broker’s sharing portion. The percentage of revenue will also be significant if the security deposit is on the higher side.
A partner may open a trading or Demat account with the broker for formal transactions by depositing the security money with the stockbroker.
In general, it is seen that new brokers offer their partners ZERO investment or sub broker without deposit to grow their business.

Understanding the Zero Deposit Sub Broker Franchise

The big question is: Can anyone be a sub broker without a deposit?
Some stock brokers offer opportunities to people looking to launch their businesses without requiring an upfront payment or security deposit.
In today’s market, there is the fierce rivalry. Stock brokers are using a variety of tactics to entice more business partners for company growth.
Lowering or eliminating the requirements for an initial payment to launch a partnership business is the first step. Some stock brokers reduce the initial deposit required, while others abolish it altogether, and it relies on the stock broker’s strategic requirements.
Other aspects, such as the sub-reputation brokers and clientele, are also considered when determining the security deposit. There is a considerable probability that your initial payment may be wiped off, or at the very least substantially reduced, if a partner can commit to a minimum amount of trading per month.
Now it’s your turn to consider why certain brokers require a security deposit for sub broker franchise and others do not. If you wish to launch a partnership in the broking industry without posting a security deposit, you should consider your long-term advantage first.
Since it is frequently observed that brokers with weak brand equity and networks attempt to provide you with a free partnership, however, their long-term advantages are relatively few.

Final Thoughts

There are numerous choices available to those who want to start a sub broker business and pursue a career in the broking industry.
Due to the intense competition among stock brokers, it is common to see them employ offers like sub broker franchise without deposit or zero initial investment to draw clients and expand their clientele.
Let us help you get started if you want to become a sub broker or any other kind of partner in the stock market sector.
November 14, 2022
How to Become a Sub-Broker?
A stock market sub broker is a financial professional who facilitates the trading process. They are responsible for managing their clients’ risks and the risks associated with their own trades.
A sub broker in the stock market trades in stocks on behalf of another brokerage firm. He or she is an agent having an association with a stock exchange’s trading member. To become a sub-broker, you should get registered with the Securities and Exchange Board of India (SEBI) alongside any of the local stock exchanges as well.
Sub-brokers provide liquidity to the market and help investors who want to trade shares. This means that they are in charge of managing a portfolio of securities, arranging for the purchase or sale of those securities, and handling any complaints about the securities. This position typically requires strong math skills, analytical thinking, and experience working in the stock market. A successful applicant will also have knowledge of how to trade stocks and bonds.
They are intermediaries that offer services to the brokerage firm that employs them. The role of the sub-broker in the stock market is to buy and sell securities on behalf of the brokerage firm, often at prices different from those offered by other brokers. This can be done either over the counter or on an exchange, but most often, it takes place over the counter. If you wonder how to become a sub-broker, here is all you need to know!

Process of Becoming a Sub-Broker

Most aspiring candidates are unaware of how to become a sub-broker regarding examination and registration. However, the process is relatively swift and hassle-less. Here are the steps you need to carry out:
Apply for a certification exam by the National Institute of Securities Markets (NISM) consisting of modules on mutual funds, equities, derivatives, and commodities.
Register yourself online with the Securities and Exchange Board of India (SEBI).
Upload the essential documents on SEBI’s official website and complete the process by paying the registration fee with the amount for the initial deposit.
Register with any local stock exchange.
You will have to apply at a well-established and leading brokerage company to become a sub-broker to get access to training, study material, tech-enabled tools, and valuable assistance.

Necessary Credentials for a Sub-Broker

Before starting off your journey on how to become a sub-broker, you must fulfill the below-mentioned eligibility criteria:
A Secondary School Graduation Certification
He/she should be 21 years old
Having comprehensive familiarity with financial services
Must have passed the NSIM certification exam

What Are the Functions of a Stock Market Sub Broker?

The primary function of a sub-broker in the stock market is to act as a conduit for large orders from one broker’s clients into another broker’s order book and vice versa, without allowing any direct trading between clients or brokers themselves.
Stock market sub-brokers help traders manage risks by providing them with advice, trading strategies, and risk management tools. They also provide information about different markets and trends so traders can make informed decisions.
Their job is to manage the risks of their clients, manage their own trades, provide information about different markets and trends, and provide advice on trading strategies. The sub-broker in the stock market is usually compensated by transaction fees and commissions on the securities they buy and sell.

Significance of a Stock Market Sub-Broker

The role of a sub-broker in the stock market is to provide liquidity to the market by buying and selling securities. The job is mainly done through the use of an automated trading system.
There are three main types of stock market sub-brokers:
Full-service brokers who offer a wide range of services, including research, portfolio management, trading on behalf of clients, and investment advice;
Market makers who buy and sell securities to provide liquidity;
Central counterparty clearing houses that work with banks and other financial institutions to settle transactions.

