How to apply for an IPO with Zerodha Account cover

How to apply for an IPO with Zerodha Account?

In this article, you’ll find out the exact process to apply for an IPO with Zerodha account. However, before we begin, let me tell you my experience of applying to an IPO’s through Zerodha Account.

I’ve been using Zerodha for over four years now and been a happy customer. This discount broker has helped me save a lot of un-necessary brokerage charges if I had used any other full-service broker instead.

Anyways, there was one ‘cons’ of using Zerodha as a broker which bugged me in the past. And it was not having the facility for the customers to directly invest in Initial public offerings (IPOs) through the Zerodha dashboard.

Prior to this recently launched facility, the Zerodha customers have to use ASBA (Application Supported by blocked account) on their net banking portal to apply for IPOs. However, this was not a simple one-click process unlike what most of the other traditional big brokers like ICICI direct, HDFC sec, etc offered.

Although I am not a regular investor in IPO’s and only invest if I find the new offer a lot appealing. Nonetheless, having a simple process to invest gives flexibility whenever the opportunity arrives. Nonetheless, investors can apply for IPO’s directly within Zerodha console. And the best part is that the process is really simple.

Before you apply for an IPO:

Obviously, you’ll need a Zerodha account if you want to apply to IPO’s with Zerodha. If you haven’t opened your account with Zerodha yet, here’s a detailed blog post on how to open your Zerodha Demat and trading account. Else, you can use this direct link to open your account.

Next, you need is a UPI account. And this is nothing new. These days everyone uses UPI to make fast and secure payments. For example, you can use apps like Phonepe, Bhip app, iMobile by ICICI, etc. Here is the link to the UPI apps and banks that allow IPO payment.

Also read: Zerodha Review –Discount Broker in India | Brokerage, Trading Platform & More

Steps to apply for an IPO with Zerodha Account:

1. Login to Zerodha Console. Here’s the quick link.

2. On the top menu bar, go to Portfolio → IPO.

3. On this page, you can find the list of the active IPO’s.

1 apply for an IPO with Zerodha Account zerodha console

4. Select the IPO that you wish to apply from the list of active IPOs and click on ‘Place bid’.

5. A pop-up screen will launch with IPO information. Here you can find details like issue date, issue price, market lot, discount (if any), minimum order quantity, etc.

2 apply for an IPO with Zerodha Account ipo details

6. Next, enter your UPI id. Make sure to select the correct bank account.

3 apply for an IPO with Zerodha Account upi accounts

7. Place your bid by entering the ‘Quantity’ and ‘Bid price’.

For the quantity, it should be minimum order quantity or the multiple of the lot size. For the ‘bid price’ you can enter any price between the offered issue price range. Anyways, for the maximum chances to get an allotment, it is recommended to use the ‘Cut-off’ price.

6 apply for an IPO with Zerodha Account upi mandate

8. After filling the details, click on the ‘checkbox’ stating that you’ve read the prospectus and you’re are an eligible UPI bidder as per the applicable provisions of the SEBI.

9. Finally, recheck the details and click on ‘Submit’.

10. Besides, if you want to make any changes if the bidding later, simply click on ‘Bid details’ on the IPO page and make the changes.

8 apply for an IPO with Zerodha Account delete order

Once submitted, you’ll receive the request to complete the “UPI Mandate” on your UPI app.

Please note that sometimes it may take a few hours to receive the UPI mandate request. Anyways, in my case, it was instantaneous and I received payment request on my imobile ICICI app as soon as I submitted the application on the Zerodha Console. Accept the request once you receive it to complete the process.

6 apply for an IPO with Zerodha Account upi mandate

On accepting the payment request, your UPI app will block the IPO funds in your bank account till the date of allotment. You’ll receive an SMS from exchange once your application is placed successfully.

If you’re allotted the IPO shares, the amount will get debited from your account and shares will be credited in your demat account. On the contrary, if shares are not allotted, then blocked funds are released on the date of the payment. You can read more about the process of IPO share allotment to retail investors here.

That’s all. This is the exact step-by-step process to apply for an IPO with Zerodha Account.

Closing Thoughts:

Zerodha is continuously innovating to provide a better investing and trading facility to its customer. The procedure to apply for IPO is a lot simpler now. You should definitely check it out. Further, comment below if you face any difficulty in applying for IPO using Zerodha account. Happy Investing!

Fear of Missing Out

What is the Fear of Missing Out and how you can overcome it?

In this article, we will help you to understand the fuel of what triggers your fear of missing out, which is commonly known as FOMO. It has become a popular internet term for teenagers to use these days because according to a recent survey, it has been said that around 6 out of every ten teenagers have been faced with FOMO. It is the feeling of constant depression and anxiety in you that you are being left out from your social groups and even your own family. While others are having an exciting event, you are always being left out or pushed to the corner. 

The term may be new to some people, but it surely is not. FOMO has been happening for a long time now, but since science was not so evolved back then, people commonly mistook it as depression. If you have FOMO or you are suffering from it, then you are at a constant understanding that someone out there has it better than you or doing better than you.  

Especially the fear triggers in this digital age since we always tend to check on each other’s profile to know how we all are doing. And this, in turn, is creating a void or space in us, which is keeping us away from confronting the constant struggles that we are facing due to this hard-hitting mental disorder.

From where FOMO( Fear Of Missing Out) comes?

FOMO is a common phrase that is used by the millennial these days. They might be able to explain the fact of what is happening to them, but most of them lack the intellect to explain how it happens. So here comes and lies the main question. How is FOMO(fear of missing out) affecting your life?

Well, FOMO mainly occurs because the advent of social media has created dawn on time. With the use of the more extensive function of social media, each and every one of us are comparing our lives to the people who are living online.  

Mainly this happens with the top influencers that you see on social media. Sure at the age of eighteen or sixteen, they are making a massive load of cash but what you see on your screen is not what happens in the real stage of life.

fear of missing out

Social media is causing a wave of depression in children or millennials. They are trying to live their life as their’ so-called influencers’ but often end up thinking about how insecure they are. This comes with added symptoms like depression, anxiety, inferiority complex, lack of communicational skills, etc.

FOMO creates a distance of you from the outside world, and this is why the teenagers are always locking themselves up in their bedrooms and weeping over countless things. FOMO can trigger a lot of health issues as well, which in turn can cause these people to binge eat or go without food for the whole two days or more.  

How to overcome FOMO?

When you first started to learn a car, did you rapidly learn how to shift the gears too? Well, the same thing is done here as well. Surely you are suffering from anxiety and depression, maybe even a lot more than others, but you have to take gradual steps so that you can overcome mental disorders such as FOMO (fear of missing out). 

Here are some tips and ideas which you might need to follow if you want to embrace your JOMO (the joy of missing out).

1. Slow down and move at a pace. You need to stop rushing down the things that you do physically and even the items inside your mind. Practice some time out when you are eating, talking, making a pleasant conversation with someone. These days, we are always in a hurry to leave for things, but it inevitably becomes an essential or crucial part of our lives to slow down and enjoy the smallest joys that life has bestowed on us. Set a mental reminder to yourself. You need to feel the things that you are doing every day. Make sure that you are not doing in terms of a chore. Instead, love the things that you are indulging yourself in.

2. Go for the experience and collect the memories in your life. It might feel like a stretch to you, but if you are going for the symbols, then you are wasting the potential years of your experience. If you want to do drugs just because your friends think that it is fresh, learn to say no to them. Instead, pack your bags and ditch your phone and plan a hiking trip with your family or even your best friend. Studies have shown that people who take adventure as a course part of their routine are more likely to rejoice in life.

3. Be willing to say no to things. If you are obsessively stalking your crush’s page on Instagram and finding that he/she is posting pictures with their near-perfect dates, you are going to feel the pangs of depression right inside your heart. This is the prime reason why you have to learn to say no to your mind. Always remember that a sound intention is hard to overcome. Whatever challenge may come to your way, stay determined towards the goal that you have set for yourself. Don’t falter, and you will surely get the results.

4. Do one thing at a time. Yes, you might think that you can overcome the fear of missing out while you are multitasking, but instead, you are putting in a lot of pressure on yourself. You need to focus on one thing at a time to understand the importance of the subject that you are swelling with. Psychologists have said that our mind is like a speeding race car. You might put to any gear, and it will shift the pace. If you want to stop your anxiety due to FOMO, you need to settle down and calm for a bit. 

Also read: How to learn faster- The Feynman Technique!

Can mindfulness help with your FOMO?

fear of missing out

Surely mindfulness can help you to overcome FOMO. Rather than chasing what you cannot have in your life, you need to understand that the best things take time. Pursuing the things that you want in your life will create a false sense of happiness. It will be for a short period of time, but eventually, it will fade away.

To overcome your FOMO, you need to be aware of your surroundings and in the right way. Once you have learned to master your mind, you will eventually find a better cure for yourself.

Also read: What are Mental Models? And Why Should You Care?

Image of Best UPI Apps in India

5 Best UPI Apps in India in 2019 (For Android Users)

With the return of PM Modi 2.0, digital India has continued to make new progress. And UPI payments have played a big role in this movement. In this article, we will discuss the best UPI Apps in India for easy and fast transactions. But, before we start, let’s first understand what exactly is a UPI?

UPI means Unified Payments Interface. UPI payments have taken a substantial march ahead and nowadays, the mobile app store is flooded with new and innovative UPI apps in India. Briefing about UPI, it is an instant real-time payment system developed by NPCI which stands for National Payments Corporation of India which helps in inter-bank transactions by instantly transferring funds between two bank accounts on a mobile or web platform. As of 2019, a total of 142 banks are active on UPI with a monthly volume of over 799.5 million transactions. And, this has resulted in a total transaction value of ₹1.33 trillion as of March 2019 which in increasing day after day.

Because of this advancement in UPI payments, money can now be sent to anyone across the nation within no time.

Anyways, not all apps listed on the play store are equally good for making UPI payments. Many times, the interface of some of these UPI apps in India may be hard to understand initially. Therefore, in this post, we have handpicked the best UPI apps in India that are easiest to use and definitely worth checking out.

Best 5 UPI apps in India:

1. PhonePe – UPI Payments, Recharges & Money Transfer

UPI Apps in India- PhonePe

PhonePe stands first in our list of best UPI apps in India. It is a revolutionary app which made the Indian population start trusting and moreover making online mobile payments. PhonePe not only helps in making UPI payments but users can also recharge, make online bill payments, order food, shop, etc. all in just one app.

PhonePe also provides various offers, rewards, and cash back to its customers. Having one of the simplest interfaces with the safest and fastest online payment experience in India, PhonePe is definitely better than most of the other UPI payment apps or internet banking services.

Google Play Store Rating: 4.5/5 with a total of 33,89,149 reviews

Here’s a direct invite link to download PhonePe.

2. Google Pay (Tez) – A simple and secure payment app

UPI Apps in India- Google pay

Google Pay, formerly known as Tez App, stands second in our list of best UPI apps in India. This app has accumulated a huge customer base in a very small time. And obviously, having a big brand name of ‘Google’ has helped this app to build trust among the new and existing customers.

Using Google Pay, users can send money to friends, pay their bills, shop online, recharge, or pay at the nearby café, etc. through the secure payment by Google.

Another most enjoyable part of using Google Pay is the “Scratch cards”. Whenever the users make a new transaction, they are awarded a gift card in the form of the scratch card. After scratching the card, users can earn a gift in the form of money which directly gets credited into the registered bank account. Anyways, you won’t earn a Scratch card on every transaction as there are a minimum value and number of transactions predefined by the app. However, if you’re lucky, you may get a reward of up to Rs 1 lakh.

Google Play Store Rating: 4.4/5 with a total of 27,76,391 reviews

Here’s a direct invite link to download PhonePe.

