Trading Updates on Fingertips
When to invest in mutual funds Unlike stocks, you don’t have to wait long to invest in mutual funds. Fund managers and their team of analysts only select the right stocks and assets and investors benefit regardless of the market situation. In addition, when you […]
Mutual FundsIntroduction Taxation is the means by which a government or tax authority collects taxes from its citizens and businesses. From income tax to goods and services tax (GST), taxes apply at all levels. What are taxes? Central and state governments play an important role in […]
TaxationIntroduction Buying a futures contract is basically buying multiple stocks in the spot market. The fundamental difference is that when you buy futures contracts you don’t get instant delivery. Let’s take a look at the basics of futures trading and what futures trading can do: […]
Futures TradingIntroduction Investment portfolios are often made up of different asset classes. These are typically stocks, mutual funds, ETFs, and bonds. Options are another class of asset. When used correctly, options trading offers many benefits that trading in stocks and bonds alone does not. Before discussing […]
Options TradingWhen to invest in mutual funds Unlike stocks, you don’t have to wait long to invest in mutual funds. Fund managers and their team of analysts only select the right stocks and assets and investors benefit regardless of the market situation. In addition, when you […]
When to invest in mutual funds Unlike stocks, you don’t have to wait long to invest in mutual funds. Fund managers and their team of analysts only select the right stocks and assets and investors benefit regardless of the market situation. In addition, when you […]
Mutual FundsUnlike stocks, you don’t have to wait long to invest in mutual funds. Fund managers and their team of analysts only select the right stocks and assets and investors benefit regardless of the market situation. In addition, when you invest in a SIP, you benefit from both declining and high market cycles. When the markets fall, you end up buying more shares in the Fund because the stock prices would have fallen to their new lows, and when the markets rise you buy fewer shares. This is known as the average cost in rupees. This benefit is only available when investing in mutual funds through SIP. So you don’t have to wait long to invest in mutual funds. The best time to invest in mutual funds is now!
Dividends offered by all UCITS are now taxed in the traditional way. They are added to your general income and taxed according to your tax return. The capital gains offered by SII are taxed according to the duration of the participation and their type. The holding period is the time you’ve invested in a mutual fund.
If you exit an equity fund within a year, you will receive short-term capital gains. This income is taxed at the fixed rate of 15%. By exiting an equity fund after a one-year holding period, you can realize long-term capital gains. Long term capital gains of up to Rs 1 lakh per year are tax free. Any long-term income over Rs 1 lakh per year is taxed at a fixed rate of 10% and no indexation benefit is granted.
Short-term capital gains are realized by withdrawing from a debt fund operated within three years. This income is added to your general income and taxed according to your tax return. Long-term capital gains are realized when you pay off your debt fund holdings after three years. This income is taxed at a rate of 20% after indexation.
If a hybrid’s equity exposure is greater than 65%, the fund will be taxed like an equity fund. Otherwise, the tax regulations of the Debt Fund apply. So before you decide to invest in a hybrid fund, you need to know your equity exposure in order to properly plan your taxation.
You can save up to Rs.46,800 per year in taxes by investing in an Equity Linked Savings Program (ELSS), the best tax investment under Section 80C. ELSS FCP’s assets are mainly divided into equities and equity-linked securities.
ELSS mutual funds are the best tax asset under Section 80C of the Income Tax Act 1961. They have a lock-up period of just three years, the shortest of all investments. These mutual funds have the potential to generate returns in the 12% to 15% range.
ELSS funds are the only tax efficient investment with the potential to generate returns above inflation. Therefore, investing in ELSS mutual funds gives you the double benefit of tax deductions and wealth accumulation over time.
Anyone with a specific financial goal, be it short or long term, should consider investing in mutual funds. Investing in mutual funds is a great way to achieve your goals faster. There are mutual fund plans for everyone. Investors should assess their risk profile, time horizon, and goals before investing in mutual funds. For example, if you are risk averse and plan to buy a car in five years’ time, you might want to consider investing in public funds. Those who are willing to take risks and want to buy a home in fifteen or twenty years should invest in equity funds. If your investment horizon is less than two years and you want a higher return than a regular savings account, consider investing your excess funds in a liquid fund.
Introduction Taxation is the means by which a government or tax authority collects taxes from its citizens and businesses. From income tax to goods and services tax (GST), taxes apply at all levels. What are taxes? Central and state governments play an important role in […]
TaxationTaxation is the means by which a government or tax authority collects taxes from its citizens and businesses. From income tax to goods and services tax (GST), taxes apply at all levels.
Central and state governments play an important role in setting taxes in India. In order to streamline the tax process and guarantee transparency in the country, the state and central government have implemented several political reforms in recent years. One of tho se changes was the Tax on Goods and Services (GST), which made the tax system more flexible on the sale and delivery of goods and services in the country.