Conclusion

Sub-brokers are the key to the success of a stock market. They are the ones who make sure that investors get the best deals, and they can also provide them with recommendations on what to buy and sell. Sub-broker can earn commissions by trading in stocks that they own themselves. If you want to know how to become a sub broker, the information mentioned above will help you move ahead with this lucrative and flexible career option.
November 2, 2022
What are Flexi-Cap Funds? How is it different from Multi-Cap Funds?
The Asset Under Management (AUM) of the Indian MF Industry has grown from ? 6.80 trillion as on April 30, 2012, to ?38.04 trillion as on April 30, 2022, more than 5.5-fold increase in a span of 10 years. Along with this, the mutual fund industry has crossed a milestone of 10 crore folios during the month of May 2021. The industry comprises various Asset Management Companies (AMCs) that offer a variety of schemes to the investors like equity-oriented, debt-oriented, hybrid, gilt, money market, etc. One such type of scheme that has been recently introduced in India is called flexi-cap funds. In this article, we will try to understand such schemes and how they are beneficial for investment.

What Is Flexi-Cap Fund?

Flexi-Cap Fund is an open-ended, dynamic equity scheme. It invests across companies of any market capitalizations i.e., large-caps, mid-caps, and small-caps companies. Such type of funds allows the investors to diversify their portfolio and alongside mitigate risk, reduce volatility and generate good returns. Unlike other funds like large-cap, mid-cap or small-cap funds which need to invest in companies restricted to their specific market capitalization size, flexi-cap funds offer the fund manager to be flexible and pick any stock from the benchmark to be included in the portfolio.

Flexi-Cap Funds vs Multi-Cap Funds

As per regulation, a Multi-cap Fund has to invest at least 75% of its total assets in equities and in case of a Flexi-cap Fund, it has to invest a minimum of 65% of its assets in equity and equity-related instruments.
For a Multi-cap fund, the investment has to be minimum 25% in large-cap, minimum 25% in mid-cap and minimum 25% in small-cap companies. But in case of a Flexi-cap Fund, there are no minimum threshold for investments in large, mid and small cap.
A Multi-cap Fund is required to maintain the equity allocation regardless of the market conditions whereas a Flexi-cap Fund provides its fund manager better flexibility to explore investment opportunities and churn the portfolio whenever they want.

Advantages of Flexi-Cap Funds

It can grab opportunities across the entire market spectrum like market capitalization, sector, style of investing, etc.
There is always a battle between risk and returns in the markets. Flexi-cap funds have a unique approach to balance the risk and returns in the market to ensure that the invested capital stays safe and fetches good growth.
Flexi-cap funds can be referred to as ‘all weather investing’ because there is complete freedom given the fund manager and based on the market cycles and swings, the AUM can be allocated accordingly to avoid any downsides and volatility.
It is one of the best equity investment avenues for investors who have a moderate to high risk profile with a long-term approach for investing.
Another big advantage is that they are dynamic in nature. If a particular theme or style of investing seems no longer profitable, the fund manager can modify or change the style that seems to fit in the current market environment.

Top 3 best Flexi cap Funds based on the past Returns:
July 28, 2022
How Large Cap Equity Funds can be your master stroke in Investment

We all have dreams that we aspire to achieve in our lives. Rano’s story is similar to many of us. She wanted to pursue higher studies in management, but her family couldn’t afford the hefty fees. This is a common challenge; like Rano, many children are unable to continue their education due to financial constraints.
However, Rano’s story takes a different turn. One day, during her first year of college, she came across a newspaper advertisement that said, “Equity Funds are subject to market risk.” Curious, she began searching for more information about this phrase. While browsing the internet, she eventually found a comprehensive article on Equity Mutual Funds, specifically focusing on large-cap equity funds.
The article explained: Large-cap Equity Mutual Funds invest the pooled corpus of money into shares of well-established, financially stable companies with a large market capitalization. These funds are known for their relative stability and are considered less risky compared to mid-cap and small-cap funds. In simple terms, large-cap equity funds invest in shares of large companies on your behalf. Although she found it difficult to understand at first, she continued reading.
The article further explained that at least 65% of the portfolio must comprise investments in equity and equity-related instruments, with a significant portion typically allocated to large-cap stocks. The remainder can be invested in money market instruments or debt securities, depending on the investment objective of the scheme. Compared to other types of mutual funds, equity fund investments, especially large-cap funds, are associated with a moderate level of risk but are also expected to generate stable returns over the long term.