3. Paytm – BHIM UPI, Money Transfer & Mobile Recharge

UPI Apps in India - Paytm

Paytm is a quite well-known mobile payments app in India. Along with Paytm Mall, it also offers Paytm Wallet and Paytm UPI (was introduced in the year 2017). In simple words, we can call it a mega store due to the variety of products and services provided by this app.

Paytm users can perform almost each and every activity related to online payments on its app. And that’s why it is certainly the most used payments app and is third in our list of best UPI apps in India.

From making online Payments to buying household items, groceries, IRCTC train ticket booking, bus & flight booking, movie tickets, LIC premium payment, metro card recharge, buying gold, making loan payments, paying e-challans & more, everything can be done on this app.

Google Play Store Rating: 4.5/5 with a total of 61,27,939 reviews

Also Read : 7 Best Mutual Fund Apps for Direct Investment

4. Freecharge – Recharges & Bills, UPI, Mutual Funds

freecharge UPI App

Freecharge is another online payment mobile app in India which provides features like Mobile Recharges, bill payments, sending or receiving money through UPI– after creating BHIM UPI ID & linking the bank account. Moreover, because of its simple interface, everything seems quite easy for making UPI payments.

Besides, Freecharge app also provides the facility to invest in Mutual Funds, making investments with SIPs, booking movies tickets, buying food, shopping, purchasing travel tickets, etc and that too with an additional cashback and discounts.

Google Play Store Rating: 4.1/5 with a total of 11,21,313 reviews

Also Read: 7 Best Stock Market Apps that Makes Stock Research 10x Easier

5. PayZapp – Recharge, Pay Bills & Shop

PayZapp UPI App

HDFC Bank PayZapp is the fifth app in our list of best UPI payment apps in India. It is a complete payment solution giving you the power to pay in just One Click.

PayZapp is used to make online Recharge, Bill Payments, BharatQR Payments, booking travel tickets, Shopping, obtaining movie tickets, buy groceries and more. It supports payment by mVisa QR, MasterPass QR, and Rupay QR and is available to customers of all banks. Overall, PayZapp is convenient, fast and secure UPI payments apps in India and definitely worth checking out.

Google Play Store Rating: 4.0/5 – with a total of 2,82,240 reviews

5 best upi apps in India

Bonus: A few additional UPI apps in India

  • MobiKwik – Recharge, Bill Payment, Instant Loan, UPI, Insurance

    Google Play Store Rating: 4.4
    With a total of 12,03,032 reviews

  • BHIM SBI Pay: UPI, Recharges, Bill Payments, Food

    Google Play Store Rating: 4.4
    With a total of 2,63,337 reviews

  • Kotak – 811 & Mobile Banking

    Google Play Store Rating: 4.4
    With a total of 4,58,209 reviews

  • Pockets ICICI -UPI, Wallet, Bharat QR

    Google Play Store Rating: 4.1
    With a total of 1,47,135 reviews

  • JioMoney Wallet

    Google Play Store Rating: 4.3
    With a total of 1,86,001 reviews

That’s all for this post. Let us know which one is your favorite UPI payment app in India in the comment section below. Cheers!

Primary and Secondary market

Primary Market and Secondary Market – How do they work?

Stock markets are an important component of the financial system. It is a powerful tool that works like an auction for the exchange of capital/credit and has two autonomous and indivisible segments: Primary Market and Secondary Market.

In financial words, Stock Markets can also be defined as a procedure that permits people to trade in stocks and bonds, commodities, etc. which facilitates: 

  • Issue of new shares ( IPO)
  • Raising of capital ( IPO, Bonds)
  • Transfer of risk (Derivative market)
  • Transfer of liquidity (Money markets) 
  • International trade (Currency markets)

In this article, we are going to discuss the primary and secondary market in order to under how stock market exactly works. Let’s get started.

1. Primary Market

The primary market is a market for new issues i.e. Market for fresh capital. It provides a sale for new securities. The primary market provides an opportunity to issuers of securities like government and corporations to raise resources to meet requirements of investment or, discharge some obligation.

The corporate entities mainly issue debt and equity instruments (shares, debentures) while the governments issue debt securities (treasury bills). The issues might be released at face value or, at a discount/ premium which later molds into various forms such as equity, debt, etc. However, these issues can be released in both domestic or, international markets.

The primary market issuance is either done through public issues or, private placement. When an insurance of securities is made to new investors for becoming part of shareholders’ family, it is called a public issue. The public issue can be further classified into:

Public Issue:

Initial Public Offering (IPO):

IPO takes place when an unlisted company makes either a fresh issue of securities. This flags off an avenue for listing and trading of the securities issued in the stock exchanges.

— Follow-on Public Offering (FPO):

An FPO takes place when an already listed company makes either a fresh issue of securities to the public or an offer for sale to the public, through an offer document.

Also Read: What is Nifty and Sensex? Stock Market Basics (For Beginners).

Private Placement

When an issuer makes an issue of securities to a specific group of persons where the number of members should not be more than  49, it is called a private placement. However, it is neither a rights issue nor a public issue. Private Placement of shares by a listed issuer can be of two types:

— Preferential Allotment

When a listed issuer issues shares or convertible securities, to a selected group of persons in terms of provisions by a regulatory body, it is called a preferential allotment. The issuer is needed to adhere with diversified provisions which include disclosures, pricing, lock-in, etc. 

— Qualified Institutional Placement (QIP)

When a listed issuer issues equity shares or, securities convertible into equity shares to Qualified Institutions Buyers only in terms of provisions of the regulatory body, it is known as Qualified Institutions Placement.

2. Secondary Market

The secondary market allows participants who clasp securities to acclimatize their holdings according to the changes in their evaluation of risks and returns. Once the new securities are issued in the primary market, they are traded in the stock ( secondary ) market up and onwards from the listing day. The listing of stock enables liquidity and earning of reputation.

The secondary market operates through two channels and they are Over-The-Counter (OTC) Market and the Exchange-Traded market.

OTC markets are informal in nature where the execution of trades has a negotiable option. Most of the government securities are in the OTC Market. In addition, all the spot trades where securities are traded for immediate delivery and payment also take place in the OTC market.

The other option is to trade using the infrastructure provided by the Stock Exchanges where financial instruments are dealt with in money transactions. The four important participants of the securities market are the investors, issuers, intermediaries, and regulators. 

  1. Investors can be broadly classified into retail investors (HNI, minuscule investors) and institutional investors (banks, insurance, mutual funds, FII, etc).
  2. Issuers include governments,corporate,financial institutions, etcetera.
  3. Intermediaries include stock exchanges, stockbrokers, depository, custodians, merchant bankers, FII, mutual fund houses, debenture trustees, etc.
  4. Regulators include Central Banks.

The top two stock exchanges of India are Bombay Stock Exchange and National Stock Exchange.

Components of the Secondary Market:

The securities market is classified into the following markets and further different types of instruments are traded in these markets.

1. Cash /Equity Markets:

The equity segment allows dealing in shares, debentures, warrants, mutual funds, ETFs. 

2. Equity Derivatives Market:

The derivatives segment allows trading in derivative instruments. It is a product whose value is derived from the value of one or more basic variables and is called bases ( underlying asset, index). The underlying asset can be equity, forex, commodity or, any other asset. There are two types of derivatives instruments (futures & options).

3. Debt Market:

The debt market consists of bond markets that provide financing through the issuance of bonds.

4. Corporate Bond Market:

Bonds issued by firms are Corporate bonds and are issued to meet needs for expansion, modernization, restructuring operations, mergers, and acquisitions.

5. Forex Market:

The foreign exchange market( currency, forex, or FX) is where currency trading takes place. Currently, the Forex market is one of the largest and most liquid financial markets in the world and includes trading between large banks, central banks, currency, speculators, corporations, governments, and other financial institutions.

6. Commodity Derivatives Market:

Commodity markets enable the exchange of raw or, primary products. Raw commodities are traded on standardized commodities exchange in which they are purchased and sold in well –defined contracts. The trading in gold, silver and agricultural goods are also facilitated under this market.

Bottom line:

By now you must have got the idea of the primary market and secondary market. Let’s conclude what we discussed in this article.

The primary market, also known as New Issue Market (NIM), is the market place where new shares are issued and the public buys shares directly from the company, usually through an IPO or FPO.

On the other hand, the Secondary Market is the place where formerly issued securities are traded. The second market involves indirect purchasing and selling of shares among investors. Brokers are Intermediary and the investors/traders get the amount on the sale of shares.

That’s all for this post. I hope it was useful for you. Happy Investing.

list of 10 largest stock exchange's image

10 Largest Stock Exchanges in the World

People who invest in stock must be familiar with the New York Stock Exchange which is top of the list of Largest Stock Exchanges in the world. Before we start this post, let us brief a bit about what the stock exchange is.

A Stock Exchange is an organization that anchor formulated market for dealing in securities, derivatives, commodities, and other financial equipment. It is one of the powerful ingredients of the financial market. Here, buyers and sellers club together to carry out transactions. And, securities are bought and sold out according to clear-cut rules and regulations.

Stock exchange furnishes the required edifice and framework to the brokers and members who deal with asset classes. It also governs the transaction activities to certify free and fair trade. The most engaging aspect is that the Stock exchanges are also deemed as the financial measures of an economy where the industrial development and firmness is mirrored in the index. Here is the list of the ten largest Stock Exchange in the world.

10 Largest Stock Exchanges in the World

1) New York Stock Exchange:

New York Stock Exchange's image

The New York Stock Exchange (NYSE) is first on the list of the largest stock exchange in the world and is a highly esteemed stock exchange in the USA which is situated at 11, Wall Street, New York City. It was established on May 17, 1792, and consists of 2,400 listed companies. It is the world’s largest stock exchange and has a market capitalization of US$ 30.1 trillion.

Back to the back of mergers has aided the New York Stock Exchange to gain its colossal size and global footprint. The blue-chip companies which are listed under NYSE are Berkshire Hathaway Inc, Coca-Cola, Walt Disney Company, Mc Donald’s Corporation, etc.

 2) NASDAQ:

nasdaq exchange

Second on the list of largest stock exchange in the world is NASDAQ which was primarily an abbreviation and stage for the National Association of Securities Dealers Automated Quotations. It is an American stock exchange and is headquartered at 151 W, 42nd Street, New York City.

The NASDAQ commenced its business on February 8, 1971, and is sighted as the world’s first electronically traded stock market. NASDAQ has a combined market capitalization of $10.8 trillion and is ranked second in the list of largest stock exchanges.  It consists of more than 3,000 stocks listed under it and comprises of the world’s humongous tech giants such as Apple, Microsoft, Google, Facebook, Amazon, Tesla, and Intel. 

Also Read: 31 Hand-Picked Best Quotes on Investing: Buffett, Munger, Graham & More.

3 )Tokyo Stock Exchange:

The Tokyo Stock Exchange (TSE) which is also known as Tōshō is located in TokyoJapan. It was validated on May 15, 1878, and is also the third-largest stock exchange in the world.

TSE  has close to 3,500 listed companies with a syndicated market capitalization surpassing the US$ 5.67 trillion. The TSE’s metric indicator is Nikkei 225 and it is home to some of the voluminous  Japanese giants with international exposure, including Toyota, Suzuki, Honda, and Mitsubishi and Sony. 

4) Shanghai Stock Exchange:

The Shanghai Stock Exchange (SSE) is located in the city of ShanghaiChina and is one of the two stock exchanges plying autonomously in the People’s Republic of China. Although its foundation traces back to 1866, it was adjourned after the Chinese Revolution in 1949. However, The Shanghai Exchange in its contemporary outlook was laid down in 1990.

Currently, Shanghai SSE is the world’s fourth-largest stock exchange with a combined market capitalization f  US$ 5.01 trillion. The most interesting fact is that the absolute market cap of the SSE is constructed out of formerly state-run insurance companies  & commercial banks. 

