The strategy will work in the cash segment only if you are holding either of the stocks. In the options segment, while the pair strategy is possible, it is quite complicated and requires a large transactional amount, carried out via algorithmic-based trading.
Exchange traded fund is an instrument listed on the stock exchange having characteristics of both a mutual fund and listed security.
Despite strong AUM growth, MFs lag behind other popular investment avenues. MFs received only 6 per cent of total household savings in 2021-2022.
Though India has been one of the best-performing markets in the last two months, it has lagged some of its emerging market peers such as the Philippines, Thailand and South Africa.
'Banks make money because they take the right credit calls. So they need to focus on risk mitigation rather than risk avoidance.'
The equity cult has grown at a rapid pace in India in the last few years, with retail investors latching on to the stock markets like never before. At 126.6 million, the number of dematerialised (demat) accounts, where investors hold their securities in electronic form for trading purposes, are at record high levels. The growth rate, on an annualised basis, stood at 27 per cent in 2022-2023, up from barely 6 per cent a decade ago.
Monthly systematic investment plan (SIP) flows into India have held steady above Rs 13,000 crore in 2022-23 (FY23) in the face of markets delivering muted returns in 18 months. However, it is not a rose-tinted view when it comes to viewing new SIP registrations and the cessation of existing ones. The ratio of SIPs stopped as a percentage of fresh SIPs registered (called SIP stoppage or closure ratio in industry parlance) stood at 56 per cent in the first 11 months of FY23, compared with 41 per cent during the same period of 2021-22 (FY22).
'The recent correction in indices has made the markets cheaper to invest for the long term.'
The Securities and Exchange Board of India's move directing asset management companies (AMCs) to invest more in their new fund offerings (NFOs) could force the industry to go slow on new product launches. At present, AMCs have to invest one per cent of the amount raised during a NFO or Rs 50 lakh, whichever is less.
'To the believers of crypto regulations, I have only one question to ask, how will you regulate it?'
Global funds, according to Christopher Wood, global head of equity strategy at Jefferies, are now beginning to pay more attention to India with the market now offering 30 companies with a market capitalisation over $25 billion.
Commodity investments can help you diversify your portfolio in asset classes other than equity and debt, says Dwaipayan Bose.
Family offices are increasingly looking to invest directly in start-ups rather than through investment in venture capital (VC) firms. The shift is happening because of multiple reasons. Next-generation scions of wealthy families are conversant with how the start-up world works after they have spent time in Silicon Valley; start-up investment is rising to 10-15 per cent of family offices' portfolios from single digits; and they do not want to share gains of investment with VC firms. "While earlier they would prefer to invest in this asset class via venture capital (VC) funds as LPs (limited partners), now they are making direct investment in start-ups.
...is not always easy. Here's why!
Among the Sensex firms, HCL Technologies, Tata Motors, Hindustan Unilever, NTPC, IndusInd Bank, Bajaj Finserv, Bajaj Finance and Mahindra & Mahindra were the major gainers. Bharti Airtel, Reliance Industries, ICICI Bank and Asian Paints were the laggards.
Ask rediffGURU Ulhas Joshi your mutual fund queries.
Experts suggest domestic factors rather than the Greece crisis would determine the course of the Indian equities.
rediffGURU Jinal Mehta answers readers' financial planning and health insurance queries
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
Investors should consider debt mutual funds, banks fixed deposits or high-rated corporate debt instruments.
'I am not saying start buying from today. but start buying in the next three-four months.'
An investor friendly budget would mean further incentives and opportunities for investors to get invested.
Nikunj Saraf, Vice President Choice Wealth, answers your queries.
Liquidity issues post the crisis at DHFL, progress of monsoon, rupee trajectory at the domestic level and oil prices are some factors that will keep markets choppy, analysts say.
Diversification and asset allocation can reduce uncertainty
The markets after seeing some volatility in the past few weeks, took a definite direction this weekÂ…downwards!
Multi-cap funds are best suited to exploit the present market scenario as they are free to invest across all market capitalisations and sectors, says Naveen Kukreja, CEO and co-founder, Paisabazaar.com.
According to the data available from National Securities Depository (NSDL), the leading depository, nearly 62.8 per cent of the demat accounts are in the five states Maharashtra, Gujarat, Delhi, Tamil Nadu and Karnataka. Maharashtra leads the number of demat accounts with 22 per cent share, followed by Gujarat with 18 per cent share. These are the only two states having more than a million accounts in NSDL.
There is a lot of optimism across all markets and a large part of it is justified, says Samir Arora of Helios Capital Management.
The government on Friday proposed hiking the securities transaction tax on Futures & Options (F&O) contracts, a move that will increase the trading costs in the derivatives segment as well as help in curbing excessive trades. In the Finance Bill 2023, passed by the Lok Sabha on Friday, the Securities Transaction Tax (STT) on options is proposed to be increased to 0.0625 per cent from 0.05 per cent and on futures contracts to 0.0125 from 0.01 per cent. Analysts opined that higher STT will shore up the government's revenues to some extent and also discourage excessive trading since a large number of retail traders are losing money in the segment.
Follow these and the your chances of earning higher returns will improve...
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
Finance Ministry meets market participants, wants feedback.
Alternative investment funds (AIFs) have not seen any significant redemptions from financial institutions even though the 30-day timeline provided by the Reserve Bank of India (RBI) to liquidate their holdings or make full provisions ends recently. Sources said the industry is awaiting certain relaxations or extensions based on the recommendations submitted to the banking regulator. On December 19, the RBI restricted financial institutions and banks from investing in AIFs where there is any downstream link or exposure to a debtor firm.
The BSE SmallCap index gained 106 per cent in the one year ended May 12, 2021.
From the pandemic shocks to state polls to global trends, a raft of sentiment drivers are expected to steer the Indian stock market in 2022 after a historic year of massive investor returns and milestones. The Union Budget, which will be closely watched for further reform moves, and quarterly earnings of corporates will be among the developments on investors' radar amid global central banks moving towards tighter interest regime in the wake of inflationary pressures. The year 2021 was rewarding in a big way for equity investors.
Here's how brokerages across the country are interpreting the exit polls.
Retail investors have gained significant heft in the past year amid a sustained uptick in Indian equities. The share of retail investors in companies listed on the NSE reached an all-time high of 7.32 per cent in the quarter ended December 31, 2021, up from 7.13 per cent in the previous quarter and 6.9 per cent a year ago, the data from PRIME Infobase shows. This was despite the Nifty's 1.5 per cent decline during the quarter.
While near-term performance is difficult to predict after a huge run-up, fund managers believe the PSU theme's prospects remain sound over the medium to long term.
After a sharp sell-off in the past two months, overseas investors were once again seen turning bullish on Indian equities. FIIs bought shares worth Rs 63.5 billion in the past five sessions, their highest weekly investment tally in many months.