The mention of stable returns caught her attention, and she eagerly read the next line, which stated, “Furthermore, there is no such thing as a ‘one-size-fits-all’ equity fund. There are many different types of equity funds based on investment strategy, market capitalization, and taxation benefits, each with its own investment objective that must be matched to your risk profile. However, large-cap equity funds are often recommended for investors seeking steady growth with lower risk.”
After giving some thought to what she had read, Rano began to wonder if she could ask her father to invest in a large-cap equity mutual fund.
She approached her dad and explained everything. She also mentioned that a key advantage of investing in large-cap equity mutual funds is their ability to provide inflation-beating returns while offering relative stability. This means that, despite rising inflation and market fluctuations, the returns should be sufficient to offset these effects. Investing in large-cap equity mutual funds also enables the investor to have a diversified portfolio, as the money is spread across several large, established companies.
Moreover, losses in one large-cap stock can be offset by gains in others, minimizing overall risk. Additionally, these mutual funds are managed by professionals, making it easier to invest. Rano suggested, “Dad, why don’t we start investing in large-cap mutual funds together? My internship earnings and your savings could help cover the fees for my MBA program. Maybe we could also consult with professional analysts to understand large-cap equity mutual funds in-depth?”
Her dad agreed to consult a professional, and they dialed a number with the tagline, “We can help you invest with ease.” The analyst answered the call, and Rano’s dad began by saying, “My daughter wants to study for an MBA, but we might not be able to save enough for her education. Can you help us understand how mutual funds, particularly large-cap funds, could help us save this amount over the next 3-4 years?” The analyst listened to their concerns and began explaining the different types of investment caps.
He explained, “There are three types of caps: Large, Mid, and Small. However, it’s important to consider the factors that affect equity mutual funds before investing. When it comes to risk, large-cap equity mutual funds are comparatively less risky than mid-cap and small-cap funds because large companies tend to be more stable and less affected by market fluctuations. Small-cap and Mid-cap funds have a higher risk profile but also offer significantly higher growth potential.
“On the other hand, large-cap funds, which I think would be perfect for your daughter’s education fund, provide good returns while significantly reducing investment risks. This will help you save enough money for her education. Therefore, depending on your risk appetite, you can choose the type of equity fund that suits you best.

Frequently Asked Questions

1. What are Large Cap funds?

Large-cap funds are those funds that invest a big or larger proportion of their corpus in the top 100 companies by market capitalization, as defined by SEBI.

2. Are they risky?

Market risk exists but is comparatively lower from small cap and mid cap funds due to the financial health of the companies. Investors should be prepared for possible moderate losses.

3. What are the usual returns?

Usually provide stable and more predictable returns, but lesser growth potential due to the size of the companies.

4. What about the time horizon?

Generally, have a time horizon of 3-5 years because the companies are mature and can provide capital appreciation over this period.

5. Are they safe investments?

The funds are known as safer form. They can easily withstand the bear market. Also, they can deliver stable returns when compared to the middle and the small cap funds.

6. Why should I invest in large cap funds?

Well, those companies which have a market capitalization of more than Rs. 20,000 crore come under large cap funds. These companies have a good track record which is also backed by good governance practices. So, you can develop your trust since they abide by the healthy corporate ethics.

7. Who should invest in large cap funds?

Since these funds are less volatile in nature relative to other funds and their performance is generally stable, it makes investors less vulnerable to the equity market. If someone is looking to diversify their portfolio, large cap funds are more suitable. If you don’t want to take high risks and want to stick with pretty returns, then you must think of investing in it.

8. Are there any factors that an investor should consider here?

Yes, you can look for: What is investment purpose or objective?, What has been the past performance of large cap funds, How much experience does the fund manager have?, What is the expense or cost ratio and how will it impact? This will help you understand if large-caps funds are your preference? I believe, if you have 3-4 years and you want to get a stable yet good return that is not volatile as well, then large-cap funds are the most suitable ones for your daughter’s education. The analyst said. He also added that the fundamental goal of investing in equities mutual funds is to increase your wealth at a faster rate than inflation. Equity fund returns are significantly higher than those of other mutual fund types. Also, for people searching for a short-term investment, equities investments are not the best option, so at least 3-4 years investment is the best. After listening to the analysts, Rano and her dad agreed to invest in Equity Mutual Funds with a large-cap.

They couldn’t believe that the analyst was right. They had a genuine amount of deposit in their bank account after 4 years of investment with a large cap. And they now had enough money to pay for Rano’s MBA program fee. Now, this was an emotional moment for both Rano and her dad. Afterall why not? All thanks to Rano’s curiosity to know and courage to take the risk.

One more important lesson to learn here. Most of us give up on our dreams due to lack of money, but money is not an intrinsic value; it can be generated through timely investment. And Rano proved it through Equity Mutual Funds.

July 2, 2022
Everything You Should Know About Sovereign Gold Bonds (SGBs)
If you buy Gold Coins and Gold Bars as Investment, you are wasting a golden Opportunity to earn some great returns. SBI Gold Bonds are RBI mandated Certificates issued against grams of Gold, allowing the Individuals to invest in Sovereign Gold Bonds (SGBs) without the strain of safekeeping their physical Assets. SGB act as a secure Investment tool among Individuals as the Gold prices are less sensitive to Market fluctuations.
A SGB is dominated in grams of Gold. One can get multiples of Grams (1gm*X). So, the minimum Investment is 1 Gram. The maximum Gold one can buy through these Gold Bonds is 4 Kgs and a Trust can buy is upto 20 Kgs. Moreover, Nomination facility is also available.