5)Honk Kong Stock Exchange:

The  Hong Kong Stock Exchange (SEHK)  is located in Hong Kong and is the world’s fifth-largest stock exchange on the basis of market capitalization.  It consists of 2,315 listed companies with a wholesome market capitalization of HK$29.9 trillion.

Its origin can be traced back to the mid-1800s and since then it has gone through a series of mergers and agglomeration with other exchanges. Some of the gigantic and eminent companies listed under the Hong Kong Stock Exchange are China Mobile, and HSBC Holdings & Petro China.

Also Read: Top 10 Stock Market Movies to Watch for Finance Geeks

6)London Stock Exchange:

london stock exchange image

The London Stock Exchange (LSE) is based in London and is the sixth-largest stock exchange in the world. It was established in 1571 and is the oldest stock exchange in the world.  It has more than 3,000 listed companies with a combined market capitalization of $4.59 trillion.

LSE is also the maiden source of benchmark prices, equity-market liquidity and market data in Europe. Some of the massive companies listed under the LSE are Barclays, British Petroleum and GlaxoSmithKline.

7)EURONEXT:

The Word EURONEXT is an acronym for European New Exchange Technology and has its corporate address at La Défense in Greater Paris. EURONEXT was established in 2000 by the consolidation of the exchanges in Amsterdam, Paris, and Brussels.

Over the years, it amalgamated with multiple exchanges, most particularly the New York Stock Exchange. It steers financial markets in Amsterdam, London, Brussels, Lisbon, Oslo, Dublin,  and Paris. It has around 1,500 listed companies leading to a market capitalization worth €4.1 trillion. EURONEXT provided the segments which are equities, warrants, exchange-traded, bonds, commodities, funds and certificates, derivatives, indices, and foreign exchange trading platform.

8)Shenzen Stock Exchange:

The Shenzhen Stock Exchange (SZSE) is oriented in the city of ShenzhenChina and was founded on  December 1, 1990. It is the 8th largest stock exchange in the world and has approximately 1,300 listed companies with a combined market capitalization of $3.92 trillion.

Most of the companies under this SZSE are corporate firms of companies in which the Government Of China has a controlling interest. The Shenzhen Stock Exchange had introduced the “ChiNext Board” in 2009 comprising of high-tech & high-growth startups, quite similar to NASDAQ.

9) TORONTO STOCK EXCHANGE:

The Toronto Stock Exchange (TSX) is situated in Toronto, Canada. It was introduced in 1852 and is held and wielded as a subsidiary of the TMX Group. It is the ninth-largest exchange in the world and has 2,207 listed companies with a combined market capitalization of $2.3 trillion.

The financial instruments include equities, investment trusts, exchange-traded funds, bonds, commodities, futures, options, and other products. It is also to be noted that mining and oil and gas companies are listed in more numbers under the Toronto Stock Exchange compared to other stock exchanges around the world.

10) BOMBAY STOCK EXCHANGE:

The Bombay Stock Exchange  (BSE) is an Indian stock exchange located at the high-wheeled Dalal Street in  Mumbai. It was established in 1875 and is Asia’s first-ever stock exchange. It is also the world’s 10th largest stock exchange with a total market capitalization of more than $2.2 trillion.

The BSE has approximately 5,000 listed companies and has assisted in the growth of the country’s corporate sector and financial markets. Securities listed under BSE comprises of stocks,  futures, options, index futures, index options, and weekly options. However, the BSE’s benchmark is measured by the Sensex which nearly covers all the sectors of the Indian economy.

Also read: A Complete List of Stock Exchanges in India

How much does a wedding cost in India?

How much does a Wedding cost in India? (For Average Indians)

Weddings are a dream come true event for most couples. It is the single most awaited occurrence in your life. You want it to be extravagant and lavish to whatever extremes possible and while that is absolutely normal for you to expect, the ever-increasing cost of living and inflation has always been a major factor in the decision making of the entire wedding budget. The wedding cost in India is written in brief below.

The wedding cost in India may vary depending upon vital factors such as:

  • Guest count
  • Number of functions
  • Traditional activities
  • Venue location
  • Food expenses

Today, we will help you understand the various costs that you would have to incur while planning a wedding in India. Right from basic costs up to larger costs, we will try to cover all aspects of a traditional Indian wedding. Since the requirements of every religion differ from one another, the budget will differ too. However, we will give you a stable idea of the expenses incurred in a wedding for average Indians in Pune

We pick Pune since it is a metro area and expenses are higher in such areas. Remember, it is always better to assume an upper limit rather than a lower one so that when you save money from your budget, you feel ecstatic.

1. Venue:

A wedding venue can cost anywhere from thousands to lakhs and some even crores of rupees! But for an average Indian, the wedding venue must be one of the most time and resource-intensive decisions he has to take for wedding planning. In Pune, an average wedding venue for around 1000-1500 people should cost you anywhere around INR  1,00,000 to INR 3,00,000. This may be subject to change depending upon the number of guests, the location of the venue and the extravagance of it as well.

2. Decoration:

A big business in the wedding industry is the venue decoration business. A mediocre wedding decoration set up (depending upon the venue size) can cost you anywhere between INR 70,000 up to INR 30,00,000. However, for average Indians, this cost can be approximately INR 1,50,000 for a simple yet elegant venue set up with flowers and other attractive accessories.

3. Catering:

Catering is one of the major wedding costs in India and goes complimentary with the venue location decision. Like we Indians always say, “no one will remember anything about a wedding but the food!” So it is always good to research your options well before you go for any particular caterer. Again the costs will vary from vegetarian to non-vegetarian options. A vegetarian plate should cost you around INR 600 per plate and a non-vegetarian plate should cost you around INR 1,000 per plate or more.

4. Bridal/Grooms Attire:

A bride has a thousand expectations for the ideal wedding attire. Her lehenga will cost her anything between INR 25,000 to INR 1, 00, 000. An average Indian girl shall have to bear a cost of INR 40, 000 for the ideal lehenga along with the jewelry that goes with it for around INR 30, 000 extra. If gold jewelry is in the picture, for every tola of gold that you wear, INR 40, 000 shall increase in your list. Make up for the bride can cost INR 15,000 for basic bridal makeup and hairdo. Various bridal dresses from the Haldi, sangeet, and wedding and up to the reception could cost around INR 1, 00, 000.

Similarly, a groom’s sherwani would cost INR 40,000 (averagely priced) along with his other attire requirements such as juttis, turban, etc. 

indian wedding cost

5. Wedding Invitations:

Again,  planning the wedding cost in India is incomplete without a good and attractive wedding invitation card. A wedding invitation card will cost you anywhere between INR 50 – 100 per card. If you want to for more graphically created content, the cost may go up by thousands per card. So depending upon the number of invitees and your choice of content, the cost of your invitation cards can be decided.

6. Photography and Videography:

Photography and videography are extremely important for any wedding. When you look back at your wedding, there are tons of precious memories captured through these photos and video creations. Thus, employing a good photographer will cost you around INR 40, 000 per day and videographer will cost you around INR 50, 000 per day.

Go for a packaged deal of photo and videography as a bundle. You will definitely save more money by doing this and you will also get both the facilities from one vendor.

7. Accommodation:

Accommodation for guests traveling from outside locations (most weddings have at least some guests coming from outside) can be an added expense for a wedding. This can range from INR 1,000 per room on a twin or triple sharing basis and upwards to any amount depending upon the budget. Based on the number of guests and the number of rooms required, this cost will add up to your final wedding expense list.

8. Miscellaneous expenses:

A dozen things pop up out of the blue when the wedding cost in India is ongoing. Therefore it is important for families to keep a small amount of money aside for the same. Last-minute supplies, transportation costs of paying drivers, caterers, etc., or something that you have forgotten to add initially can be covered under this allowance. Additionally, if a DJ is hired for the Sangeet, his fees should be included however this is just an additional expense whereas others are bound to happen. 

Also read: Renting vs buying a home- Which one is better?

Bottom line:

Here is a rough summary of the different expenses involved in an Indian wedding:

  • Venue: INR  1,00, 000 to INR 3,00,000
  • Decoration: INR 1,50,000 to INR 3,00,000
  • Catering: INR 600- 1,000 Per Plate 
  • Bridal/Groom’s attire: INR 50,000 – 1,00,000
  • Wedding Invitation: Rs 50-100 per card
  • Photography: INR 50,000 per day
  • Accommodation: INR 1,000 per room

Overall, the average wedding in India may cost somewhere between INR 8-10 lakhs, if you are being thrifty. However, this is just an approximation of the wedding cost. Multiple factors will affect your budget and your requirements. Thus, do a thorough check and research extensively for all the above particulars stated in the above list.

Most importantly, do not over-do it. Your wedding should be as per your capability and not to show off to anyone. Be smart and be responsible with your finances. Good luck!

7 Best Mutual Fund Apps for Direct Investment cover

7 Best Mutual Fund Apps for Direct Investment

As we all know that investing in mutual funds is one of the best ways to grow our money in the long term. And thanks to some of the best mutual fund apps in India, tracking, managing and investing in different mutual fund schemes is a lot faster and easier these days. Moreover, you can perform all these activities in just one app.

Whether you are interested to invest in regular funds or direct mutual funds, there are multiple mobile apps for these mutual fund investments in the google play store providing the advantage of buying and selling on the tip of your fingers. Further, if you plan to invest in direct funds through these apps, they can also help you to save an extra commission of 1% to 1.5% which is a huge advantage. 

What are Direct Mutual funds?

Direct vs Regular Mutual Funds Plans: With effect from the very beginning of the year 2013, the SEBI had made it compulsory for all Mutual Fund houses of having two versions of each scheme i.e. Direct plan & Regular (or Indirect plan).

In a Direct plan, you can invest directly in a scheme of a Mutual Fund AMC at a low cost. The direct plans are cheaper than the regular plans because you will be saving costs in terms of paying commission to intermediaries. Looking at both the plans, the difference in returns seems to be as low as 0.25% which can go up to 1%.

In the long-term, these differences result in significant amounts. So, this clearly evident that you should always go for investing in the Direct plans of Mutual Funds. (Have a look at what AMFI says about Direct Plan here)

7 Best mutual fund apps for direct investment:

From hundreds of mutual fund investment apps listed on the play store, we have hand-picked seven of the best mutual fund apps for direct investment. Here is the list of the most competent mutual fund apps for Indian investors:

1. myCAMS Mutual Fund App

myCAMS Mutual-Fund App logo

 

myCAMS is a single gateway to invest in multiple Mutual Funds schemes. The app facilitates faster, easier and smarter ways to transact in the direct funds.

There are various features of myCAMS which include mobile PIN & Pattern login, one view of your MF portfolio, open new folios, purchase, redeem, switch, set up SIP and more. It also helps in scheduling the transaction option which allows investors to set up future Mutual Fund transactions.

Rating on Google Play store: 4.4 out of 5 with a total of 43,253 ratings.

Here is the direct link to the app on play store.

2. KFinKart- Investor Mutual Funds

KFinKart Investor Mutual-Funds app logo

The core objective of this app is to simplify the journey of the customer in mutual funds. It is a one-touch login app that empowers you to invest across a host of mutual funds and provides a new way of investing your money. It also emphasizes on a single view of your investments, manage profile, make decisions and transact instantly without needing multiple apps offered by different fund houses.

This app peculiarity is to make the most of your time and money by linking and tracking your family folios across AMCs, invest in NFOs, transact or reinvest, start or stop SIPs, etc.

Rating on Google Play store: 4.1 out of 5 with a total of 17,918 ratings.

Here is the direct link to the app on play store.

3. Zerodha Coin

Zerodha Coin mutual-fund app logo

As per my opinion, Zerodha coin is one of the best apps to invest in direct mutual funds. They offer investment services in over 3,000 commission-free direct mutual funds across 34 fund houses. This can help in saving up to 1-1.5% more per annum compared to regular mutual funds. With over 1,50,000 investors who have invested over 2500 crores and collectively saved 30+ crores in commissions, Zerodha Coin has already built a big brand and customer base.

