India’s coronavirus reported cases tally has just now crossed the grim milestone of 70,000. As India’s enters the last week of nationwide lockdown, the PM Narendra Modi asked the chief ministers to take decisions and decide the road ahead. It is highly likely that lockdown will be extended with more curbs and relaxations to go. Now that millions of people are staying at home, the whole economy is in the disruption. It is one of the times when the economy falls into recession and you get the chance to buy some high-quality stocks at lower costs. While some may suggest you stay away from the current market, many experts and market pundits believe that it is the right time to invest in the stock market and generate high returns over the long haul, say 5 to 10 years, or more.
Below we’ve mentioned selected stocks to invest in during lockdown that can benefit you in foreseeable future:
Hero Motocorp is a zero debt company with the ROE – 26% and ROCE 39% - which is the indication of the better financial performance of the company and potential in stock for the foreseeable future.
HDFC Life is a zero debt company with promoter pledging of 63% - which is good. The ROE and ROCE of the company are at 25% and 30% respectively, making it a reliable stock to look forward.
The ITC too have attractive ROE & ROCE values of 23% and 35% respectively.
Amber Enterprises is in Air Conditioning & OEM business connected with big brands like LG, Blue Star, Hitachi, SML ISUZU, Carrier, and Godrej etc. Amber Enterprises is a small-cap listed company with 0.34 debt-to-equity ratio with average CAGR (last 3 years) of 28 per cent. It is a small-cap stock with high growth potential available at 48 per cent discount from its 52-week high. Disclaimer: This is for the sole purpose to provide information to the readers and not to interpret as investment advice. It is also not to consider as an offer or solicitation for the purchase and sale of any financial instrument. Any action taken based on given information contained herein is your responsibility alone. Start investing now with reliancesmartmoney.com Mutual funds and Stocks, both of these are ways of investment that provide lucrative profits. But, for people with no or very little knowledge of any of these, fixed deposits in banks or PPF, remain the only known options. In a fast-paced world like today, which is also affected by pandemic, has resulted in putting a dent in the economy. Situations like these make it very important to have an understanding of options like Mutual Funds and Stocks. With a sound understanding of these options, it will be easier to invest one’s hard-earned money in a better way.
What is SIP? Let us start this as a beginner. So what is SIP? SIP means Systematic Investment Plan. It is the most convenient way of investing in Mutual Funds. Through SIP you can easily invest a bulk amount of money, breaking it down into smaller parts and investing a fixed amount in regular intervals. This can be done weekly, monthly, quarterly or, even bi-annually as per your convenience. The best part about SIP is that it can be initiated, paused or, terminated at any point in time. Because of these convenient features, the SIP model of Mutual Funds has become not only very popular but also a safe and wise option in investment. What is Stock Market? The Stock market is where you invest in the shares of different companies. In very simple language, by doing so, you claim the assets and the earnings of the company. The Stock market is considered very volatile in the way they fluctuate. Whereas on one hand, it offers very lucrative profits, on the other hand, the rise and downfall of a company depends on mostly Geo-political events, Economic events, inflation, etc. Can you do SIP in Stocks too? As we have understood that SIP is a very simple yet powerful model of investment, while buying Shares of a company makes you claim the assets and earnings of that company. The combination of both types of investment results in an excellent means to invest, save and also grow your money with better dividends. Let us understand the Top 5 reasons why you should be doing SIP in Stocks. 1. You don’t need to worry about timing the market: The main issue that one has to face in investing in the stock market is analyzing the right time of the market. Especially if one is not well versed in the workings of the Stock Market, it is a matter of concern if one wants to invest a lump sum amount. In such a scenario, SIP comes to the rescue because the investments are spread over time and that means only a specific part of it is subject to market volatility. 2. Averages the cost of the Investment : Investing via SIP helps you traverse the highs and lows of the market smartly. When the market is low, you tend to get lesser units at a lower price and vice versa when the market goes high. 3. Reap the benefits of compounding : Our parents gravitated towards banks not just because the money was safe but the bank also provided interest which means it compounded. The investment in SIP gets reinvested, which means that we start getting interest on our returns itself. 