Why Should One Buy Sgb Rather than Physical Gold?

The quantity of gold for which the investor pays is protected, since he receives the ongoing Market Price at the time of redemption/ premature redemption. The SGB offers a superior substitute to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest.

Who Is Eligible to Invest in The Sg Bs?

Persons resident in India as defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities and charitable institutions. Individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity.

Whether Joint Holding Will Be Allowed?

Yes, joint holding is allowed.

Can a Minor Invest in SGB?

Yes. The application on behalf of the minor must be made by his/her guardian.

What is the rate of interest and how will the interest be paid?

The Gold Bond interest rate is 2.50% per annum on the amount of initial investment. Interest will be credited semi-annually to the bank account of the investor and the last interest will be payable on maturity along with the principal.

When will the customers be issued Holding Certificate?

The customers will be issued Certificate of Holding on the date of issuance of the SGB.

At what price the bonds are sold?

The nominal value of Gold Bonds shall be in Indian Rupees fixed based on simple average of closing price of gold of 999 purity, published by the India Bullion and Jewelers Association Limited, for the last 3 business days of the week preceding the subscription period.

Can I encash the bond anytime I want? Is premature redemption allowed?

Though the tenor of the bond is 8 years, early encashment/redemption of the bond is allowed after fifth year from the date of issue on coupon payment dates. On the other hand, in the case of online buying of SGBs, one doesn’t have to wait for 5 years for redemption. An online buyer can redeem it on the same day of the issuance of Bonds.

What are the Tax implications on Interest as well as on Capital Gain?

Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted.

Features of Sovereign Gold Bonds

SGBs are Government securities denominated in grams of gold (1 unit = 1 gram).
A minimum investment equivalent to the price of 1 gram of gold must be made, while the maximum limit is equal to the value of 4kg of gold for individuals.
Issued by the Reserve Bank of India on behalf of the Government of India.
Gold bonds are issued for a period of 8 years, with premature withdrawal permissible from the 5th year.
Individuals willing to cash-in their investment can do so after a mandatory holding period of 5 years.
Investors will earn returns linked to gold price.
Additionally, fixed interest of 2.75% per annum is associated with the sovereign gold bond scheme, which is disbursed half-yearly to investors.
The Sovereign gold bond scheme 2020 can be traded in the secondary market after 14 days from an initial subscription date, subject to a notice published by the RBI.

Advantages of Investing in SGB

The principal aim of such treasury bonds was to reduce the hassles concerned with gold investments, as bullions and other physical forms of investments required proper and secure storage.
These Gold Bonds are backed by the Government, as chances of defaults on repayment is zero.
Gold prices demonstrate extensive capital appreciation. Rates of growth of such assets are considerably higher than the prevailing inflation rates a country, crucial as an investment avenue.
RBI will announce the price before the issue date which will be fixed on the previous week’s simple average of closing price of gold of 999 purity published by India Bullion and Jewelers Association Ltd (IBJA).
The tenure of Bond is 8 years with an option to redeem from 5th year onwards on the date on which Interest is payable.
SGB can be used as collateral for loans Up to 75% of the market value of such bonds can be availed as a loan from any scheduled financial institution, as stipulated by the RBI’s LTV regulations.
May 3, 2022
Upcoming IPO’s 2022

IPO stands do initial public offering. IPO is a process by which a company sells its stocks to the public and raises money. It can be done by a new or an old company.
Investing in the IPO of a good company proves to be profitable. For instance, Nureca, a digital health and wellness company issued IPO in February 2021and made a sensational debut with 58% over it’s issue price. The issuer price was Rs 400 and git listed at Rs 634.95 and is staggeringly high at Rs 1915 now. Thus, the stockholders earned a great profit. Many exciting upcoming IPOs are expected in the year 2022 ,we have summed up the main 5 IPOs for you.

NSE IPO

In the row of upcoming IPOs, NSE IPO is the next most awaited one. NSE is a pioneer in Indian financial markets. NSE is also the largest financial market in India providing automated electronic trading. NSE expects to raise Rs 10,000 crore by selling the shares. The date of the NSE IPO is yet to be declared.

OYO IPO

Since its inception in 2013, OYO is the most sought hotel accommodations for tourists. OYO garnered success for its affordable stay. OYO IPO is the talk of the town and the upcoming IPO is expected to be big as Rs 8,430 crore in size. The IPO can take oyo to the top tier level at par with giants like policy bazaar etc.

Pharmeasy IPO

Pharmeasy is all set to raise Rs 6,250 crore through its upcoming IPO. Pharmeasy is an online pharmaceutical platform/app serving top tier cities with medicine delivery, and other healthcare products. It also offers diagnosis test services and teleconsultation. Pharmeasy IPO tops the list of IPO’s of the year 2022.

