Risk Management is a very simple method that works by defining stops that trigger a sell signal when the share price falls.The following steps are taken by SEBI for Risk Management in the Equity Market:MARGINS BASED ON VAR (Value At Risk)(A) For the scrips in the compulsory rolling settlement, the 99% VAR based margin system […]
In 1988 the Securities and Exchange Board of India (SEBI) was established by the Government of India through an executive resolution, and was subsequently upgraded as a fully autonomous body (a statutory Board) in the year 1992 with the passing of the Securities and Exchange Board of India Act (SEBI Act) on 30th January 1992.
What is a Mutual Fund?A Mutual Fund is a body corporate registered with the Securities and Exchange Board of India (SEBI), that pools up the money from individual/corporate investors and invests the same on behalf of the investors/unit holders, in equity shares, Government securities, Bonds, Call money markets etc., and distributes the profits. In other
India, among the European investors, is believed to be a good investment despite political uncertainty, bureaucratic hassles, shortages of power and infrastructural deficiencies. India presents a vast potential for overseas investment and is actively encouraging the entrance of foreign players into the market. No company, of any size, aspiring to be a global player can,
A good mutual fund company will know how to use the investor’s money to buy and sell large amounts of securities. The aim of mutual fund companies is to increase their profit margins. The individual who invests on mutual funds also has a similar objective of squeezing maximum profit out of it. It’s a win-win
A mutual fund provides diversification, professional management and liquidity. An exact investment procedure helps you invest properly in your favourite Mutual Fund.PURCHASING UNITS DURING THE IPOMutual funds advertise in newspapers when they come up with a new scheme. On reading the advertisement, contact your broker or the mutual fund office for an application form or
For a lot of investors, dividend income means a lot. This holds true for investors in mutual funds as well as stocks. Now, investing in stocks calls for a totally different skill set. With stocks, regular dividends (in combination with other key factors like revenue and profit growth, cash flows) do speak for the company’s
It is necessary for every mutual fund investor to regularly check out the performance of mutual funds they invested in.OBJECTIVE PARAMETERSThe NAV of the scheme will reflect the performance of the scheme. The fund will also give you returns for various periods such as one month, three months, six months, one year, three years, since
Each and every year there are some mutual funds that beat the overall market, and there are even years when the majority of mutual funds beat the market. But trying to pick a mutual fund ahead of time that will beat the market is extraordinarily difficult.SELECTION PARAMETERSYour objective: The first point to note before investing
Affordability: Mutual funds allow you to start with small investments. For example, if you want to buy a portfolio of blue chips of modest size, you should at least have a few lakhs of rupees. A mutual fund gives you the same portfolio for meagre investment of Rs 1,000-5,000. A mutual fund can do that
Mutual fund schemes are classified on the basis of its structure and investment objective.BY STRUCTUREOpen–ended funds: Investors can buy and sell units of open-ended funds at NAV-related price every day. Open-end funds do not have a fixed maturity and it is available for subscription every day of the year. Open-end funds also offer liquidity to
The concept of mutual funds in India dates back to the year 1963. The era between 1963 and 1987 marked the existance of only one mutual fund company in India, the Unit Trust of India (UTI). By the end of the 80s decade, few other mutual fund companies in India took their position in mutual
A mutual fund is a trust that pools the savings of a number of investors with common financial goals. The collected money is invested in various instruments like debentures, shares, etc. The income generated from these instruments and the capital appreciation is shared by the investors in proportion to the number of units owned by
Mutual Fund is an instrument of investing money. Now-a-days, bank rates have fallen down and are generally below the inflation rate. Therefore, keeping large amounts of money in bank is not a wise option, as in real terms the value of money decreases over a period of time.One of the options is to invest the
Savings form an important part of the economy of any nation. With the savings invested in various options available to the people, the money acts as the driver for growth of the country. Indian financial scene too presents a plethora of avenues to the investors. Though certainly not the best or deepest of markets in
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