4. Don’t need to worry about the right time of investing : When you invest via SIP a fixed amount gets deducted automatically from your bank account and is invested into the scheme that one has chosen for oneself. 5. Build a habit of investment : If you are a person who wants discipline when it comes to investment, then investing in SIP is the best way to make that habit. Conclusion : Stock SIP can be risky if you are planning to invest all your money in just one company. Diversification is the key. One more thing to keep in mind is that you need to understand the trend of the market, rather than just going by the name and size of the company. For example in the time of laptops and smartphones, choosing to invest in a company which makes very good typewriters for government offices won’t be a wise choice at all! One has to keep in mind to exit if the company is not doing well. Overall knowledge of the investment plans is going to give dividends always. In unprecedented times as this, when people are either losing their jobs or salaries are being halved, it is wise enough that we look out for options that give us good returns and also keep our future secure. Open Free Online Demat Account: https://www.reliancesmartmoney.com/demat-account-online Online KYC Registration : https://www.reliancesmartmoney.com/online-kyc-registration Start investing now with reliancesmartmoney.com Introduction:
Investment is the key to growing money. Banks help you keep your money safe, but if you want to double or triple your money, then just keeping it in a savings account isn't going to help. Share market is not everyone’s cup of tea, given its volatility. So, where does the more conservative investor go? Both Government of India, as well as, Public Sector Financial Institutions, offer the facility of various saving schemes for such investors. Some of the most popular saving schemes are:
Let us talk about the most popular saving scheme, PPF. What is PPF? Public Provident Fund or PPF is a long-term saving scheme, which was launched in the year 1968 by the Finance Ministry’s National Savings Institute. Due to its returns, tax benefits, and safety, it is one of the most popular saving schemes brought by the Government of India. The backing of the Government of India makes it the most secure and guaranteed risk-free return. Key Features of PPF:
As there is no age limit for opening a PPF account, it is a secure and extremely low-risk way to invest for long-term future goals of the children like their education, marriage, etc. It is recommended, that parents open a PPF account for their children right after their birth. The reason for this is the long-term locking period of 15 years. At the interest rate of 7.1, getting compounded annually, PPF gives very healthy returns when the child grows up. In such cases, of course, the KYC details of the parents are used. In the case of minors, there is a joint account with the parents. It is always recommended that the account be opened early on in life rather than later, to get the maximum benefit out of PPF. For later stages in life, there are other Saving Schemes which one can invest in. Process for opening PPF Account for the Minor:
If your Adhaar card is linked to your bank account, the PPF account will get activated in just one day. Points to Remember for Minor’s PPF Account:
Considering all the above-mentioned points, Public Provident Fund Scheme is the best option to go for your child’s security and long-term goals. The super-easy procedure of opening the account, basic documents, a minimum amount of Rs 500 makes it accessible to all category of people. If you open an account for your child right after birth, you will have 15 long years to invest in your child's secured future. With the stamp of a government saving scheme and with no stress of the volatility of the market, you can have tension-free nights & get sound sleep! Open Free Online Demat Account: https://www.reliancesmartmoney.com/demat-account-online Online KYC Registration : https://www.reliancesmartmoney.com/online-kyc-registration Start investing now with reliancesmartmoney.com It is mandatory to have a Demat Account under The Depositories Act of 1996 if you want to trade in the share market. Whenever you make a purchase of a share or sell it, that particular share is stored in this folder in an electronic form. Unlike the initial days of the stock market, there is no physical exchange of stocks and shares nor is there any physical transaction of the assets. In short, the shares have been dematerialized, hence the name Demat.
With the changing times, everything went online and so did Share Market. The presence of the stock market online has made many things easier. You can also create this portfolio online. Nationalized and private banks, financial institutions, brokerage firms, Share Market Apps, all provide this facility since the digitalization of the share market and especially in these unprecedented pandemic times. You can open a Demat account online in some very easy and simple steps.