Key features of the app include:

  1. Search, filter, and buy from over 3,000 commission-free direct mutual funds across 34 AMC’s.
  2. A single capital gain statement, P&L visualizations, and Annualized (XIRR) and absolute returns.
  3. Mutual funds are held in Demat form, and thus easier to pledge as collateral for loan against securities. 

Rating on Google Play store: 3.9 out of 5 with a total of 2,830 ratings.

Here is the direct link to the app on play store.

Note: You can open your account with Zerodha to invest in direct mutual funds and stocks using this quick link.

4. ETMONEY Mutual Fund App

ET Money mobile app logo

ETMONEY was founded by a group of passionate Entrepreneurs, IITians and Designers with deep expertise in technology, mobile & financial services. Associated with a big brand of Economic times, this Mutual Fund app is a one-stop destination for all things investment which helps to track & manage expenses using expense manager, Invest in Mutual Funds through SIP or Lumpsum, Save tax with SIPs in ELSS mutual funds, etc.

Rating on Google Play store: 4.6 out of 5 with a total of 82,199 ratings.

Here is the direct link to the app on play store.

5. Groww- Mutual Funds App

Groww Mutual-Funds App logo

Groww app is one of the fastest-growing apps in the Indian mutual fund industry. And the credit goes to its clean user-interface. This app helps in investing in mutual funds free of cost and is pretty simple to use with minimum paperwork and no hassles. All mutual funds information are available in just one investment app. Similar to the apps listed above in this article, Groww app also allows everyone to invest in direct mutual funds with zero commission and offers an additional saving up to 1.5%+ compared to regular plans.

Key features include:

  1. Simple design, built with beginners and experts in mind
  2. Dashboard to track all your investments, annualized returns, and total returns
  3. Top mutual funds list for different categories with the latest finance news and insights

Rating on Google Play store: 4.6 out of 5 with a total of 24,189 ratings.

Here is the direct link to the app on play store.

6. PayTM Money Mutual Funds App

PayTM Money Mutual-Funds App logoPaytm Money, offered by the Paytm group, is turning out to be one of the most trusted platforms in India which provide ​up to 1% ​higher returns by investing in Direct Plans of Mutual Fund Schemes with no commissions or any charges on buying and selling of direct mutual fund plans.

It offers many features to the customer which includes fully Transparent Tracking, Data Privacy & Protection, Switch from Regular to Direct Plans, Track, Manage & Automate SIP Investments, etc.

Rating on Google Play store: 4.3 out of 5 with a total of 29,447 ratings.

Here is the direct link to the app on play store.

7. KTrack mobile app by Karvy

KTrack mutual-fund mobile app logo

The primary objective of KTrack mobile app by Karvy is to manage the investments of its customer in mutual funds. This app offers new ways of investing your money. With just one-touch login that powers you to invest across thousands of mutual funds. It provides a single view of your manage profile, investments, make decisions and transact instantly without needing multiple apps.

The app has Enriched UI and many features like One-touch login or Log In through Facebook/Google account, Enriched Navigation, provides Portfolio Dashboard, helps in tracking of your transaction, NAV Tracker, etc.

Rating on Google Play store: 4.1 out of 5 with a total of 17,918 ratings.

Here is the direct link to the app on play store.

Bonus: Additional Mutual Fund Apps

List of a few other Mutual Fund Apps for Direct Investment:

A few fast-growing startup apps trying to simplify mutual fund investment worth checking out:

  • Scripbox: 4.3/5 with a total of 2,938 ratings (Playstore)
  • Kuvera: 4.5/5 with a total of 1,580 ratings (Playstore)
  • Sqrrl: 4.3/5 with a total of 1,502 ratings (Playstore)
  • Goalwise: 4.6/5 with a total of 431 ratings (Playstore)

Also read: 7 Best Stock Market Apps that Makes Stock Research 10x Easier.

That’s all for this post. Let us know which one is your favorite mutual fund apps in the comment section below. Happy Investing!

Catching a falling knife stock - Is it worth it cover

Catching a falling knife stock - Is it worth it?

The stock market is filled with all kind of people. Some prefer investing in fast-growing companies while there are others who prefer investing in high dividend-paying stocks. There are also value investor who favors investing in discounted companies. And then comes the daredevil bargain hunters who are eager to invest in falling knife stocks.

In this post, we are going to discuss what exactly are falling knife stocks and why it is dangerous to invest in these type of stocks. We’ll also look into a few strategies that investors can use while trying to catch a falling knife stock.

What are falling knife stocks?

The falling knife is that category of stocks which has undergone a rapid decline in share price in a short amount of time. Here, the term ‘falling knife’ is used as a metaphor for the rapidly declining share price of the company.

Now, by definition, there is so specific ‘magnitude of drop’ or ‘duration’ to define these falling knife stock category. The stock which may fall +50% in a month or +80% in six months, both can be considered in the category of falling knife stocks.

In the investing world, it is always suggested that “Do not try to catch a falling knife!”, especially if you’re a beginner. Anyways, the investors should proceed with great caution if they are interested to invest in these kinds of stocks. In general, these stocks are extremely dangerous and may result in a severe loss if the investor enters at the wrong time.

Note: Even in real-world, trying to catch a falling knife is extremely dangerous and can easily hurt your hand. A thumb rule here is to wait for the knife to fall on the ground and then pick it up. Similarly, if you are planning to invest in a falling knife stock, wait until the prices drop at a significantly lower price with a huge margin of safety.

falling knife example

A few recent examples of falling knife stocks in the Indian market

— Yes Bank: The stocks of Yes Bank has declined over 85% in the time duration between August 2018 to September 2019.

manpasand beverages share price sept 2019

— Manpasan Beverages: The stocks of Manpasand Beverages has declined over 95% in the time duration between May 2018 to September 2019.

yes bank share price sept 2019

— DHFL: The stocks of Deewan Housing Finance Corporate Limited has fallen over 90% in the time duration between September 2018 to September 2019.

dhfl share price sept 2019

If you have already tried catching these falling knives stocks during their downward journey, your portfolio would have been severely hurt by now. However, can these stock rebound and give massive returns to the investor who are planning to enter at this price? The answer to this question requires a lot more comprehensive study than just looking at their share price.

How falling knife stocks work?

The journey of falling knife category stocks is pretty straightforward. Initially, the negative news regarding a company can result in the decline of the share price. However, when the situation continues to degrade, it results in a market panic and subsequent fall in the prices. During such cases, there are two possible outcomes:

  • In a few cases, the share prices may rebound if there is positive news or the company is able to control the damage in the near future. Such scenarios can be extremely profitable for the investors who bought the stock at the discounted price before they bounced back.
  • However, in most cases, the investors may face severe loss even if they bought the stock at a discounted price if the company’s performance continued to weaken. In the worst-case scenario, if the company goes for bankruptcy, the investors may have to lose most of their investments.

Overall, picking such stocks at the near bottom can result in a massive gain. However, entering these companies at the wrong time may lead to a disaster. There are cases when these stocks never rebounded to the original price for decades since they started falling.

Reasons for the Company’s Price to fall:

There can multiple reasons for the company’s share price to decline. Here are a few of the top reasons:

  • A significant decline in revenue and profits for a continued time period.
  • Negative reports and the company continuously missing the market estimates/targets.
  • Deterioration of the company’s fundamentals
  • Discovery of malpractice by the company, fraud charges by SEBI or lawsuits
  • Changes in the management like the resignation of top managers, promoters, etc

Here, if the decline in the price is due to temporary reasons, the long term investor should continue to hold the stock or even buy more. However, if the reason is because of the change in the company’s fundamentals, it’s time to exit, even if you have to book a loss.

Also read: Why is a VALUE TRAP? The Bargain Hunter Dilemma!

Why investors are so much interested in catching falling knife stocks?

Many people find investing in falling knife stocks fascinating because of the following reasons:

  • As the share price of these companies has fallen significantly, they appear to be undervalued. Most investors consider these stocks as an excellent opportunity to purchase the stock before it rebounds to make handsome capital appreciation.
  • People anchor the current price of the company with its original price before it started falling and hence believe them as cheap. However, while anchoring the price, they do not give enough importance to recent events which resulted in the decline of prices.

Anyways, an investor should only buy these stocks if they have fundamental reasons backing the company, not just because the price has fallen significantly.

Also read: 11 Must-Know Catalysts That Can Move The Share Price.

A few points to consider which catching a falling knife stock:

If you are planning to invest in a falling knife stock category, here are a few points that may help you to analyze the situation better and avoid loss:

— Start with analyzing your own behavior: Are you planning to enter that stock because you’re anchoring its current price with its past prices, based on some predictions, or just to gamble.

— Say ‘no’ more often: In most of the falling knife cases, the stock is not profitable to the investors for sustained longer period of time. Although such stocks may seem like a great opportunity, try to say ‘no’ to the stock as much as possible. The more frequently you say ‘no’, the more time you’ll get to study the company and evaluate it better.

— Understand the situation: Read about the recent and past happenings and analyze whether the problem is temporary or structural.

— Do not buy stock on the first decline: There’s a famous Cockroach theory which says that if you find one cockroach in your kitchen, there are more cockroaches likely to be discovered. Similarly, if there’s a piece of bad news related to the company, more is yet to be revealed. Usually, after the first decline, there are more troubles ahead for the company. Therefore, as a thumb rule, do not jump into the stock on the first decline.

— Know the worst-case: Knowing the worst-case scenario can make you prepare for it. Before entering the stock, know how much risk can you handle. Will you be comfortable if your investment value in that stock falls below 70%? What is the risk vs reward for your investment?

— Be pessimistic: While calculating the intrinsic value of the stock, always be pessimistic and take conservative values while estimating the growth rate and estimating the future cash-flows.

— Always have a margin of safety: As these stocks have a higher risk, always have a bigger margin of safety while investing in these companies. For example, if the fair calculated intrinsic value turns out Rs 100, then give yourself a margin of safety of 40% and invest only when the price goes below Rs 60. The higher the margin of safety, the lower will be the risk.

— Diversify — Yes, you want to make big returns and the falling knife stocks seem to have the potential to give higher capital appreciation. However, if because of any reason, let’s say that your study is wrong or the stock didn’t perform the way you supposed it is going to, then you will face critical damage. Therefore, do not put all your money in a single stock, but diversify.

Also read: 5 Psychology Traps that Investors Need to Avoid

Closing Thoughts:

A falling knife stock category may represent a high opportunity, but they also have a higher potential to hurt the investor’s portfolio.

For newbie’s, it’s difficult to judge whether the stock is a value stock or value trap. If you are a beginner and not experienced in judging companies, I would suggest to simply ignore these stocks and try to find fundamentally strong companies.

For experienced investors, if you are planning to purchase them, then know what you’re getting into. Analyze the reward that you may receive by investing in these stocks, but also have the heart to see your investments going down and not making any gains for a long time. You should not expect the stock to bounce bank the very next day or even a month or so when you enter.

Zerodha Review –Discount Broker in India | Brokerage, Trading Platform & More

Zerodha Review –Discount Broker in India | Brokerage, Trading Platform & More

Zerodha Review– Brokerage, Trading Platform & More (Updated Sept 2019)

Zerodha is the biggest discount broker in India and perfect for traders & investors looking for low brokerage, easy interface, and reliable trading platform.

Zerodha offers a zero brokerage for delivery equity & direct mutual fund investments. For all intraday, F&O, currency, and commodity trades across NSE, BSE, MCX, it offers a brokerage of Flat ₹20 irrespective of the trading volume. Therefore, you can save a lot of brokerage charges on your trades using Zerodha as your broker.