India’s tax structure can be divided into two main categories:
Direct tax:
It is defined as the tax that is collected directly from a taxpayer and must be paid to the government. Also, a person cannot approve or designate another person to pay taxes on their behalf.
Some of the direct taxes imposed on an Indian taxpayer are:
Income tax: It is the tax levied on the income of a natural person or a taxpayer.
Corporate income tax: it is the tax levied on the profits that companies obtain from their operations.
Indirect Tax:
It is defined as the tax that is not levied on income, profits or income, but on goods and services provided by the taxpayer. Unlike direct taxes, indirect taxes can be transferred from one person to another. Previously, the list of indirect taxes applied to taxpayers included service tax, sales tax, value added tax (VAT), central consumption tax, and customs duties. However, with the introduction of the Goods and Services Tax (GST) regime, which came into effect on July 1, 2017, it replaced all forms of indirect taxes levied on goods and services by state and central governments. The GST not only reduced the physical interface, it also lowered the cost of complying with excise duties.
Direct and indirect taxes are defined on the basis of the ability of the final taxpayer to transfer the tax burden to another person. Direct taxes allow the government to collect taxes directly from consumers and is a type of progressive tax, which also helps to cool the inflationary pressure on the economy. Indirect taxes allow the government to expect stable and safe returns and to attract almost all members of society, which direct taxes have failed to achieve.
Both direct and indirect taxes are important for the country as they are closely linked to the general economy. As such, the collection of these taxes is important to the government and to the well-being of the country. Both direct and indirect taxes are collected by the central government and the respective state governments based on the type of tax collected.
In India, tax laws are governed by the provisions of the Income Tax Act 1961. Taxes are the collection of mandatory taxes on natural or legal persons by the state. Taxes are collected in almost every country in the world, primarily to generate revenue for public spending and other purposes. The tax law serves as an instrument for collecting the tax. The Tax Law is a government document of thousands of pages that describes the rules for individuals and businesses. In general, tax laws are implemented through the corresponding laws, rules and regulations, procedures, circulars and ordinances. They must obey the law and be responsible for returning a percentage of their income to the government.
India’s tax laws are governed by both the central and state governments. Some minor tax laws are governed by local authorities, such as local and local governments. Direct taxes in India are governed by two main laws, the Income Tax Act of 1961 and the Wealth Tax Act of 1957. New legislation, the Direct Tax Code (DTC), has been introduced. It was introduced and proposed to replace the two laws. . With the repeal of the wealth tax law in 2015, the idea of DTC disappeared.
In recent years, the central government and many state governments have implemented various policy reforms and simplified forecasting processes.
Introduction Buying a futures contract is basically buying multiple stocks in the spot market. The fundamental difference is that when you buy futures contracts you don’t get instant delivery. Let’s take a look at the basics of futures trading and what futures trading can do: […]
Futures TradingBuying a futures contract is basically buying multiple stocks in the spot market. The fundamental difference is that when you buy futures contracts you don’t get instant delivery.
Let’s take a look at the basics of futures trading and what futures trading can do:
It is important to understand the definition of the future. Futures are nothing more than a financial contract that obliges the buyer to buy an asset or the seller to sell an asset on a predetermined date and price.
Investors in India can trade futures contracts on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Let’s see how to trade futures contracts in India.
Futures are complex financial instruments and are different from other instruments such as stocks and mutual funds. Trading futures contracts can be difficult for a first-time investor in stocks. If you want to start trading futures contracts, you need to understand how futures contracts work as well as the risks and costs involved.
While we all want to make a profit in the markets, you can also lose money when trading futures contracts. Before investing in futures, it is important to know your tolerance for risk. Know how much money you can afford to lose and if the loss is affecting your lifestyle.
It is important to determine your own strategy for future trading. You might want to buy futures based on your knowledge and research. You can also hire an expert to help you with this.
Once you understand how to trade futures, you can try the same on a simulated trading account available online. This is a great way to gain first-hand experience of how the futures markets work. This way, you can better trade futures contracts without investing.
To start trading futures, you need to open a trading account. Do a thorough background check before opening a business account. Also inquire about the rates. When investing in futures, it is important that you choose the trading account that best suits your needs.
Futures contracts require that a certain amount of margin money be deposited as collateral, which can be up to 5-10% of the contract size. Once you know how to buy futures, it’s important to get the margin you need. When you buy futures on the spot segment, you will be charged the full value of the stocks you bought, unless you are an intraday trader.
The next step is to pay the margin money to the broker, who in turn deposits it on the stock exchange. The exchange holds the money for the entire period that you hold your contract. If the cash margin increases during this time, you will need to pay additional margin.