A Demat folder can now also be opened for free, online. Many brokers, banks, apps provide this facility on their websites or apps. And by free it doesn’t mean that only the account opening charges are waived off, but many other charges too either are reduced considerably to the extent of being negligible or completely waived off. The DP provides the services of an account to the investor and charges the investor an Annual Maintenance Charge, also known as Folio Maintainance Charges. This charge has to be paid in advance and generally falls between Rs 300 to 900 a year. This is paid to keep the e-wallet active. Some brokers provide the facility of a free portfolio with absolutely no AMC charges, to a lump sum amount for a lifetime. This facility makes opening a Demat account with that particular broker or institution even more attractive. A Demat wallet is very important as without it we won’t be able to store our shares or stocks. Also, it is mandatory now to have this account as we already read in the post. It ensures transparency of the transactions and also safe banking. Let’s understand more about it by taking a look at the different uses or rather advantages of Demat Account.
A trading account is important to be able to buy or sell shares. You can’t take out money from your savings account directly and buy a share. You also can't use a Demat portfolio to buy the shares. Money from your bank gets transferred to your trading account, and on the purchase or selling of a share, the transaction is recorded in a Demat account. Hence, all three are linked. Keeping all the points in mind, you can go ahead and start with the basic step of opening these two accounts online. We all have a Bank account and are aware of the benefits too. It is the safest place to keep your money.
But most of us are not aware of what benefits a Demat account has. It is a kind of folder or a portfolio that helps us in, storing the shares and stocks in an electronic form. It has helped dematerialize the paper form of the share certificates, hence the name. These days many financial institutions provide the service of opening a free Demat and trading account. The process of opening such a portfolio online is as simple as it sounds. This account or portfolio is mandatory as well as beneficial because it provides a seamless experience. Even though SEBI has allowed physical trading of stocks and shares for up to a minimum of 500 shares, this process is very inconvenient and involves risks too. Let us understand how we can open a Free Demat account. • The first step incorporates selecting the bank, financial institution, or a stockbroker to be your Depository Participant. DP has the stock of all shares, stocks, IPO’s mutual funds, etc. • Fill the form of opening the account on their website or the registered App. • Enter the OTP that you will receive on your mobile number registered with the bank, to go to the next step. • Next you have to fill in the Date of Birth, email id, PAN details, and Bank details. • Details of your Demat account are sent to you on your registered Email ID. • E-Sign on the dotted line, to complete the formalities. Your phone number should be linked to the Adhaar card to enable this facility. • Start operating your account by creating a password. A Trading account too can be opened in the very same way using the online facility. It is a kind of wallet that allows you to buy or sell shares by transferring money from your bank. If you do not have a Demat folder, you can do Intraday trading only. Now let us see what, are some of the advantages of a Demat account:
Opening a free Demat folder enables you to get rid of charges like account opening charges, security charges. Some of the service providers also allow you to maintain a portfolio with zero or very minimal Annual Maintenance Charges. When it comes to opening the best Demat account in India, it is important to keep these things in mind. • Check whether you can avail the Demat as well as Trading facility with the same DP or not. • Always search the history and reviews of your DP. Do not go with DP’s with negative reviews or malpractices. • Check if they will allow you access to both of these e-wallets via a single portal. It can be quite a hassle if this is not the case. • Costs of different service providers must be compared before opening an account. After cross-checking these things you can go ahead. The best Demat account providers in India are those which fulfill all these criteria. If you want your money to grow, you need to start investing in Mutual Funds, Bonds, IPO’s, Stocks, Shares. For holding any of these assets, you need to have a Demat account first of all. This is just the simplification and the digitalisation of the earlier process when the investors had to do physical trading of the stocks and also had shares in paper form. In short, it means de-materialization of the trading process. Now the shares are stored in electronic form in a Demat Account.