In this Zerodha review, we will discuss the brokerage charges, account opening charges, maintenance charges, trading platforms, products, my personal experience of using Zerodha & more. Here are the contents that we’ll cover in this post:

Table of Content

  1. Introduction
  2. Zerodha Brokerage Charges
  3. Zerodha Account Opening Charges & AMC
  4. Zerodha Products & Features
  5. Pros and cons of Zerodha Discount broker
  6. My experience of using Zerodha
  7. How to open your trading & demat account with Zerodha?
  8. Closing Thoughts 

By the end of this post, you’ll have a complete understanding of Zerodha trading services and whether this broker is right for you or not. Let’s get started.

Quick Start: Click here to open your account with Zerodha!

Zerodha Review –Brokerage, Trading Platform & More

1. Introduction

There are two types of stock brokers in India. Full-Service brokers and Discount brokers. The full-service brokers offer a trading platform along with advisory. However, their brokerage charges are high. A few major full-service brokers in India are HDFC Securities, ICICI Direct, Motilal Oswal, etc.

On the other hand, discount brokers offer trading platforms with minimum brokerage charges. Nonetheless, they do not provide advisory services. The biggest advantage of a discount broker is that it saves a lot of brokerages for the traders/investors. On all other prospects, like performance, computerized trading systems etc- both offer similar facilities.

An important point to know here is that all the brokers- Full service or discount brokers are licensed and regulated in India by regulating bodies like SEBI.

Zerodha is a leading discount broker in India in terms of daily trading volume, growth and customer base. It is one of the most technologically advanced and cheap stockbrokers. Zerodha has over +1 million clients and contributes to over 10% of daily retail trading volumes across NSE, BSE, MCX.

Ironically, the term ‘Zerodha’ is derived from the fusion of an English and Sanskrit word. ‘Zero’+’Rodha’ where ‘Rodha’ means barrier. Overall, Zerodha means ‘Zero Barrier’.

It was started by Nitin Kamath, an Engineer by qualification, in 2010. Nithin bootstrapped and founded Zerodha in 2010 to overcome the hurdles he faced during his decade long stint as a trader. He was named one of the “Top 10 Businessmen to Watch Out for in 2016 in India” by The Economic Times for pioneering and scaling discount broking in India. Here are a few of the famous awards won by Zerodha recently:

— National Stock Exchange (NSE) “Retail brokerage of the year 2019” (& 2018)

— Outlook Money “Retail broker of the year 2017”

— Ernst & Young “Entrepreneur of the year (Startup) 2017”

2. Zerodha Brokerage Charges 

Zerodha offers trading services to buy and sell stocks, futures & options in equities, commodities, and currency segment. Here are the Zerodha brokerage charges:

– Free equity delivery

All your equity delivery investments (NSE, BSE), absolutely free — ₹0 brokerage.

– ₹20 intraday equity and F&O trades

₹20 or 0.01% (whichever is lower) per executed order on intraday trades across equity, currency, and commodity trades across NSE, BSE, and MCX.

Type Brokerage Charges
Equity Delivery Rs. 0 (FREE)
Equity Intraday Lower of Rs. 20 per executed order or 0.01%
Equity Futures Lower of Rs. 20 per executed order or 0.01%
Equity Options Lower of Rs. 20 per executed order or 0.01%
Currency F&O Lower of Rs. 20 per executed order or 0.01%
Commodity Lower of Rs. 20 per executed order or 0.01%

Quick note:

1. You can use this Zerodha Brokerage Calculator to get more idea.

2. Apart from brokerages, there are also a few other charges that you have to pay on your transactions like transaction charge, STT, SEBI turnover charges, Stamp duty, GST, etc. You can have read this blog post to understand the different charges while trading in stocks.

3. Zerodha Account Opening Charges & AMC

Here are the account opening charges for Zerodha

  1. Equity Trading Account: ₹300
  2. Commodity Account:₹200

If you want to trade in both equity and commodity, then you need to pay an account opening charge of Rs 300+Rs 200 = Rs 500. Anyways, if you are just interested in trading in stocks i.e. equities, you can open demat and trading for equity account at Rs 300. The demat account annual maintenance (AMC) charge is Rs 300 per year.

 4. Zerodha Products & Features

 Zerodha has built its own trading applications for the customers. It offers different trading terminals, websites, and mobile apps (Android/iOS) which are free for the customers.

— Kite 3.0

zerodha kite dashboard

Kite 3.0 is a modern technology-based trading platform with streaming market data, advanced charts, an elegant UI, and more. It is a minimalistic, intuitive, responsive, light, yet powerful web and mobile trading application offered by Zerodha. Kite provides Bandwidth consumption of fewer than 0.5 Kbps for a full market watch, extensive charting with over 100 indicators and 6 chart types, advanced order types like Brackets and cover, millisecond order placements, and more.

Overall, Kite provides an excellent experience to the users through its groundbreaking innovations presented with hassle-free usability.

— Kite mobile

zerodha mobile app

This is a mobile version of KITE for a seamless experience for mobile-users and available in both Android and iOS devices.

— Coin

Zerodha Coin is a platform that lets you buy mutual funds online directly from asset management companies. This platform is absolutely free since August 24, 2018. Here, you can make your investments without any commissions.

With the help of Zerodha Coin, you can have Direct mutual funds in DEMAT form, with the convenience of one portfolio across equity, MF, currency, etc. Moreover, it also provides a Single capital gain statement, P&L visualizations, and more. This Coin by Zerodha has made investments through SIPs really simple and flexible.

Other Partner Products

Apart from the above products, Zerodha also offers a few other partner programs:

  1. Smallcase: This thematic investment platform is powered by Kite Connect APIs. Smallcase helps users to invest in different themes by intelligently providing weighted baskets of stocks in each theme.
  2. Sensibull: This is an options trading platform which offers simplified options trading for new investors by providing powerful trading tools. Sensibull aims to make options trading safe, accessible, and most importantly, profitable for all.

Besides, Zerodha has also started a few educational initiatives to improve financial literacy and increase the participation of the common people in the financial world. Here are a few other products offered by Zerodha

  1. Zerodha Varsity: An educational platform to educate people about investing and trading. Zerodha Varsity offers free modules on Technical analysis, fundamental analysis, futures, options, risk management, trading psychology & more. Recently, Zerodha Varsity also launched its Varsity mobile app.
  2. Trading Q&A: An online forum powered by Zerodha to answer people’s most troublesome investing and trading questions.

 5. Pros and cons of Zerodha Discount broker

Here are a few advantages and disadvantages of using Zerodha trading platforms:

Pros:

  1. Zero Brokerage Charges for Delivery
  2. Flat Charge for Intraday (Rs 20 or 0.01% whichever is lower per executed order for everything else)
  3. Same pricing for across all exchanges
  4. No upfront fee or turnover commitment
  5. Z-Connect, interactive blog, and portal for all your queries
  6. Trading, charting, and analysis, all rolled into one next-generation desktop platform Pi.
  7. Minimalistic, intuitive, responsive web-based trading platform Kite
  8. No minimum balance required to open Zerodha trading account

Cons:

  1. 3-in-1 account (Saving+Demat+Trading) not available.
  2. Online IPO investment not available. Now, Zerodha customers can invest in IPO’s through UPI payment. Read more about Zerodha IPO applying process here.

Note: Zerodha has recently started offering Zerodha IDFC FIRST Bank 3-in-1 account. However, to open a 3in1 account at Zerodha, you need to have an existing account with IDFC FIRST Bank. Accounts can only be opened online. Read more here.

 6. My experience of using Zerodha

It’s been around three years since I’m using Zerodha and I’m satisfied with the trading services provided by Zerodha.

Initially, I started with ICICI direct as my broker, but later I switched to Zerodha when I realized that I was paying way too much brokerages for my trading transactions. I wished I had switched to discount broker earlier as it could have saved me a lot of ‘unnecessary’ brokerages and trading experience is almost similar. Although I still hold both the accounts, I rarely use ICICI direct account to buy stocks now, but rather use Zerodha for making my stock investments.

 7. How to open your trading & demat account with Zerodha?

Opening a demat and trading account with Zerodha is really fast and hassle-free. In fact, if you’ve all the documents, you can open your account and start trading within an hour.

Here are the documents required to open a demat and trading account at Zerodha: PAN CARD, Aadhar Card, 2 Passport size photos, Canceled cheque/ Saving bank account passbook. I will recommend keeping photocopies of all these documents ready before you apply for opening the accounts.

To open your trading & demat account at Zerodha, go to Zerodha website and click on ‘OPEN AN ACCOUNT’. Here is the direct link.

open demat at trading account at 5paisa

Note: You can find the detailed explanation on how to open your demat and trading account at Zerodha here.

8. Closing Thoughts

In the past decade, Zerodha has earned trust and respect among the trading population by providing reliable and technologically advanced trading services. It is definitely the largest discount broker in India. If you are looking to open your brokerage account with a reputable brand which offers low brokerages, and have a fast trading platform, Zerodha is definitely one of the best options.

That’s all for this post. I hope this Zerodha review is useful to you. If you have any additional query regarding Zerodha or if you want to share your review of Zerodha, you can post it in our forum. I’ll be happy to answer your questions. Have a great day!

things to do before you start investing cover-min

7 Things to do Before You Start Investing

So, you’re thinking to start investing. But before you enter, are you prepared? Do you actually meet all the requirements that will make your investment journey smoother? In this post, we’ll discuss seven such things that you should do before you start investing.

1. Build an Emergency Fund

As the name suggests, an emergency fund is money that you put aside for emergencies. It is the money that you can reach out to during your hour of need and pay for those unforeseen and unexpected expenses such loss of a primary job, medical emergency, personal emergencies or even a car breakdown.

As a thumb rule, before you start making investments for your long-term goals, first you should build an emergency fund which should be greater than at least three times your monthly expenses. Keep this money aside in a separate account. You can read more about how to build an emergency fund here.

2. Have a budget & know your cash-flows

If you want to enjoy a healthy financial life, it’s really important to have a balance between your savings and your expenses. Budgeting your monthly finances and knowing your ‘cash’ inflow and outflow can help you plan how much you can afford to invest per month.

A simple profit and loss formula that you can use in your day-to-day life to understand your cash position is ‘Revenue — Expenses = Profit”.

Here, your total revenue (inflow) is the sum of all the income that you make from different sources like your job, business, interests on savings/fixed deposits, dividends, rental income, etc. And your total expenses (outflow) include your rent, groceries, transportation, bills, EMI’s, household expenses, etc.

When you deduct the total expenses from your net revenue, you’ll be able to find out how much you keep per month or year. And after calculating this, you can plan where to allocate this money and how much to invest in different investment options.

Note: If you are struggling with your personal budgeting, one of the easiest strategies that you can use to figure out how much should you save is the 50/20/30 Strategy.

50/20/30 is a really simple and straightforward budgeting strategy that can help you to define how much should you spend on your essential spendings (needs), savings and finally on your preferences (wants and choices). According to 50/20/30 strategy, you should allocate:

  • 50% of your monthly income on ‘Needs’ (like rent, food, etc)
  • 20% of your monthly income on ‘Savings’ (like your retirement fund, investments, etc)
  • And the remaining 30% of your monthly income on your ‘Wants’ (like traveling, dining out, etc)

50-30-20 rule

You can read more about the 50/20/30 budgeting strategy here.

3. Pay down high-interest debt

First of all, please note that not all loans or debts are bad. Here, we are talking about high-interest debts. For example, if you have taken a personal loan, it’s interest rate may vary from 13–18%. Similarly, a credit card company may charge you even higher interest on the outstanding amounts.

It doesn’t make much sense to invest if the profits that you make on your investments are lesser than the interests that you pay on your debts. For example, if your returns are 12% and you’re paying 14% as interest on your previous debt, then overall you’re in a loss. Here, instead of investing, it will be better to use that money to pay back and become debt-free.