You can then place your order with your broker. Placing an order with a broker is similar to buying a stock. You need to tell the broker the contract size, the number of contracts you want, the strike price and the expiration date. Brokers offer you the option of choosing from several available contracts.
Finally, you need to execute the futures contracts. This can be done no later than the expiration date. A settlement is nothing more than the delivery obligations associated with a futures contract. While in some cases S.B. with physically delivered agricultural products, with a stock index and interest rate futures, the delivery is in the form of cash payments. Futures contracts can be settled on or before the expiration date.
Heystockmarket is trying to help public who are eligible to trade/invest in the market providing information in layman language to understand the market in better way. We are not responsible for any loss/profit that an individual or an entity faced. Investing in stock market helps our companies grow as your pooled money is used in development or diversification so as to give good returns to investors. Not all the time companies make perfect decisions and move forward, Due to some economic variable they may face huge losses. Please be aware of news and be careful before you trade or invest.
Introduction Investment portfolios are often made up of different asset classes. These are typically stocks, mutual funds, ETFs, and bonds. Options are another class of asset. When used correctly, options trading offers many benefits that trading in stocks and bonds alone does not. Before discussing […]
Options TradingInvestment portfolios are often made up of different asset classes. These are typically stocks, mutual funds, ETFs, and bonds. Options are another class of asset. When used correctly, options trading offers many benefits that trading in stocks and bonds alone does not. Before discussing these benefits, we will get the definition.
An “option” is a contract that allows (but does not require) an investor to buy or trade instruments such as securities, ETFs or index funds after a specified period of time at a specified price. Call and put options are made in the options market. An option that allows you to buy shares at a later date is called a “call option”. On the other hand, an option that allows you to sell stocks at some point in the future is a “put option”.
Options are considered lower risk instruments than traditional futures contracts used in the trading of stocks, indices and commodities. Because you can choose at any time whether you want to terminate or revoke your option contract. It also means that, unlike stocks, options do not belong to any company. Therefore, the market price of the option (also called a premium) is part of the underlying security or asset.
When an investor or trader buys or sells options, they have the right to exercise that option at any time before the expiration date. The simple purchase or sale of an option does not require exercise on the expiration date. Due to this structure, options are classified as “derivative securities”. In other words, the price of options is derived from other factors such as the value of the underlying assets, stocks and other instruments).
Buying options requires less initial effort than buying shares. The price to get an option (trading fees and premiums) is much lower than the price a trader would have to pay to buy stocks.
Options trading allows investors to freeze the price of their shares at a certain amount for a period of time. The fixed share price (also known as the strike price) ensures, depending on the option category used, that this price can be traded at any time before the option contract expires.
It improves a trader’s investment portfolio through additional income, leverage and even protection. A common way to limit losses is to protect against a stock market crash. Additionally, It can be used to generate a recurring source of income.
Options trading is inherently flexible. Before their options contract expires, traders can take several strategic steps. It involves the use of options to buy stocks and add them to your investment portfolio. Investors can also try to buy the shares and then sell some or all of them for a profit. You can also sell the contract to another investor for a higher price before it expires.
A call option allows a trader to buy a series of stocks in the form of bonds, stocks, or other instruments such as indices and ETFs at any time before the contract expires. If you buy a call option at a profit, you would prefer the price of the asset or security to rise. This is because your call options contract allows you to buy the underlying asset or security at a predetermined lower price. Therefore, in this case, you will get a discount if you use your call option contract. However, keep in mind that you will need to renew your calling option (usually quarterly, monthly, or weekly). As a result, options are known to “sell out” all the time, which essentially means they lose value over time. For call options, beware of lower strike prices as this indicates that the call option has a higher intrinsic value.
A put option contract gives the investor the ability to sell a number of shares of an underlying security, asset or product at a predetermined price before the contract expires. Such contracts can generate profits if the prices of assets or securities fall in the future. It does this by selling little electricity.
Heystockmarket is trying to help public who are eligible to trade/invest in the market providing information in layman language to understand the market in better way. We are not responsible for any loss/profit that an individual or an entity faced. Investing in stock market helps our companies grow as your pooled money is used in development or diversification so as to give good returns to investors. Not all the time companies make perfect decisions and move forward, Due to some economic variable they may face huge losses. Please be aware of news and be careful before you trade or invest.
Definition Hedge Fund is a private investment company and group of funds that employ a variety of complex ownership strategies and invest or trade complex products, including listed and unlisted derivatives. Put simply, a hedge fund is a pool of money that takes long and […]
Hedge FundsHedge Fund is a private investment company and group of funds that employ a variety of complex ownership strategies and invest or trade complex products, including listed and unlisted derivatives.