The Demat account opening procedure is pretty simple. It begins with selecting a DP which means Depository Participant. This DP is the bank or the broker or the financial institution that you are choosing through which you will be opening your Demat portfolio. Next comes filling up the account opening form and filling in KYC details, as would happen in opening any simple bank account. So you need these documents for the same: • Address proof like Ration card, Electricity bill, or Voter ID Card. • Identification Proof-like Adhar Card or Passport. • Not to forget the PAN card. • Bank statement. • Cancelled cheque. • Recent Passport size photograph Once you are done submitting this, the bank or the broker provides you with a copy of all the rules and regulations related to the account. It is mandatory as well as advisable to go through these rules and regulations thoroughly before you sign on to it. An In-Person Verification IPV is done by the bank to ensure that no one else is doing the process in your place. This is a crucial step and can't be missed. These days this is done through a Webcam from the facility of your home. The account opening procedure comes to an end as the DP gives you your unique client ID. You start operating your Demat folder by creating your password. Before Online trading facilities began in India, there used to be Offline trading. In this system, the investor would place the order with the broker who would, in turn, buy or sell the shares. With the advent of computers and the internet, offline trading has become a thing of the past. Nowadays only Online trading is done. In the same way, you can open a Demat Account online. If you have created your e-wallet, just to hold shares for long periods and are not a frequent trader, then before creating this portfolio, you must understand that there are many charges applicable like the Account Opening Charge, Safety, or the custodian charge, Annual Maintenance charge, transaction charges. With so many charges to pay, you might lose interest and would want to close the account. To help resolve this issue and the burden of various charges, some of the brokerage firms, and banks provide Free Demat Account Opening. The procedure of creating a free portfolio online is hassle-free. In an offline account opening procedure you have to take out the printout of the forms, fill it up and go and submit it to the bank or the brokerage firm that you have chosen. Whereas, in an online format, you create the account from the convenience of your home at the touch of a finger. There are some really simple and easy steps to create your own E-wallet: • Choose the DP, that is the Depository Participant with which you want to open the account. • Open the account opening form on their app or website. • Fill in your name, phone number, PAN number • Add your bank details as well as personal details. • Upload all the KYC details asked for. • IVP is done via access to a webcam. • For the signature part your mobile number needs to be linked to your Adhaar card. • You get the confirmation on your mobile through the unique client ID. • Create a password and start operating your folder. There are banks and some reputed brokerage firms which provide you with the free facility. Such firms provide zero or no brokerage, the first year’s annual maintenance fee is waived off completely. There are no hidden charges and it is cost-efficient as well. If you want to open a trading account, the procedure is the same for it as well. This specific account is required when you want to buy or sell stocks. It is linked to your bank account. Whether you want to buy or sell, you will first transfer money from your bank to your trading account and then buy or sell the share through it. Are you really interested in the stock market?
Are you a beginner and still do not know what a Demat Account is? Then read through this entire post to know all about creating this portfolio. Earlier, when we didn’t have the facility of Online transaction mode, trading of shares was done physically. Buyers and sellers would go to the stock exchange to do physical trading of shares. Buyers would take their cash and sellers would take their physical certificates of shares. There used to be bidding on the stocks and shares of companies, and when a deal was negotiated the physical exchange of share certificates and cash would take place. There were certain disadvantages to this process: • Both parties had to be physically present for the deal. • This entire procedure took a lot of time. The material procedure that was required way back then was dematerialized. No physical certificates or forms are required in the online process. De-mat simply means the entire process was dematerialized and made Online. This is similar to our account in the bank. When we deposit money in the bank, we can view it in electronic form through net banking. You can’t deposit money in a bank if you do not have an account in that bank. So we purchase the shares, stocks and store them in electronic form in this Demat folder. Here it is also very important to understand the difference between a Demat and a Trading account. While the former is meant for storing all your shares in one place, the latter is one through which you trade in stocks. Both of them are important since one is incomplete without the other. You make money transactions with the latter while storing the purchases in the Demat folder. Though, to hold the positions for even a single day, you do need a Demat portfolio. In case you do not have this portfolio, you will have to do Intraday Trading, which means, you buy the share in the morning and you have to clear or square off the position, in other words, sell it the same working day. You cannot hold the shares even for a single night if you do not have a Demat account. How to create a Demat Account: The very first step is that you need to decide with which authorized bank, financial institution, or broker you want to carry on future transactions. This bank or broker is your Depository Participant or DP. How do I understand which DP is good for me? Well, you have to look into the brokerage charges, annual charges, and the leverage provided by the DP. An account opening form and a KYC form are duly filled. Carry the original and photocopies as well, of these documents for KYC details. • Pan Card • Adhar Card, Driving license, or any other identity proof • Voter ID, ration card, or passport as address proof • Bank Statement of last 6 months. • One canceled cheque. • One recent Passport size photograph of yours. An In-Person Verification (IVP), process follows after this to verify the documents. This is a very important step and rules out chances of fraud and deception. online facility allows IVP through access to a Webcam. Once this is done, you are provided with a copy of the rules and regulations by the DP. You must go through this thoroughly before signing the documents. In case you are not able to understand anything in the documents or you feel is ambiguous, it is advisable to take professional help. Finally, your DP provides you with a unique client ID. Create a password and log in to your portfolio. You are also given a Delivery instruction slip that has instructions for various depositary services like purchase, transfer, etc. There is no compulsion for a minimum balance of shares to be held in your portfolio. You can start with one and go on to any limit that you want. If you want to create more such portfolios with a single PAN, you can do so. But you need to change your Depository Participant or DP for that. As you can see the process of creating this type of a folder is fairly simple. To make it further accessible many DP’s provide an Online opening facility too. Talking about the statistics, the number of Demat accounts in India is approximately 6.9 crores. That shows how much people are getting inclined towards investing in stock markets day by day. Gone are the days when trading used to happen Offline. With the ever-growing technology and internet facilities, everything has started coming online and so is the case with trading. We all know that the first step towards buying a share is having a Demat account. Let’s understand how to create this account for free, online.