Before you start investing, try to minimize or eliminate debt, especially high-interest debts and your credit card debt. These interests can kill your investment profits.

4. Take a health Insurance

When people are in the best of their physical health, an obvious question among them is why should they invest in health insurance? Paying a premium plan for ensuring health may seem an unnecessary expenditure.

However, accidents or health issues may come up anytime unexpectedly which can put a lot of financial and mental pressure. Further, it is a fact that, as you grow older, health issues come along with it. And hence, it is highly necessary to incorporate healthcare planning within the budget of your family financial planning.

Before you start investing, make sure to take health insurance first. Being medically insured can help you avoid facing financial instability in the future and enables you to get the best health treatment.

Also read: 6 Reasons Why You Should Get Health Insurance

5. Define your goals and make plans

One of the most critical things to do before you start investing is to define your investment goals/priorities and making plans to reach them. Here, you need to know why you are investing. It will keep you motivated and ‘on-track’ to achieve your goals.

Now, by definition, an investment goal is a realistic expectation to meet the returns by investing predefined money for a fixed time frame. The keywords to note here are ‘realistic expectations’ and ‘timeframe’.

Before you put your money in any investment options, set your short-term and long term goals and make plans for how you’re gonna achieve them. The goal can be person-specific like planning for children education, retirement fund, buying a new house or even financial independence. Once you’ve set your goal, you can choose the best investment options that can help you reach these goals in your defined time horizon.

Also read:How to Invest in Share Market? A Beginner’s guide

trade smart online discount broker 2

6. Evaluate your risk tolerance profile

Everyone has a different risk tolerance level depending on their age, financial situation, priorities, etc.

If you are young and have a stable job, you might be willing to invest in more unusual ‘high risk, high return’ options. However, as you grow old/retire, you might not have a job or primary source of income and hence you might depend on your retirement fund for meeting your expenses. Here, you may not be willing to take a higher risk and choose safer investment options.

Before investing, you need to define your risk sensitivity i.e. whether you’ve are high, moderate or low-risk tolerance profile.

As different investment options have different degree of risks, you can choose your investment options depending on your profile. For example, if you have a high-risk tolerance, you may invest in stocks, mutual funds, real estate, etc. On the other hand, if risky investments keep you sleepless at nights, better to choose low-risk investment options like fixed deposits, PPF, bonds, etc.

Also read:

7. Understand the investing basics

Don’t dive in deep water if you don’t know swimming basics. Similarly, do not start investing your money, if you do not understand the elementary concepts.

Before starting your investment journey, make sure that you understand what is meant by stocks, bonds, mutual funds, diversification, liquidity, volatility, and other investing basics. Here, you do not need to become a finance geek or an accountant. However, you should have good enough knowledge of the industry to make intelligent decisions.

7 things to do before you start investing

That’s all for this post. I hope it was useful for you. Besides, if you are ready to get an education, here’s an amazing course on stock market investing for beginners that you should check out. Happy Investing.

How to check your credit score?

How to Check Your Credit Score?

In this world of the internet, everything is possible. From paying your gas bills to checking off your loan repayment or even how much credit score you have, everything is near our face and at the palm of our hands. Earlier it was a huge deal to check your credit score because people had to get permission from their respective banks and get the work done. But this is not the case anymore. If you can sit at the comfort of your own home and create an account, you can check your cibil score or credit score if you have a laptop, a desktop and even your mobile phone with an active internet connection.

So why you need to check it?

Lenders are always trying to fish into your credit score. Your credit score matters to you, and even when the time you are obtaining personal or home loan. Your credit score is the primary determinant as to how fast you will get your loan right on time.

Whether you have a credit card or you have opted out for a mortgage, your credit score will follow you everywhere you go. So it becomes practically inevitable for you to escape from the worst which could happen. It is a score that reflects on your credit track record, and the more you make your payments on time, use the better or lesser loan, etc., the better your score will be.

So how can you check your credit score?

If you want to check your credit score, then you have to go through the CIBIL check. You might think that this is yet another complicated term up in your way, well it is not.

CIBIL means Credit Information Bureau India Limited. It is leading credit rating agency which helps to keep track of all your credit transaction and records. It helps to shine a light on your creditworthiness as well.

Due to the presence of CIBIL, the people of India are financially stable now and can check off their credit rates on the online. It has managed to make the financial markets permanent with the knowledge of educating the people to what they want and how they should process their spending. It is because of CIBIL that the financial market is transparent.

And it has sown a structure for the Indian people to rely on so that they can do the best for themselves and make sure that they can manage the risks as well as control their lousy loan from the bank that they are taken their amount in.

Also read: 10 Best Credit Cards in India [With Exploding Benefits]

How do the CIBIL works?

When you want to check your credit score from the online source, then you have to take the help of the CIBIL here. Banks and financial institutions from all around will first get their access through the CIBIL before they grant you any loan.

The CIBIL check which is done is based on the generation of the credit score. It is a three-digit number which works and ranges basically from 300 to 900. If you have a credit score below 300, then it is said that it is inferior. This is when the lenders will often time hesitates before granting you the personal loan. The next thing is if your score is around 900, then it is ideally the best credit score that you can have.

credit score range

(Source: NerdWallet)

Every month, all the banks and the institutions that grant your credit will check off your CIBIL score to understand how they can give you permission for certain things. This, in turn, helps the bank and the employees to judge your credit rating and choose the right applicants for granting the loan amount.

This way, they can get the repayment right off the bat without having to put a second thought to it. If the banks and the financial institutions are checking your credit score, then you need to make sure that your score should be above 700. If it is below that, then most of them won’t avail you to make usage of their service that they have.

Also read: Everything You Need to Know About Your Credit Score.

Steps to check off your credit score

Here are the steps you need to follow if you want to check off your credit score with the help of the CIBIL records. 

  1. You need to initiate the whole process by filing for a form which is present onto the official site of the cibil website. If you have filled up the way, then it will be right for you and easy for you to check off your credit score too.
  2. Now you need to enter your personal details. This is your name, your phone number, your address, etc.
  3. If you want to opt-out for the CIBIL Transunion score or which is also known as the CIR, you have to pay a nominal fee for the same.
  4. Once you have submitted your form, and with the nominal fees, your credit or your CIBIL score will be mailed to you.

For those who have not yet found to work out through the internet life, you can check your credit score with the help of the offline function too. You need to fill in the form of application and then bring in your documents to the official CIBIL office which is located in Mumbai, and your work will be done. It will help you to understand your credit score better.

Now here is some trick you need to know before you apply in for your credit score check through CIBIL. 

  1. Checking CIBIL score is FREE. You will be firstly offered a lot of paid options if you are trying to check off your score. If you want to check your score of once then you can click onto the No thanks option which is located at the bottom.
  2. If you don’t have your account, then you have to make one but If you do have then you can log in using your password and username. For those who are creating their account for the first time, they will be prompted to open an account with a pseudo password. Once you have opened the same, you will be mailed to change your password ASAP.

Note: If you are yet to get a credit card, here is a quick link to check your eligibility and apply for credit cards online.

Check your credit score for good

If you ask me, it is not advised to check your credit score only once because it can fluctuate over time. Check your credit score every quarter or six months. So if you wish to keep an eye on your score, then there is a plan which you can select which is present onto the website. This way, you can save a check on them and help to maintain a good credit score with an overall well impact.

List of 10 Richest Person in India cover picture

Top 10 Richest Person in India in 2019

Top 10 Richest Person in India (Updated: Sept 2019):

India is widely known for its culture and diversity. With a population of around 1.33 Billion, India has set a high standard for itself in the world with its rising economy and annual growth rate. The fields of imports and exports have let India maintain stability in the market over the years.

Stemming from such fruitful opportunities, India is home to many millionaires as well as some billionaires who have put India on the world map as a fast-paced and rapidly progressing nation. These people have not only created a wide window for profitability but they have also helped the nation raise the bar for total GDP growth. They are in the list of richest person in India as well as in the world.

Here, we take a look at the top 10 richest person in India:

1. Mukesh Ambani:

Mukesh Ambani's Image - Richest Person in India

This name needs no introduction in India. Known by everyone, Mukesh Ambani is India’s largest business tycoon with a penchant for constant improvement. Mukesh Ambani stands 1st on the list of Richest person in India. He is the son of Dhirubhai Ambani and Kokilaben Ambani. He is also the Chairman and Managing Director of the Reliance Industries Limited which is one of the Fortune 500 companies in the world.

Mukesh Ambani’s net worth for the year 2019 was estimated around US $50 Billion and has been ranked number 13th on the Forbes World’s Billionaire list. His innovative ideas with regards to the Indian Telecommunications Sector (Reliance Jio Infocomm Limited) along with his other business prospects such as Reliance Industries Limited (Oil and Gas) have helped him attain the highest spot in our list.

2. Azim Premji:

Azim premji's image - Richest Person in India

Second on the list of the Richest Person in India is Azim Premji. He is known as one of the most generous philanthropists in India. He is the founder of Wipro (Western India Products Limited) which is one of the major outsourcing companies in India.

As of 2019, Azim Premji’s net worth is estimated to be around US $22.6 Billion. With the most recent development in their business with Alight Solutions of Illinois whose deal is worth US $1.6 Billion, Wipro has quickly improved its number and credibility over the years.

3. Shiv Nadar:

shiv nadar's image - Richest Person in India

Shiv Nadar comes from a humble background from Tamil Nadu but he has a made a big name for himself being the founder of HCL Technologies.

His net worth for the year 2019 has amounted US $16.4 Billion. HCL Technologies is the 4th largest software provider company in India and thus, it has created a credible name for India in the world market. His education endeavors such as Shiv Nadar University which provides quality education, are his ways to improve the Indian education system.

Also read: Top 10 Companies in India by Market Capitalization.

4. Lakshmi Mittal:

Lakshmi Mittal's image - Richest Person in India

One of the most well-renowned names in the steel industry is the name and fame of Lakshmi Mittal.

With net worth amounting US $13.6 Billion, Lakshmi Mittal has catapulted his company Mittal Steels to the top of the trade along with a profitable merger with Arcelor (France) in the year 2006. Now, ArcelorMittal has now started acquiring businesses that have failed or been bankrupted, in order to improve business prospects for themselves and other companies as well.

5. Uday Kotak:

Uday Kotak's image - Richest Person in India

Another prominent name in the richest Indians list includes the name of Uday Kotak. He is the Managing Director of one of the largest customer banks in India – Kotak Mahindra Bank.

His net worth is valued at US $11.8 Billion with constant mergers for improved profitability. His acquisition of ING Bank’s Indian operations in the year 2014 opened newer horizons for profit-making for the bank and for Uday Kotak himself.

6. Kumar Mangalam Birla and Radhakrishna Damani:

Kumar Mangalam Birla and Radhakrishna Damani's image - Richest Person in India

Although into separate business lines, these two have taken the Indian business world by storm through their profitable mergers and acquisitions over the years.

K M Birla has been with the Aditya Birla group for a while now and his unparalleled business sense has valued his net worth at a whopping US $ 11.1 Billion.

Radhakrishna Damani, the founder of D-Mart stores, has been an active investor in numerous ventures such as VST Industries (tobacco relevant), United Breweries (beer relevant) amongst many others with the same net worth as K M Birla at US $11.1 Billion.

Also Read: D-Mart Founder- RK Damani Success Story [Bio, Facts, Net worth & More]

7. Cyrus Poonawala:

Cyrus-Poonawalla's image - Richest Person in India

One of the most environment friendly philanthropists in India and his company Serum Institute of India is one of the largest creators of vaccines in the world.

His net worth is valued at US $ 9.5 Billion and he ranks No. 7 in our list. His company is known to produce around 1.5 Billion vaccines doses for a number of diseases. His son’s CSR venture, Adar Poonawala Clean City Initiative in Pune, has won a ton of appreciation from various business leaders.