January 19, 2022
All about Mutual Funds; explore insights
We all know the feeling of watching your savings grow as you invest in something sure to be a hit. What if we told you there are other ways for people like yourself, who don’t have much money but want access to financial markets? Mutual funds can provide this opportunity through investing pools made up by many investors – or even just one!
A mutual fund doesn’t rely on any specific person’s expertise; instead, it draws upon various viewpoints, making them more resilient against negative influences than an individual could ever hope to become alone. So, if curiosity got sparked after reading about how these things work (which, let’s face it, was probably inevitable), then we’re here to give you a whole tour on mutual funds.
A recent report by NS Venkatesh, chief executive officer of Amfi and India’s Mutual Fund Association, reveals that as many as 2.39 crores mutual fund investors have doubled to 1.19 crore at the end of March 2017, which is an impressive growth rate over two years.
Here are the top 4 reasons people buy Mutual Funds!
It’s no surprise that mutual funds are among the most popular financial investments. The funds offer many features to please an assortment of appetites, with affordability as its main selling point for many!

Professional Management

The fund managers are responsible for doing all the research, and they guide you to select which stocks to buy or sell. In addition, their knowledge of market trends helps lower your risk if one company fails because it diversifies investments among many companies in different industries that could be affected by such an event.

Affordability

Most new investors start small, so they can learn about investing before committing lots upon joining up with retirement plans like pensions etc. Still, over time most funds allow adjustments upwards when someone has gained enough experience & confidence.

Diversification

“Keep your financial bowl healthy.” A mutual fund typically invests in various companies and industries to help lower risk and manage your portfolio accordingly. Diversification is a saviour that enables you to balance your highs and lows in mutual funds.

Liquidity

As shared, mutual funds also typically offer affordable pricing with low initial minimums followed by regular purchases at fair market value as NAV goes up over time – often just 1% per year! In addition, you can quickly redeem shares when needed without paying any hefty fees associated.

What are the risks associated with Mutual Funds?

Mutual funds are a great way to invest in the market, but they come with risks. For example, mutual fund managers can force you out if an investment doesn’t go according to plan. And there’s no guarantee that your money will be safe even after retirement since this investing requires constant reinvestment rather than just keeping what earned interest has accumulated over time like saving accounts do.
There are also several advantages; some people feel more comfortable putting their assets into something where someone else knows how it should grow, which might lead them to choose investments. Such as mutual funds because then all risk is offloaded onto others who know what needs doing so long as those managing affairs have to access enough capital from elsewhere (earned through fees).
Your portfolio is worth more today than it was yesterday. But how do you know if the price of your investments has gone up or down? You can check with a financial advisor for answers, but before doing so, be aware that several different types and sources of dividends are available! (And hey, do you know we can help you out too and you don’t have to worry about the losses, we are on it too!)
Dividends may come from stock in companies that pay out profits every quarter; bonds might provide interest income monthly – even daily sometimes-and investor funds invest portfolios based upon specific strategies like growth investing for long term success where small increases could lead to significant returns over time while slowing down economic volatility.
Yes, almost all funds indeed carry some level of risk. And with mutual funds, you may lose money because the securities held by a fund can go down in value, or dividends could change as market conditions do so. But past performance is not an indicator for future returns; it is necessary to diversify your investments and avoid placing all eggs into one basket! And an expert can guide you better at this.
Here is a quick guide to understanding different types of Mutual Funds.
There are so many funds out there; it’s hard to keep up! There is a mutual fund for every type and style of investor.
Common ones include money market or liquid assets management; sector-, country-, region-specific equity investments; alternative strategies that seek high returns by investing in companies that aren’t doing well but may eventually turn around. These can be riskier bets than traditional markets because they’re betting on an unknown future event happening sooner rather than later.
Let’s know about the various Mutual Funds and their unique traits.

Equity Funds

The category of “Equity” funds is the largest in this list. There are many different types, such as small-Cap, Mid-cap and large-cap stocks for investments based on size or approach towards growth strategies. These strategies are aggressive investing versus income-producing values that do not have high expectations about future returns but rather strict guidelines to earn profits from dividends paid out by companies’ earnings instead. Additionally equity can be categorized according to Reflecting Domestic (U S) Stocks vs Foreign Equities which will boost one’s investment options depending upon where you want your money to go generate greater rates than those offered through other countries’ economies.

Fixed-income

Fixed-income funds are a great way to invest if you’re looking for stability. These mutual funds have set rates, such as government bonds or corporate debt instruments. They pay interest on what the company has saved in their pocket, which is then passed down through shares with dividends at regular intervals (usually annually).
It could be argued that these investments offer more security than alternatives like stocks, where one can lose 50% overnight. However, there still needs careful consideration before making any decisions because while fixed income provides peace of mind when things go smoothly – nobody wants an emergency fund complete!