A Demat account means that the paper version of the stocks or shares, mutual funds, bonds, derivatives, etc has been de-materialized and converted to Electronic form. This ensures the safety of the shares. Nobody can steal them as they are in electronic form. They take less space, are easier to handle, and can be bought or sold sitting anywhere in the world since the facility is now Online. A bank account and a Demat Account are very similar. The only difference is that in this account we store or deposit shares, mutual funds, bonds, etc. A Trading account is used to trade that is, buy or sell the shares. Money from the bank account is transferred to a trading account to purchase or clear the position of the stocks. A trading account acts as the interface between you and the bank account. Opening a Demat account involves many charges such as maintenance, security fee, and of course for opening the account. These charges might make you lose interest in keeping the account if you are not keen on trading the stock regularly. This problem gets resolved by opening a free Demat account. The account opening procedure for a free Demat account is simple. • Decide which bank, brokerage firm, or financial institution can be your DP or depository participant. DP stores all the bonds, stocks, shares, and mutual funds with it. • Click on the new Demat account on it. • Fill in the compulsory details like name address, mobile number. • Upload KYC details like address proof, identity proof, etc. • An In-Person verification is done by the bank by getting access to the Webcam. • Bank or the firm provides you with the rules and regulations of the bank regarding the account. • You need to link your mobile number to your Adhar card to E-sign the form. • Your DP will send your unique Client ID. You are ready to access your Demat account by creating the password. The procedure of opening a trading account is exactly similar. You just have to choose the option of Trading instead of Demat. A Demat account is essential if you want to hold the shares even for a single night. A trading account doesn’t hold the shares. It is a medium of transaction. You can buy or sell through it. So, if you want to get involved actively in buying and selling rather than just holding the position, you must create a trading account as well alongside a Demat account. Opening a Demat account is the first basic step towards trading in the Stock Market.