8. Gautam Adani:

Gautam Adani's image - Richest Person in India

Being the chairman of Adani Group, he holds a rightful spot in our richest Indians list.

Gautam Adani has a net worth of US $ 8.7 Billion and his vast empire includes absolute control of one of India’s most vital ports, the Mundra Port along with investments in other fields such as power generation, real estate, the commodities market, etc.

Also Read: 3 Insanely Successful Stock Market Investors in India that you need to Know.

9. Dilip Shangvi:

Richest Person in India - Dilip Sanghvi's image

The pharmaceuticals industry is one of the most profitable in India. Therefore, Dilip Shangvi, founder of Sun Pharmas, deserves a mention in our list. His net worth is US $ 7.6 Billion which contributes to the ownership of India’s most reliable pharmaceutical companies.

10. Nusli Wadia:

Nusli Wadia's image - Richest Person in India

Lastly, the name Nusli Wadia is infamous in India. With him being the Chairman of Wadia Group, his net worth has been estimated to be around US $ 6.4 Billion. His company includes powerful and highly profitable names such as Britannia Industries (FMCG), GoAir (Airlines), amongst others. 

Bonus: Infographic on top 10 richest person in India

10 richest people in India

Feel free to share/embed the above infographic. Just give the credits to Trade Brains. Cheers!! 

80_20 Rule

The 80/20 Rule or the Pareto Principle- How it can change your life?

Have you ever wondered something? That some of your mates or even your business partners do a little and get a lot in return. Well, is that black magic? It might not be because a scientific method which is known as the Pareto’s principle or 80/20 Rule is here to explain the whole deal to you. 

Understanding the knowledge of the 80/20 principle

The 80/20 is sometimes known as the Pareto principle. This was originally an observation made by Vilfredo Pareto that around 80 percent of the world’s wealth is only owned by 20 percent of the population. We are not here to discuss economics right. We are here to decipher the whole trick and help you to prepare for your life scores in the best possible way needed. 

There are some simple tricks that you need to apply to your Life because mugging up won’t do you any good. Living smart is the option right now, and with that comes the need for your presence of mind. Successful people who know how to advance their Lives already have learned the 80/20 rule. It always helps them to prepare life exams and to ace the results later. 

While it does not seem like it is the precisely 80/20 rule which works here, these imbalances are seen in your Life and often in other cases as well.

To this day, the 80/20 rule applies in real Lifelike:

  1. Most of the time, you will see that only 20 percent of the people have the riches of the world, and 80 percent have half of it.  This might seem unfair but it is how it is. 
  2. In your exam time, you can see that students who only study about as little as they want, they will get 80 percent of the marks. The rest of them will attain lower grades.  
  3. In your business analytics, the managers or the workers who only spent less time of their work into the business then they are obtaining 80 percent of the incentives. The 20 percent is attained for the lower part of your motivation.

The 80/20 Rule to advance your Life

You might be wondering what the 80/20 rule is so here we will cover it for you. For instance, living with a limited amount of resources for a day can be hard for you. Under final observation, it is seen that different people have a distinct style of coping, and that is how the whole factor is determined.

Studies have seen that people who have only put 20 percent of their effort have scored above 80 percent of the results toward’s their achieved goals. 

You might be thinking that how it really happens but well, there is a trick to it. Don’t apply if you don’t know the entire rule. The beauty of the 80/20 rule is that it works for you, and it is quite simple to understand as well. Even you can turn around your life in just a single way if you are using this strategy. If your friend is struggling and always finding it hard to cope better with their Life, then you can recommend this to him/her as well.

How does it work?

 

80/20 rule

(Image credits- Buffer)

One of the best mental models that you can get around for yourself is the 80/20 or the Pareto principle. You can basically apply it in your daily life, and it helps you with a lot of things that you want to improve in. Like if you wish to have better learning skills, use this principle to do better. This can also be used by people who want to analyze better ideas for their business and else.

Well, the 80/20 rule is used to improve everything in a well-systematized way.  

If you are a typical analyst of Life, then what do you do? You spend half of the time into sulking the fact that why you are not getting your dream job or doing productive work in a single day. Your version of living Life is wasted onto the thoughts that you put inside it. Pareto’s principle is the mental model you can use.

You need to understand where your focus lies and make sure that it sticks to it. You need to have a core and basic understanding of your surroundings. Here, you cannot dive into the growth of the process. You have to get the pieces together, and only then you can dive into the success of Life. By putting the right type of focus on the work that you do, you will be changing your Life for the best. It will help you to get a charge on your Life.

Using the 80/20 rule for your benefit

Well, according to the Pareto principle, you need to devote a few hours of your time and focus on the thing that you want in your life. 

The rest of the time which you waste should be accounted for a minimum part. It is only for a smaller potent. This does not usually happen to the majority of the people out there. They will take their time to understand and then focus on their Life.  Here is something you can look out for. 

  1. Make sure that you only spend 20 percent of the time in understanding your goal. Understand that the 80 percent is meant for you to persuade it. 
  2. When you are wasting your time, waste only for 20 percent, rest, use it for your source. 
  3. Eighty percent of your time is spent on the mindless hunting of better apps and fiddling with your phone. 
  4. Use the 80 percent of your time into collecting the information you need to change your Life. The best hack lies here.

Prepare for the best 

These preparation strategies are here to improve the potency of your Life and advance the options. Using Pareto’s principle will help you to find the best meaning to Life. Always understand that keeping the priorities ahead of you will help you to land somewhere in Life.

Top 10 Companies in India by Market Capitalization

Top 10 Companies in India by Market Capitalization.

Top 10 Companies in India by Market Capitalization (Updated Sept’19):

As per the International Monetary Fund (IMF), India is the seventh-largest economy in the world in terms of nominal Gross Domestic Product (GDP),  which is valued to be worth US$ 2.308 trillion. This is mainly due to business various Indian companies have been doing in India and overseas. 

Every company operating in India works extremely hard to get better in terms of the quality and customer satisfaction which they provide through its products or services. An organisation is generally evaluated on different parameters such as assets, profits, sales, market value, share price, etc. and is ranked accordingly. However, when we talk about the size of a company, one of the biggest factors to look is its market capitalization.

In this post, we are going to discuss the ten biggest public companies in India based on their latest market capitalization.

What is market capitalization?

Market capitalization is the aggregate valuation of the company based on its current share price and the total number of outstanding stocks. It is calculated by

Market capitalization = (Current market price of 1 share)*(total number of outstanding shares)

It helps to classify the companies in different types like large cap, mid cap, and small cap companies. The companies with a market cap of Rs 29,000 crore or more are large-cap stocks. Company stocks with a market cap between Rs 8,500 crore and 29,000 crores are mid-cap stocks and those less than Rs 8,500 crore market cap are small-cap stocks.

Related post: Basics of Market Capitalization in Indian Stock Market.

Example: 

Just by looking at the share price, you cannot judge the size of a company. For example, here are the share price of two companies from the automobile sector.

  1. Maruti Suzuki – Rs 5987.70
  2. Eicher Motors – Rs 15750.00

Which company is bigger?

If you just look at the share prices, you might think that Eicher motors share price is quite large compared to Maruti Suzuki, and hence, it may be bigger.

However, the total number of outstanding shares of Maruti Suzuki is much large compared to Eicher Motors. Maruti Suzuki have around 30.2 Crore shares while Eicher motors have 2.72 crores shares. Therefore, the market capitalization of Maruti Suzuki is Rs 180,828.54 Crores while the market capitalization of Eicher Motors is Rs 42,840 Crores.

Therefore, Maruti Suzuki is a bigger company compared to Eicher motors.

Top 10 Companies in India by Market Capitalization

Here is the list of the top 10 companies in India by market capitalization:

1. Tata Consultancy Services (TCS)

TCS building

Tata Consultancy Services Limited (TCS) is an Indian multinational information technology (IT) service and consulting company headquartered in Mumbai, Maharashtra, India. It is a subsidiary of Tata Group and operates in 149 locations across 46 countries.

TCS is the largest Indian company by market capitalization. TCS is now placed among the most valuable IT services brands worldwide. The market capitalization value of TCS is Rs. 802466.23 Crores with a current price of Rs.2138.55.

2. Reliance Industries

Reliance Industries Limited

Reliance Industries Limited (RIL) is an Indian multinational company headquartered in Mumbai. The company was co-founded by Dhirubhai Ambani and Champaklal Damani in the 1960s as Reliance Commercial Corporation.

Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications. Reliance is one of the most profitable companies in India. The market capitalization value of RIL is Rs.764308.09 Crores with a current price of Rs.1205.70.

3. HDFC Bank

HDFC Bank

HDFC Bank is an Indian banking and financial services company that was incorporated in 1994, with its registered office in Mumbai, India. Its first corporate office at Sandoz House, Worli was inaugurated by the then Union Finance Minister, Manmohan Singh.

As of  June 2019, it had a base of 1,04,154 permanent employees with 5,130 branches across 2,764 cities. It is India’s largest private sector lender by assets and market capitalization. It has a market capitalization value of Rs.598433.19 Crores with a current price of Rs.2187.75.

4. Hindustan Unilever

Hindustan Unilever
Hindustan Unilever Limited (HUL) was established in 1933. It is a British-Dutch manufacturing company headquartered in Mumbai, India. Its products include foods, beverages, cleaning agents, personal care products, water purifiers, and consumer goods.

As of 2019 Hindustan Unilever portfolio had 35 product brands in 20 categories with 18,000 employees and sales of Rs. 34,619 crores in 2017-18. The market capitalization value of Hindustan Unilever is Rs.395987.42 Crores with a current price of Rs.1829.20.

5. Infosys

Infosys building

Infosys Limited is an Indian multinational corporation that provides business consulting, information technology and outsourcing services.

It is the second-largest Indian IT company after Tata Consultancy Services with its headquarters in Bangalore, Karnataka, India. The market capitalization value of Infosys is Rs.354285.41 Crores with a current price of Rs.829.85.

Quick Tip: If you are new to the share market, you’ll need to open your demat account to start investing/trading. We’ll highly recommend opening an account with Zerodha, No 1 stockbroker in India. Here’s a detailed post on how to open Zerodha account step-by-step. 

6. H D F C

HDFC Limited

Housing Development Finance Corporation Limited (HDFC) is an Indian financial services company founded in 1977 as the first specialized mortgage company in India based in Mumbai. It is a major provider of finance for housing in India.

HDFC also has a presence in banking, life and general insurance, asset management, venture capital, realty, education, deposits, and education loans. The market capitalization value of HDFC is Rs.343110.50 Crores with a current price of Rs.1988.30.

7. ITC

ITC Limited Logo

ITC Limited is an Indian multinational conglomerate company headquartered in Kolkata, India.

It was Established in 1910 as the ‘Imperial Tobacco Company of India Limited’, the company was renamed as the ‘India Tobacco Company Limited’ in 1970 and later to ‘I.T.C. Limited’ in 1974. The dots in the name were removed in September 2001 for the company to be renamed as ‘ITC Limited’. It has a market capitalization value of Rs. 293918.22 crores with current price of Rs.239.25.

8. Kotak Mahindra Bank

Kotak Mahindra Bank

Kotak Mahindra Bank is an Indian private sector bank headquartered in Mumbai, India. Established in 1985  by Uday Kotak.

In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the group’s flagship company, received a banking license from the RBI. It offers banking products and financial services in the areas of personal finance, investment banking, general insurance, life insurance, and wealth management. It is the 2nd largest Indian private sector bank by market capitalization value of Rs. 279739.96 crores with current price of Rs.1464.75.

9. ICICI Bank

ICICI bank building

It is an Indian multinational banking and financial services company headquartered in Mumbai and its registered office in Vadodara, Gujarat. It offers a wide range of banking products and financial services  in the areas of investment banking, life, non-life insurance, venture capital, and asset management.