Index funds

Index funds are another popular investment strategy that has become increasingly popular in recent years. Index fund managers base their decisions on the belief it’s tough and often expensive to try to beat market averages consistently over time; this way, you can spend less money with your advisor or research team, who will pass along any excess returns back into shareholder pockets instead of spending them all away trying harder than before when nothing was really gained from those efforts anyway!

Balanced fund

A balanced fund is an investment that attempts to reduce the risk associated with various asset classes. There are two variations- one designed for those who want more stability and another which considers volatility to make it easier on investors’ appetites.
The aim behind this kind of strategy can be summarized as follows: if you’re scared about stocks going down, then put your money into bonds; however, if things don’t look so bad after all but what happened last year seems too far off due historical trends continuing at their current pace – why not try investing some cash alongside its equivalent amount worth gold or silver coins?

Income funds

Income funds are named for their purpose, to provide steady cash flow. These investments consist primarily in high-quality corporate bonds and government debt which holds them until maturity so that they can generate interest rates from it as well as produce income on an ongoing basis? For investors who want this type of security but may also have cautioned about the various financial that makes situation more complicated and make sense because if something goes wrong, it’s not like anyone will come out ahead significantly since most people had invested money into things knowing full well how risky stocks could potentially get once everyone starts panicking again.

How to buy or sell Mutual Funds?

You can buy and sell mutual funds through an online brokerage account, or you may have the option to do so at a local bank branch. Findoc also helps in buying and selling mutual funds. We have an expert team and dedicated fund investors to guide you throughout your mutual funds’ investment journey.
Fund investors buy mutual fund shares from the fund itself or through a broker for an agreed-upon price, including any sales loads. The net asset value at the time of purchase is only included in this calculation and does not reflect changes to NAV after that (this would be considered misleading). Fund managers can redeem their shareholdings with prompt payment within seven days if they choose to–a good reason why those who invest should consider doing so before maturity!
Wondering how to get started?
The best way to invest in a mutual fund is through findoc.com and complete your KYC formalities before you can proceed with the process, but it’s not complicated!
Here’s how:
Signing up for an account on Findoc requires just some basic information like name or email address that will be used as identification once we have taken care of everything else (i.e., full coordination between customer-facing systems).
You can identify the funds you are interested in investing in or take help from our fund investors.
Investing your money is an important decision that you should not take lightly. And investing in Mutual Funds through a reliable source is much more important than anything else.
So, if you are young or even in your late 50s, you must consider this. Also, don’t forget that Mutual Funds can expand your multiple income streams too!
December 20, 2021
Apply Upcoming LIC IPO at Findoc: Check Issue Date, Price, Lot Size & Details
Life Insurance Corporation of India (LIC) is the largest player in the life insurance segment in India. Its size is so significant that every 3 out of 4 life insurance policies sold are from LIC. The insurance giant has been around since 1956 and currently serves over 250 million people – more than a sixth of India’s population. LIC is a state-owned company and is 100% owned by the Ministry of Finance.

LIC IPO

The Government of India is planning to divest up to a 10% stake in LIC through the issue of fresh shares following its plan to systematically divest state-run corporations. The issue is expected to be for INR 90,000 – 100,000 crore (or $13.5 billion) which would make it the biggest IPO listing in India. Some experts have labeled this to be “Saudi Aramco of India”. While the date of the issue is still unknown, we can expect it to go live by March 2022.

LIC IPO – Key Facts

In the 2020 fiscal year alone, LIC collected Rs. 1.78 trillion in the first-year premium, 25.17 percent higher than the previous year.
LIC reported a 17.5 percent growth in the value of the new business. Some private insurers in India like HDFC Life, SBI Life, and ICICI Pru Life are growing faster than LIC due to their small size but they do not have the competitive edge that LIC has.
LIC has a network of over 1 million active agents spread across the country which is significantly larger than any other life insurer in the country. It is because of these agents and over 3000 offices in the country that LIC is able to cater to its large customer base.

Why Invest in LIC IPO?

These are among the primary reasons why investors should consider investing in this IPO –The Life Insurance Corporation of India is the biggest player in the insurance sector in India and has the backing of the government, making it a stable business when compared with other insurance aggregators.
Investing in LIC would favor investors significantly. The company recorded stock market profits of more than Rs. 10,000 crores in this June quarter. Investors can expect healthy dividends from the stock.
LIC will adopt a corporate structure with independent directors. This should increase the performance of the company, thus increasing its value and consolidating its position in the market.

What is the LIC policyholders category? Is there any benefit if I apply?

The policyholder’s category is a new section in the LIC policy, which will benefit customers who hold policies from this company. To be eligible for making an application under the Policyholders’category:
Your PAN has to match with that registered on the Findoc account too.
Before applying here you must make sure your PANs are updated using the same number as earlier entered while signing up with Findoc.

Can I check if my PAN is linked with my LIC Policy?

To check whether your PAN number is already linked with the policy:
Visit this page and enter all required information.
You will be redirected to a web page to provide some basic details like date of birth, PAN, policy number, and captcha.
You then have to press ok or submit a button to view your PAN link status.