Most people believe it’s a very tedious and difficult process just like understanding the stock market. On the contrary, it is very simple and anyone can do it easily. But what is meant by a Demat account? De-mat is nothing else but a short form of dematerialization. In the initial years of the stock market, buying and selling was a physical process, wherein shares were a physical asset. But with the advancement of technology, this process became online and the shares became an electronic representation of the physical asset. This account is just like a wallet or a bank account where you can see the electronic representation of your money. A Trading account on the other hand is again like a savings account only. To be able to trade in stocks and shares you need to have a Trading account, because through this account only you will do transactions of money to buy shares. It is important to have a Demat account to be able to hold your shares. You can do Intraday trading only if you do not have a Demat account. Intraday means buying the share or stock in the morning and selling it off in the evening, even if it translates into a loss. Hence, there is no point in having a trading account without a Demat Account. Opening a Demat account is not rocket science. Let’s go through these steps to understand how to create a Demat Account. A DP, or a depository participant, is chosen which is the bank or the broker through which you are going to open your account. Fill up an account opening form and a KYC form by submitting these documents • Pan Card • Identity proof like Adhar card or Driving Licence • Address proof like Electricity bill • Cancelled cheque • Bank statement or salary slip • A passport size photograph An In-Person Verification will be done to check if it's you who is doing the process. Earlier it would involve an official coming to your home. Now the same process is done by giving access to the WebCam. Read the instructions carefully provided in the copy of rules and regulations provided by the DP before signing on the dotted line. You get the unique Client ID in the end. Make your password and you are ready to log in to your Demat Account. With the help of these simple steps, you can very easily create your Demat Account. So without further ado, create your Demat Account and join the force of 6.9 crore investors in India. SIP IN STOCKS Stock SIP (systematic investment plan ) is an easy method of investing in stocks. It enables investors to buy stocks (amounts/quantity based ) ,periodically (weekly, monthly ,etc. ) in a systematic way. It helps you to make the best of the unpredictable market by adopting a disciplined investment strategy. Mutual funds and other investment companies offer investors a variety of investment options including systematic investment plans. SIP IN STOCKS SIPs give investors a chance to invest small sums of money over a longer period of time rather than having to make large lump sums at one go. Investing in SIP enables an investor to take part in the stock markets without actively timing them and he/she can benefit by buying more units when the price falls and less units when the price rises. This scheme helps reduce the average cost per unit of investment through a method called Rupee Cost Averaging. With every investment in a SIP plan in India, additional units are added to your account depending on the market rate . With every investment ,the amount being reinvested is larger and so is the return on those investments. Moreover, it is at the discretion of the investor to receive the returns at the end of the SIP’s tenure or at a periodic interval. SIP IN EQUITY SIP investments can be started anytime ensuring minimum risk with the correct suitable plan for the investor. It is very important to choose a scheme which suits an individual ‘s long-term goals well. So, there is no suitable time frame within which an investor should start a SIP investment plan, the sooner the better. SIP in stocks allows investors to fix either the amount to be invested or the number of shares needed to be purchased at a regular interval. Like mutual funds SIP ,an equity SIP or ESIP allows investor to invest in stocks in a disciplined manner ,helps them spread their investments over time, and lets them benefit from rupee cost averaging ,thereby creating a sizable corpus with small investments .ESIPs are a good option for investors as one can get more stocks when the prices are low ,as compared with the tenure when the prices are higher. But one limitation of ESIP to be aware of is that it may not necessarily offer you the advantages of price averaging. One of the important rules of equity investment is buying at the right valuation but with systematic investments in stocks, one does not look forward at the valuations rather they look at the number of units he/she might be getting. Just recently, the market has been volatile which made the investors highly impatient and concerned. During these unpredictable conditions of the market , the SIP method of investing in mutual funds is highly recommended. Similarly equity SIP is a way of making small investments in stocks periodically and thereby taking advantage of the fluctuating stock prices. Therefore , the ESIP mode of investment can be useful for direct equity investors. This mode can help abstain from timing the market ,invest with a systematic approach and stay in a safe position during unpredictable times. However, it is essential to narrow down and make an informed decision while picking stocks for direct ESIP. The mutual fund SIP allows automatic diversification, but Equity SIP does not. Investors need to select organizations that are providing strong growth in earnings, proper governance, and ratios of high returns. Therefore ,it is recommended to have a thorough knowledge before choosing a stock to invest in. STOCK SIP IDEAS -Bajaj Finserv. 3 yrs Annual Returns. 62.42% -ICICI Bnk . 3 yrs Annual Returns. 37.63% -Reliance Inds.3 yrs .Annual Returns. 34.90% -Larsen &Toubro.3 yrs.Annual Returns. 21.47% -Indusland Bank. 3 yrs .Annual Returns.5.95% -Maruti Suzuki.3 yrs.Annual Returns.1.43% -ITC.3 yrs. Annual Returns . -3.98% Above mentioned are some of the best SIP ideas .The funds shortlisted are purely based on 3- year annualized returns .Please note, some mutual funds are subject to market risk and require careful consideration before investing. Systematic investment plan is considered as one of the safest and best ways to increase one’s wealth in today’s turbulent scenario. The basic rule to start investing in SIP is the early you start ,the better it would be. The longer you stay ,the more you are going to reap fruits of compounding .The consistency would pay you in the form of a mammoth mount. |
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