ICICI Bank has 4867 branches and 14367 ATMs across India and has a presence in 17 countries including India as on March 31, 2018. The market capitalization value of ICICI bank is Rs.257904.55 crores with a current price of Rs.399.35.

10. State Bank of India

State Bank of India

The State Bank of India (SBI) is an Indian multinational, public sector banking and financial services statutory body with its headquarters in Mumbai.

SBI descends from the Bank of Calcutta, founded in 1806, via the Imperial Bank of India which in turn became the SBI in 1955, making it the oldest commercial bank in the Indian subcontinent. It is the largest bank in India with a 23% market share, besides a share of 1/4th of the total loan and deposits market. Market capitalization value of SBI is Rs. 250246.11 crores with a current price of Rs. 280.40.

Also Read :

Summary: Top 10 Companies in India by Market-cap

S. NoCompany NameIndustryLast PriceMarket Cap (In Cr)
1TCSIT/Software company2138.55802466.23
2RelianceRefineries, Oil & Gas1205.7764308.09
3HDFC BankNon-public sector banking2187.75598433.19
4HULConsumer products1829.2395987.42
5InfosysIT/Software company829.85354285.41
6HDFCFinancial company1988.3343110.5
7ITCCigarette, Hotels, Consumer products239.25293918.22
8Kotak Mah. BankPrivate bank1464.75279739.96
9ICICI BankPrivate Bank399.35257904.55
10St Bank of IndiaPublic Sector Bank280.4250246.11

Disclaimer: This data is updated on September 19, 2019. As the stock price changes in the future, the market capitalization will also change. Hence, the list of top 10 companies in India by market capitalization can also change in the future.

Also read: How to Invest in Share Market? A Beginner’s guide

Top 10 Stock Market Movies That Every Investor Should Watch!

Do you want to learn how to make money from the stock market? However, you find college textbooks or investing novels too boring to read? No need to worry. There’s another fun, entertaining, yet educational approach to learn the financial world without going through 800 pages of financial books. Enter stock market movies. 

If you are not an enthusiastic book reader, just try to watch a few amazing movies or documentaries based on the stock market and it will help you understand all about the financial markets. You can learn and explore a lot about stocks just by sitting on your couch and watching these movies on your laptop. 

In this post, we are going to discuss ten must-watch stock market movies that you can watch this weekend to learn finance. 

Top 10 Stock Market Movies:

Here is a snippet from ten best stock market movies which every investor should watch. 

1. The Big Short (2015)The Big Short stock market movie

The big short ranks first in this list of top stock market movies to watch. This movie is based on a non-fiction book written by Micheal Lewis directed by Adam Mckay. It’s an Oscar-winning film in 2015 and 37 other wins.  It depicts a dramatic tale of events that led to the financial crisis. This movie combines goofy comedy with a financial crisis where eight million people lose their jobs and become homeless.

2. Wall street  (1987)

wall street stock market movies

In 1987, Oliver Stone directed this American dramatic film with stars Micheal Doughler, Charlie Sheen and Daryl Hannah. The movie revolves around a young stockbroker involved with the wealthy corporate raider. This film allowed all the financial wheeling and dealing to seem convincing. It gives us an alternative reality about stocks, which may crash down on all of us. The director made this film as a tribute to his father.

3. Trading Places (1983)

Trading places stock market movie

John Landis directed “Trading Places”  with a lead role played by Eddie Murphy.

The movie tells about the ups and downs of Trading in a Comedy genre giving the basics of socio-economics and class structure in America. The movie also depicts many stereotypical views of money.

4. Boiler Room (2000)

Boiler room stock market movie

This movie centers Seth Davis who finds a job as a stockbroker for a suburban investment firm to keep up to his father’s high standards. But the job might not be as legitimate at first appears. He is a college drop out with a serious desire to achieve success and wealth. This movie is directed by Ben Younger, released on 18th February 2000.  

5. Equity (2016)

equity stock market movie

A financial thriller movie directed by Meera Menon. The movie depicts Naomi Bishop, an investment banker, struggling to get on top. She is being watched by a prosecutor who suspects her of being corrupt. So she must untangle a web of corruption in this story while it becomes, even more, worse with a betrayal by a trusted colleague to ruin everything. She faces professional setbacks including client losing confidence.

6. The Wolf of Wall Street (2013)

The Wolf of Wall Street stock market movie

This is my favorite stock market movie of all time. It’s based on a true story of Jordan Belfort who spent 22 months in prison for defrauding investors in massive security scams. It discusses the nature of wall street brokers with a smooth-talking and easy-going Boss. He devises new ways to cover his tracks and watch his fortune grow.

7. Too Big to Fail (2011)

Too Big to Fail

This movie is written by Andrew Ross Sorkin, directed by Curtis Hanson and released in 2011. It’s about how certain corporations particularly financial institutions are so large and so interconnected that if they fail it would be disastrous to the greater economic system. This film also describes a few clips about the mortgage industry crisis.

8. Margin Call (2011)

margincall stock market movie

A thought-provoking dramatic movie directed by J.C.Chandor. It’s a fictional firm and not a real wall street firm. This movie follows people about investment banks over a 24 hour period of time before the 2008 financial crisis. It reveals how large financial institutions operate and the motivations of people who work within them. This was a thirty-five million budget movie nationwide.

9. The Ascent of Money (2008)

ascent of money stock market movie

A Documentary on the financial history of the world. It shows why our modern societies are structured and behave as they do. The history of money, credit, and banking can be depicted in this documentary. It is a six-part TV documentary written by the author Niall Ferguson in 2008 showing why stock markets produce bubbles, bursts, and Globalization of the western economy.

10. Chasing Madoff (2011)

chasing madoff stock market movie

This is a true story based on “No one would listen “ by Harry Markopolos. It’s a nonfiction narrative documentary film written and directed by Jeff Prosserman. He spent 10 years trying to get US Securities and exchange commission on their investigative proof of Bernie Madoff’s Ponzi Scheme which scammed an estimated 18billion including fake returns.

Bonus: Infographic on Top 10 Stock Market Movies

stock market movies

Note: Feel free to share/embed the above infographic. Just give the credits to Trade Brains. 

That’s all for this post. In case, we missed any amazing stock market movie, please comment below. Further, also mention which one is your favorite stock market movie!

Billionaire Carl Icahn- Investment Strategy, Philosophy, Quotes & More-min

Billionaire Carl Icahn: Investment Strategy, Philosophy, Quotes & More

If you’ve been involved in the stock market for quite some time, you must have heard of Carl Icahn. He is a famous American investor and founder and controlling shareholder of Icahn Enterprises. In case you haven’t, don’t worry. In this article, we shall discuss his investing philosophy. So, if you are a newbie in the world of investing, you are surely going to learn something new and informative today.

Apart from being a seasoned investor, Carl Icahn is also an established businessman and a philanthropist. He is the Chairman of Federal-Mogul which is an American developer, supplier, and manufacturer of vehicle safety products and power train components.

During the year 2017, Icahn provided his service to the present US President Donald Trump as a special economic adviser on financial regulation.

He founded his famous Asset Management Company in 1987 named Icahn Enterprises L.P. It is a conglomerate, headquartered at New York, USA. He is having the ultimate controlling power of his company where he owns a 95% stake in the same. The company has invested in diverse industries which include energy, auto parts, metals, casinos, rail cars, real estate, food packaging, and home fashion.

Carl Icahn Investing Philosophy

Let us now understand the investment philosophy of Carl Icahn

As per Mr. Icahn, he is a contrarian investor. He said, “My investment philosophy, generally, with exceptions, is to buy something when no one wants it.”

Carl Icahn looks to invest in those companies with share prices reflecting poor price-to-earnings (P/E) ratios. He hunts for those corporations with stocks having book values exceeding their current market values.

After that, he aggressively invests in the significant portion of equities of those corporations. Consequently, he becomes the largest shareholder of those companies.

Eventually, he calls general meetings to hold elections to form a new Board of Directors or passing the resolution for initiating divestiture of assets to deliver greater value to the shareholders.

Icahn focuses highly on the managerial remuneration. He believes that many top managerial people are highly overpaid and their compensation has little correlation with the equity performance.

You can study Carl Icahn’s portfolio here. From the portfolio of Icahn, we can learn three things about his investing approach.

1. Carl Icahn is more into trading than investing:

An analysis of his portfolio reveals that most of his stocks were bought in the last two years. It is his habit of not keeping stocks in his portfolio for more than one and a half years.

When he invests in a company, he invests to the extent that he becomes the largest stakeholder of the same. So, he gets the authority to call general meetings. He pressurizes such company for using cash or raising a loan to buyback stocks. This results in increasing the stock price in the short run.

Icahn is more concerned with making short term profits and little does he care for the long term viability of the company.

2. He invests in securities with high conviction:

When Icahn invests in a stock, it is highly likely that he has a strong conviction behind the investment. He invests in the equity of a company where he has a gut feeling to earn huge returns.

Icahn purchases stocks of those companies which are poorly managed and not performing profitably. He invests in such companies with the intention to force changes to occur in their operations and management.

He even makes the companies declare big dividend payout to the shareholders if he thinks it will lead to his increase in returns in the long run.

3. Icahn is an activist investor:

He is a frequent stock trader. He majorly invests in equities of the companies with the objective of making changes in those companies. It is an effort he makes to push the price of the stocks.

The management of a company can easily ignore an activist holding a small number of shares in the same. But, if a billionaire investor holds a high percentage of the company, he/she can’t be easily ignored by the company.

Icahn’s investing strategy is simply beyond the reach of individual retail investors. Every investor, whether big or small, should not blindly follow any investor to take any position in a company. But, still, Icahn’s quarterly filing of shareholdings to SEC is certainly worth paying a glance for a few minutes.

Also read: Howard Marks’ Investing Strategies & Lessons

Famous Quotes By Charle Ichan

— Charles Icahn on his investment strategy:

“I look at companies as businesses, while Wall Street analysts look for quarterly earnings performance. I buy assets and potential productivity. Wall Street buys earnings, so they miss a lot of things that I see in certain situations.”

— This is what Icahn has to say on takeovers:

“In takeovers, the metaphor is war. The secret is reserves. You must have reserves stretched way out ahead. You have to know that you could buy the company and not be stretched.”

— Charles Icahn thoughts on ethics:

“I’m happy stockholders benefited. But I’m no Robin Hood. I enjoy making money.”

— Finally, two other remarkable quotes of Charles Icahn:

“I make money. Nothing wrong with that. That’s what I want to do. That’s what I’m here to do. And that’s what I enjoy.”

“CEOs are paid for doing a terrible job. If the system wasn’t so messed up, guys like me wouldn’t make this kind of money.”

quote-some-people-get-rich-studying-artificial-intelligence-me-i-make-money-studying-natural-carl-icahn-87-46-10-min

(Image Credits: Azquotes)

Also read: 31 Hand-Picked Best Quotes on Investing: Buffett, Munger, Graham & More.

Closing Thoughts

In order to be a successful financial investor, an individual needs to be a finance enthusiast first of all. Secondly, he/she needs to study financial markets from various books and also follow the macroeconomic events and global stock markets. Lastly, it is important to study the investment approaches of renowned investors to understand their investing psychology.

Financial Market practitioners majorly advocate value investing to be a successful investor. Of course, it is one of the most successful ways to make wealth but there exist other methods to make money as well.

Carl Icahn is a different type of a stock market investor as compared to the old school value investors like Benjamin Graham and Warren Buffet. Unlike these two gentlemen, Mr. Icahn is more into trading than investing. Carl Icahn also focuses on Corporate Governance of the company whose share he buys. His philosophy is more based on short term profiteering rather than long term value investing.

He is an investor who has let us taste a different flavor of investing. There is no doubt in saying that one can definitely learn a lot as a fresher from the veteran investor.