What if my LIC policy is still not linked to my PAN, then what should I do?

Visit this Link your PAN to LIC policies page
Update your PAN with the list of LIC policies you hold, click proceed, and move to the next step.
You must enter your valid date of birth (the one mentioned on the PAN), gender, email, mobile number, full name, and policy number on the next page. Make sure all the details match your PAN details.
If you have several policies, don’t forget to click on add policy and proceed further with another policy number.
Now, click on declaration and enter the captcha shown to you.
Locate the OTP option and receive the OTP details on the registered mobile number – click submit.

Why Invest in LIC IPO?

These are among the primary reasons why investors should consider investing in this IPO –
The Life Insurance Corporation of India is the most significant player in the insurance sector in India.
It has the government’s backing, making it a stable business compared with other insurance aggregators.
Investing in LIC would favor investors significantly. The company recorded stock market profits of more than Rs. 10,000 crores in this June quarter. Investors can expect healthy dividends from the stock.
LIC will adopt a corporate structure with independent directors.
This should increase the company’s performance, thus increasing its value and consolidating its position in the market.

Qualifying for the LIC IPO is simple! All you need to do is:

Open a Demat account online
Sign up with your UPI app of choice
Accept the UPI mandate
Once you have accepted the mandate, you will be able to hold or block the bid amount in your account.

How to apply for LIC’s IPO?

You can apply for an IPO if you have a trading/Demat account. This can be done through both online and offline processes. In the online mode, you have to log in to your trading account and enter the number of shares along with the cut-off – the price you want to bid. If you don’t have a trading account you may get in touch with the Findoc Financial Services team and we’ll help you at every stage of the process.
Through offline mode, you can submit the ASBA application to the banking branch designated as Self Certified Syndicate Bank.
August 6, 2021
Best Large Cap Mutual Funds 2021

Large Cap Mutual Funds, is a type of mutual fund which according to SEBI, invests in the top 100 companies.

Things to Consider as An Investor

RISK: Market risk exists in large-cap equity funds, but it is moderate. They are known for generating consistent dividends and wealth accumulation. The money is invested in financially strong businesses, the underperformance is averaged out over time which provides stability.
RETURN: Large Cap Funds do not perform erratically as they have a history of strong performance during both market lows and highs. The risk exposure is comparatively less for these funds, therefore the returns on them are less volatile.
INVESTMENT HORIZON: These funds are suitable for investors with a long- term horizon. Typically, the fund underperforms during market downturns, but returns in the 10% to 12% range over the long term of more than seven years.
FINANCIAL GOAL: They are perfect for an investor who wants to take on a moderate amount of risk. These funds can be used to build wealth for retirement planning, or to fulfill your house loans, to plan for children’s weddings etc. These funds can also be used to establish a portfolio for new investors who want to get into the stock market but are concerned about risk.
CAPITAL GAIN TAX: One of the other advantages of investing in Large Cap Funds is that investor is subject to capital gains. Capital gains on such investments are tax-free as long as they don’t exceed Rs. 1 lakh. Long-term capital gains that surpass Rs. 1 lakh are subject to a 10% tax. Short term capital gains (when money is withdrawn in less than 1 year), are subject to 15% tax.

Now let us take a look at the top 8 Large Cap Funds

These funds invest in companies that have market Cap of more than 20000 crore. It also shows us the returns generated by these funds across 1,2 and 3 years. Let’s take the example of Mirae Asset Large Cap Fund to show the returns we can expect based on historical data.

MIRAE ASSET LARGE CAP FUND

The above table shows us the value of a Rs 1000 SIP started on 1 April 2018. Suppose we invest 1000 every month for 1 year up till 1/3/19. This SIP gives 49.19% absolute returns and an annualized return of 14.27% in 3 years up till 1/4/21. The SIP reaches a value of 17903.17 with just 12000 invested!

Now suppose we instead choose to invest via lumpsum. The value of lumpsum investment of 10000 after 3 years is 16016.13. Thus, the lumpsum gives us a 60.16% absolute return and a 17% annualised return in just 3 years!

It also shows us the risk ratios associated with these funds. For example, Mirae Asset fund has an alpha of 18%. This indicates that it outperforms its expected returns (based on its portfolio) by 18%. The Sharpe Ratio of 0.56 indicates a 56% risk adjusted return for the fund. Its beta of 0.97 means that for every 1 point of deviation in its benchmark index (usually Nifty 50), we can expect the portfolio to move by 0.97 points. The standard deviation of 20.98 indicates the volatility of the returns around its average 17% return. Thus, these ratios must be studied over time and across funds to choose the correct fund for your own risk profile and financial goals.
Another example of Large Cap Mutual Fund with a horizon of 5 years, we have taken ICICI Prudential Blue Chip Fund.