Put simply, a hedge fund is a pool of money that takes long and short positions, buys and sells stocks, initiates arbitrage, and trades bonds, currencies, convertibles, commodities and derivatives to generate low risk returns. As the name suggests, the fund tries to protect itself against market volatility risks for investors’ capital through alternative investment approaches.
Investors in hedge funds usually include high net worth individuals and families, foundations and pension funds, insurance companies and banks. These funds act as private investment companies or offshore investment companies. They do not need to be registered with the securities regulator and are not subject to any disclosure requirements, including regular NAV disclosure.
There are many strategies a hedge fund can use to generate returns. One such strategy is the macro-macro strategy, in which the fund takes long and short positions in major financial markets based on cyclical sentiment. Then there are funds that operate according to market-neutral strategies. Here, the manager’s goal is to minimize market risk by investing in long / short equity funds, convertibles, arbitrage funds and bond products.
Another type are event funds that invest in stocks to take advantage of price movements due to corporate events. Merger arbitrage funds and distressed asset funds fall into this category.
Hedge fund returns are more indicative of management skills than market conditions. Asset managers do their best here to reduce / reduce market exposure and achieve good returns despite market movements. They work in small sectors of the market to reduce risk through greater diversification.
As of June 30, 2014, there were 158 alternative investment funds (private equity investment vehicles, real estate and hedge funds). Some examples of hedge funds are names like Munoth Hedge Fund, Forefront Alternative Investment Trust, Quant First Alternative Investment Trust, and IIFL Opportunities Fund. There are others like Singlar India Opportunities Trust, Motilal Oswal Offshore Hedge Fund, and India Zen Fund.
The minimum banknote size for investors investing in these hedge funds is 1 billion rupees. According to the Eurekahedge India Hedge Fund Index, which tracks hedge funds in India, the category achieved a return of 5.07% in 2015 compared to 38.84% in 2014.
Hedge funds are still in their infancy and not as well known as other mutual funds. Although they also group the investments of several investors, they use very complex strategies to hedge risks and generate high returns. In this article, we take a look at hedge fund and track their popularity in India.
Hedge funds are privately managed mutual funds by experts. Because of this, they are usually a bit more expensive. Therefore, they are affordable and only accessible to financially strong people. In addition to being overfunded, you need to be an aggressive risk seeker as the manager buys and sells assets at breakneck speed to keep up with market movements.
The greater the structural complexity, the greater the risks. Therefore, the expense ratio (fund management effort) is much higher for hedge funds than for regular mutual funds. This can add up to 15-20% of your returns. We therefore recommend that new investors only use these funds after they have gained extensive experience in this area.
Even then, everything depends on the fund manager. If you don’t fully trust your fund manager, investing in hedge fund can cause you sleepless nights.
Introduction A rally is a continuous rise in the prices of stocks, bonds and / or indices. This term is often used on commercial media platforms to describe a period of time when prices are constantly rising. A rally is also used to indicate upward […]
MarketsA rally is a continuous rise in the prices of stocks, bonds and / or indices. This term is often used on commercial media platforms to describe a period of time when prices are constantly rising. A rally is also used to indicate upward fluctuations in the stock markets. The duration varies from start to finish. It is also relative to the time frame used during market analysis.
A rally can take place for a number of reasons such as: market volatility and news reports. This is also due to a significant increase in demand due to a strong inflow of capital into the markets. Meetings can be short term or long term. The duration depends on the number of buyers and the associated selling pressure. For example, if there are a large number of buyers but fewer investors willing to sell, there is a possibility of a large rally.
Short-term meetings are usually based on events or reports about a company, such as: Due to the departure of a CEO or the appointment of a new CEO, this can affect the company’s supply and demand balance. Long-term rallies occur due to macro-financing and external factors such as changes in fiscal policy, company regulations and key interest rates.
The stock market is known for its volatility and constant fluctuations. Even experienced analysts cannot predict the direction of the market one hundred percent, as stock prices can fall sharply after a prolonged period of increase. The market can suddenly see a sharp surge in stock prices even after a long period of downtrend. A rally can take place in a bull or bear market, commonly referred to as a bull market rally or a bear market rally. This usually happens after a period of falling prices.
A bearish rally means an upward trend in market prices over time amid a large bear market rising between 10% and 20%. Prices can rise during a long-term downtrend. Bear market rallies are inherently strong; They start suddenly and last a short time.
Investing in the markets during a market rally requires a great deal of planning and strategy, including the nature of the investment, the risks, and the asset allocation. It is important to always consider the market situation before diving in, especially for investors who are particularly interested in equity funds. This type of investment can be greatly influenced by market instability. Instead of betting on a bull market rally, investors can be cautious. Gambling becomes riskier as small and mid-cap prices rise. In this case, investors can invest some of their money in large-cap equity funds to help keep portfolio performance up during a market rally.