This example shows us an important aspect while investing in mutual funds. Notice how the 2 year value of our SIP is less than the 1 year value. It shows us that there are risks associated with investing in mutual funds. However, over the long run these tend to average out, and in 5 years we can see again that our investment is generating healthy returns. This is the advantage of long-term investing! The investment almost doubles in value to 22504.86 after 5 years, generating absolute returns of 87.54%. The annualised returns rises to 13.4%.

Again, the lumpsum amount follows the same pattern as the SIP, dipping initially before recovering over the 3 and 5 year periods. The lumpsum reaches a value of 19965.35 after 5 years, generating absolute return of 99.65% and an annualised return of 15%.

The ratios for this fund are shown above. As we can see, the fund has a slightly lower beta and standard deviation than Mirae, which indicates slightly less risk in this fund. However, the alpha of this fund is negative, which tells us that the fund is underperforming its expected returns. Thus it is important to consider your own risk profile and goals while investing in the correct mutual fund. Finally, we’ll look at Axis Bluechip Fund to see the effect of investing for 10 years.

Over 10 years, we can start seeing the effects of compounding. Our investment corpus of 12000 has more than tripled in value during this period to 39328.53, with an annualised return of 12.6%. Thus you can reap these benefits by staying invested for longer periods of time.

The lumpsum value more than triples in 10 years as well, reaching an amount of 34673.57 by the end of 10 years. This shows us the power of compounding.

Again, we can see from the ratios that Axis Blue chip has a lower beta and standard deviation as compared to the previous 2 funds, indicating the presence of slightly lower risk in the fund. It thus has better risk adjusted returns than the other 2 funds, despite slightly lower absolute returns. The alpha of the fund indicates that it is beating its benchmark.
This article showed us various time horizons that an investor can consider while investing in large cap Mutual Funds with two different methods of investing, lumpsum and SIP. We saw how different funds have different risk and return profiles using ratios and investors must consider this carefully before investing.

July 13, 2021
Significance of ratios for mutual funds

Here, is the mean of returns, n is the number of returns, and x refers to each individual return. The operator denotes sum. Thus, to calculate standard deviation we subtract each return from its mean, square the deviations and sum them up. Then we divide them by the total number of returns less one, and square root the result. Let’s understand why we use standard deviation.
Standard deviation is a measure of the distribution of a dataset in relation to its mean. Since all funds provide us with mean returns over a period, standard deviation is helpful in measuring the volatility of a fund. A higher standard deviation indicates that the fund’s price tends to fluctuate more, indicating unpredictability of returns. This unpredictability is taken as a proxy for risk in the market, making standard deviation an important metric to judge riskiness of investments.
It is important to note that high or low standard deviation does not necessarily make a good or bad investment. All else constant, lower standard deviation indicates greater consistency of returns, but people who have a higher risk appetite might choose to go with funds that have slightly higher standard deviations. The choice depends entirely on the risk profile of the investor. Also, it must be kept in mind that standard deviation must not be studied in isolation. Because it measures volatility around the mean returns, studying the mean returns themselves is also important before picking the mutual fund that is right for you.

The purpose of the Sharpe ratio is to provide a measure that integrates risk and return. By adjusting the portfolio’s excess returns by its standard deviation, it essentially measures the returns a fund can generate for every unit of risk that it takes. A higher Sharpe Ratio is always desirable as it indicates that the fund is generating higher returns by taking lower risk.
Another important measure of risk is the Beta of a mutual fund.

Thus, it is calculated by dividing the covariance of a portfolio’s returns with the market/benchmark returns, divided by the variance of the market/benchmark returns.
The purpose of beta is to track the volatility of your investment with relation to the market. The beta is centered around 1 as the market has a beta of 1. Thus, a portfolio with a beta higher than 1 is more volatile than the average market, while a beta lesser than 1 indicates lower-than-market volatility. Let’s take an example. Suppose a mutual fund has a beta of 1.15. This indicates that for every 1 point of deviation in the market, we expect the mutual fund’s value to change by 1.15 points. Thus, it is a fund which is riskier than the market.
Much like standard deviation, we cannot establish a thumb rule as to whether a high or low beta is desirable. The beta is merely a measure of risk. Higher betas raise the expected return of an investment as the fund manager is taking on more risk, while lower betas indicate safer investments.
The final ratio we will discuss is alpha.

Alpha measures the excess returns a fund is generating as compared to its expected return, based on its beta. For example, an alpha of 3% indicates that the fund is generating 3% more returns than it is expected to, based on the riskiness of its investments. It is taken as a valuable measure of the quality of a fund and particularly its fund manager. We look for higher alphas as they indicate that the fund can generate market-beating returns.
Finally, investors must keep in mind that ratios must be tracked over time. Consistency across them is important. For example, a fund with a positive alpha currently but with negative alphas in previous periods is something that must be treated with caution. So go ahead, study the ratios of your mutual funds, and decide what’s best for you based on your own risk profile.

July 9, 2021